Aufbau Eines Automatisierten Handelssystems

MetaTrader 5 - Beispiele Indikator für Renko-Diagramm Einführung Der Name Renko ist abgeleitet aus dem japanischen Wort renga, ein Ziegelstein. Renko-Diagramm wird aus einer Reihe von Ziegeln, deren Schöpfung durch Preisschwankungen bestimmt ist, gebaut. Wenn ein Preis steigt, wird ein Ziegelstein auf das Diagramm gelegt und mit Tropfen der Preise ein unten Ziegelstein hinzugefügt. Renko bedeutet ein langsames Tempo auf Japanisch. Das Renko-Diagramm erschien in Japan wahrscheinlich irgendwo im 19. Jahrhundert. Die USA und Europa zum ersten Mal gehört, nachdem Steeve Nison veröffentlichte es 1994, in seinem Buch Beyond Candlesticks: Neue japanische Charting Techniques Revealed. Die Renko-Chart als die oben genannten Charts ignoriert eine Zeitleiste und betrifft nur die Preisbewegung. Anders als Punkt - und Figurendiagramm platziert der Renko jeden Ziegelstein in eine neue Säule (in einer neuen vertikalen Ebene), wie im übrigen, haben sie eine gemeinsame Schaffung Methode: Größe eines Ziegelsteins (Punkt, Zahl) ist fixiert, Preisanalyse und Figurenfutter werden in ähnlicher Weise hergestellt. So ist Renko-Diagramm eine Reihe von vertikalen Stäben (Ziegelsteine). Weiße (hohle) Steine ​​werden verwendet, wenn die Richtung der Tendenz oben ist, während schwarze (gefüllte) Steine ​​verwendet werden, wenn die Tendenz unten ist. Der Bau ist mit dem Preisverhalten geregelt. Der aktuelle Preis der aufgenommenen Periode wird mit dem Minimum und Maximum des vorherigen Ziegels (weiß oder schwarz) verglichen. Wenn die Aktie höher als ihr Eröffnungskurs schließt, wird ein hohler (weißer) Ziegel mit dem Boden des Körpers gezogen, der den Eröffnungskurs darstellt, und die Oberkante des Körpers, die den Schlusskurs darstellt. Wenn der Bestand niedriger als sein Eröffnungskurs schließt, wird ein gefüllter (schwarzer) Ziegelstein mit dem Oberteil des Körpers gezeichnet, der den Eröffnungskurs darstellt, und dem Boden des Körpers, der den Schlusskurs darstellt. Der erste Ziegel des Diagramms wird abhängig von dem Preisverhalten gezogen, der Baröffnungspreis wird für ein Maximum und ein Minimum des vorherigen Ziegelsteins genommen. Ein Standard-Renko-Diagrammbeispiel, Fig. 1. Ein Standard-Renko-Diagramm Beispiel 1. Charting-Beispiel Ein Standard-Renko-Diagramm wird auf der Grundlage des Schlusskurses gezogen. Wählen Sie zuerst den Zeitrahmen und die Boxgröße aus. In diesem Beispiel wird der EURUSD (H4-Zeitrahmen) mit einer 30-fachen Boxgröße verwendet. Das Ergebnis der Renko-Charting vom 03.01.2014 bis 31.01.2014 (ca. einen Monat) ist in Abb. 2, auf der linken Seite, gibt es ein Diagramm eines gegebenen Zeitrahmens (hier sehen Sie die horizontale Ausdehnung von Ziegeln), auf der rechten Seite gibt es ein Ergebnis des Renko-Charts: Abb.2. Das Ergebnis der Renko-Charting in EURUSD (H4, Box ist 30 Punkte) Sehen wir uns das Charting-Prinzip genauer an. In der Fig. 2 rote horizontale Linien zeigen die Größe jedes Ziegelsteins je nach Preisänderung (30 Punkte), die blaue Farbe kennzeichnet die interessantesten Daten. Wie Sie auf dem Chart am Ende des 03.01.2014 sehen können, schließt ein Kerzenleuchter unter 1.3591 vorher festgelegten Preisspannen (rote horizontale Linien) bei 1.3589 (markiert mit Preis), wodurch ein absteigender Ziegel auf dem Chart entsteht. Danach ist der Preis flach (er schliesst nicht unter 1,3561 