AFL Link: http://www.wisestocktrader.com/indicators/2803-pride-system-modified
The Pride System
This system utilizes Dual time-frame Momentum and EMA Crossovers ( 5/13 ) on a 5 Minute Chart and is best suited to trade Nifty Futures, though any stock can be traded with this system over any time frame.
I added some signal filter & included Market Profile, Essential Trader Tool, VSA Analysis on the AFL.
Bollinger Band is provided as a guide to get overview of Volatility & 100/200 DMA lines provided as an additional guide to your trading.
1. In the 30 Minute Chart, the Stochastic should be bullish.
(That is, the fast stochastic line should have crossed over the slow line. It does not matter how long ago the crossover took place, it should just be above the slow line and should be going upwards).
2. In the 5 Minute Chart, the Stochastic should be bullish as well.
(Fast stochastic line should have crossed over the slow line and should be moving upwards. It should not be in overbought condition yet, that is, it should not have crossed 80 yet).
3. The 5 Period EMA crossed over the 13 Period EMA from below and moves upwards.
When all three conditions are met, we buy, placing stop loss at the low of the last bar or the bar to the left of the last bar, whichever is lower.
Stochastic Setting is 8,3,4 for this system.
1. When fast Stochastic reverses from it’s upward move, curves downwards and crosses the slow line from above, sell half of the units.
2. If the next bar goes below the low of the previous bar, exit completely, otherwise keep a tight trailing stop loss and enjoy the continuing bull market.