Technical Strategies- 101

Technical Strategies- 101

Note: Please use NSE charts as they are updated real time, unlike BSE.

MACD:
  1. In-depth details about MACD- https://www.investopedia.com/terms/m/macd.asp
  2. 12, 26, 9 in MACD is an arbitrary number that has been tested over years. There is no logic behind that.
  3. When to buy: Suppose as per our strategy,  the crossover occurs today, say at 9 AM, 10 AM, or 12 Noon, please don't buy immediately. Wait till 3:15 and verify the crossover, and the day will be termed as "Signal Day". If it stays at that time, you can choose to buy it. You can also buy it tomorrow around 9-10, provided crossover is there. The last day to buy as per the signal is the day next to tomorrow. The reason behind this is signals may vanish during the live markets, and you may become trapped. 
  4. The same process i.e. review at 3:15 afterwards will be applicable for selling too, and you can also sell the next day.
RSI: 
  1. In-depth details about RSI- https://www.investopedia.com/terms/r/rsi.asp
  2. When to buy: Suppose as per our strategy,  RSI crosses the buy value today, say at 9, 10, or 12, please don't buy immediately. Wait till 3:15 and verify the crossing. If it stays at that time, you can choose to buy it. You can also buy it tomorrow around 9-10, provided crossover is there. The last day to buy as per the signal is the day next to tomorrow. 
  3. The same process i.e. review at 3:15 afterwards will be applicable for selling too, and you can also sell the next day.

MA Strategy: 
  1. In-depth details about MA- https://www.investopedia.com/terms/m/movingaverage.asp
  2. In-depth details about EMA- https://www.investopedia.com/terms/e/ema.asp
  3. Difference between them- https://www.investopedia.com/ask/answers/071414/whats-difference-between-moving-average-and-weighted-moving-average.asp
  4. Smoothing in MA: https://www.tradingview.com/support/solutions/43000591343-smoothed-moving-average/
  5. When to buy: Suppose as per our strategy,  the crossover with price occurs today, say at 9, 10, or 12, please don't buy immediately. Wait till 3:15 and verify the crossover. If it stays at that time, you can choose to buy it. You can also buy it tomorrow around 9-10, provided crossover is there. The last day to buy as per the signal is the day next to tomorrow.
  6. The same process i.e. review at 3:15 afterwards will be applicable for selling too, and you can also sell the next day.
Candlesticks:
Bearish/ Bullish Engulfing: In bullish engulfing, the 5th candle should be bigger than the 4th. It should be like if the 5th candle is superimposed on the 4th one then, it should result in a good-sized green candle. Likewise, a bearish one should be in red.

SL for Positional Strategies:

Demand and Supply Strategy:

Support and Resistance Strategy:

Dow Theory:

Chart timeframes for types of trades: 
15 min: Intraday (Bollinger Bands, Support and Resistance, Price Action, Chart Patterns)
1hr/ 4hr: Swing (Support and Resistance, Price Action, Chart Patterns)
1 Day: Positional (Support and Resistance, Price Action, Chart Patterns)
1 Week: Positional (Dow Theory, Support and Resistance, Price Action, Chart Patterns)
Exception: For swing trades using Bollinger Bands, using 1 Day chart.
 
Screeners (Stock Selection): 

General Trading Targets :
Intraday: 1% or around is good enough
Swing: 3-5% is good enough
Positional: 5-10% is good enough

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