oder über 1,3651), er wird bis 20:00 Uhr 10.01.2014 geöffnet (der Leuchter, der um 16:00 Uhr geschlossen wird) und schließt (über 1.3651 Preiszeichen) bei 1.3663 (markiert Mit Preis). Dann wird der Preis wieder um 20:00 Uhr 14.01.2014 (Leuchter eröffnet um 16:00 Uhr schließt), wo er die Preisklasse überwindet, schafft einen neuen Backstein und schließt bei 1,3684. Dann sind Sie Zeuge einer Abwärtsbewegung, wo der Preis viermal brechen durch Bereiche sinkt auf dem Chart. Um 12:00 23.01.2014 (der Leuchter, der um 08:00 Uhr eröffnet wird) gibt es einen Aufwärtstrend von zwei Preisspannen, was seinerseits zwei Steine ​​durch Schließen bei 1,3639 öffnet. Der erste Backstein ist deutlich sichtbar, der zweite wird in einer langen senkrechten Linie (aufgrund der gleichzeitigen Öffnung mit dem ersten Backstein) gezogen. Der weitere Bau geht nach denselben Prinzipien weiter. 2. Renko-Charting-Prinzip Bei der Entwicklung dieses Indikators wurden alle Funktionen so eigenständig wie möglich implementiert. Eines der Hauptziele war es, das Potenzial des Indikators zu maximieren, um die Marktanalyse leichter durchzuführen. Die Berechnungen werden nicht innerhalb des aktuellen Zeitrahmens durchgeführt, d. h. der Zeitrahmen wird in den Einstellungen ausgewählt, und ungeachtet des Zeitrahmens, bei dem der Indikator gestartet wurde, werden die Einrichtungsdaten angezeigt. Dies kann erreicht werden, indem die Daten der aufgenommenen Periode in getrennte Pufferarrays kopiert werden, spätere Berechnungen durchgeführt und der Ausgabepuffer-Indikator gefüllt wird. Das Standard-Renko-Diagramm wird nach den Schliessungspreisen konstruiert, wobei jedoch offene, hohe, niedrige Werte verwendet werden, um die Analyse zu verbessern. Da Steine ​​im Renko-Diagramm ähnlich groß sind, ist es sinnvoll, die dynamischsten Marktpunkte durch das starke Preisverhalten (in wenigen Steinen) zu kennen. Zu diesem Zweck gibt es eine (deaktivierte) Anzeige, die mit einem kleinen vertikalen Schatten (wie im japanischen Candlestick) eines Ziegels dargestellt wird, der auf dem letzten Ziegelstein des gewählten Zeitrahmenstabes anhebt oder abnimmt. Die Möglichkeit, ZigZag im Hauptdiagramm aufzubauen, erweitert die grafische Analyse. Feige. Abb. 3: Indikator für EURUSD-Diagramm (Täglich, Schritt 25 Punkte) 3. Code und Algorithmus des Indikators Der Indikatorcode ist ziemlich groß, da er aus 900 Zeilen aufgebaut ist. Wie zuvor erwähnt, können maximal getrennte Funktionen das Verständnis des Algorithmus erschweren. Einige Funktionen aus dem vorherigen Artikel werden als Grundlage verwendet. Im Fall von Missverständnissen einige Aspekte, können Sie sich auf die Kagi Chart Bau-Indikator oder Sie können mich per E-Mail. Jede Funktion des Codes wird im Artikel erklärt. Die Funktionen werden an dieser Stelle beschrieben. 3.1. Indikator-Eingangsparameter Das Renko-Diagramm ist das Spektrum der auf - und abgesetzten Steine ​​unterschiedlicher Farbe. Diese Art der Konstruktion erfordert nur fünf Puffer in einem farbigen Candlesticks grafische Konstruktion kombiniert. Die verbleibenden vier Puffer sammeln Daten, die erforderlich sind, um das Kennzeichen zu berechnen. Nehmen Sie die Eingangsparameter (25), aufgeteilt in Gruppen. Schritt - eine Ziegelgröße oder eine Schrittart - Schrittart, Punkt oder Prozentsatz (letzterer ist abhängig vom aktuellen Preis) magicnumb - eine magische Zahl, die erforderlich