Did you think about the gains that you made in nifty shorts using this simple formula
Nifty Data for 20th,June 2008
Open : 4504
High : 4504.2
Low : 4333
Close : 4347
Click the above chart to get enlarged
3min - EMA - Red Line (closely following candle Stick)
13min - EMA - Green Line
34min - EMA - Black Line
55-min EMA - Gold Line
200 min EMA - Yellow Line ( Wont visitble good in white background so i kept it orange )
Nifty Recap :
If you notice the charts it is clear that market is weakening below 4480 where 3 EMA is well below
13 and 34 EMA so one can go short at this level with stop loss above 34 EMA which is at 4525 during that time. And also giving once again the sell signal at 4450 where the candle is well below
13 and 34 EMA
Here are the TWO Simple rules to follow which we already mentioned previously in my last article
Once Again Repeating the Same Formula
Two Simple Rules to Follow
1) Go Long if 3 EMA is above 13 EMA and 13 EMA is above 34min EMA with stop loss below 34 EMA
2) Go Short if 3 EMA is below 13 EMA and 13 EMA is below 34min EMA with Stop loss above 34 EMA
So are you able to calculate the gains made using this simple formula.
Yes Just 4480-4347= 133pts approximately which translates to 133x50 = Rs 6650/Lot
in Nifty Futures and may be more than 100% returns in case of 4400 Nifty June Puts in
one single day
Related Topics :
Remember : These Two rules wont follow in a range bound market and well behave in case of volatile market
For Real Time Intraday Charts visit our blog NSE Tracker ( Also found in our Important Link Section). Where you can find a nifty intraday chart with above mentioned EMA's
Also you are requested not to take trade based on this two simple theory alone. As lots of patterns and signals are there and
this pattern is one among them.
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