Todays nifty close is 5237.70 and 5 days prior nifty close is 5127.35. So the trend is still in BUY mode for tomorrow.
However, what we have to see here is, this trend is not get reversed to BUY mode today only. This trend has reversed to BUY mode on 10th Jan 2012 as per this method. So the trend is quite old now. So it might be ready for another reversal to DOWN mode anytime now.
What has to kept in mind that, we should enter the trade immediate next day, when the trend is reversed. And for nifty, one can get out of the trade if you get 80+ or more points. No need to wait till you get 250 or 300+ points. If we get, then it is bonus for us.
Similarly for stocks, one can get out of the trade, if one gets 3.5% or more profit from the trade price. no need to wait till the trend get reversed again for exit.
Ignoring this fact, even if take risk and go for BUY tomorrow, as per todays close compared to 5 day prior close, then the buy price should be near todays close or todays low. ie. near 5237 or near 5159 or anywhere in between.
Since we go for BUY, the Stop loss can be kept little below todays low.
kripakarji very nice system simple n effective.. kripakarji if one has to trade this system where do u think one should book for profits like u mentioned nifty's trend reversed frm jan 10th n till now we hv seen 300+ points profit bt where should one exit or should we wait for the trend to reverse like stop n reverse trades..
Again backtested another two months - Jan. 2011 and Feb. 2011, in these two months also it is giving profit of nearly 100 points intraday, except in Jan. 1 day SL hit and in Feb. 2 days SL hit intraday basis. However, it is more important to check the actual data in coming days rather than relying 100% on back data, because in NSE site we can check historical back data of OPEN-HIGH-LOW-CLOSE prices only; hourly historical prices are not available.
Back tested the data of Banknifty for Nov. 2011 and Jan. 2012, it is satisfactorily working intraday as well, easily giving minimum 50 points per day (in fact most of the days it is giving more than 100 points intraday). More months are under checking & will come to you.
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