ist, um grafische Objekte zu unterscheiden und sie aus den Ebenen der Planstufen zu entfernen (0 - keine Ebenen), um Steine ​​im Indikatorfenster zu dividieren levelscolor - Farbe der Ebenen im Zeitfenster des Indikatorfensters - wird verwendet, um einen Zeitraum für den Diagrammaufbau einzustellen (der analysierte Zeitraum) timeredraw - Aktualisierungszeit des Diagramms firstdatestart - Charting Typ Preis - Art des Preises für den Bau: Schließen - die Standardmethode auf der Grundlage des Schlusskurses Open - Eröffnungskurs High - Höchstpreise und Low - Minimum Preise shadowprint - Wenn Sie die wahre Option, Schatten stellen die maximale oder minimale Preis verursacht mehrere Zickleinöffnung Filternummer - Ziegelsteinwert verwendet für die Diagrammumkehr (eine Extrawahl verantwortlich für die Anzahl der Ziegelsteine, die benötigt werden, um das Diagramm umzukehren) Zickzack - verwendet, um ZigZags auf dem Hauptdiagramm zu zeichnen (eine Extrazeichnung auf dem Hauptdiagramm, das eine Analyse erleichtert oder ZigZagshadow - verwendet, um ZigZags nach den Höchst - und Mindestpreisen zu zeichnen (verwendet die nächstgelegenen Maximal - und Minimalpreise, um Zickzack auf Endpunkten zu konstruieren) zigzagwidth - ZigZag-Linienbreite zigzagcolorup - ZigZag-Aufwärtslinie Farbe zigzagcolordown - ZigZag-Abwärtslinie Squaredraw - verwendet, um Ziegeln auf dem Hauptdiagramm (in diesem Modus können Sie sehen, Preise Bewegungen, die Ziegelsteine ​​öffnen) Squarecolorup - Ziegelfarbe auf dem Hauptaufwärtsdiagramm squarecolordown - Ziegelsteinfarbe auf dem Hauptabwärtsdiagramm squarefill - Ziegelsteinfarbton auf dem Hauptdiagramm squarewidth - Bricklinie Breite auf dem Hauptdiagramm Framedraw - verwendet, um Brick Frames (stellt Bricks Grenzen, es ist eine zusätzliche Option, die selten verwendet wird) Framewidth - Ziegel Linie Breite framecolorup - Farbe der Ziegelsteine ​​Grenzen framecolordown - Farbe der Ziegelsteine ​​Grenzen. Dann deklariert der Code Puffer: Für die grafische Zeichnung werden fünf Hauptpuffer verwendet, während vier zur Speicherung von Entwurfs - und Berechnungsdaten verwendet werden. Preis - Puffer zum Speichern der kopierten Preise für die Konstruktion, Datum - Puffer zum Speichern von kopierten Daten, die für das Zeichnen auf dem Hauptdiagramm verwendet werden, Pricehigh und Pricelow - Puffer zum Speichern von Maximal - und Minimalwerten, die in ZigZags-Zeichnungen im Hauptdiagramm angewendet werden. Danach werden die Berechnungspuffer Arrays und Hilfsfunktionsvariablen deklariert: funcdrawrenko, funcdrawzigzag, funcdrawrenkomainchart. Sie werden später erklärt. 3.2. Indikatorinitialisierer In INDICATORDATA - und INDICATORCOLORINDEX-Puffern werden Indikatorpuffer mit eindimensionalen dynamischen Arrays, Adressierung sowie in Zeitreihen gebunden. Die Adressierung der restlichen dynamischen Arrays (Price, Date, Pricehigh, Pricelow) bleibt ohne Änderungen, da sie nur zum Speichern von Daten verwendet werden. Die Werte, die nicht im Diagramm angezeigt werden, werden gesetzt. Dann wird der Name dem Indikator zugewiesen, die Anzeigegenauigkeit eingestellt und die Anzeige der aktuellen Zahlenwerte im Indikatorfenster verboten. Danach wird der Datestart-Variablenwert (Datum der Startberechnung) zugewiesen. Der Wert für die Variable wird zugewiesen, der Eingabewert wird nicht verwendet, da das Diagramm für den Indikatorpuffer zu schwer sein kann. Das Startdatum wird korrigiert und der Brauch angekündigt. Die Funktion des Analyse-Startdatums oder funccalcdatestart führt Korrekturen der Zeit durch. 