I have cut & pasted this verbatim from
BRamesh Tech Analysis site. Keeping it here just in case...
Long/Buy Nifty FutureShould Be initiate when 5 EMA > 20 SMA and MACD Line crosses the Signal Line on Upside.
In other words when 5 EMA Line crosses 20 SMA line on Upside and MACD Blue Line crosses Red Line on Upside.
When both of the Following 2 conditions are met we should initiate long /Buy Nifty Future with SL as the crossover day’s Low
Short/Sell Nifty FutureShould Be initiate when 5 EMA < 20 SMA and MACD Line crosses the Signal Line on Downside.
In other words when 5 EMA Line crosses 20 SMA line on Downside and MACD Blue Line crosses Red Line on Downside.
When both of the Following 2 conditions are met we should initiate Short/Sell Nifty Future with SL as the crossover Day’s High.
Avoiding WhipsawMACD cannot be used alone. So combining it with the 5 day EMA and 20 day SMA is a nice way to avoid whipsaws
as shown in above Chart.
Please Backtest the System and verify the results before taking any positions in Market
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