The upmove from 4532 to 5173* has kept us busy in revising our Counts from the basic ABC corrective to Double Combo WXYXZ to current Expanded Flat pattern.
And it was MOMENTUM that kept on guiding us that despite the EW Count indicating completion of upmove, reversal had not got initiated.
And on occasions where we were caught on the wrong foot,one simple miscalculation was---reading too much into Hourly Momentum charts and trying to take next positions on their basis----not giving proper weightage to Daily Momentum in the "heat of things" where Hourly Charts overshadowed other aspects.
In view of that , I have decided to post an Exl Chart indicating Closing prices along with 5HrEMA and 5DyEMA together so as to always see the Hourly closing vis-a vis Daily EMA and take position accordingly.
All of you should prepare this chart and follow it,particularly for carrying forward your trades to the next day
As one can very easily see,closing prices though occasionally breached 5Hrema never ever breached 5dayema to warrant any shorts carry-over to next day.
The above chart can be fine-tuned by an individual to take into consideration variuos permutations--
Raghu
Thanks for providing a momentum indicator.We need to exit once price closes below 5DEMA. Is this on hourly basis or on EOD ?
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Sekar
Sekar,may be I was not able to put it clearly.My point is to treat
ReplyDelete5Hrema initially for Intra-day purpose only and carry it over to next day only if EOD close is below 5 Dyema.If EOD close is below 5Hrema but not below 5Dyema,the chances of it going up again the next day are very high.So EOD close below 5Dyema only warrants a carry over of shorts and not the mere close below 5Hrema.
Thank you
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