Tuesday, March 4, 2014

Trade F&O using TTO

High leveraged trades in F&O can be tricky. Stop losses can be used for risk management but a few stop loss triggers can take away a substantial part of your capital. What is important is the entries are timed precisely and once an entry is made, ride on the position till exit.

Equally important is the stock selection which can give the best trending position. Using TTO one can analyse the long term trend and take position in a shorter time frame with a precision entry using a minor trend, all this information available on the same  indicator.

Notice how the thin black line zero crossover can be used to make precise entry in the direction of a larger trend. Even if you miss the first entry or are not confident, one can always use the second crossover for a good directional trade.