Trading strategies for consistent returns

Technical Analysis
41

In reality RSI is not designed to use under 9 periods because of the calculations. Anything under 14 is not a reliable RSI output…

1 Like
42

Sir, I would like to know as my Moving average settings are correct.
RSI oversold limit = 40.
RSI overbought limit = 60.
Simple moving average with Period = 8.
Exponential moving average with Period = 8.
If Exponential moving average is below Simple moving average and RSI is below 40, we need to do Short.
If Exponential moving average is above Simple moving average and RSI is above 60, then we need to go for Long.

Please correct me if my understanding is wrong. Thanks for your suggestions.

2 Likes
43

You got it right.

Use it on 15 minute timeframe and above for intraday trades.

3 Likes
44

This is why I don’t like the concept of overbought or oversold. If we are.letting the price to tell us how to trade, that is the best thing.

Keep it simple. When price turns, RSI turns. Follow the RSI only as a confirmation as to what price is doing.

If price doesn’t turn but RSI turns, be aware of likely change in price trend.

3 Likes
45

Which time frame used??
5min/10min??

46

15 Min Time frame.

47

R u asking to use 2 moving average in one chart one with sma 8 and other with ema 8 along with rsi

49

Im new trading. How to do MA 8ema and 8sma setting?

50

Open Chart.
Click on Studies and Select Moving Averages.

I would suggest you to watch demo video of Zerodha on YouTube. Everything is explained their.

51

Can you please share URL of video

52

@llnreddy
check this Kite video user manual

53

Zerodha YouTube Channel.

54

Take paper trades . It won’t work.be safe

55

Will it work on all stocks irrespective of the trends they are in?

56

does it work in strong up and down trends?

57

The purpose of this method is to capture trending moves by using RSI as a filter.

If a stock is in sideways move on the daily chart, it will still have minor trends on a lower timeframe. If it is a sideways move on the lower timeframe, the RSI filter will keep you out of the trade.
The best way to find out is to study a few charts with the moving averages and RSI plotted on them.

It will surely work on stocks in a strong trend.

1 Like
58

this metod will not right every time

59

@prabhat_kumar Yes, I agree.
Not all stock follow this setup.

60

Thanks a lot guys for sharing the strategies

61

Hi… Can you please suggest settings for short or medium term trading (not day trading). Thanks in advance