Trend Identification

Trying to identify trend using alligator lines on stocks.

- Plot SMA lines for 5 bars and 13 bars.
- Look for cross over points.
- When lines are traveling parallel and very close then do nothing
- when lines start to converge do nothing
- when lines start to diverse, enter the position.
- trend typically lasts 2 week to 6 weeks.

March 14, trending vs non-trending

Just by looking at the graphs and comparing SMA 5 vs SMA 13, trying to forecast which ones are trending up or down. Dataset: Icharts

Neclife - trending up - buy at 19
Nehaint - trending up - buy at 13.7
Neocorp - Sleeping (about to trend) - around 10
Nepcmicon - Trending down - about to end - sell at 2.5
Nesco - Sleeping (about to trend up) - around 800
Nestleind - Sleeping

Tracking this also in a separate excel sheet.

Trading - learning about post-rallly choppy market

1. Always after a rally, there will be some sort of choppy market.
2. If you enter choppy market, you will loose money.
3. Usually all option types will be negative in a choppy market.
4. The trades are range bound and trending formula does not work.
5. Do not try to accumulate, believing its a low or good price.


If market is choppy, its good to trade in future as you can get 10-20 points on one side at any point of time.

Trade options when trend is going on, as you can make returns in multiples.

Trade with the trend

For intraday trading, Always trade with the trend.

i.e. wait for market to open. Wait for 1 hour.
See whether a high is broken or a low is broken after that.
Place your orders above the second high/low broken and keep adding at each subsequent local maxima or minima.

Stoploss should be previous day's close and move it along the trend but 2 points behind the recent broken maxima or minima.