TRADING SYSTEM
1.Log in to www.finance.yahoo.com
2.TYPE” ^NSEI” in quotation box and enter.
3.Double click on the nifty chart.
5.Select “basic technical analysis” from left side menu.
6.Chart type –Candle.
7.Indicators-MACD
8.Overlays –Parabolic SAR.
9.Log in to VFMDIRECT.COM and note down last day nifty High,Low,Close and S1,S2,PIVOT,R1,R2.
10.Also notedown ATR. (For consolidation days range will be less than ATR)
11.Log in to WWW.tradein niftyonly.blogspot.com note down 5EMA,HEMA,LEMA AND JNSAR
For the last day.
NOW observe the chart. 9.30 am.
CASE1
1.Nifty is trading above HEMA.
2.PSAR is forming green dots.
3.MACD Vertical lines begin to form above zero line. Buy respective CE after consolidation of last Big Candle.
3.Confirm there is scope for atleast 20-25 points move by sanalyzing , support and resistance levels.
4.Buy CE one lot.
5.Note down nifty spot value,CE strike price, purchase price for CE,No of lots purchased ,time,
Approximate nifty target,target t value for CE (For every 2 nifty points one rupee approx),stop loss nifty
value (approx 20 to 15 points below purchase point,stop loss CE price (7 to 10 rupees below
purchase price.)
7.Watch for NIFTY value to reach, previous high,R1,R2,PIVOT OR Formation of RED dots by PASR. (One or two red dots may be ignored based on levels).
8.Watch MACD. The blue lines begin to regress (forms lower height bars than the previous bar)
9.Remember big moves always happen at the end each hour ie 11 am,12 am,2 pm etc.
EXIT THE TRADE.
Case2.
1.PSAR is forming red dots.
2.MACD vertical lines begin to form below zero line.
3.Nifty istrading below LEMA.
4.Confirm there is scope for atleast 20-25 points move by sanalyzing , support and resistance levels.
5.BUY respective PE after consolidation of last big candle.
6.Note down nifty spot value,PE strike price, purchase price for PE,No of lots purchased ,time,
Approximate nifty target,target t value for PE (For every 2 nifty points one rupee approx),stop loss nifty
value (approx 20 to 15 points below purchase pont),stop loss PE price (7 to 10 rupees below
purchase price.)
7. Watch for NIFTY value to reach,previous low.,,S1,S2,PIVOT OR Formation of GREEN dot by PASR.
8.Watch for blue MACD lines to stop growing and just begin to regress (forms bars with lower height than the previous bar)
9.EXIT THE TRADE.
CASE 3.
All are same as in CASE 1 ,except that Nifty is trading below HEMA but above JNSAR.
In this situation , enter CE trade immediately after a dip . ie wait for a dip in nifty and then buy CE.
Exit as in CASE 1.
CASE 4
All are same as in CASE 2, except that Nifty is trading above LEMA but below JNSAR.
In this situation ,wait for a rise in nifty . Buy PE immediately after a rise.
Exit as in CASE 2.
RULES..
IMPORTANT
1.TRADE only one lot. Ie 50
2. not more than 2 trades per day.
3.strictly follow the signal. 20/50 EMA signal is good for trending market(going up or down steadily)
4.PSAR and MACD Signal is good for consolidation day( after a big up/down move day.)
5.Consolidation day range will be less than ATR.
6.Aim should be to close the trade in profit AND NOT high profit.
7.Always there will be reversal when value reaches previous high/low for the day.
8.Write down all trades. CE/PE strike Value, nifty spot value ,CE/PE price, nifty target, nifty stop loss.
Target is next important level R1/S1,PIVOT etc. Stop loss is 20 NIFTY POINTS ,
Confirmed by PSAR SIGNAL.(On formation of red dot, CE should be exited. On formation of green dot
P/E should be exited.
9.TRY to put limit/stop loss orders always. When in profit, raise the stop loss value for the sell order periodically ,So that profit is not lost on sudden reversal.
10.If you see a good trade, enter courageouly .Plan exit and stoploss before hand.
11.Note down high,low close,open values of nifty daily.
12.Regularly visit VFMDIRECT.COM,TRADEINNIFTY.BLOGSPOT.COM and try to understand various ideas And concepts and trading terminology.
Contact me at sethutec@gmail.com http://www.nseindia.com/ChartApp/install/charts/mainpageall1.jsp?Segment=OI&CDSymbol=S%26P%20CNX%20NIFTY Disclaimer: The sole purpose of this blog is for Education to the exclusion of all other things. Simply 'paper trade' till such time you get confident and are able to set your own targets.
