Relevance of Intraday Cycle Analysis for Markets with Long off-market hours


#1

Hi, I have taken trail of Sentient Trader for Intraday Trading. “NIFTY50” Index of NSE India is traded as per the exchange hours between 09:15 AM to 15:30 PM, which is 6 hrs and 15 mins. The NIFTY50 does not trade for remaining 17 Hrs 45 mins. I have set data of 3 years (EOD) and set inheritances for each lower cycle in minutes from the higher one. The intraday charts (2 days, 240 Mins, 160 Mins, 60 mins, 30mins, 15 mins, 5 mins and 1 min) show cycles even in the non-trading hours in the ST charts. To give a feeling of price movement, I have added the dummy bar feature in the non-trading hours. In the lower time frames (1min and 5 min) the charts show hollow diamonds or even whiskers and circles below the live candles also. The analysis and patterns of 1,3,7 and 15 min explored after 1 hour of market opening are somewhat reliable but I am not confident to apply the principles and trade. I am not confident of all the synchronised troughs that are formed in the first hour as each time the decision has failed. In my opinion the cycles should be applied only for the hours the cycle that has actually traded and not during non-traded hours. If anybody has similar situation please share what have you done to adapt and trade or has a convincing reason to ignore this aspect and continue to trade what comes on the chart in the present situation!!


#2

Hi, first of all if you are trading intraday its not really necessary to have daily data going back 3 years. Use a cycle of 2 or 3 degrees above your trading cycle at the most.

Take your trading cycle and wait at least 1 oscilation of the cycle one degree higher to complete live before trading.

Lastly dont assume the price low is always the cycle low.


#3

Hi David_F, that is a great piece of advise. So, I want to trade on 3minutes cycle, 15, 30 and 60 mins as higher cycles and 1min on lower cycle should be ok? But major movements take place in the first hour and last hour! Notwithstanding, I will try your suggestion today. Thank you.


#4

Well clearly you will be ok in the last hour but the first hour should be taken cautiously. Your alternative is to trade forex instruments which are available 24 hours


#5

Hi,
“The analysis and patterns of 1,3,7 and 15 min explored after 1 hour of market opening are somewhat reliable but I am not confident to apply the principles and trade. I am not confident of all the synchronised troughs that are formed in the first hour as each time the decision has failed.”

You need to trade with a buddy if youre new, youre welcome to join me anytime man.
Just grab teamviewer , I will trade futures with you if you want on SIM to be safe.

Thanks