Jagmohan Singh
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Deadly combination of 34 and 8 .(Js)

Jagmohan Singh at 09:16 PM - Feb 23, 2010 ( )

14 26

This is the next version of EMA crossover strategy.

(This was shared by Mr.Partha in Mudraa last week but got ignored somehow. This is too good to be ignored. You are missing a Jackpot. This single strategy is enough to make good money. Pl note that this is not for Day Trading but amazingly effective for short-to-medium term trading.)

The difference in this strategy is that here there are 3 characters instead of two.

1) EMA 34 line

2) EMA 8 line

3) Priceline

EMA 34 is effectively 1 month weighted average

EMA 8 is effectively 1 week weighted average

A) When price cuts EMA 34 from below, Buy.

Square off when it cuts EMA 8 from above.

If it again goes above EMA 8 , buy again.

.....

B) If the price cuts EMA 34 from above, Short.

Square off when it cuts EMA 8 from below.

If it again dips below EMA 8, short again.

The buy or sell has to be decided near market close so that it is confirmed that "the cut" has decidedly taken place.

Also EMA strategies work even better in trending markets. No harm in waiting till range bound movement.

Hoever, I prefer doing it without bothering whether it is trending or ranging, otherwise you may miss a sudden big move.


(1 to 20 out of 231) - Latest Replies on Top | First | << Previous | Next >> | Last |
Julius Jr at 12:15 PM - Jun 16, 2016 ( )

Re-Up for those who missed....

Money mouth

Money mouth

Money mouth

Prashanth Raykar at 06:21 PM - Dec 08, 2015 ( )

hi , 

has anyone tried this on stocks, for long term trading? 

how was the experience? 

Julius Jr at 12:38 PM - May 09, 2015 ( )

Daily T/F

its not 2 moving averages cross

But when Price Cross the Averages!

Shalini Sharma at 12:20 PM - May 09, 2015 ( )

In which time frame v have to use 8 34 ema daily or one monthly chart or 30 min,

Julius Jr at 11:49 PM - May 08, 2015 ( )

Good One... Re-up for those who Missed...

Venkat Raman at 10:35 AM - Oct 23, 2011 ( )

Sir ,

Thank you for all your valuable inputs.

Some more points that may be considered while

using 8 and 34 emas.

In the middle of a rally , if the distance between them

increases or decreases gives an indication of a continuing

rally.With other leading indicators one can stay longer and

make the most of a medium to long rallies.

One has to keep in mind high volatility and large price moves with

low volumes .

Keep stoploss and trailig stoploss in place always for any sudden and sharp

breakdowns and reversals.

This is my view.I may be wrong.

Jagmohan Singh at 08:01 AM - Oct 23, 2011 ( )

dear all, this method was one of the first ones i used. this post is 2 years old.

presently i don't use this as it is. i primarily use rsi and william%r besides a few more indications. 

this is a good method for secondary support / consultation.

though it can be used as a primary trading tool, but gives lot of whipsaws during ranges and mid-rallies. and since it is not known beforehand when a rally will pause or when a ranging will start and end, this method, solo, leaves u alone many times.

at that time, i had modified it again and again, sometimes using only 8 ema, sometimes onlt 34 ema, sometimes using it with rsi,...........the results were encouraging. 

but frankly, i have not been using this since more than a long long time. 

if i must advice then i will say

- don't use this blindly

- don't use it alone. use some indicator alongwith.

- use this for a broader advice, consultation

- be aware whether u r in ranging or trending market.

 

still, this is one of the easier methods and one of the first footholds for any new comer in the slippery territory of trading.

one thing more, if price is below an ema (say 34) it must make you think atleast once about the possibility of a down pressure, and vice cersa. ema is a mathematical message that says something important aboutt he present. 

thank u for brething life into this thread again.

u r all invited to share ur thoughts and ideas here for the benefit of all including urself. knowledge actually multiplies when shared.

there is already a lot of discussion hidden in this long thread. do read that to see what all has been discussed. 

js

 

Harman Preet at 11:22 PM - Oct 22, 2011 ( )

Jagmohan ji

Can you please suggest any other indicators if combined with it can give more effective results. and what should be there period timeframe

 

Hvm M at 10:25 PM - Oct 22, 2011 ( )

A) When price cuts EMA 34 from below, Buy.

Square off when it cuts EMA 8 from above.

I think one more condition is EMA 8 should be above EMA 34.

While selling EMA 34 should be above EMA 8. 

Rakesh Yadav at 10:21 PM - Oct 22, 2011 ( )
Jagmohan sir can you please tell me the present values of 8 ema and 34 ema in respect of nifty. Also suggest some site where I can find instant values of above 2 emas for nifty. Thanks

Renuka Kulkarni at 09:45 PM - Oct 22, 2011 ( )
JS ji, May I know, the success ratio of your ema trading strategy ? After your response I would like add few more factors to be observed along with your dual ema & price cross over, if you permit. Thanks.

Harman Preet at 07:53 PM - Oct 22, 2011 ( )

This thread should be reopen..Can we discuss Nifty w.r.t this et of combination??

