The system is devised from Triple Screen method. Donot expect massive profits, but you are likely to get consistent returns.
It uses Dual time-frame Stochastics Indicator on 5 minutes Chart with 30 minutes Stochastics as perspective. I have tested this on Banknifty.
The system requires 30 min TF stochastics (AFL for showing 30 min TF for showing it on 5 min chart itself will be added in the next post).
Coming to the system :
a long position is initiated when
1. In 30 Minute Stochastics Chart, the Stochastic should be bullish (ie Blue in Colour).
2. When first condition is satisfied, look for Stochastics in 5 min TF enters oversold sold ie reading 30 or below.
3. When both conditions satisfied, make a buy stop order above the high of candle on which both conditions are satisfied. If the order is not filled, make the buy stop order above the high of next candle. Move the order likewise until filled. Make sure that 30 Min Stochastics chart does not change its colour from Blue to Red while doing so. If the colour of 30 min Stochastics change colour, the set up is cancelled and wait for next signal.
4. Once the order got filled, place the initial stop at recent pivot low.
5. You can exit the trade at fixed profit targets (For Banknifty 40-50 points).
6. If trading multiple lots exit one lot at fixed target and trail the SL as per your liking to skim maximum from the move.
For Short Trades opposite of the above rules is used.
The system occasionally fails to catch the big moves, but that does not matter as long as system is making profits.
Comments and suggestions are most welcome.
It uses Dual time-frame Stochastics Indicator on 5 minutes Chart with 30 minutes Stochastics as perspective. I have tested this on Banknifty.
The system requires 30 min TF stochastics (AFL for showing 30 min TF for showing it on 5 min chart itself will be added in the next post).
Coming to the system :
a long position is initiated when
1. In 30 Minute Stochastics Chart, the Stochastic should be bullish (ie Blue in Colour).
2. When first condition is satisfied, look for Stochastics in 5 min TF enters oversold sold ie reading 30 or below.
3. When both conditions satisfied, make a buy stop order above the high of candle on which both conditions are satisfied. If the order is not filled, make the buy stop order above the high of next candle. Move the order likewise until filled. Make sure that 30 Min Stochastics chart does not change its colour from Blue to Red while doing so. If the colour of 30 min Stochastics change colour, the set up is cancelled and wait for next signal.
4. Once the order got filled, place the initial stop at recent pivot low.
5. You can exit the trade at fixed profit targets (For Banknifty 40-50 points).
6. If trading multiple lots exit one lot at fixed target and trail the SL as per your liking to skim maximum from the move.
For Short Trades opposite of the above rules is used.
The system occasionally fails to catch the big moves, but that does not matter as long as system is making profits.
Comments and suggestions are most welcome.