iCharts Discussions

[chiragbvyas]

just go through the my post in this thread around 10.37 a.m.

when u r applying 55 days sma, important is that all conditions should be fulfill for an entry in the trade , then simply maintain the stop loss, and sit calmly. coz no one knows which script can go how much up or down , it's your stop loss that protect your profit , remove emotions , and sets you free for maximizing the profits. it could be a trade for same day, might be for a week or several weeks, may be a month or two,, all and all i can say is if stop loss is not taken out then y u should get out of that trade? coz after square up that profitable trade you will enter the next trade,then another one , then another one. but i think it is most wise did to maintain a profitable trade with proper stop loss. So no time frame could be defined, ONLY STOP LOSS CAN DECIDE THE TIME FRAME.

[Rahulsharmaat]

thanks-- i will track with 30 min now---

[vinay28]

thanks chirag. got your point

[Rahulsharmaat]

chirag-- can u please tell-- how to book -- i mean where to book-- as when in example 30 min-- 55 Sma TCS short at 1184 area-- went to 1109-- now friday 55 lSMA low is at 1165--- in this case if we wait till 1165--major portion of profit will erode-- so please advice

[chiragbvyas]

actually if you do not want to wait for stop loss then book the profit coz how much one can wait is depends on his/her risk reward ratio. i can not advise on that. as per 55 days sma trading system 55 days high avg is the stop loss. we do not think that tcs declined much and now there will be a big bull run and our stop loss will be triggered, but we think if our stop loss is not taken then it could go more 50 rs. down side. because how much a script can go up or down can not be predicted. just watch reliance if someone has shorted it around 950 - 960 and thought to book profit at 910 - 920 then what he had earn and now what the reliance is, so if we are correct in our trade and once we have correct entry in the trade we wait till our stop loss taken, we never book profit at market price, we square up only by stop loss.Suppose once you close yr short on tcs, then tcs decline more 50 - 60 rupees, can u again short tcs below 15-20 rupees of yr square up price, not possible. no one can do that. so better is to be in the profitable trade. that is called let profit run.

[Rahulsharmaat]

thanks Chiraj---

can i trade in 30 Min Time frame--- as daily is too hard for me---
i will get in 30 min TF when candle closes above 55 SMA high-- with SL 55 SMA low-- n Vice a versa-- or I should wait for candle to close below 55 SMA low-- if i am long-- same -- in short also--

last quiry
please address

[profitbkr]

plz give example of BUY of one or two scrip...

[chiragbvyas]

i have bought cipla some days back when it closed above 55 days high sma.
on that day close of cipla is 318.85 and 55 days high sma is 314.16 , i bought at 319 and my stoploss is 310. still holding , though couple of times it went above 340 but still waiting for good profit or will exit if it go below 310.

i have shorted yes bank at 294.5 when it closed below 55 days low sma which is 297.5 and close is 294.25 and stoploss is 303. let us see what happens.

[sathya999]

put 55 sma on daily and see how much this dumb rule could have got u,

[chiragbvyas]

whenever i talked about 55 days simple moving average it meant to apply this avg on eod chart and whatever the values you get as 55 days high avg, low avg and close avg just note it down on the paper and if price falls between your written prices then trade accordingly otherwise wait for that to happen. you have choice to track more scripts as much as you can handle. this one ( 55 days sam) is the best rewarding sma that has been generated great value and profit to my portfolio. this is not for intraday but breakout base system. if you find breakout just enter the trade else wait. profit range is between 12 to 15 % or wait for stop loss hit. main benefit is patience will be developed nicely, you will be disciplined player in market. position sizing will be according to your credit amount in yr account with the broker so no extra leverage used means no margin calls, no panic selling and most important relaxing sleep at night. just provide 10 to 15 % to single trade and seat on cash, if you find another chance in any other script apply same rule and enter the trade. you will not have to run after one indicator to another. so if you are not confused and have peace at mind, you can earn better.
hope the point is cleared. for any other doubts or confusions you are welcome.

[Rahulsharmaat]

Chirag bhai---

Live chart Premium have only 60 min TF and less--- so where to check EOd-- or we can see end of the day closing .. n then decide--

can i trade in 30 min TF -- please advice

[Rahulsharmaat]

Chirag Bhai

You wrote in first message regarding 55 SMA


they exit by stop loss only. one of them use only 55 days simple moving avg (high,low close,) until and unless a price do not close above 55 days sma high and next day do not go below close avg then he will initiate a buy and stop loss is low sma of 55 days. for short sell he will wait to close below 55 days low sma


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Now if price of Script closed above 55 SMA high suppose 110-- and Close averegae is 105--- how does he know it wont go below this rate-- as its 7 hr trading day-- Is that mean-- if it closed above 55 SMA high on 1st june-- and didnt break close average of previous day-- then position should be taken on 2nd june---

Please reply

[chiragbvyas]

though i have never used live intraday chart or any other indicator. so use charts (premium) select the script, change the values below in the indicators to sma high,55 low,55 close,55 and note down the values then trade according to that values on the next day.

if a script closed above 55 day high sma then track it next day whether it go below previous day's close price or not then initiate buy.( most probably it will open in gap upside).

[chiragbvyas]

i hope this discussion should end here because most of the doubts and confusions are cleared, regarding 55 days sma. if any doubt is there u r most welcome.

I WOULD LIKE TO KNOW Mr. VIRAPPAN'S VIEW ON THIS WHOLE DISCUSSION ON MY STRATEGY, IF THERE IS ANY WEAK POINT OR ANYTHING IF I AM MISSING.

[druzva]

Veeru excellent stuff and apt as well.