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apka
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Joined: 13 Dec 2011
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Post: #3991  Posted: Thu Jul 19, 2012 3:54 pm Post subject: |
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| psalm wrote: | | apka wrote: | Sam, this EMA combination I have not heard about.
I follow 10 on 20, 5 on 20 and 20 on 50 nrmlly. 10 on 20 is most widely known and used i think. If you check daily charts of nifty with 10ema and 20ema, you will see most times they dont give a false crossover, so i like that one.
I will check the new combination given you  |
My friend had told me about this method earlier, Apka....but yesterday, he called me and asked me if I had noticed the chance of a trade....then I checked chart and found that " as per this method as SELL has been triggered" on 12th July....when the market closed below the 13-day EMA...anyway, i'm just watching...but I have posted it here as there is a chance to check this set up. At the same time, I just wanted to check if this is a well known method.... |
This one is ad odd one but, nrmmly its recommended lower ema should be above the high ema, like 10ema above 20ema, 50 above 200 for a golden crossover...
but wagle's method is opposite, for long trade 34 should be at top, under it 21, under it 13... |
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psalm
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Joined: 12 Nov 2011
Posts: 5368
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| Post: #3992 Posted: Thu Jul 19, 2012 3:55 pm Post subject: |
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| apka wrote: | | psalm wrote: | | apka wrote: | Sam, this EMA combination I have not heard about.
I follow 10 on 20, 5 on 20 and 20 on 50 nrmlly. 10 on 20 is most widely known and used i think. If you check daily charts of nifty with 10ema and 20ema, you will see most times they dont give a false crossover, so i like that one.
I will check the new combination given you |
My friend had told me about this method earlier, Apka....but yesterday, he called me and asked me if I had noticed the chance of a trade....then I checked chart and found that " as per this method as SELL has been triggered" on 12th July....when the market closed below the 13-day EMA...anyway, i'm just watching...but I have posted it here as there is a chance to check this set up. At the same time, I just wanted to check if this is a well known method.... |
This one is ad odd one but, nrmmly its recommended lower ema should be above the high ema, like 10ema above 20ema, 50 above 200 for a golden crossover...
but wagle's method is opposite, for long trade 34 should be at top, under it 21, under it 13... |
yes, true...but I have a feeling that this method spots trend change early....because of this unique set up....what do you think?..could that be possible?? |
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SP50
Brown Belt
Joined: 26 Nov 2010
Posts: 1615
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| Post: #3993 Posted: Thu Jul 19, 2012 4:07 pm Post subject: |
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| psalm wrote: | | apka wrote: | | psalm wrote: | | apka wrote: | Sam, this EMA combination I have not heard about.
I follow 10 on 20, 5 on 20 and 20 on 50 nrmlly. 10 on 20 is most widely known and used i think. If you check daily charts of nifty with 10ema and 20ema, you will see most times they dont give a false crossover, so i like that one.
I will check the new combination given you |
My friend had told me about this method earlier, Apka....but yesterday, he called me and asked me if I had noticed the chance of a trade....then I checked chart and found that " as per this method as SELL has been triggered" on 12th July....when the market closed below the 13-day EMA...anyway, i'm just watching...but I have posted it here as there is a chance to check this set up. At the same time, I just wanted to check if this is a well known method.... |
This one is ad odd one but, nrmmly its recommended lower ema should be above the high ema, like 10ema above 20ema, 50 above 200 for a golden crossover...
but wagle's method is opposite, for long trade 34 should be at top, under it 21, under it 13... |
yes, true...but I have a feeling that this method spots trend change early....because of this unique set up....what do you think?..could that be possible?? |
Trading based on EMA is a lagging indicator than a leading indicator. This 34-21-13 is a filterring process to find the directional movement but being a lagging indicator it will mostly give signal to buy or sell after a certain point of time and price action movement already happened.
This is not good as market is seldom one directional and most of the analyst have stopped using this method and was easy to use when there was one particular trend for the market or stock. |
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psalm
Black Belt
Joined: 12 Nov 2011
Posts: 5368
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| Post: #3994 Posted: Thu Jul 19, 2012 4:09 pm Post subject: |
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| psalm wrote: | | vinay28 wrote: | sam, on tf? also, pl post a chart where you said short has occured.
By the way, sandeep has been stopped out many times in the past and hence if there is no SL how does he know when to get out? |
Vinay, I have no idea how one can trade without stops...I wont trade without a stop.....thats y i said just to watch not to trade....by the way, I'll post the chart later today... |
Vinay, here is the chart... |
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psalm
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Joined: 12 Nov 2011
Posts: 5368
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| Post: #3995 Posted: Thu Jul 19, 2012 4:15 pm Post subject: |
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| taxmann50 wrote: | | psalm wrote: | | apka wrote: | | psalm wrote: | | apka wrote: | Sam, this EMA combination I have not heard about.
I follow 10 on 20, 5 on 20 and 20 on 50 nrmlly. 10 on 20 is most widely known and used i think. If you check daily charts of nifty with 10ema and 20ema, you will see most times they dont give a false crossover, so i like that one.
I will check the new combination given you |
My friend had told me about this method earlier, Apka....but yesterday, he called me and asked me if I had noticed the chance of a trade....then I checked chart and found that " as per this method as SELL has been triggered" on 12th July....when the market closed below the 13-day EMA...anyway, i'm just watching...but I have posted it here as there is a chance to check this set up. At the same time, I just wanted to check if this is a well known method.... |
This one is ad odd one but, nrmmly its recommended lower ema should be above the high ema, like 10ema above 20ema, 50 above 200 for a golden crossover...
but wagle's method is opposite, for long trade 34 should be at top, under it 21, under it 13... |
yes, true...but I have a feeling that this method spots trend change early....because of this unique set up....what do you think?..could that be possible?? |
Trading based on EMA is a lagging indicator than a leading indicator. This 34-21-13 is a filterring process to find the directional movement but being a lagging indicator it will mostly give signal to buy or sell after a certain point of time and price action movement already happened.
