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Deadly combination of 34 and 8 .(Js)
| From : Jagmohan Singh at 09:16 PM - Feb 23, 2010 ( ) |
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Jagmohan sir, one observation, looking at the Nagarjuna Fertilizer chart, wouldn't you recommend to sell when the 8 day EMA cuts the price line from above because it has given an early signal in this case and square off your SELL position and buy when 8 day EMA cuts the line from below and keep alternating the positions as and when you get buy sell signals "JuST based on 8 day EMA", wouldn't this be sufficient. Just my opinion. Please clarify. Regards, Prachi.
Dear Sir, In the Google Finance chart there is provision to zoom 1 day, 5 days, 1 month, 3 months etc. For a short term positional traders whether 1 day is to be followed or 3 months or any other time frame is to be followed. Further is it always better to take positions after 3.15 pm. Kindly explain the above. Thanks in advance
when peiceline cuts ema34 from above short, till it cuts 8ema from below when u should square off. if it again falls below 8ema short again till it again cuts 8ema from below. Also, pl note that this tech is not about EMAs cutting each other. it is about priceline cutting them. i hope nobody confuses this.
yes, prachandji, the black one is the priceline. priceline is the one which is there when nothing else is there.
http://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=Linear&chdeh=0&chdet=1266703556265&chddm=391&chls=IntervalBasedLine&q=NSE:.NSEI& you can see in the above web
dear jagmohanji, i have pasted nagarjuna fertilizer stock chart for 34/8 reading. blue line is 8ema and green is 34 ema. black line is price line or what?
jagmohanji, just one question. i use chartnexus for study technicals eod. i put the data of 34ema and 8 ema but couldn't find priceline . what is this price line. plz advise.
Thank you, Jagmohanji! The attitude of sharing the information & knowledge is very much appreciable.
Prachi, 1 day tick time frame is to be taken. lesser or more will give too sensitive or too late signal.
Also, you have rightly pointed out the difficulty in taking a call on dynamic basis. Pl note:- 1)take a call near the closing of the day's trade so that it is confirmed that the crossover of ema by priceline is genuine. 2)at times, buy signal may turn out to be false, but these occasions won't be very many. Every true signal will make you much much more money to coverup for the false cases. Why worry when inbuilt stop loss is there. (stop loss=when priceline cuts back 34ema just after the buy signal), a small courage to take a call is a must. 3)confirming the ema signal with other reliable technique can help.Dear Ram, the beauty of this technique is you need no target, no stop loss. just follow the conditions mentioned in A & B in the post. Target is achieved when 8EMA is cut from above while rising and from below while falling. When the priceline cuts back 34ema immediately, it can be taken as stop loss.
Jagmohan ji, after setting the 34 and 8 day EMA, what time frame should we select, like in a trading terminal we have option to choose 0,1,3,5,15,60 minute timeframe for the chart. Or do we have to look at the EOD chart, 3day, 5day or weekly or monthly. Please clarify, also eagerly waiting for the Intraday strategy :) . Another question I have is, these crossovers are formed dynamically which might take any direction depending on the market movements, if you back test it, it looks pretty ok but doing a predictive analysis looks risky. Maybe a back tested example would also do, like if you can provide us an example with pictures, a picutre is equal to a thousand words! Thanks for educating us Jagmohan ji, expecting to learn a lot from you in the coming days...
JAGHOHAN JI MAINE AAP SE EK CHOTE SI BAAT PUCHI THI KI HUM ISKA TARGET KAISE SET KARE PLS BATAIYE .
Thanks Syamji for your encouragement. You are the Afridi of Mudraa! Also, I want to share with all friends that 34/8 EMA combination is not suitable for Day Trading. I am working on a comprehensive EMA based strategy for day trading and will share with all of you shortly in a separate thread. I tested it today on the trigger given by shrikant's call and it worked. On the basis of it, I successfully quit at 4873 and reentered at 4853. Will share shortly!
BRAVO,BHAI!!
WHAT JAGMOHANJI SAYS IS VERY SUCCESSFUL FOR EVEN INTRADAY...IT'S A STRATEGY ADOPTED BY MANY TRADERS....I USUALLY WATCH 20EMA AND 50EMA AND PRICE LINE...BASIC IS SAME...HIGHER EMA(50) CROSSING ABOVE LOWER EMA(20) IS BEARISH AND VICEVERSA...
YOU CAN GET LIVE TECHNICAL DATA HERE IN GOOGLE FINANCE....LINK OF RELIANCE IS BELOW
....http://www.google.com/finance?q=NSE:RELIANCE
CLICK THE TECHNICAL BUTTON BELOW THE GRAPH...THERE IT IS ANY TECHNICAL YOU NEED FROM EMA TO MACD TO RSI....AND THAT TOO LIVE
....
Dear Vinay, no question is foolish. your question is quite intelligent. Actually, 1 month graph is based on 30 minute tick, whereas 3 month graph is based on 1 day tick. Tick is the length of the minimum step counted. so 1month graph will give wrong/different reading.
Jagmohan Sirji, It was wonderful tutorial. I was about to post about this topic and noticed your initiative. Great! I have a question. You advised to keep the duration of Graph to 3 Months. Does that mean we have to monitor the stock activity within 3 months of time? Or we can check it for 1 month duration as well? I am an infant in share market, so sorry for any basic or foolish question. Thanks a lot! Regards, +Vinay
Superb,jagmohansinghji, I didn't mean the strategy as i haven't tried it yet! I said about the way you explained things! My heartiest thanks to you! keep it up! regs,
Nitin Sir its not EMA crossover...u need to see closing price of stock crossing EMA's
Where we can get EOD data for EMA 08 & EMA 34? as it is not easy to find EMA crossover by looking at Charts.
From data available on Ichart, I found 3 scripts where EMA 13 has crossed EMA 34.
| Script | ema_13 | ema_34 |
| EDSERV | 259.04 | 258.92 |
| HERCULES | 216.58 | 216.52 |
| OISL | 26.08 | 26.05 |
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