How to Trading with Trend

Here is one of the strategy that I have applied in recent times and earned consistently in Nifty Futures Trading.

1.  Chose any charting software that giving 5 min tick charts(I prefer Google Finance charts as it is most robust charting service I have experienced till now).

2. Select Daily Chart, 5 Min, 30 period and 170 period ema.

3. Go long when 30 ema cuts 170 ema from below.

4. Go short when 30 ema cuts 170 ema from above.

5. If market is volatile, keep 40 pts stoploss.

6. In the chart below, 30 ema crossover generated a Nifty buy signal on 29 Dec 10.

7. 04 Jan 11, signal still valid. Note how beautifully intraday whipsaws are being handled by the strategy. Note Square off signal on 5 Jan. You can go SHORT here.

8. Signal still valid (07 Jan). Total profit 100 pts long + 220 pts short side.

9. Trading in market is risky. Do your own analysis before trading.