The trick in any "SAR"(Stop & Reverse) method is to stay "faithful" to a "Pivot number" and follow it.
I am following one such simple "SAR/Pivot" number for Nifty. It minimizes my risks and enables me to spot good trending moves.
I am following one such simple "SAR/Pivot" number for Nifty. It minimizes my risks and enables me to spot good trending moves.
It's a "5 Day EMA". I have chosen it as I been finding it to be most effective for short term trading.
Go Long if price crosses SAR(5.EMA)from below with conviction and remain in buy mode as long as price remains above SAR level.
And go Short if price breaches SAR(5.EMA)from above with conviction and remain in short mode as long as price sustains below SAR level.
SAR simply guides us the trend and pivot levels, price pattern helps to define low risk entry point with stop loss in direction of trend.
To have a profitable trade, EOD and Intraday trend needs to be synced.
To have a profitable trade, EOD and Intraday trend needs to be synced.
