The trading levels for today, TUE 08/11, are as given in the chart (these are same as the levels for yesterday, Mon 08/10). Read below for more details.
Our debut message below (published on Thursday, 07/30) explains the notation and how to interpret the trading plans we publish, and who we are in this space. This is the Trading Day-7 of our limited test-launch for the Indian stock market NIFTY 50 Index. Appreciate your feedback and comments.
NOTE: Pay attention to the Take Profit and Stop Loss levels added as note ( iii ) below.
Good luck with your trading today!
After two years of unprecedented growth and consistent performance in the US with daily trading plans on the S&P 500 Index , we are now testing our models on the Indian stock markets with the NIFTY 50 . This is our debut for you all who have been waiting for it!
While we know this would enthrall many readers that have been asking for it, we are cautious about jumping on these trades right away - give these models a few days, see how they perform, and then begin to adapt them to your own trading style and risk appetite. And, please do share your feedback, thoughts, ideas, and suggestions about anything glaring or missing - we are new to the Indian markets and are still trying to learn its idiosyncrasies. Thank you!
(i) Use these line crosses on your choice of time frame chart.
Most aggressive - on a 1-minute chart
Moderate - 5 to 15 minute chart
Intraday swing - 30 minute chart
Note that the lower your time frame, the more and whipsawing you might experience in your results.
(ii) Cross Above (Below) - triggered when the previous close was below (above) the line and the current close is above (below). Aggressive traders may use other criteria such as high crossing the line, close crossing the line without regard to the previous close, etc.
Solid Green Line: Models would go long on a cross above this line
Dotted Green Line: Models would close out a short (buy to close an open short but NOT go long). You can use Close-to-Close basis OR Open-to-Close basis OR Low-to-High, depending on your trading style.
Solid Red Line: Models would go short on a cross below this line
Dotted Red Line: Models would close out a long (sell to close an open buy but NOT go short). You can use Close-to-Close basis OR Open-to-Close basis OR High-to-High, depending on your trading style.
( iii ) Take Profit: Our NIFTY models are currently using a 20-point trailing stop activated once a 10-point profit level is reached.
Stop Loss: Our NIFTY models are currently using a 20-point stop loss level activated at the entry.
This is NOT an investment advice. This is meant for experienced traders to use as another tool to inform and guide their own trading decisions.