3.3. Die Analyse-Startdatum-Berechnungsfunktion Die Funktion ist klein und besteht hauptsächlich aus einer Schleife. Es gibt nur zwei Eingabeparameter - zunächst Startdatum und Berechnungsenddatum (aktuelles Datum). Das Startdatum wird in der Funktion geändert und als Antwort angezeigt. Der Funktionskörper beginnt mit dem Messen des Empfangs-Pufferarrays (alle Puffer haben die gleiche Größe, die gleich der Anzahl der ausgewählten Zeitrahmenstäbe ist). Dann wird eine Anzahl von Balken auf dem ausgewählten Zeitrahmen gemessen. Die Anzahl der Balken des gewählten Zeitrahmens und die Größe des Pufferarrays werden im Schleifenzustand verglichen. Wenn Sie mehr Balken haben, d. h. sie können nicht alle in das Pufferarray platziert werden, wird der verstrichene Zeitrahmen an zehn Tagen verkürzt, was bedeutet, dass dem Analysestartdatum zehn Tage hinzugefügt werden. Dies wird fortgesetzt, bis das Pufferarray nicht in der Lage ist, alle Strichdaten aufzunehmen. Die Funktion liefert das berechnete Datum zurück. 3.4. Die Datenkopierfunktion Zuerst werden die Daten mit den Datenkopierfunktionen (funccopyprice und funccopydate) kopiert. Lassen Sie uns betrachten die Preis-Kopierfunktion oder funccopyprice, die Sie in das Array Open, Close, High und Low Preise der eingestellten Zeitraum und Zeitrahmen kopieren können. Im Falle einer erfolgreichen Kopie gibt die Funktion true zurück. Am Anfang des Funktionsaufrufs wird der falsche Wert initialisiert, dann wird eine Ergebnisvariable der kopierten Daten initialisiert und ein negativer Wert zugeordnet. Ein allgemeines Array priceinterim zum Speichern von temporären kopierten Daten und die Barstocopy-Variable werden deklariert, um das Speichern von kopierten Daten zu verhindern. Weiterhin setzt die Funktion frühere deklarierte Variablen zum Speichern der kopierten Daten zurück, berechnet die Anzahl der Balken auf dem Zeitrahmen und nach dem gewählten Preis (0-Close, 1-Open, 2-High und 3-Low) und einem Schalter Anweisung, weist den Wert der zuvor kopierten Daten auf die barcopied variablen Preise zu. Danach wird die Anzahl der zu kopierenden Daten berechnet. Wenn die Daten zuvor kopiert wurden, werden die letzten kopierten Balkeninformationen gelöscht, um Änderungen im Diagramm zu verhindern. Ein Schalter kopiert die erforderlichen Preisdaten in das Priceinterim-Zeit-Array. Danach wird das Ergebnis des Kopiervorgangs überprüft und ein Schalter füllt kopierte Datenvariablen. Funccopydate oder die Datumskopie-Funktion. Der Code der Funktion ist ähnlich der oben erwähnten Einheit, der Unterschied liegt im Typ der kopierten Daten. 3.5. Berechnung der Bricks Wie Sie anhand der Indikatorparameter sehen können, kann eine Brickgröße sowohl in Punkten als auch in Prozent des aktuellen Preises festgelegt werden. Punkte ist ein fester Wert, aber wie Berechnungen in Prozent auftreten, für diesen Zweck gibt es die funccalcdorstep Ziegel Berechnung Funktion. Es gibt drei Eingabeparameter: den aktuellen Preis (zur Berechnung des Prozentsatzes des Preises, wenn die Ziegelgröße in Prozent ist), die Berechnungsmethode (Punkte oder Prozentsatz) und die Schrittweite (mit einem Wert, der in Prozent oder In-Punkt). Am Anfang der Funktion wird die Variable für die Antwort durch doppelten Typ initialisiert und abhängig von der Berechnungsmethode, die durch if-else-Bedingungsanweisung in Punkten zugewiesen wird. Dann wird die Antwortvariable in den int-Typ konvertiert, um den Wert ganzzahlig zu halten, selbst wenn die Berechnungen den nichtintegralen Wert ergeben haben. 