This is not good as market is seldom one directional and most of the analyst have stopped using this method and was easy to use when there was one particular trend for the market or stock. |
I know EMAs are not leading indicators......but the combinations of these EMAs can do wonders, Taxmann.....nowadays, people are using different versions of the moving averages.....Even some of the latest indicators evolved such as the famous "ALLIGATOR" uses a combination of moving averages....by the way, I'm just checking if this method has anything to offer for a trader such as me.....just evaluating.....something like a backtest....  |
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apka
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Joined: 13 Dec 2011
Posts: 6137
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| Post: #3996 Posted: Thu Jul 19, 2012 4:15 pm Post subject: |
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| it's possible, im backtracking to see how it has worked out earlier. |
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psalm
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Joined: 12 Nov 2011
Posts: 5368
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| Post: #3997 Posted: Thu Jul 19, 2012 4:15 pm Post subject: |
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| apka wrote: | | it's possible, im backtracking to see how it has worked out earlier. |
that's great....  |
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apka
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Joined: 13 Dec 2011
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| Post: #3998 Posted: Thu Jul 19, 2012 4:22 pm Post subject: |
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It's looking good sam on 1 year chart. timeline when to cover profit is long converting to many even 2-3 months. that reduces the profit. but it seems good to know an immediate trend.
one interesting thing is, everytime it leaded to a fall later on, market went into oversold position..and vice verse for buying lead the market goes into overbought position.
i will try to get a friend to backtest it. |
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psalm
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Joined: 12 Nov 2011
Posts: 5368
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| Post: #3999 Posted: Thu Jul 19, 2012 4:27 pm Post subject: |
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| apka wrote: | It's looking good sam on 1 year chart. timeline when to cover profit is long converting to many even 2-3 months. that reduces the profit. but it seems good to know an immediate trend.
one interesting thing is, everytime it leaded to a fall later on, market went into oversold position..and vice verse for buying lead the market goes into overbought position.
i will try to get a friend to backtest it. |
That will be so nice, Apka.....by the way, if it can help us in anyway, at least regarding the trend...that will be helpful, I feel....in that case, one may use it at least as a tool....may be not as a set up...... |
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apka
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Joined: 13 Dec 2011
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| Post: #4000 Posted: Thu Jul 19, 2012 4:28 pm Post subject: |
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| In march, april 2012.. you might have had to make and exit positions 4-5 times with 50-100 points away from your price of entry (loss of 50-100 points each time), as market was range bound so these emas were nugding and overlapping. |
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psalm
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Joined: 12 Nov 2011
Posts: 5368
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| Post: #4001 Posted: Thu Jul 19, 2012 4:31 pm Post subject: |
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| apka wrote: | | In march, april 2012.. you might have had to make and exit positions 4-5 times with 50-100 points away from your price of entry (loss of 50-100 points each time), as market was range bound so these emas were nugding and overlapping. |
may be one will have to find some kinda stop for this method....anyway, let's see... |
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psalm
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Joined: 12 Nov 2011
Posts: 5368
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| Post: #4002 Posted: Thu Jul 19, 2012 4:33 pm Post subject: |
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| psalm wrote: | | apka wrote: | | In march, april 2012.. you might have had to make and exit positions 4-5 times with 50-100 points away from your price of entry (loss of 50-100 points each time), as market was range bound so these emas were nugding and overlapping. |
may be one will have to find some kinda stop for this method....anyway, let's see... |
Another thing it says that, when the EMAs are closer, its better to avoid this method, rit? |
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vinay28
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Joined: 24 Dec 2010
Posts: 11748
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| Post: #4003 Posted: Thu Jul 19, 2012 4:34 pm Post subject: |
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apka, when you test on a one year chart, I presume you see ema not for the whole year but from a previous date to any given date. What I mean is, if you are checking from, say, 1st july '11 then you are checking by putting different end dates, say, every month or 3months.
By the way, if this strategy is correct then it should give entries very early |
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apka
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Joined: 13 Dec 2011
Posts: 6137
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| Post: #4004 Posted: Thu Jul 19, 2012 4:34 pm Post subject: |
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| psalm wrote: | | That will be so nice, Apka.....by the way, if it can help us in anyway, at least regarding the trend...that will be helpful, I feel....in that case, one may use it at least as a tool....may be not as a set up...... |
ya thats what i was looking at.
12th july's closing below it has turned out to be a false one, because in the previous times when nifty has closed below 13ema then it does not go back up to close above 13ema like it has done today.
this same thing happened in march and april continually. indicating shorts and long entry positions could be made, although eventually market did fell but after 2 months.
So, i think we can ignore 12th july's signal to short. I think |
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apka
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Joined: 13 Dec 2011
Posts: 6137
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| Post: #4005 Posted: Thu Jul 19, 2012 4:38 pm Post subject: |
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| psalm wrote: | | psalm wrote: | | apka wrote: | | In march, april 2012.. you might have had to make and exit positions 4-5 times with 50-100 points away from your price of entry (loss of 50-100 points each time), as market was range bound so these emas were nugding and overlapping. |
may be one will have to find some kinda stop for this method....anyway, let's see... |
Another thing it says that, when the EMAs are closer, its better to avoid this method, rit? |
when emas are closer, then a crossover is ready to happen, nrmlly market doesnt remain range bound as it did in march and april. |
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