Trading With CrossOver And BB

[mogembo]

Thanks a lot Scorpio and Lancer. I will definitely do some paper trading before entering the markets.
One issue I have is how to avoid whipsaw ??
One indication of pending whipsaw is that (5,6) crossover happens in the price range of that day's candlestick or in other words pierces the candlestick. Is it correct observation ?? Are there any other indicators ??

 

[lancer]

Thanks a lot Scorpio and Lancer. I will definitely do some paper trading before entering the markets.
One issue I have is how to avoid whipsaw ??
One indication of pending whipsaw is that (5,6) crossover happens in the price range of that day's candlestick or in other words pierces the candlestick. Is it correct observation ?? Are there any other indicators ??

Hi,

As told by Savant, please resort to Stochastics with 5,3,4 settings to get an early signal of any whipsaw. BB (9,2)piercing is also a signal of any reversal of trend. But do confirm that the cross over is complete before entry.

Due to some reason Savant is not very happy with intraday trading in Futures with this system. There could be two reasons; the high risk involved and that he is not fully convinced that it can successfully apply to futures though it has proved good for EQ, NF, BNF due the fact that it may not be humanly possible for many traders on account of physical constraints. Do some paper trading before putting your money at stake.

Wishes,

Lancer.

 

[SavantGarde]

Hi Lancer,

Another One To Keep An Eye On Is RELCAP & TTML....Check For Closest Strike Price CALLs & Futures For These.....TTML Is A Slow Mover But Is Probably Safer.....& On Choppy Days Gives Good Trading Opportunites For The Laid Back.

Happy & Safer Trading

SavantGarde

 

[mogembo]

Hi,

As told by Savant, please resort to Stochastics with 5,3,4 settings to get an early signal of any whipsaw. BB (9,2)piercing is also a signal of any reversal of trend. But do confirm that the cross over is complete before entry.

Due to some reason Savant is not very happy with intraday trading in Futures with this system. There could be two reasons; the high risk involved and that he is not fully convinced that it can successfully apply to futures though it has proved good for EQ, NF, BNF due the fact that it may not be humanly possible for many traders on account of physical constraints. Do some paper trading before putting your money at stake.

Wishes,

Lancer.

Correct me if I am wrong.
Here Stochastic (5,3,4) means : %K=5, %D=3 and which value is 4 ???

 

[arti]

Hi Savant,

When a stock is less volatile,BB squeezes isnt it? Now the stock can go anyside up or down.By using other indicators can we judge which direction the volatility will be?Or we should wait for the burst to get the direction?
Thanks,
Arti

 

[arti]

Hi Savant,

One more doubt. for any stock,if using 5/6 SMA,its showing lot of whipsaws on chart,ex: -one day 5 SMA is above 6 giving bullish,then next day(as i see EOD data) 5SMA is below 6 and this thing is repeated 2-3 times, how to judge this scenario.

Thanks,
Arti

 

[asnavale]

Hi Anant,

Thanks A Ton For The Charts, It Is Much More Clearer Looking At Different Scrips At The Same Time.

Yes.... I See Your Point, Just Thinking Aloud, What If Index Closes Above 20-EMA Thereafter, If The Stocks Have Been Better Behaved With 20-EMA.

Like I Said, Just Thinking Aloud.....


Warmest Regards

SavantGarde

Hi Savant,

After you mentioned about using a single moving average for signals, I was working on that idea. I have formulated one strategy which is based on a single simple moving average.. There are, no doubt, a few whipsaws. But it appears promising. I have attached a screen shot of SESAGOA. In the chart, the 5-day SMA is shown with light blue color. The signal line is a step type line in white color. When the steps start climbing up it is buy signal and when steps atart down it is sell signal. the previous step can be taken as trailing stop loss. I have marked a few BUY and SELL points. Please go through and comment on it.

Regards

-Anant

 

[SavantGarde]

Hi Anant,

Unable To See The Chart.....Can You Check On It Because All I See Is A Little Box With 'X' In It....

If You Say It Looks Promising.....Then It Is A Must See....

Happy & Safer Investing

SavantGarde

 

[SavantGarde]

Hi Anant,

Please Disregard Earlier Post, I Am Able To See The Chart

Happy & Safer Investing

SavantGarde

 

[SavantGarde]

Hi Anant,

Wow ! It Does Look Promising As You Put It & White Steps Reminds Me A Bit Of Darvas Box....Though Darvas Box Has Overlaps With Adjacent Boxes, But Not Always.

I Have Noted Your Comment On Whipsaw But It Is Still Good, Especially After An Expansion Breakout.....

Awaiting Your Next Steps....

Happy & Safer Investing

SavantGarde