ALSO PLEASE ELABORATE THE SETTINGS IN DIFFERENT TFs
One of My favorite to trade Indices or Futures setup is below. My Performance on this System with Crude & Nifty is well above 20 % returns per month.
Long :
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EMA 20 showing Up in 30 Minutes chart.
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EMA 5 cross EMA 20 from Below in 5 Minutes chart.
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Stop loss is EMA 20 - 10 Points or EMA 5 cross EMA 20 from above.
Short :
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EMA 20 showing Down in 30 Minutes chart.
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EMA 5 cross EMA 20 from above in 5 Minutes chart.
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Stop Loss is EMA 20 +10 Points or EMA 5 cross EMA 20 from below.
Lot of Patience required. We may miss good moves but Probability of Success is More.
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Trading using NR7 Method:
Market goes through regular contraction (i.e. daily trading range getting shorter and shorter) and expansion (i.e. daily trading range getting bigger) cycle. Expanding range is followed by Contraction and vice-versa. So if we can indetify the narrow range days, then it give us a step ahead of everybody to benefit from coming expansion.
NR7 is term given to a day that has the daily range smallest of last 7 days including that day.
How to Find NR7 day..
1) Get the High and Low data of last few period
2) Calculate the range of each day i.e. high - low) for each day
3) Compare the range of a today and previous 6 days range (to get NR7. To get NR4 get last 3 days range)
4) If today's range is smallest of all 7 days, then today is NR7 day..else not.
It is that simple.
This is one of my favorite setup. It gives u a chance to be ahead of trade follower / indicator followers who will jump in the trend after you.
One of the easiest way to trade this setup will be to go long above the Day's high of NR7 day with stop at the Day's Low of NR7 day.
Or Go short below the Day's Low of NR7 day with stop at the Day's High of NR7 day.
Observing this pattern gives day trader /swing trader a distinct edge to trade next 1 or 2 days. In many cases, NR7 break-out is found near the start of a new wave. For day trader, this setup indicates that they can anticipate wide range days, so they should be prepared to chase the trend and use trailing stops so that they can get maximum from
the coming trend.
Examples:
On 02/09/2014, Auropharma had the lowest range day in last 7 days. i.e NR7 day. on 2nd, the high price was 818.3 and low price was 805.25
On next day, if the stock hits the high of 818.3, we will go long with stop loss of that day's low which is 805.25.
You can see that stock was moved out of contraction phase and started trending from 800 to 900 within few days.
On 24/6/14, Tech Mahindra had the NR7 day with high of 2007 and low of 1987.15, next day if the stock hits 2007 we go long with 1987.5 as stop loss. The stock zoomed in next 3 days to Rs. 2135
This method works well in many stocks. I have personally traded this method and I could say that probability of successful trades are more in this method.
http://www.squareoff.in/2013/01/trading-strategy-nr7-method.html
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Here you go: