Daily in the night after 9 pm I list the weekly looser stocks as well as weekly gainers stocks separately. Next day till 10 to 10.15 am I will not involve in any trading.
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N R Gopinath
Thanks for sharing this.Though I don't trade on stock (intra or F&O), I deal only in cash segment with 3-4 months horizon. However, it might help others trading on F&O on Equity.
This is actually a price reversal system for topped out or bottomed out stocks.
But more than indicator let me put few words behind the strategy that you are using (
plz feel free to correct me). I am also adding few comments as my suggestion which might help to improve this further.
1. Weekend analysis - Excellent approach (I do it myself but only on index, for stocks monthly).
Here you are actually trying to find out stocks bottoming out or topping out weekly level. And then you are selecting your candidate for long (among the stronger one which are bottomed ) or Short (Among the weaker ones which are topped) - based on daily market Bias.
Stock Selection
Again I don't know if you are only looking at weekly gainers or losers purely on price or some level like Fibonacci, but you may optimise this further if you can add some oscillator to your scanner to find something coming out of overbought (CCI 34,
175,-175) level or oversold level (CCI 34,175
-175) instead of only looking for price.
Further, if you can find a Fibonacci level as support for bottomed out one (which you will go long) or vica-a-versa on daily time-frame, the odd of catching successful reversal increases.
Another thing (may be you are doing that): I don't know how are you judging market bias. Is it based on NSE /BSE Index? I hope not. Please note Indices are 'managed' - there are days where all sectors may be in red or green but that is rare. The exchange (and big money) typically control the index movements by cyclic movements of the sectors. So index may be down 50 points, you may find Bank stocks were up, but Pharma down.
What I am trying to say - as you want to set a Bias (Long or Short) for your trade, please check the index for individual sectors (like Metal, if you are playing with TATA Steel / IT Index if you are playing with TCS and likes). That will increase your hit rate.
Indicators:: RSI and MACD is a fair combination and you are further using Heikin Ashi candles to filter out noise (but you did not mention if you are looking for Hekien Ashi Doji to signify pullback or only on the test of the Weighted Moving Avg. I would have used Elder-Impulse and look for candle with long wick for rejection (but again that's my way).
I won't go much into technical setting you are using. There can be various other setups for the same game. If it is working for you with good win rate, stick to it.
Check if plotting VWAP helps in identifying pullbacks in a better way (as you are doing intra day). May be you can cut-down the few of your indicators - lesser the better.
Thanks once again for sharing your method. Good Luck.