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Trend Identification Moving Average

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STRATEGY 4
MA COMBO on
Nifty
Trends in Index
13/44 EMA Short term combo
89/233 Long term Combo
Use an EMA as opposed to SMA.
In a non trending market, moving averages may result in
whipsaws.
— To overcome this a EMA crossover system is
adopted In a typical crossover system, the price chart is
over laid with two EMAs. The shorter EMA is faster to
react, while the longer EMA is slower to react
Avoid constantly changing the Moving average you use
Fibonacci Series
21
two preccdifiz
NUMI
NUM2
34
55
89 144 233
ot
'if.so
ml
owl
11M
1141 10121' •411
EMA
Lot size
long Booked at
Net profit
Rolloverloss
Points
10451
10451
10451
153140.25
2042
158100
-650
-600
129225
zoo
1723
116175
-450
106751.25
-350
97777.5
-350
-350
-300
-250
1549
1423
1304
1173
1072
877
75
8409.13
75
75
8343
75
8902
75
75
9027.65
75
9277.6
75
75
75
9379.4
9574.15
10451
10451
10451
10451
10451
10451
9576.15
9485.4
-6806.25
-91
75
9988
9812.5
-13162.5
-176
75
9888
10451
a2225
75
10059
9934
-9375
75
75
75
75
75
9970
10451
36075
10331
10267
10166
-12375
-2925
10428
10228
10451
10942
10660
-21150
8728
9147,3
88005
80370
65763.75
1725
2108
-200
563
-125
-150
481
-50
-165
-39
23
-282
Roltover point loss
GROSS
PROFIT
Rollover Rupee toss
NET
PROFIT
4200
1009539
315000
694539
Strategy
Longs:
Enter trade on Bullish crossover 13&34
— Add 1 lot on each dip towards back to its 13 EMA
— Exit the additional lot (either at 3% rise or at break of the
34 EMA support)
Larger trend exit to be done if bearish crossover
occurs.
Use DXI+ to gauge the ongoing undertone of the
trend
The farther the DXI+ is wrt 20, the stronger is the trend
Strategy
Short o Enter trade on bearish crossover
13&34
— Add 1 lot on each rally towards back to its 13 EMA
— Exit the additional lot (either at 3% fall or at break of the
34 EMA resistance)
Initial lot exit to be done if bullish crossover occurs.
Use to gauge the ongoing undertone of the trend.
Note: (The farther the is from the level of 20, the
stronger is the current of the ongoing trend)
89 & 233 MA Combo Long term
Fear of Being Stopped Out
— Whipsaws are also good in these averages
— 3rd Whipsaw generally leads to an onset of a
New trend. The entire loss from whipsaw is
generally covered and net net it enters profit
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