What are these averages signify..?

There are "close ema" (appears after the close price of week, day & Hour), "High ema" & "Low ema".
High ema- staying above it indicates upward momentum; below it downward momentum but if it stays above close ema during this period, it could simply be a correction.
Low ema- staying above it indicates uptrend is intact; below it the downward momentum increases..a follow up action is required.
Close ema- as highs and lows can be manipulated, the close price which is used to calculate most of the momentum oscillators plays quite an important price factor. Simply put, market is in uptrend above it and it is in downtrend below it in those time cycles.
These emas become useless once a trend is in place and they come to play some roles once a correction sets in after "OB" or "OS" situations.
There are more averages below the pivot table with colour changes depending on thier prices.
Avg: is a simple average which gives equal weightage to "n" number of period. for eg: a 5-day avg is calculated using last 5 days closing prices thereby giving equal weightage to all the past 5 days.
ema:emas are exponential moving averages which is calculated using a mathemetical formula that gives more weightage to the more recent prices thereby considered to be more dynamic as well as volatile.
Whenever "ema" value is more than the "avg" value, it means bullishness and whenever the "ema" value is lower than "avg" value. it signifies weakness/ bearish.
3, 5 ,10 are considered for short term; 20,30 days are considered for medium term; 50, 100, 200 days are considered for long term. These can be experimented with as market is evolving all the time. More traders become aware of a certain method or a pattern, a likely failure is possible. So keeping an open mind but at the same time using our own experiences manifested as our "Intuition" can guide us tremendously.

Simple Rules to Trade Using 5 EMA(LOW-HIGH)

USE EMA -5(LOW) and EMA-5(High) instead of using 5 EMA. 

Rules

If the stock/Index trading above 5 EMA(High) - trend is expected to be up with support at 5 EMA(High)and next level of support comes near 5 EMA(low)

If the stock/Index trading in between 5 EMA(low) and 5 EMA(High) trend is expected to be rangebound between 5 EMA

high and 5 EMA low with resistance at 5EMA(high) and suppport at 5 EMA (low)

If the stock/index trading below 5 EMA(low) then price is expected to be trend lower with resistance at 5 EMA low and next level of Resistance comes near 5 EMA(High)

Try applying for both Weekly and Daily Charts to know the exact trend

Its good to Catch the stock/Index at 5 EMA low- EOD with stop loss below 5 EMA-High

Rest its good to look at the 3 month Nifty chart with 5 EMA(High - Low) Indicator.

Also Implemented in our Nifty EOD Tool as displayed in the right corner of the page

to guage the EOD Supports and Resistance

NIFTY TRADING SYSTEM

NIFTY (CASH)
5 Day Chart, 5 min Bars, MACD (26,12,9) 
My system :

Entry/Exit:

(1) Always be in a trade.

(2) Entry into long means I have also exited the short.

(3) The faster line (red ) goes above the green - > Close shorts & immediately go long.

(4) The faster line (red ) goes below the green - > Close longs & immediately go short.

(5) Another method to follow now is ... >> To look for the long term trend. >> derived by when the 50 Day EMA crosses the 200 Day EMA. Trade only in the direction of the long term trend and neglect the signals which this system gives in the other direction. This method has shown to drastically reduces losses, thereby increasing profits manifold. Try it out !

Stop Loss: 

An initial acceptable range for the stop depending on your comfort level can be put. As the Nifty moves in your direction , immediately put the the stop at the purchase price + brokerage as soon as possible.

Hedge your Positions Daily :

The Nifty encounters lots of gaps up and down and this could go against our positions due to many market factors / changes which take place overnight. We therefore need to hedge our positions, EVERY DAY before close.

Keep in mind hedge positions are not to make profits. It has to be used as a hedge strictly, however if the hedge position is giving a hefty profit, discretion to close the open position lies with you.

The technique I follow :- If the system is long ( & you are long 500 futures) then 10 - 15 minutes before close buy same quantity (500 in this case) just out of the money puts.

Carry over these puts. Watch the market for the first 10 - 15 minutes next day.

If the market remains long and keeps getting strong, find a good rate to close your puts. As the put was out of the money, the loss from the puts would be less, than the profit from the long.

If the market gaps down or continues going down, book profits on the puts or keep a trailing stop loss which will offset the losses incurred from the nifty long position.

Vice Versa for short positions with calls.

Remember buy "just out of the money" options, which show decent volumes. For eg ; If Nifty Cash closed @ 3920 and you are long, then you should be buying 3900 or 3850 puts.

This will always keep you tension free, what ever be the global or overnight factors.

Also remember, you all need to coax your brokers to charge you a reasonable brokerage. Keep looking for better brokerage options. But keep in mind :

Gaps are more dangerous than brokerage, so you need to secure yourself from them.

Position sizing :

This is now modified and left to your discretion. However please remember, though some people try pyramiding, doing it in the nifty may be hazardous to your bank account. All entries and exits should preferably be done in one go.