3.6. Die Hauptfunktion - Renko Chart Absolvierung Die Hauptfunktion der Renko Chart Graduierung - funcdrawrenko. Diese Funktion ist für grafische Puffer (Indikatorpuffer) und das Füllen der Berechnungspufferarrays verantwortlich. Berechnungspuffer speichern die Information jedes Bricks. Input-Parameter der Funktion sind Daten-Arrays von Preisen und Bars Bauzeiten. Hier finden Sie Informationen über den Schritttyp und dessen Parameter, den Umkehrfilter und den Schattenzeichnungsparameter. Die Funktion kann in zwei Teile unterteilt werden: das Teil mit der Ziegelsteinzahl und das Teil mit der Berechnung und der grafischen Pufferfüllung. Am Anfang der Funktion werden Puffer zurückgesetzt, um leere Felder auszuschalten. Spätere Hilfsvariablen werden eingegeben: türstepnow-Variable wird für Schritt verwendet (verwendet, um seine Größe im Prozentschritt zu ändern), pointgo speichert Informationen über die Entfernung vom letzten gebauten Ziegelstein, eine Variable wird für Ziegelsteinberechnung, uppricecalc und downpricecalc verwendet - die letzte Analysiert hohe und niedrige Preise, typeboxcalc - die letzte analysierte Ziegel-Typ (nach oben oder unten). Beide Funktionsteile bestehen aus einer Schleife, der zweite Teil schließt die erste ab. Analysieren Sie den Vorgang detailliert. Die erste Schleife wird durch alle kopierten Werte verarbeitet, wobei der Balkenwert für eine Anzahl von kopierten Daten verantwortlich ist (sie wird in einer Funcconcolidation-Funktion berechnet, die später betrachtet wird). Weiter in der Schleife beginnt die Berechnung der Ziegelgröße. Da jeder Balken einen anderen geschlossenen Preis hat, sollte der Prozentsatzschritt für jede Balken separat berechnet werden. Die bedingte if-Anweisung prüft die Kursrichtung, während der Preis eine oder mehrere Schrittabstände überschreiten muss. Nachdem die Kursbewegungsrichtung ermittelt wurde, wird der Zustand der vorherigen Bewegung (der letzte Brick) überprüft. Dies geschieht, weil die Indikatorparameter den Filterparameter enthalten (Anzahl der benötigten Steine ​​für die Umkehrung). Nachdem alle Bedingungen geprüft sind, wird die Schleife gestartet, sie wird so oft verarbeitet, wie Bricks die aktuelle Kursbewegung darstellen. Anzeigebalken werden berechnet, die Berechnungspufferarrays werden in ihrer Größe geändert und sie werden zurückgesetzt. Danach werden die ersten (im ersten Vergleich verwendeten) Berechnungsmatrizen Primärwerte zugewiesen. Wenn die maximal mögliche Anzahl der angezeigten Balken kleiner als die mögliche Anzahl von Steinen ist, werden zusätzliche Steine ​​berechnet und die Meldung über den niedrigen Wert angezeigt. Dies wird durchgeführt, um eine falsche Anzeige des Diagramms zu verhindern. Die Variable der Ziegelzahlberechnung wird zurückgesetzt und die Hauptschleife wird gestartet. Im Gegensatz zur vorherigen Schleife ist die Hauptschleife auch für das Füllen von Rechenpufferarrays und Backsteinzählerrückstellung verantwortlich. Am Ende der Funktion werden die Grafikpuffer gefüllt. 