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Trend reversal identification is childs play now
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Share it on FacebookHi Mudraites...
Trend reversal identification is childs play now.
No calculation of averages, no formulae...is required for that.
It works with 85% accuracy. Damn simple....
One can trade with this method with a horizon of one week to 10 days.
Any common man ( not the techies ) like me is interested ?
This is a simple method i use. This is not a software or any method copied from any place. This is my own method i follow.
I really dont know if anybody else is also using this method already.
ok...guys..... method is nothing great to boast about as i said in the begining.. But i found this is extremely easy to handle.
One can do a positional trading with a horizon of one week or so with this method. This is not for intraday trading.
Method :
You have to note down the current day closing price. ( it can be any stock or nifty also)
Compare the price with 5 day prior close price.
If the current day closing price is greater than 5 day prior closing price, then BUY next day.
If the current day closing price is less than 5 day prior closing price, then SELL next day.
if it is BUY, then one can buy at a price near to previous days closing price or low price.
if it is SELL, then one can sell at a price near to previous day closing price or high price.
No calculations or formulae required. only visual inspection.
Eg: RANBAXY
Date Closing price
20/1/12 468.35
23/1/12 463.45
24/1/12 467.70
25/1/12 474.50
27/1/12 443.90
30/1/12 450.65
31/1/12 449.55
here in this example, as on 31/1/12, the closing price was 449.55. 5 day prior closing price is 463.45.
So, the current price is less than the 5 day prior closing price. Therefore it is SELL as per this method.
Dont follow any method blindly. Kindly do your own homework first.
Thank you
Happy trading ..!!
Instead of 5 days prior closing price, one can compare with 6 days prior price also.
If it is a BUY, then one can keep a STOP LOSS of yesterdays low or just below yesterdays low.
Similarly, if it is SELL, one can keep STOP LOSS of yesterdays high or just above yesterdays high.
Or else, a stop loss of your convenience can always be put.
For stocks, any stop loss 2.25 to 2.7% is good enough.
The link to the modified method is in excel file here
In this file, i have analysed one year data of YESBANK with this method.
One has to just enter OPEN HIGH LOW CLOSE value of any stock copy the formula from the above rows. It will give next days trage suggestion and trade price with stop loss and target.
kindly check
http://www.4shared.com/account/dir/WnrhAwIK/_online.html?&rnd=67#dir=150503755
The links for xls version of the file is as below
http://www.4shared.com/office/LKjSJN1N/6day_trend_analysis_-_xls_old_.html
[URL=http://www.4shared.com/office/LKjSJN1N/6day_trend_analysis_-_xls_old_.html]6day trend analysis - xls old version.xls[/URL]
try anyone of these. you should get the file.
thank u
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us per ur method i have purchase rpower . what u say
Sold Yes Bank and covered 10 Point Profit, Thanks Kripakar
Hi friends...
yesterdays trade resulted in profit of Rs 5100 in 1 lot.
for monday, 27th Feb 2012, trade levels are as follows :
| Recomnd.Date | SCRIP | Action | At price | Stop loss | Target |
| 24/02/2012 | YESBANK | SELL | 350.80 | 359.90 | 340.20 |
Yes bank.......... 338 ?
I squred off early.....
squared off at 352.15
Gross profit (357.25 - 352.15 = 5.10 ) x 1000 = Rs. 5100
Once again as per this method, giving below a paper trade for tomorrow 24/02/2012.
| Recomnd.Date | SCRIP | Action | At price | Stop loss | Target |
| 23/02/2012 | YESBANK | SELL | 357.25 | 366.60 | 346.60 |
Assumption : We will be trading in Futures and will trade with 1 lot.
Though the target is given, no need to wait till the target, one can book profit at 1% or more.
lets see how it goes tomorrow.
happy trading.
Sir ji,
As per my Technical Analysis knowledge you are simply following Daily Moving Average of 5.
What all you need to do is only discipline.
To make it more profitable strategy one should always play in 2 lots of Nifty.
-Always take profit in 1 lot in 50 OR 100 points and keep trailing stoploss in other lot to maximise profit in every trade you trade.
I am just sharing my knowledge with you people and everyone of you have more knowledge then me here.
thanks
--
Shay
Uttamji
i am downloading from this nse site F&O values.
http://www.nseindia.com/products/content/derivatives/equities/historical_fo.htm
you can also download everyday for specific stocks
Kumble Sir, latest download link has data from which site... wanted to try this for some other co..??
Oh...sorry Uttam ji
i made a mistake in reading your query.
yes....GSPL is a SELL candidate as per this method as on Friday 17/02/2012 closing.
thank u
Uttam ji...
as per this method and the worksheet i have posted, for YESBANK, the 6day signal is "sell" but the modified signal says "Wait".
So there is no trade on this at the moment.
i dont know how u got "SELL" signal. What is the short form you used "GSPL" method ? What does GSPL stand for ?
i had shorted as per ur method GSPL on friday...what u say
sir, I do not know any thing about technical Analysis but I have downloaded 6 days trend analysis excel sheet of yours, plz tell me how can I feed some other scripe in it
thanks & regards
i think i made a mistake in posting the link. I am new to all this.
giving below the link again.
just try
http://www.4shared.com/file/KgBK_Ck_/6day_trend_analysis.html?refurl=d1url
[URL=http://www.4shared.com/file/KgBK_Ck_/6day_trend_analysis.html?refurl=d1forum]6day trend analysis.xlsx[/URL]
Hi KK ji, i just downloaded the file, will go thru it and let you know the feedback
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