iCharts Discussions

[rk_a2003]

A FUSION TRADING STRATEGY

A proposal of a fusion trading strategy with WW pattern, BB, CCI mixed with specific Candle stick pattern.
Here it goes......

1.Pattern should be WW (Wolf Wave ) either bullish or bearish.

2.Wave 4 should comprise 4 or more continuous Bullish/Bearish Candles.(Means White/Black candles)

3.The last Candle should have an Inverted hammer( need not be a shooting star)( Topping Tail ) / Hammer( Bottoming Tail) for Bearish/Bullish waves in the order.( need not be a perfect Hammer /Inverted Hammer........ Bottoming Tail and Topping Tail formation is important.).A volume rise should be accompanied.

4.The Tail (or Tail and Body) of the Hammer should pierce through the Upper/Lower BB (20 period with 2 std deviation)

5.CCI (5) should be OB/OS as the case may be(Means around +100&above / -100&below).

6. After 4 or more Bullish/Bearish candles there should be change of guard with Bearish/Bullish candle with relative volume rise( Means after consecutive white candles a black candle formation or vice versa).Alternatively volume rise can be at the candle which pierce B.B.

The positon can be taken on the same day when the change of guard is confirmed or on the next day.

The Stoploss should be just below/above the Bottoming/Topping Tail.

The Fusion Methodology Recipe prepared by me.... All the credit goes to Original Inventors/Discoverers of Patterns, Bands,Candles,Indicators,Methods etc....

This should work in all Time Frames.

This effort is to make our trading more Mechanical( Thus less emotional intervention) with great Risk/Reward and High success percentage.

A picture speaks thousand times better.Have a look at the Chart.

When ever you find these combinations don't miss...Trade it.you are going to reap the benefits.I tried my level best to present it as simple as possible hoping that..... Novice Traders should benefit out of it.

(P.S: This is also best suited for part time traders since it was devised by a P.T )

[amitkbaid1008]

Good One

Ha Ha Ha Ha Ha

[sonila]

Very complex.

[rk_a2003]

Oh! I thought.... I made it as simple as possible.

What is complex in it? .

Go through it peacefully..... it's not as complex as you think.

[Arjun20]

[rk_a2003]

[girishhu1]

hi rk,
i m enclosing 60min chart of abb-1m.i think it fulfills all conditions listed by you.i have tried to mark the conditions on chart pl confirm the correctness and pl clarify whether rising channel for bullish target may pose problem.

the change of guard candle and long tailed candle are different in this case.pl clarify whether the sl should be modified from the low of change of guard candle to low of long tailed candle ( and further to lower trendline now) on trailing basis, if one would have taken the trade?
regards,
girish

[rk_a2003]

Hi Girish

Sorry! for delayed response.Yes your concern is right A +WW is not possible in rising channel. A -WW is possible in future in ABB 60M TF.

One caution.... I devised it for EOD and tested it on EOD Time frame.Though I am confident that it should work on all TF's.Testing was not done in other TF's.

[amitkbaid1008]

This strategy should be named (Con)Fusion Trading Strategy

[rk_a2003]

Girish

I am posting HDIL chart for you.It's a Bearish WW.Stop loss mentioned on it.The Change of guard indicated by a Doji here.( which is a better confirmation for reversal).I removed volumes as they are making chart illegible.They are good.

Stop loss should be highest point of last bullish or reversal Candle. TSL and Intermediate targets depends..... It can be customised .... There need not be any hard and fast rules.

One point may be noted...In this Strategy... Multiple guns are lined up pointed and fired in one direction...Nothing confusing....even one or two guns are not up to the mark it should do well (Infact a simple WW is good enough for hitting the target)...... target may hit....But still I insist till you are familiar with the technique.... better to stick to the rules....Master it...... and then Juggle with it.....with a comprehensive understanding of underlying dynamics. .The success ratio will be high in this Strategy .R/R will be Excellent.

[rk_a2003]

Posting Latest Ongoing EOD Chart of Asian paints with -WW and other conditions fulfilled as per Fusion Strategy.

[rk_a2003]

Hi All,

It's a good start for the strategy.From the intraday chart of it I can read the following.

Asian Paints opened at 3117.90 and climbed up to 3168. From the after noon all the Guns which were lined up and pointed downwards displayed their fire power and nailed it down to 3046 and it finally closed at 3057.15 .More than 100 points slide from the peak.Even the late recovery of the Index could not come for it's rescue. Partial profits may be booked at Lower B.B and for the rest- Set TSL to cost to cost.

A very good start indeed .It's not you and me who are firing those guns, infact it's beyond our capacity.Even we are not aware of.... who are firing those guns.Only thing we did was identifying those guns that were lined up and about to fire .We were simply banking on them.... that's it.

You already have a strategy presented in front of you.This week end I may present the theory and working dynamics of it.

A latest chart attached.
(P.S:A latest chart attached for Unitech too Partial profit booking advised here too as the price crossed BTL )

RK

[Vinodz]

good going rk.

look forward to more such insights

[vinst]

Hi rk_a2003,

the combination worked out by you seems to good as per examples given.
Good show !

[vinst]

rk,

pls check this fusion setup on nifty_spot.
the first arrow is setup day and the 2nd arrow shows the trade execution day.
pls ignore the volume and rsi panes.