In my last post on Nifty Yahoo Chart I discussed on EMA crossover technology. This time I will discuss Stochastic-RSI Technology.
Let me tell you how have I made 66 points in Nifty trading today using the Nifty Yahoo Chart? Rules are again simple: simply follow the auto signals. Buy Nifty when stochastics crosses blue line over red and confirm that a full white candle is formed above the 21 EMA, the red line. Short Nifty when stochastics crosses red line over blue and confirm that a full blue candle is formed below the 21 EMA, the red line. Exit criteria RSI reaching overbought or oversold zone. Also, sometimes the auto signals will tell not to short at all, or sometimes it will tell not to buy at all. My today's trades are represented graphically. Your comments are welcome in this matter to take this discussion to a further height.
13 Comments:
Awesome SM.....great....i dont have words...
Thanx Kunal,
Try this for urself for some days and I feel u will be able to have more grasp on the system.
Regards
Good analyses..Sir,always u will come up with new.ideas..and it will help lot for small trades like us.though I know the system u explained..here...i use to enter al false signals..and end up with loss..now u had futher clarified that corresponding candle should appear above/below 21 ema to confirm correct signals..to avoid certain losses entering wrong signal..by the which is better system whether this mentod or the other which u had posted ie 13 ema crossing 34 ema...also please let me know how to fix stop losses for this kind of system...Apprecaite your help
Really good one dear. I m novice for stock markets and since a few months I m following ur blog. It really gave me lot of information and its useful.
Thanx.
what is the main indicator among the three discussed by you to observe while initiating a trade (long/short)?
Hi Mani,
U can keep the stop loss level in standard abv 34 ema. Thats why I have included both 21 ema on the first chart and 3/13/34 ema in the 2nd chart.
The new Stoch/RSI system is more aggressive than the EMA crossover system. So for aggressive intraday traders this is a good system.
Regards
Indrajit
You are welcome Joshi.
thx...sooo much for ur...suggestion..sir..keep continuing ur good work...
Madhu the main indicator is the Stochastics cross over. Confirming indicator is a candle above or below 21 ema.
Regards
can we follow the 21 EMA nifty trading formula in any type of market.how much time you are using this formula
Rajesh,
If u notice my Nifty page, I have replaced the 21 EMA with 13 EMA, to get the signals a bit early. Its nothing but mixing momentum indicators like Stoch and RSI with lagging indicators like EMA. So far it works on all markets, even in daily charts. See the following Daily chart to understand.
Dear Indrajit,
I am very thankful to you for giving a good knowledge to us.It will help us to do trading without any one help.
Very Very thanks.
Regards.
Rajesh
Thanx Rajesh
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