sumonpal

@sumonpal 1.0 Price Chart

This is a momentum and volume based strategy. Plot "@sumonpal 1.1 Momentum Indicator" & "@sumonpal 1.2 Volume Trend" indicators to check the trading signals.

1. Barcolor is GREEN -> When Momentum is in green region and Volume is in green region
2. Barcolor is RED -> When Momentum is in red region and Volume is in red region.
3. Barcolor is YELLOW -> Volume and Momentum is not going in same direction. Staying away from trading is good in this scenario.

Entry --> Above/below the 50% range of the signal bar
Target --> Target is calculated based on signal bar ATR

Buy Entry Condition -->
a) Though entry level is plotted on chart but fresh entry is plotted when Volume and Momentum both turned green. Wait for the bar to close above the entry level in your timeframe. Say, you are using 5m timeframe, go long only when 5m bar closes above the entry level.
b) Stop loss could be low of previous bar where entry is confirmed
c) Exit - Once 1st target is met, 50% position can be booked and SL can be moved to entry and trailed. Another way is to trail based on ATR or whatever suits you.

Short Entry Condition -->
a) Though entry level is plotted on chart but fresh entry is plotted when Volume and Momentum both turned red. Wait for the bar to close below the entry level in your timeframe. Say, you are using 5m timeframe, go short only when 5m bar closes below the entry level.
b) Stop loss could be high of previous bar where entry is confirmed
c) Exit - Once 1st target is met, 50% position can be booked and SL can be moved to entry and trailed. Another way is to trail based on ATR or whatever suits you.

Attention->
1. Be extra cautious on long in overbought zone (@sumonpal 1.1 Momentum Indicator ).
2. Be extra cautious on short in oversold zone (@sumonpal 1.1 Momentum Indicator ).
3. Avoid trading when "@sumonpal 1.1 Momentum Indicator" & "@sumonpal 1.2 Volume Trend" are flat.
4. Whipsaws could be there in rangebound market. To avoid that I follow the below process:
a) No fresh buy in first 15m (if timeframe is below 5m)
b) after 15m, mark the high low of first 15m min, ignore signals within the first 15m range
c) after 30m, mark the high low of first 30m min, ignore signals within the first 30m range
d) if timeframe is below 1hr, do not trade based on signal of previous session i.e. signal is there at last bar of the previous session and next day trade is confirmed on first bar --> avoid that trade
e) Look for divergences in momentum indicator and avoid signals in divergence is in progress.


Disclaimer: Trading in equity is risky. Asses your risk profile before trading. If you make loss/profit, you will be responsible for that, not me. Backtest this strategy before using.
Release Notes: This is a momentum and volume based strategy. Plot "@sumonpal 1.1 Momentum Indicator" & "@sumonpal 1.2 Volume Trend" indicators to check the trading signals.

1. Barcolor is GREEN -> When Momentum is in green region and Volume is in green region
2. Barcolor is RED -> When Momentum is in red region and Volume is in red region.
3. Barcolor is YELLOW -> Volume and Momentum is not going in same direction. Staying away from trading is good in this scenario.

Entry --> Above/below the 50% range of the signal bar
Target --> Target is calculated based on signal bar ATR

Buy Entry Condition -->
a) Though entry level is plotted on chart but fresh entry is plotted when Volume and Momentum both turned green. Wait for the bar to close above the entry level in your timeframe. Say, you are using 5m timeframe, go long only when 5m bar closes above the entry level.
b) Stop loss could be low of previous bar where entry is confirmed
c) Exit - Once 1st target is met, 50% position can be booked and SL can be moved to entry and trailed. Another way is to trail based on ATR or whatever suits you.

Short Entry Condition -->
a) Though entry level is plotted on chart but fresh entry is plotted when Volume and Momentum both turned red. Wait for the bar to close below the entry level in your timeframe. Say, you are using 5m timeframe, go short only when 5m bar closes below the entry level.
b) Stop loss could be high of previous bar where entry is confirmed
c) Exit - Once 1st target is met, 50% position can be booked and SL can be moved to entry and trailed. Another way is to trail based on ATR or whatever suits you.

Attention->
1. Be extra cautious on long in overbought zone (@sumonpal 1.1 Momentum Indicator ).
2. Be extra cautious on short in oversold zone (@sumonpal 1.1 Momentum Indicator ).
3. Avoid trading when "@sumonpal 1.1 Momentum Indicator" & "@sumonpal 1.2 Volume Trend" are flat.
4. Whipsaws could be there in rangebound market. To avoid that I follow the below process:
a) No fresh buy in first 15m (if timeframe is below 5m)
b) after 15m, mark the high low of first 15m min, ignore signals within the first 15m range
c) after 30m, mark the high low of first 30m min, ignore signals within the first 30m range
d) if timeframe is below 1hr, do not trade based on signal of previous session i.e. signal is there at last bar of the previous session and next day trade is confirmed on first bar --> avoid that trade
e) Look for divergences in momentum indicator and avoid signals in divergence is in progress.


Disclaimer: Trading in equity is risky. Asses your risk profile before trading. If you make loss/profit, you will be responsible for that, not me. Backtest this strategy before using.
Release Notes: This script is now obsolete
Release Notes: This script is now made obsolete
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Comments

21-Sep-20 NIFTY is within first 15m/30m/1hr range.. ignoring trade confirmation within this range could be helpful.
Reply
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