Hi
Can u please mention tje different studies usd in tje chart witj names and values
Hello, @chandan_das_gupta what you do is Just create these settings on your chart and BackTest them on Diffrent Stocks.
CHART SETTINGS = 15 MIN
RSI PERIOD SET TO 2.
SET TO Overbought 90 AND oversold 10.
If RSI is above 90, we will take SELL POSITION.
If RSI is below 10, we will only take BUY POSITION.
Thanks in advace@Lets_Invest
My understanding is
15mts bar close with RSi above 90 is for sell
15 mts bar close with RSI below 10 is buy.
kindly let us know, where to place stop loss?
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Actually it is not getting uploaded dud to some system glitch. I m talking about the first chart u have given(idfc)… All the indicators used with value i want to know
@chandan_das_gupta both the charts have same settings.
CHART SETTINGS = 15 MIN
RSI PERIOD SET TO 2.
SET TO Overbought 90 AND oversold 10.
If RSI is above 90, we will take SELL POSITION.
If RSI is below 10, we will only take BUY POSITION.
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@chethanrai you can put your Stop-loss & Target as per your Risk and Reward Ratio.
Example:- If I am taking a trade for a profit of 2:1
Where 2 is my profit and 1 is Loss.
But If a stock is volatile I give Room to my Stop-loss so, that it Not get Triggered.
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i think you are uploading charts from mobile…?
tried on tata steel 15 mts chart:… not working…
Yes, This setup is not working on TATASTEEL.
TATASTEEL is in Uptrend It’s look like it will continue the rally. Delivery % is also increasing from 06-Oct-2017. And from Last one month change is 4.04%
For, Those Stocks which are not following This setup I’ll use Moving averages & ADX and Price action Strategies.
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yes it will failed in every stock which have a strong uptrend
or downtrend…
BACKTEST THESE SETTINGS FOR TATASTEEL.
These settings will Only work When the stock is in STRONG UPTREND OR DOWN TREND.
Chart Setting = 15 min
- EMA = 5 (GREEN)
- EMA = 10 (BLUE)
- ADX = see Only BLACK LINE. (NO SETTING CHANGES IN ADX)
FOR BUY POSITION:-
When The stock price is Above 5 EMA and as well as the ADX is Incresing Its A BUY signal and When the Price Will come Below 10 EMA Exit from your Buy Position and Book Profit You will also see ADX Will start coming down.
FOR SELL POSITION:-
When The stock price is Below 10 EMA and 5 EMA and ADX is Inceasing Its A SELL signal.
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This RSI strategy was originally proposed by Andrew Cardwell.
Please note that RSI is set to default 14 thru-out this discussion
Buying RSI above 60 and And Selling RSI below 40 is coined due to the technical nature of the Indicator. Detailed mathematical explanation for this may be out of the scope for this forum but I would like to highlight few points to explain why this strategy was devised.
- The foundation of RSI indication is RS which nothing but the ratio of average up and average down over last 14 days. So RSI indicator tends to respond to price movement very closely.
- Contrary to popular belief RSI is not linearly proportional to price. What it means in plain English is that stock Price change it takes for RSI to move from 50 to 60 is significantly lesser than stock price change for RSI to move from 60 to 70. It means just theoretically that if a price change of 10 points on price can give you movement of 10 points on RSI when it is the 40-50 range. Where as it may need more than 25 points for it to move from 60 to 70. Same is the case as RSI move downwards below 40.
- Please note that If you use 45 WMA on chart it usually corresponds to RSI at 50. which is the balance point between bulls and bears.
- In order to obtain better direction of the trend, it is important to asses higher frame trends on RSI. For example if you are trading one hour chart then it is important to know daily trend. Thumb rule is five times the time period of the chart you want to trade.
- you can use RSI for pattern detection and support and resistance as well. RSI double bottom, Triple bottom , triangle and wedges are very reliable.
Finally to show you how it works I have included by trading chart of 15 minutes on Kite for last 20 days on NSE 50. You can take trades as soon as you hit 60 or 40 on RSI towards bullish and bearish sides respectively. If you trade in the direction of the higher trend you can avoid significant whipsaws.
I wish you all best.
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I tried the same strategy for ICICI Prud and is doesn’t worked for me. I set the RSI with Period 2 with SELLING above RSI = 90 and BUYING below RSI = 10.
Yes, I Just saw it’s not working.
We all know not all the setup will work.
Find out those stocks which follow the Technical analysis. Not all the Stocks follows technical analysis.