Posted by: Babu Suresh | November 13, 2010

MA (Moving Average) Crossing-3

In my previous articles I had briefly discussed about what I look for and why, while I am trading – “NO TRADE ZONES”.

TF_121110In this article, I wish to share with you both No Trade Zones as well as Trade Zones. It’s not that important what time frame or MA settings I use in my charts, it varies between chart types and chart times but the most important thing is concept of the system. As I had mentioned in my previous article, I can only give the concept, you must work upon it. My system cannot be traded mechanically, it requires deeper involvement, interest, commitment and concentration. Let the eyes work for you and try to refrain from thinking deeply.

To be very frank, I still make some hastey mistakes by violating my system, losing my patience and entering a trade too early and getting stuck, thus allowing large drawdowns. But I am very strict about focussing on one instrument at a time, never put my hands on all the 3 instruments at the same time, end up with head ache and negative balance at the end of the day. The prime reason is, before starting with any instrument, I spend some time studying various aspects happening in the market for, my trading does not solely depend on technical alone.

My trading schedule is, I follow 6E (Euro) during London market hour and start with TF or CL during US market hour.

TF_1_121110In the images,  there are 2 charts, one with larger chart time and another with smaller chart time, both are of TF–Mini-Russell 2000 Index, 12th instant. I have highlighted both No Trade Zones and Trade Zones. I generally avoid first 30 minutes of the market, to allow all the noise to subside and wait for the trend to form. I also refer 15 and 30 min. charts mainly for volume, for I take volume very seriously into account in my trading. I don’t want to elaborate much as I am sure anyone with basic technical analysis knowledge and understanding will be able to follow the system.

I reiterate that this system is not that easy to follow and I would request you if you want to experiment, to spend time studying various aspects until you reach a stage you can allow your eyes to tell you what to do and when to do.

Healthy And Wealthy Trading

Healthy And Wealthy Weekend

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