1.Log in to www.finance.yahoo.com
2.TYPE” ^NSEI” in quotation box and enter.
3.Double click on the nifty chart.
5.Select “basic technical analysis” from left side menu.
6.Chart type –Candle.
7.Indicators-MACD
8.Overlays –Parabolic SAR.
9.Log in to VFMDIRECT.COM and note down last day nifty High,Low,Close and S1,S2,PIVOT,R1,R2.
10.Also notedown ATR. (For consolidation days range will be less than ATR)
11.Log in to WWW.tradein niftyonly.blogspot.com note down 5EMA,HEMA,LEMA AND JNSAR
For the last day.
NOW observe the chart. 9.30 am.
CASE1
1.Nifty is trading above HEMA.
2.PSAR is forming green dots.
3.MACD Vertical lines begin to form above zero line. Buy respective CE after consolidation of last Big Candle.
3.Confirm there is scope for atleast 20-25 points move by sanalyzing , support and resistance levels.
4.Buy CE one lot.
5.Note down nifty spot value,CE strike price, purchase price for CE,No of lots purchased ,time,
Approximate nifty target,target t value for CE (For every 2 nifty points one rupee approx),stop loss nifty
value (approx 20 to 15 points below purchase point,stop loss CE price (7 to 10 rupees below
purchase price.)
7.Watch for NIFTY value to reach, previous high,R1,R2,PIVOT OR Formation of RED dots by PASR. (One or two red dots may be ignored based on levels).
8.Watch MACD. The blue lines begin to regress (forms lower height bars than the previous bar)
9.Remember big moves always happen at the end each hour ie 11 am,12 am,2 pm etc.
EXIT THE TRADE.
Case2.
1.PSAR is forming red dots.
2.MACD vertical lines begin to form below zero line.
3.Nifty istrading below LEMA.
4.Confirm there is scope for atleast 20-25 points move by sanalyzing , support and resistance levels.
5.BUY respective PE after consolidation of last big candle.
6.Note down nifty spot value,PE strike price, purchase price for PE,No of lots purchased ,time,
Approximate nifty target,target t value for PE (For every 2 nifty points one rupee approx),stop loss nifty
value (approx 20 to 15 points below purchase pont),stop loss PE price (7 to 10 rupees below
purchase price.)
7. Watch for NIFTY value to reach,previous low.,,S1,S2,PIVOT OR Formation of GREEN dot by PASR.
8.Watch for blue MACD lines to stop growing and just begin to regress (forms bars with lower height than the previous bar)
9.EXIT THE TRADE.
CASE 3.
All are same as in CASE 1 ,except that Nifty is trading below HEMA but above JNSAR.
In this situation , enter CE trade immediately after a dip . ie wait for a dip in nifty and then buy CE.
Exit as in CASE 1.
CASE 4
All are same as in CASE 2, except that Nifty is trading above LEMA but below JNSAR.
In this situation ,wait for a rise in nifty . Buy PE immediately after a rise.
Exit as in CASE 2.
RULES..
IMPORTANT
1.TRADE only one lot. Ie 50
2. not more than 2 trades per day.
3.strictly follow the signal. 20/50 EMA signal is good for trending market(going up or down steadily)
4.PSAR and MACD Signal is good for consolidation day( after a big up/down move day.)
5.Consolidation day range will be less than ATR.
6.Aim should be to close the trade in profit AND NOT high profit.
7.Always there will be reversal when value reaches previous high/low for the day.
8.Write down all trades. CE/PE strike Value, nifty spot value ,CE/PE price, nifty target, nifty stop loss.
Target is next important level R1/S1,PIVOT etc. Stop loss is 20 NIFTY POINTS ,
Confirmed by PSAR SIGNAL.(On formation of red dot, CE should be exited. On formation of green dot
P/E should be exited.
9.TRY to put limit/stop loss orders always. When in profit, raise the stop loss value for the sell order periodically ,So that profit is not lost on sudden reversal.
10.If you see a good trade, enter courageouly .Plan exit and stoploss before hand.
11.Note down high,low close,open values of nifty daily.
12.Regularly visit VFMDIRECT.COM,TRADEINNIFTY.BLOGSPOT.COM and try to understand various ideas And concepts and trading terminology.
Contact me at sethutec@gmail.com http://www.nseindia.com/ChartApp/install/charts/mainpageall1.jsp?Segment=OI&CDSymbol=S%26P%20CNX%20NIFTY Disclaimer: The sole purpose of this blog is for Education to the exclusion of all other things. Simply 'paper trade' till such time you get confident and are able to set your own targets.
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