This strategy generates sell signals in a trending market. The exit signals show weakness in the current trend and can also indicate reversal of the trend. If two signals are generated within a short span like between 10-12 candles with the price locked in a range, then it can be considered as a stronger signal.
The best parameters to use this strategy is on a 5 min time frame and the best time for the strategy is from morning 9:30 am to 2:30 pm.
This strategy can produce false signals in a sideways or choppy market. It works best on liquid stocks and high beta stocks.
Release Notes
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We have increased the look back period for the signal line by 1.
Didnt work on the indices (BN or nifty). gonna test tomorrow and see how this really works.
skynet970
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@rkvinay,
Hi. This strategy uses volume as one of its parameters and hence won"t work on indices but you can use it on index futures. Kindly share your feedback.