3.7. Funktion zur Erstellung der Trendlinien - und Rechteck-Grafikobjekte Die Funktion zur Erstellung des Trendlinien-Grafikobjekts oder funccreatetrendline und der Funktion zur Erstellung des Rechteck-Grafikobjekts oder funccreatesquareorrectangle basieren auf den Daten, die im OBJRECTANGLE und OBJTREND erwähnt werden. Sie werden verwendet, um grafische Objekte im Renko-Diagramm zu erstellen und ZigZag im Hauptdiagramm zu erstellen. 3.8. Die Renko-Konstruktion auf dem Hauptdiagramm Durch die Verwendung der Berechnungs-Common-Puffer-Arrays ist die Funktion für das Renko-Diagramm oder das funcdrawrenkomainchart eher kompakt. Zu den Eingabeparametern gehören: der auf - und absteigende Ziegel mit seinen Rahmen, zwei Arten von Rahmenbreite (die erste für den Ziegel, die zweite für den Rahmen), drei Anzeigeoptionen (Ziegel, Farben und Rahmen). Zuerst werden Variablen mit Namen von Objekten deklariert, dann wird die Schleife mit dem generierten Namen jedes Objekts geöffnet und je nach vorheriger Ziegelart die Funktion der Trendlinie und die Rechteck-Grafikobjekte gestartet. Die Parameter werden aus den Rechenpufferarrays übernommen. 3.9. Die ZigZag-Konstruktion auf dem Hauptdiagramm Die nächste Art der Ergänzung zum Indikator ist die ZigZag-Diagrammfunktion oder funcdrawzigzag. Die Eingabeparameter: die Zeichnungsweise (auf den Höchst - oder Mindestpreisen oder auf den Diagrammpunkten), die Linienbreite, die Aufwärts - oder Abwärtslinienfarbe. Die Zickzackschattenparameteränderung ist im 4-Bild zu sehen. Ist "true" eingeschaltet, zieht die Anzeige die ZigZag-Linien auf die Schattenpunkte (Mindest - und Höchstpreise), in der falschen Option werden die ZigZag-Linien auf die Renko - Maximal - und Minimalpunkte gezeichnet. Fig. Die Auswirkungen des Zickzack-Schattens auf EURUSD, H1, 10 Punkte. Um das Trendlinienobjekt zu erstellen, müssen zwei Punkte für den Preisparameter und zwei Variablen für den Datumsparameter eingegeben werden (Start und Ende). Wenn bedingte Anweisungen den ersten Punkt in Abhängigkeit vom ursprünglichen Ziegelentyp festlegen. Die Schleife, die alle Objekte erstellt, startet. Wie Sie sehen können, startet die Schleife aus der zweiten Brick-Analyse, da der erste Punkt bereits gesetzt ist. Dann prüft die if-Bedingung den Typ des Ziegels (das Preisverhalten). Die Variable des Objektnamens wird gefüllt und je nach Verschiebungsänderung teilt sich die Schleife. Im Gegenzug wird er je nach Zeichnungsverfahren in zwei Varianten unterteilt. Wenn es auf dem Minimum - und Maximumpreis angezeigt wird, suchen die Pricehigh - und Pricelow-Datenfelder nach minimalen und maximalen Punkten. Die Suche ist mit den nahen Bars beschränkt. Wenn er auf den Diagrammpunkten abgestuft wird, werden die Daten aus den Pufferfeldern zugewiesen. Die Trendlinien-Konstruktionsfunktion wird aufgerufen. Die Funktion beendet die Analyse und Darstellung des ZigZag. 3.10. Löschen von zuvor erstellten Grafikobjekten Die Magic-Nummer dient zur Ermittlung der Indikatorobjekte. Es vereinfacht das Starten von mehreren Indikatoren auf dem einen Diagramm und Objekte löschen Prozess. Die nächste Funktion ist die Funktion zum Löschen von Objekten oder der funcdeleteobjects. Der Name (abhängig von den Objekten: Trendlinie oder Rechteck) und die Anzahl der Objekte sind zwei Eingabeparameter. Die Funktion wählt die Objekte und löscht die Objekte mit dem bereits vergebenen Namen. Die Funktion, die alle Funktionen zum Löschen aller Indikatorobjekte konsolidiert, wurde angelegt. 