No trade between 5151 and 5187(to avoid whipsaws)
Buy above 5187 with SL of 5167 for targets of 5205-5223-5241-5259
Sell below 5151 with SL of 5171 for targets of 5133-5115-5097-5079
Happy Trading !
Mercury Retrograde Explained: How It Affects Nifty Trading
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Foreign Institutional Investors (FIIs) displayed a Bullish approach in the
Nifty Index Futures market by Buying 34829 contracts worth ₹ 2119 crores,
resu...
1 hour ago
Sir,
ReplyDeleteThanks for the update.Which parameter will be perfect for ADX, as I use Hrly,5min,2min for trading. As the trend reference is taken from HigherTF, I m not getting a perfect value for ADX. OR, will it be 14 always.Please guide. Thanx
Hi San,
ReplyDeleteThanks for your feedback.
I primarily rely on the ADX for entry signals and have not found it to be of much value after the trade has been initiated. Exit strategies generally require more precise timing than the slow moving ADX can provide.
The ADX is a very robust indicator and I have had good results using ADX settings as short as 7 bars and as long as 30 bars. The fact that the ADX produces good results regardless of its exact parameter setting is a tribute to its robustness and reliability. Reliable indicators should work well over a wide range of settings. Beware of indicators that require very precise parameter settings to work effectively.You may prefer 8 bars for intra day to 2-3 day swing trades.Try paper trades on this settings and then try to implement it.
Profit targets:
When the ADX is rising you should be applying trend-following strategies and looking for fairly substantial profits of at least four Average True Ranges or more. When the ADX is flat or declining there is very little trendiness, so trend following strategies are likely to fail. Under these conditions you will need to find another market where the ADX is rising or temporarily abandon trend following strategies and apply short term counter-trend methods with modest profit targets of only 1.5 ATRs or less.
Major trend reversals:
When the ADX is above 35 and it is higher than either the Plus DI or the Minus DI then extreme caution is in order because many important trend reversals occur at these extremes. When the ADX is above both the Plus DI and the Minus DI try using a very sensitive indicator (such as the Parabolic SAR) to quickly signal a possible change in the primary direction. This technique can identify many major "V" shaped tops and bottoms particularly in stock index markets.
I hope you find this useful.
Regards
K B Raut
Sir,
ReplyDeleteThanx a lot. Your teachings are adding values to my understanding. I will try to practice it 1st, if any doubt, will get back.
Regards.
Hi San,
ReplyDeleteThanks.This also refreshes my knowledge and makes my trading more fluent.
Regards
K B Raut