Harman Preet at 07:52 PM - Oct 22, 2011 ( )

This golden thread needs to be reopen...can we discuss nifty based on the given set??

Shyam Thapa at 04:28 PM - Jul 20, 2011 ( )

JS Sir ji,

what is the success ratio of your deadly combination "ema" trading system ?

And why it is not applicable for intraday trading.

thanks.

Akshat Jain at 10:12 PM - Jul 19, 2011 ( )

Thx Ranjit

For the afl but seeing the results on the excel and from the afl the results are not getting identical can you check @ ur end also

Jai Ganesha

Dhiraj Sinha at 07:34 AM - Jul 19, 2011 ( )
hi, i am new.pls anyone explain with examples.thanks in adv.

Ranjit Chakraborty at 12:02 AM - Jul 18, 2011 ( )

Dear Akshat bhai / Julius ji/ and abv all Jagmohan ji..

Pls chck this

_SECTION_BEGIN("8-34 EMA Channel");
SetChartOptions(0,chartShowArrows|chartShowDates);
_N(Title = StrFormat("{{NAME}} - {{INTERVAL}} {{DATE}} Open %g, Hi %g, Lo %g, Close %g (%.1f%%) {{VALUES}}", O, H, L, C, SelectedValue( ROC( C, 1 ) ) ));
Plot( C, "Close", ParamColor("Color", colorBlack ), styleNoTitle | ParamStyle("Style") | GetPriceStyle() );


A = EMA( H,8 );
B = EMA( L,8 );

                    
x= Ref(A,-34);
y= Ref(B,-34);

D=.0009;
xt=x+x*D;
xb=x-x*D;

yt=y+y*D;
yb=y-y*D;

/* Buy or Sell Condition */
Buy = Cross(Close,xt);
Sell = Cross(yt,Close);
Buy = ExRem(Buy,Sell);
Sell = ExRem(Sell,Buy);

Filter = Buy OR Sell;
/* Exploration Parameters */
AddTextColumn( FullName(), "Company Name" );
AddColumn( Buy, "Buy", 1 );
AddColumn( Sell, "Sell", 1 );
AddColumn( C, "Close", 1.3 );
AddColumn( H, "High", 1.3 );

/* Plotting the Channel Cloud */

PlotOHLC( 0,xt,xb,xb ,"",colorBlue, styleCloud);
PlotOHLC( 0,yt,yb,yb ,"",colorBlue, styleCloud);
PlotOHLC( 0,xt,yb,yb ,"",colorRed, styleCloud);

Title = EncodeColor(colorWhite)+ "8-34 EMA Channel Trading System" + " - " +  Name() + " - " + EncodeColor(colorRed)+ Interval(2) + EncodeColor(colorWhite) +
 "  - " + Date() +" - "+"\n" +EncodeColor(colorRed) +"Op-"+O+"  "+"Hi-"+H+"  "+"Lo-"+L+"  "+
"Cl-"+C+"  "+ "Vol= "+ WriteVal(V)+"\n"+
EncodeColor(colorLime)+
WriteIf (Buy , " GO LONG / Reverse Signal at "+C+"  ","")+
WriteIf (Sell , " EXIT LONG / Reverse Signal at "+C+"  ","")+"\n"+EncodeColor(colorWhite)+
WriteIf(Sell , "Total Profit/Loss for the Last Trade Rs."+(C-BuyPrice)+"","")+
WriteIf(Buy  , "Total Profit/Loss for the Last trade Rs."+(SellPrice-C)+"","");

PlotShapes(IIf(Buy, shapeSquare, shapeNone),colorGreen, 0, L, Offset=-40);
PlotShapes(IIf(Buy, shapeSquare, shapeNone),colorLime, 0,L, Offset=-50);                     
PlotShapes(IIf(Buy, shapeUpArrow, shapeNone),colorWhite, 0,L, Offset=-45);
PlotShapes(IIf(Sell, shapeSquare, shapeNone),colorRed, 0, H, Offset=40);
PlotShapes(IIf(Sell, shapeSquare, shapeNone),colorOrange, 0,H, Offset=50);                     
PlotShapes(IIf(Sell, shapeDownArrow, shapeNone),colorWhite, 0,H, Offset=-45);
_SECTION_END();

Akshat Jain at 10:51 PM - Jul 17, 2011 ( )

FRIENDS HAVE CREATED A AFL ONT HIS STRATEGY, NEED SOME REVIEWS ON THE SAME, IS THE AFL ON THE RIGHT TRACK OR NOT.....

http://www.mudraa.com/trading/95964/0/-afl-need-helpdeadly-combination-of-34-and-8-.html

HERE IS THE OPEN THREAD, PLZ DO POST YOUR VIEWS

JAI GANESHA

Chetan Sachwani at 04:32 PM - Jul 17, 2011 ( )

NO POSITION SHOULD B OPEN AS PER THIS STRATEGY AS THE SL HIT ON 14 JULY FOR THE POSITION TAKEN ON SHORT FROM 12 JULY

IF ANY ONE WANTS TO TAKE HIGH RISK THAN HE CAN SHORT WITH SL OF 5596 SPOT ON CLOSING BASIS  

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