Posted by: Babu Suresh | October 31, 2010

MA (Moving Average) Crossing-1

“No Trading Strategy can perform on its own and produce 100% results, it is entirely based on the user. The strategy is like a Light House, giving us direction and guidance to the destination”.

“A trader who works 70% on his self and 30% on his strategy, closes the day with positive results than the trader works the other way round”

“Anticipation is healthier for a day trader than Prediction” – Quote from BigMikeTrading by BigMike

In continuation to my previous article on MA Crossing, I wish to further elaborate with illustrations certain aspects of this strategy.

Irrespective of what time frame you use, the concept remains same. I have made some changes in my time frames since my last post which I found to suit my temperament. I use 13 Sec., 39 Sec. and 105 Sec. in my charts.

All of us know that Day Trading is intense, involves huge amount of stress and drains out almost all the energy by the time we close our terminals. In order to overcome these, I changed my entire trading approach looking for No Trade Zones instead of looking for entry points. By this way, I am able to largely reduce my stress level and remain energetic and active throughout the trading session.

While in the market,  I just use my eyes with my system, I try to avoid thinking; I let my eyes tell me whether there is any trade or not.  More importantly when there is no trade.

My strategy is discretionary like any of my earlier strategies and it is quite complex. I can only share with you the concept, how I use it in my trading and you must work to learn all the nuances of this strategy.

No Trade Zones:

TF – (Mini-Russell2000):

Illustration 1 – 13 Sec.TF-No Trades

On 28th of Oct.10, after a big fall, TF has been trying to find a direction. This is a zone, I would clearly keep my hands off.

Illustration 2TF-No Trades-1 – 39 Sec.

In this image, captured for this post sake at the same time as the above one, heavy noise after a big fall is too visible – A Clear No Trade Zone

Healthy And Wealthy Trading

Healthy And Wealthy Weekend

To continue…


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