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Deadly combination of 34 and 8 .(Js)

From : Jagmohan Singh at 09:16 PM - Feb 23, 2010 (24 months ago)
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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.


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From : Venkat Raman at 10:35 AM - Oct 23, 2011 (107 days ago)


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.





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From : Jagmohan Singh at 08:01 AM - Oct 23, 2011 (107 days ago)


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

 





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From : Harman Preet at 11:22 PM - Oct 22, 2011 (107 days ago)


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

 





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From : Hvm M at 10:25 PM - Oct 22, 2011 (107 days ago)


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. 





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From : Rakesh Yadav at 10:21 PM - Oct 22, 2011 (107 days ago)


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





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From : Renuka Kulkarni at 09:45 PM - Oct 22, 2011 (107 days ago)


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.





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From : Harman Preet at 07:53 PM - Oct 22, 2011 (107 days ago)


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From : Harman Preet at 07:52 PM - Oct 22, 2011 (107 days ago)


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





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From : Shyam Thapa at 04:28 PM - Jul 20, 2011 (201 days ago)


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From : Akshat Jain at 10:12 PM - Jul 19, 2011 (202 days ago)


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





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From : Dhiraj Sinha at 07:34 AM - Jul 19, 2011 (203 days ago)


hi, i am new.pls anyone explain with examples.thanks in adv.





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From : Ranjit Chakraborty at 12:02 AM - Jul 18, 2011 (204 days ago)


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();





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From : Akshat Jain at 10:51 PM - Jul 17, 2011 (204 days ago)


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





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From : Chetan Sachwani at 04:32 PM - Jul 17, 2011 (204 days ago)


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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From : Chetan Sachwani at 04:21 PM - Jul 17, 2011 (204 days ago)


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From : Akshat Jain at 06:17 PM - Jul 16, 2011 (205 days ago)


Hello

Julius Jr

&

Jagmohan Singh

A wonderfum stratedy sir, indeed very impressive..........

Sir I was back testing this strategy and found that from 13 july 2011 till the closing on friday the 15 of july 2011.......

8 ema is giving a sell signal

&

34 ema is giving a buy signal,

No proper one sided sell signals or buy signals are being generated....... In this case what should one do, get aside and wait for proper sell or buy signal, as per if one sees Nifty in these 3 sessions have touched the targets also and the stop loss are hit also after or before hitting the targets on screen which are the 34 emas.........

Please give some light on what has to be done when the 8 ema is a sell signal and 34 ema is a buy signal......

Thanks a Lot

Jai Ganesha





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From : Baburao Kandunuri at 12:10 AM - Jul 14, 2011 (208 days ago)


Hello Julius sir,

Could you please send me the 34,8 cut price exce link to down load.

One more thing based on excel if one shows Red and the other in Green (8,34 EMA and vice versa) means what should i do?

I appreciate your help and thanks in advance.





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From : Baburao Kandunuri at 12:08 AM - Jul 14, 2011 (208 days ago)


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From : Thangavel M at 10:23 AM - Jul 13, 2011 (209 days ago)


JULIUS SIR CAN I SHORT NIFTY HERE WITH SAME SL?





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From : Julius Jr at 09:54 PM - Jul 12, 2011 (209 days ago)


SYSTEM  - Follow Up From July 12, 2011

System Short From 5544-

SL for 13/07/2011@5605+

*Spot Price.




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