iCharts Discussions

[sreenath77]

Hi,

Probably we should not try to be in the market all the while. Close the position once it crosses 8 EMA and wait for next cross over of 34 EMA. This way we will get less whipsaws as crossing of bigger EMA is less frequent.

Once position is closed and when we are waiting 34 EMA cross over, we can trade intraday . Alternatively, we can choose to implement the strategy on any other stock futures where cross over of price and bigger EMA happens (only after checking suitable EMA values).

Regards,
Sreenath

[venkchandra]

Hi DIJYYA

Only focus on 34 EMA. Ignor 8 EMA. If you see EOD charts carefully for every 2-4 days share prise always touches/ cross over to 8 EMA. If you focus on 8 EMA, you may get confused.

Buy/ sell if shares prise once it cross 34 EMA Please also use another indiacator like slow stochtic for support.

Once Stochastic over brought ( above 80 and cross over ) ready to cover if your purchase earlier.

If stochastic is over sold ( below 20 and cross over ) then ready to cover if you have shorted earlier

Now, Nifty stochastic is overbought and cross over also. Hence nifty should go down. If you already sold, you can hold till nifty crosses 34 EMA for contineous two days. ( 4942 as of 19 Feb )

Please also note share market is not that easy. Some time sentiments take over all indicators. If next week , sentiment is good ( may be due to budget or any other resons ) even charts indicate probability of nifty go down is more but due to positive sentiment, market can move up. Nothing is certain in share market.

This is my views.

Mr Vinst will explaint you more correctly .

Regards

Venkatesh Pai

[Allwell]

Hi, Venkatesh,

Thanks for you advice. Thought I have never try slow stochtic for support, but certainly will try now. It is also true that trading in stock market is not a easy job. It's all about liquidity. if liquidity chasing the stock you will find no resistance, similarly if liquidity dry up one can get stock very cheap valuation.

Thanks again for your post

Regards

DIJYYA

[shukra]

Dear Vijay,
Your strategy (34 EMA & 8 EMA on NIFTY) seems to be profitable.
Thank you for posting it.
I have a few questions. You may please respond to them:
1. Do you use NIFTY index (Spot) for analysis and trade NIFTY future (buy & sell)?
2. If so, which month contract do you trade? current month contract or next month contract or 2-month down contract?
3. If you are using the data of spot index for analysis and trading future contract, then can you not use the data of future contract (contineous data) for analysis also? I feel it is much more accurate to use future contract data to trade future contract.

Your comment is very much appreciated.
-Chandra Sekhar

[Allwell]

Hi, Venkchandra,

As per your stratagy Slow stochics of Gujrat Gas is 20-21, while its 8EMA AND 34EMA is between 242-245. Can we buy that stock ?



DIJYYA

[venkchandra]

Dear DIJYYA

Thought Stochatic of GG is around 20, this share is below 8 & 34 EMA so in down trend. You have to wait till it crosses 34 EMA. Once it closed for 2 days above 34 EMA, then you can buy.

Stochatic is additiobal indicator and not main indicator. Main indicators are EMAs. Safe investment will be wait to cross 34 EMA ( atleast 20 EMA ).

This is my view and I m not expert and I am also learning stage.

regards

Venkatesh Pai

[abcpankaj]

try backtesting of the same system for different 5 year periods , 91-95 , 96-00,01-05.
U never know which will turn out close to the behavior of the markets in next 5 year period...

[vssatry]

[shukra]

Anybody has any experiece on this strategy?

[chiragbvyas]

i think ema 13 and ema 39 are better options.

[shukra]

Thanks for the information.
I have a basic question: do we use Nifty index for charting and Nifty futures for trading, because we cannot trade the index.
Also, if we trade the Nifty future, why can't we use the Nifty future data for charting?
Thank you.
-Shukra

[grizzlybull]

[grizzlybull]

hi all.

This is a great plan, if one has unlimited amounts of courage. I bet that once you get 4 lakhs worth of profits, you will not have the guts to leverage 5 to 10 times your money (depending on whether u have a 16% margin with nifty or 10% with minifty). most of you will put it in mutual funds, or long term stock, or as trading capital. it is wiser to take away 3 laks and use 1 lakh, continue this pattern for more than 5 years. Don't try to get rich quick. Who knows! you might get poorer quicker.

[shukra]

Sorry, still my question is:
When this strategy was origially published by the developer, did he use Nifty Composite for charting and, when trade opportunity came up, traded the Nifty futures?

[grizzlybull]