A simple method of trading which ensures decent returns and low risk.
I select stocks for both Long and Short on EOD basis based on 13,31 EMA (thanks to my friend VEERA who introduced this 13,31 EMA to me).
- Morning before market opens everyday i add these stocks to my terminal
- I watch Nifty trend till 10:30 AM
- If trend is positive I decide to trade long side stock else short side
- I also check for open high and open low of stock along with 13,31 EMA
- Long stocks with open low and above all EMA
- Short stocks with open high and below all EMA
- Exit all position before 3:30, its safe and we start the next day without any tension and no need to worry about overnight positions.
Open high having both in cash and futures has the good probabilty of shorting and open low for long trade.
Uma sorry for the late comment on this post. I would like to add one more thing to the same kind of stratergy. As per my personal experience the same stratergy can also be appliced using 3 ema and 23 ema. You can do a historical check and post the same if you feel that would help others who are following these stratergies. But whatever ema crossover one uses it all depends on ones own risk appitite.
ReplyDeleteI want to add one more point to my previous comment. I have observed out of my experience of last 1 year that 3 ema and 23 ema crossover works best in the 5 mins time frame chart for the day traders. Stop loss and target are again once own perspectives. I usually have 10 - 15 points of Stoploss. I will hold on to the Position as long as the diretion is intact.
ReplyDeleteSure i will check your 3,23 EMA crossover, to the best of my knowledge and I have used 13,31 ema across crude, gold, copper, silver and Nifty with 1,2,3 mins timeframe this holds really good.
ReplyDeleteWhen compared to your 3,23 EMA... 13,31 is giving late signal but most of the palaces the trade is safe at the time of high volatile movement...if there is clear trend ur 3,23 EMA holds good.
Note: I didnt test ur strategy on comm' market, which i will test and post my comments later. :)
Ok i have been following 3, 23 for commodity as well as nifty and it really helps in doing options as well as very safe Commodity trading. Anyhow Thanks for your comments and Hope it mite help others who are following this blot :).
ReplyDeleteOne good example i would like to mention here. I was tracking 4900 PE from monday (26th October) from around Rs 12 - 15 and after that a cross over happened in 3 , 23 and then it crossed over back today and it touched Rs 112. Ofcourse i do agree that in a market with clear trends 3 and 23 ema works really well with a 5 mins time frame. And i feel if one is interested in Options trading this would work well too. Specially trading "In the money" Options. Hope this would be helpful to few of the followers on this blog.
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