Nifty 8DMA plus minus trading stratagy

[anup]

My 2 questions
1. It is 8 days EMA or 8 days MA. In post 1, it is 8 days EMA then why in some previous posts it is 8 DMA instead of 8 DEMA (even title is 8 DMA)
2. If price opens above (or below in second case) 8 DEMA, then one should go long (or short in other case)

The answer to your first question is consider 8 DEMA. Its exponential moving average. Neglect all the post posts where it is written as Daily moving average(DMA).

The answer to your second question has to be answered by someone who has traded longer for a duration of more than 6 months. I would definitely avoid trading in second scenario and wait for another opportunity.

 

[GPatil]

Today nifty triggered a sell call below 7747 with SL 7774. Unfortunately the SL hit on this short trade at 7774

We reversed the trade to long at 7774 with SL of 7747 with a target of 7817.we already achieved the target.

Please let me know if any issues/concerns.

Anup,
Yesterday's's 8DEMA level for trading was 7747 & yesterday's open was7745.65. Price went up & crosses 8 DEMA level & went further up. So that was BUY call. How you said, SELL call triggered ?
Please explain so that I can know my mistake in understanding the strategy.
Thanks.

I asked the same question in another post also.

 

[sspatil]

Be ready to short below 7767 now. Its 8 dma level today if breaks short and place 27 points stop loss

 

[nifty trade]

This is completely intraday strategy?

 

[vasan56]

Be ready to short below 7767 now. Its 8 dma level today if breaks short and place 27 points stop loss

you are trying to change the basic rule.we should not follow the 8dema intraday.Now the eod 8dema is 7771.Tomorrow if trades below this level,we should go short with sl 7798.Suppose even if it closed below 7771 today, no trade and we should look for long above 7771 tomorrow.This is what I understood.Please clarify if I am wrong.

 

[anup]

Anup,
Yesterday's's 8DEMA level for trading was 7747 & yesterday's open was7745.65. Price went up & crosses 8 DEMA level & went further up. So that was BUY call. How you said, SELL call triggered ?
Please explain so that I can know my mistake in understanding the strategy.
Thanks.

I asked the same question in another post also.

Nifty was trading above the 8DEMA price on previous close. So the only option is to sell the nifty as soon as it crosses 8DEMA. It opened 2 points below the 8DEMA and i would defintely had shorted at the opening because as per the rules it went below the 8DEMA and it had hit the SL and we have to reverse the trade to long..

Now you are considering since the opening was lower and it crossed from the below we have to go long.. Its completely wrong assumption!

Read the rules again and go through all the trades if you still have confusion

 

[anup]

you are trying to change the basic rule.we should not follow the 8dema intraday.Now the eod 8dema is 7771.Tomorrow if trades below this level,we should go short with sl 7798.Suppose even if it closed below 7771 today, no trade and we should look for long above 7771 tomorrow.This is what I understood.Please clarify if I am wrong.

Dear Vasan,

SS Patil had posted during the market hours. So he had considered yesterdays 8DEMA(7767) to go short and he is correct and the trade did not execute because price did not move below 8DEMA.

Now you have posted after the market hours for tomorrows trade(todays 8DEMA is 7771) and you are right for tomorrows trade. Tomorrow if the price goes below 7771, We have to short but however if there is a huge gap down, I wont take the trade and will wait for the next opportunity.

Both of you are correct in your own ways!

 

[traderhindustani]

What I understood from above discussion is if NIFTY opens above 7771 we may go long and if opens below 7771 we should go short. Am I right.

 

[anup]

What I understood from above discussion is if NIFTY opens above 7771 we may go long and if opens below 7771 we should go short. Am I right.

Sorry, Your understanding is wrong..

The nifty is currently closed at 7786 on 22/12/2015 and 8 DEMA is 7771.

I will be only looking for shorting opportunity.There are few cases which are described below

1.Suppose if nifty opens below 7771 say 7765, i will go short immediately keeping my SL as 7771+27=7798.
2.Suppose nifty opens above 7771, I will wait patiently till it breaks 7771 and go short once it breaks 7771 and my SL will be same 7798
3.Suppose nifty opens with huge gapdown say 7735 or so, I will not trade and wait for next trading opportunity.

I will be going long only when nifty hits my SL 7798. There is no question of going for long trade unless this condition is met.

The profit for the short trade will be 7771-70=7701
The profit taking area for long trade will be 7771+70=7841

I am really not able to understand why this simple concept is being confused by so many people. Either its lack of homework or sheer negligence.Please go through entire thread once again and go back to to history dates and compare the trades.Its plain and simple just like Venilla ice cream

 

[Fundootrader]

Dear Vasan,

SS Patil had posted during the market hours. So he had considered yesterdays 8DEMA(7767) to go short and he is correct and the trade did not execute because price did not move below 8DEMA.

Now you have posted after the market hours for tomorrows trade(todays 8DEMA is 7771) and you are right for tomorrows trade. Tomorrow if the price goes below 7771, We have to short but however if there is a huge gap down, I wont take the trade and will wait for the next opportunity.

Both of you are correct in your own ways!

What about if nifty opens above 7771 and stays above 8 DEMA - Do we go long