My Trading Concept # .... (The Untested Monster)
First of all sorry to all my friends for no new concept / myth-buster posting in recent times. Was really busy. And now I am having plenty of time apart from enjoying my view from my trading desk.
Let me present you something which is untested - will you join me in testing this? No not asking for your money, but for your time. Paper trade is ok.
(There is nothing new except the Volume part which was conceptualized on advice from one of our fellow Traderji Ledge, Mr. Varun !!, Thanks to him for this)
Could be quite a few spelling/grammatical mistakes (but long post, ignore those and "Bhavnao ko Samjho" - get the context)
This is a system for Universal settings (you can use it for Reversal Trade and Pullback Trades). And since this a multi time frame system (mode of checking manual), you get the whole wave view of the current price trend (if you are EW freak like me- even better)
First, this system is an
untested system and the backtest was dubious on a different timeframe (+61% to -45%) as it was missing human factor. But got tremendous potential, you can paper trade or small trade on this till you own it.
I am already putting it into practice for myself (apart from my primary system)
The issue is, we need Pi for this as on KITE we can not overlay RSI (the script in the attachment).
Lets' go through the concept of this (on volatile instruments):
1. Trading Pullbacks:
We restrict ourselves to highest of 30mins TF and identify of price is bullish or bearish with help of STI (default setting).
We drill down to 15mins to see if the trend is consistent.
Finally, we drill down to 5 mins chart and see if there is STI Flip - we prefer a Bullish STI Flip in 5 mins (where 30,15mins are bearish) or opposite (30,15 bullish and 5 mins just went to a bearish flip)
Sometimes - this may not be ideal (you may get all 5,15 getting flipped together, but as long the chances of complete reversal is less (tip, see the distance of the closing candle from STI level on 30mins chart), you still can trade pullbacks.
So you got a Pullback here against the prevailing trend. Now the trick is to short a bullish pullback (on a higher TF bearish trend) or going long on bearish 5 mins pullback (on a Higher TF Bullish trend) - when the trend exhaustion is noticed.
We will do with OBV with 2 overlays (34 EMA, 5EMA) + Another RSI system (on the OBV, 21 periods ). I will provide you the Pi scrip, no worries.
Today I was thinking how can I get something to decide on the strength of the OBV if the overlay is not clear for decision making - another here you go
Short the Pullback
Long on the Pullback
Trading Reversals will be same - Just note this points:
30 mins STI showing sign of slackness (STI is flat and price trending very close to it, and
already bounced back from same level at least couple of time - this part is important)
5 mins showing significant strength after flip and now that is started showing in 15mins - It is time for positional long or short.