iCharts Discussions

[sherbaaz]

Hi,

I hav some confusion regarding first type of entry as per the system where a long can be initiated once price close above 34 ema and rsi OB after a down trend.

can somebody please explain to me how to take such trades with eg.

kindly reply.

thanks

[Arjun20]

[Amigo]

Good quote Arjun

[sherbaaz]

[aptcap]

Sherbazz, Arjun - Just a quote from one of spec's posts.

"Traders get anxious that they will miss a move, once a trend change occurs. But i would go to the extent of saying that a mean reversion to 34 ema "always" happens, except in some rare scenarios where a parabolic blowoff move occurs. Anyway trading parabolic blowoffs is a dangerous sport and rare occurrence, which does not merit out attention."

Be patient and dont mix systems. When u enter a trade early in the hope of catching the trend u r not following the rules completely. What is the need to catch every 50-100 pt move. But to each his own. Currently the nifty would remain in a downtrend until the previous DSP is broken. Until then it might be prudent to not take a trade based on this system.

Regards

[sherbaaz]

[quote="aptcap"]Sherbazz, Arjun - Just a quote from one of spec's posts.

"Traders get anxious that they will miss a move, once a trend change occurs. But i would go to the extent of saying that a mean reversion to 34 ema "always" happens, except in some rare scenarios where a parabolic blowoff move occurs. Anyway trading parabolic blowoffs is a dangerous sport and rare occurrence, which does not merit out attention."

Be patient and dont mix systems. When u enter a trade early in the hope of catching the trend u r not following the rules completely. What is the need to catch every 50-100 pt move. But to each his own. Currently the nifty would remain in a downtrend until the previous DSP is broken. Until then it might be prudent to not take a trade based on this system.

Regards

I dont know wht you have understood from my post. I simply want to know how to take type one entry. as I am trying to combine it with hourly chart and ew. if i take entry on hourly sl would be very high for me so wan to know how to take type one entry on 15 min tf.

regds,

[aptcap]

ok. So in a type 1 trade the way to trade is to enter when the prior swing pivot is broken. Since currently the nifty is in downtrend as per 15tf ssps, one would wait for the dsp to be broken. An aggressive trader would enter at the break. Now as per spec "In these cases, putting a stop loss below the prior swing low is impractical, as it would be very huge. Instead try to put the stop loss below the most significant candle that caused the breakout above the prior swing pivot."

Cant answer about combining with 60 tf and EW as i try and not to mix tf and systems. While combining with 60 tf may not be a bad idea for confirmation.

Hope this helps.

Regards

[quote="sherbaaz"]

[sherbaaz]

[quote="aptcap"]ok. So in a type 1 trade the way to trade is to enter when the prior swing pivot is broken. Since currently the nifty is in downtrend as per 15tf ssps, one would wait for the dsp to be broken. An aggressive trader would enter at the break. Now as per spec "In these cases, putting a stop loss below the prior swing low is impractical, as it would be very huge. Instead try to put the stop loss below the most significant candle that caused the breakout above the prior swing pivot."

Cant answer about combining with 60 tf and EW as i try and not to mix tf and systems. While combining with 60 tf may not be a bad idea for confirmation.

Hope this helps.

Regards

[Arjun20]

Sorry for jumping in between.
But let's keep aside type -I or II for time being to avoid confusion.

All of us have SSPS basic theory doc which Shekhar sir prepared.
In it , the first example is of 22dec2009 Long entry.

I think the same situation occured today on15TF . And if i am not wrong, then Sher want to know aout it.

Am i right Sher ?

[sherbaaz]

[Amigo]

so guys , is it type 2 entry long as per 15m

[aptcap]

Sherbaaz,

My bad that i did not understand clearly what u were asking. But basically in a downtrend as per ssps one does not usually trade bullish rejections hence the confusion.

Arjun, thanks for jumping in and clarifying.

In the situation like today where the RSI got OB from OS i.e. the 2009 type situation referred to in the doc it is clearly an indication that there could be a trend change which can only be confirmed on break of prior pivot. Arjun already mentioned that.

And since u want Jai to reply to ur specific query, I'll refrain from answering and lets wait for him to reply instead of my speculating.

Rgds and apologies for the confusion caused.






[quote="sherbaaz"]

[Jaii]

Sher,

I didnt backtest this kind of entry & never traded too!. I met only 3 exp in real,( in downtrend price trading above 34 ema for long days....).Hdil,Sbin & NF are that 3. I'l try to search the charts, (nearly 1 yrs before!) On those 3, only sbin changed it's trend, Hdil & Nifty were trading sideways for long time & finally create new Pivot.(Hdil more than 2 months trading in sideway.)Mostly it happen if Pivot is too far!

Pls let us know if you have any backtested report regarding this!-Tks

Jai

[smartcancerian]

5tf DSP in Nf taken out..now 5tf USP is 5326.90 odds..
Now 5tf in uptrend with usp as above & 15tf in downtrend with dsp at 5564.15..

[kiranlegend]

NF - 15mins - downtrend - dsp: 5563.80
NF - 5mins - uptrend - usp: 5326.90

BNF - 15 mins - uptrend - usp: 10179.5

BNF - 5mins - uptrend - usp: 10179.5 (Jai, Sher et al - please confirm whether can we consider 10513 as usp? because the low there didn't touch 34 ema but rsi was os.. moreover 7 candles later, we would find that 13:40 candle touched ema 34.. so can we can consider 10513 as usp here?)

Please correct me if am wrong

Cheers

Kiran