MSCI INDIA INDEX

Jul 30, 2009

STEP BY STEP

---nifty is rising step by step....(one step at atime)
--suggests big institutional buying.
---can lead to big jump in market in coming days.

TRADING SYSTEM USING THREE AVERAGES

The system features three moving averages:
fast(green), middle(red) and slow(blue).

Entry points are determined by the middle moving average(red) crossing the long moving average(blue)
and exit points by the fast moving average(green) crossing the middle moving average(red):

Go long when:
middle moving average(red) crosses to above slow moving average(blue) from below;
AND fast moving average(green) is above middle moving average(red).

Close long when
fast moving average(green) crosses to below middle moving average(red) from above.

Go short when:
middle moving average(red) crosses to below slow moving average(blue) from above;
AND fast moving average is below middle moving average.

Close short when
fast moving average(green) crosses to above middle moving average(red) from below.

---please never trade against the system.
---once trade initiated as per system then you can use rsi,macd,bollinger band,slow stochastic or parabolic sar to close your trade.

trade-with-trading-system

--Most successful traders use a mechanical trading system.

--This is no coincidence.

--A good mechanical trading system automates the entire process of trading.

--The system provides answers for each of the decisions a trader must make while trading.

--The system makes it easier for a trader to trade consistently because there are a set of rules which specifically define what should be done.

--The mechanics of trading is not left up to the judgment of the trader.

--If you know that your system makes money over the long run it is easier to take the signals and trade according to the system during periods of losses.

--If you are relying on your own judgment during trading you may find that you are fearful just when you should be bold and courageous when you should be cautious.

--If you have a mechanical trading system that works, and you follow it rigorously your trading will be consistent despite the inner emotional struggles that might come from a long series of losses, or a large profit.

--The confidence, consistency, and discipline that a thoroughly tested mechanical system affords is the key to many of the most profitable traders’ success.