Read the system carefully and try to understand it. Make sure you paper trade for some time before you take the plunge.

Simple Intraday Strategies to be followed

Click the above chart to get enlarged

3min - EMA  - Red Line (closely following candle Stick)

13min - EMA - Green Line

34min - EMA - Black Line

55-min EMA - Gold Line

200 min EMA - Yellow Line ( Wont visitble good in white background so i kept it orange )

 

 

Two Simple Rules to Follow

 

1) Go Long if 3 EMA is  above 13 EMA and 13 EMA is above 34min EMA with stop loss below 34 EMA

2) Go Short if 3 EMA is below 13 EMA and 13 EMA is below 34min EMA with Stop loss above 34 EMA

 

Remember : These Two rules wont follow in a range bound market and well behave in case of volatile market

 

If you witness from the stock that at 4870 it is clearly witness from the Intraday chart that 3 EMA is below 13 EMA and

13 EMA is below 34min EMA with Stop loss below 34 EMA. Cool We have founded  the selling point in Nifty.

So one can short the market at this level with minimum stop loss at 4890 above 34min EMA. If EMA pattern reverses  then your stop loss may hit.

But if you notice the chart it is clearly evident that the pattern doesnt changes until the end of the session so one can carry forward

to next day or else can book the profit.

How to take Multiple Trades in Nifty Intraday

The charts shown here is the Nifty Intraday chart on 4th July 2008

Easy Technique to follow in Intraday Nifty Trades

1)Buy Nifty when the Slow Stocastic blue line crosses the red line and slope upwards near oversold region (near 20)

2)Sell Nifty when the Slow Stocastic red line crosses the blue line near slope downwards oversold region (near 80)

Nifty Positional trade based on 70/1030 EMA Strategy

USED Moving Average Crossovers : 1030min EMA & 70 min EMA
Charts Used : 5 day Charts, 5 min Bars 

Go Long Rules
If The faster line (red ) goes above the green - > Close shorts & immediately go long.

Go Short Rules
The faster line (red ) goes below the green - > Close longs & immediately go short.

No other Indicators Needed... Works Well Especially in Volatile Times

Stop Loss
An initial acceptable range for the stop depending on your comfort level can be put. As the Nifty moves in your direction , immediately put the the stop at the purchase price + brokerage as soon as possible.

HOW TO USE NIFTY INTRADAY

After years of trading the nifty in intraday trades and request from several followers of this page to have a comprehensive page on how to use this page for best effects in different market scenerio, finally i prepared this documentation. Every attempt is made to make it cover all market situations and to explain how rational decisions can be made, it is always to some part matter of judgement. Hence the followers are advised to paper trade first using these strategies, and when in confidence start actual trading. 

Following are the different strategies using this page for different classes of traders,

A) Based on breaking of swing high/low.( more trades /more risk)

B) Based on stochastic and rsi. (moderate trades/moderate risk) 

C) Based on wave behaviour. ( very few trades/low risk) 

detailed discussion follows

A) Based on breaking of swing high/low.( more trades /more risk)

This strategy is for those who take several positions everyday and their trading style is scalping type, in high quantity is traded for the small move in nifty. This method of trading uses the pre-fed orders in the direction of the stochastic.

Long trade entry and exitrules:

Buy rule : place buy order at recent swing high+5 points (when rsi & stochastic are moving up.)

Sell rule : Place sell order at buy price + one step* of chart

{* one step: This is one of the great feature of the yahoo chart that it automatically expands when the volatility increases and the distance between two horizontal lines in the grid is refered as the one step)..

Note: Add or substract the difference betweent the spot and future prices in order prices , the chart shows the spot nifty prices

These trades are illustrated below.

Short trade entry and exit rules:

short rule : place short order at recent swing low-5points when rsi & stochastic are moving down.

cover rule : Place cover order atshort price - one step* of chart

{* one step: This is one of the great feature of the yahoo chart that it automatically expands when the volatility increases and the distance between two horizontal lines in the grid is refered as the one step)..

Note: Add or substract the difference betweent the spot and future prices in order prices , the chart shows the spot nifty prices

These trades are illustrated below

Some key tips to follow this system:

1)Always trade in the direction of main trend, you can trade the reactions also but the chances of hit and miss are more if you are trading in the direction opposite to the main trend.

2)Stoploss: As soon as you get the position ( buy/short order executed) apply a stoploss of one step below/above the entry price.

3)Avoid the choppy days, you can identify the choppy day when the size on one step is 5 points only…

4)Never think that I will enter when the high/low is crossed , you will never get the price, because the break of that price cause the jerk move in the nifty.

5)Feed also sell/cover order at the same time. Don’t decide to exit manually, this will include the emotional interference in the trading.

6)Use higher quantities so as to make good profit.

7)Avoid trader after 2:30 pm, more chance of hit and miss case.

AVOID TRADING THE CHOPPY DAY (MORE CHANCE OF HIT AND MISS)