iCharts Discussions

[casper]

[quote="sherbaaz"]

[Padkondu]

dear casper,

i back tested the set up you suggested with little modifications. pl go thro.

timeframe - 60min.
trend identification: 34-89 ema.
macd(34,89,21). though it gives the same information as 34-89 ema, i look at the histogram.
rsi-5.
Back ground:
(1)the ema set up and macd together they tell the short term trend in the time frame that is equivalant to 240min or 4 hours time frame. this allows us to understand how the stock is trading in relation to 4 hours time frame. this tells use to go long or short.
(2) RSI-5 with 50 line gives the current trend, i.e. the short term trend in the current time frame
(3) addition confirmation through the current time frame, short term trend with DMI(13,7).
(4) basing on the above, entry is made in the current time frame using macd oscillator(5,34,5) OR
(5) if market is strongly trending, i.e. dmi is above 40, we do not get signal from macd oscillator. then shift to 15 min timefram and take entry using CCI-3 or CCI-5 using
for entry i am using macd oscillator(5,34,5) to cpture the bottom on a pull back in an up trend and viceversa.

but if dmi is showing strong trends n i do not get a signal as per macd oscillator i go to 15 min tf and get in using cci-5.

here my effort is to get the effect of multi tf effect on single tf so as to simplify.
here we are taking into account 4hrs, 60min trend and finetune entry/exit in 15 min chart.
i hv been testing this.
for exits one can adopt their own strategy of using stops like atr or ema-low-high etc.
No longs when rsi is below 50 n vice versa.
take a note of rsi divergence if any into account.
for may actual trading i am following my own multi tf strategy. but

pl go thro.
i woul like to post some charts, including those failed using this system.

regards
padkondu

[casper]

hi brother i have seen it, tomorrow i will test it and will post my result, today i am just exhausted

plz dont mind


specially i need some time to understand the indicator set ups properly

will post my findings as soon as possible

[Padkondu]

the two short signals to days failed, i stopped out. the steep fall prior to it could have caued mis behaviour of the macd oscillator. later i noticed positive divergence in rsi as the market moved.
need help on this.
regards
padkondu

[casper]

hi brother

was it acc or nifty? ur file name and subject is acc but chart is nifty-1m

for nifty, apart from + div,i should say it came near the weekly s2 as well as psychological support of 5700 level and got support from there,

and for acc, it was a case of + dv around monthly s1 level which is more strong than weekly pivots levels

i would like to tell u that whenever to take a position make sure monthly/weekly pivots are not there to prevent the price movement

[Padkondu]

[Padkondu]

[casper]

it was too volatile market, and the total fall came within a big red 60 min candle. i want to say when u see a big candle is forming and closing near a support/resistance level and it is away from support level from just 20-30 NIFTY points avoid it untill the support /resistance is breached there is still very much chance to bounce back from the level

what i wrote above is about index in 60 min tf, in a volatile market, an index like nifty moves with 100-200 points range, so 20-30 points are just decimal to that

i have seen it many a times that support/resistance level works like a zone rather than a number

in case of a stock, say a 100rupees stock, u will see that it is getting support/resistance from the pivot level with +/- 1 rupee in average, this 100 rupee stock is supposed to move maximum 5 rupees per day, so here pivots with +/- 1 rupee gives good support/resistance

so whenever u see that u r reaching any support/resistance level. be it pivot or 34 ema or 89 ema, dont go by the exact number, u should expect that zone, until breached by a candle close, will offer troubles to u.

say u r bear u will short NF, and i am bull, i will buy NF

u will short when S1 is gone,(in this particular case, u had no time because of market volatility which results in a free fall)

and me, being a bull, will buy with a sl of S2, so if u think liike this, then what is ur target is my sl

now if my power is greater than u then i will make the price bounce back much before the exact S2 zone, and if ur power is greater than me then u will wipe my sl out, so here volatility will increase heavily,
now market was already volatile, then with this fight, volatility increased much more, and it is true that u can hardly predict that who will win at that time, thats why i am advising u to stay away from the trade until any of them convincingly wins (which would be decided by a candle close only)

thats why i wrote do not take position too near the support/resistance level

and one more thing. I AM UR BROTHER, NOT SIR

[Padkondu]

[aromal]

[Padkondu]

Hi folks!
I am attaching a doc file along with this post with the notes i am preparing on our subject matter. i shall keep up dating my notes (doc file) periodically to add, enhance and improve the subject matter. i thought it could be usefuly to you if i share with you. it will be useful to me tooo, since i get suggestions. finally, we may have a small booklet on tech analysis.

regards
padkondu

[aromal]

[aromal]

[Padkondu]

[Padkondu]

Dear friends

Trend identification is always a major challenge before the trader in any time frame. then i worked with DMI. it is really an excellent indicator to indicate whether market is trending or non-trending. but it is a much lagging indicator, i used it 13,7 parameters. most of the times, by the time it shows a real good trend as per norms, the market has already moved far. often by the time dmi shows the real trend, market begins to go sideways or the trend begings to fade. one need to expertise on trend. with all this, i like dmi, since i know from dmi, when not to trade a trending strategy.

later i made an observation;

market goes sideways in lower time frame (say 15min) when ever there is a conflict of trend with higher time frame (say 60 min).

let me be more clear. if a higher timeframe is trending up wards (say 60 min) and lower timeframe is acting agains it (say 15 min time frame), the market results in a sidways movement in lower time frame. similarly, if both 15 min and 60 min are showing the same trend then only the market moves in good trend. so then i thought of getting both the trends in one time frame. we can do this only by using macd.

so i took macd(34,89,21) which is equivalent to short term trend indicator in 4 times higher timeframe. then i took the short term trend indicator for the current time frame, i.e. macd (8,17,9) or macd (12,26,9). i noticed that when ever these moving averages are conflicting the market goes sideways. and when ever they move in one direction sa up or down, the market is trending. further, the beginning of real trends can be captured earlier, compared to dmi. i keep dmi also, just for the sake of comparison.

i checked this for as large as 100 days data on nifty. good clues cand be drawn from this.

though i did not include it in my strategy, i am just working on it. so friends you can also post your openions on this.

regards
padkondu.