Position trading system for future/option.
1.This sytem is for taking a position by any day and continuing up till reversal.
2.Advantage is less brokerage and less tension ,less time before the terminal.
Log in to finance.yahoo.com.
You can enter the trade on any day but it is suggested to enter the trade during the first week for the current month .
Type ^nsei in the quote box.
Select interactive from left side menu.
Double click on the chart.
Select “3M” from the bottom menu,,”candle” from chart setting menu,,4EMA from technical indicators menu..
3 month chart of nifty is displayed in the screen.
Analyze the chart. Note down the 4ema value for the last trade day.
Case 1.
1.Nifty has closed above 4ema value DURING THE LAST TRADE DAY.
2. on current date By 3 .15 pm ,nifty is trading above 4 ema of last day.
3. Check the type of candle being formed for the current day. If it is 1. doji,2. hammer, 3.
grave stone doji,4. hanging man , Then don’t initiate the trade to day. Just try to morrow.
4.If the type of candle being formed for the current day is other than the above 4 types
You can intiate a position long/buying CE at the money.
5.Every day check the nifty spot value by 3.15 pm. If it is higher than 4 ema value of
Last trade day continue the position. If the value is lower than the 4 ema value, then close the
position.
CASE 2.
1.Nifty has closed below 4ema value DURING THE LAST TRADE DAY.
2. on current dat By 3 .15 pm ,nifty is trading below 4 ema of last day.
3. Check the type of candle being formed for the current day. If it is 1. doji,2. hammer, 3.
grave stone doji,4. hanging man , Then don’t initiate the trade to day because the trend may be
reversing. Just try to morrow.
4.If the type of candle being formed for the current day is other than the above 4 types
You can intiate a position of short /buying PE at the money.
5.Every day check the nifty spot value by 3.15 pm. If it is lowerr than 4 ema value of
Last trade day continue the position. If the value is higher than the 4 ema value, then close the
position.
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