3.11. Funktion zur Ebenenerstellung Die funccreatelevels-Funktion zur Ebenenerstellung vereinfacht die Darstellung im Anzeigefenster. Es hat nur zwei Eingabeparameter: Anzahl der erstellten Ebenen und deren Farbe. Im Körper der Funktion wird das IndicatorSetInteger verwendet, um die Anzahl der angezeigten Stufen einzustellen, dann werden Preis und Farbe für jede Ebene eingestellt. 3.12. Die Konsolidierungsfunktion Die Funktion funcconsolidation wurde erstellt, um alle Funktionen zu konsolidieren. Die Funktion ruft alle ausgeführten Funktionen auf. 3.13. Funktionen OnCalculate () und OnChartEvent () Bevor Sie mit der Funktion OnCalculate () fortfahren, sehen Sie sich die funcnewbar Funktion an, die den neuen Balken analysiert. Es ist die vereinfachte Funktion, die in der IsNewBar beschrieben wird. Die Funktion OnCalculate () startet die Konsolidierung aller Funktionen, wenn beim Aktualisieren des Diagramms ein neuer Balken erzeugt wird. Die Funktion OnChartEvent () löscht alle grafischen Objekte durch Drücken von C, und drückt R, um das Diagramm neu zu zeichnen (die Konsolidierungsfunktion). 3.14. OnDeinit () - Funktion Und schließlich die OnDeinit () - Funktion. Diese Funktion startet die Funktion zum Löschen aller grafischen Objekte des Indikators. 4. Renko-Diagramm in der Praxis Das Renko-Diagramm wird nach der Preisbewegungsstrategie erstellt. Lets Beginn mit der beliebtesten Strategie: verkaufen, wenn die bewegte aufwärts Ziegel beginnt abwärts zu bewegen und kaufen im umgekehrten Fall. Dies ist in Fig. 3 gezeigt. Fig. 5: Standard-Renko-Diagramm (EURUSD H4, 20 Punkte) Die Abb. 5 zeigt sechs Punkte (A, B, C, D, E, F) des Markteintritts. Im A-Punkt ändert sich der aufsteigende Ziegelstein nach unten. Der umgekehrte Ziegelstein wie in (B, C, D) Punkten wird mit einer Bewegung erzeugt. Auf dem E-Punkt wurden jedoch zwei Steine ​​mit einer Bewegung erzeugt, da die Schatten auf der gleichen Ebene erzeugt werden. In diesem Fall ist der Eingang zwischen E - und F-Punkten möglich. Es ist kein gelungener Einstieg, da sich der Preis in eine entgegengesetzte Richtung bewegt, ist die analoge Situation am F-Punkt: wo eine Bewegung auch zwei Steine ​​schafft. Die Schatten sind auf dem gleichen Niveau. Obwohl mit einer starken Bewegung der Preis nicht seine Richtung ändert. Die Implikation ist, dass der günstigste Eingang zum Markt ist, wenn ein Umkehrziegelstein (Blick auf die Schatten) mit einer Bewegung erzeugt wird. Wenn wir zwei Ziegelsteine ​​zu einem Zeitpunkt erstellt werden, kann dieser Eingang unsicher sein. Der ZigZag, der dieses Diagramm abschließt, kann für die graphische Analyse verwendet werden. Die Fig. 6 zeigt einige Beispiele: die Stütz - und Widerstandslinien, die Kopf - und Schultermodellierung. Fig. 6 Die grafische Analyse (GBPUSD H4, 20 Punkte) Die graphische Analyse des äquidistanten Kanals ist in der Abb. 7. Der Indikator ist so eingestellt, dass er den Zeitrahmen analysiert und die Staffelung auf dem Vier-Stunden-Zeitrahmen angezeigt wird. Solche Einstellungen lassen die benutzerdefinierte folgen Signale an den mehreren Zeitrahmen gleichzeitig, was bedeutet, ein Indikator kann auf der einen Zeitrahmen und die andere auf der zweiten verwendet werden. Fig. 7. Analysen des äquidistanten Kanals USDCHF, H4, Einstellungen auf H1, 20 Punkte. Feige. 8 stellt ein weiteres Beispiel für verschiedene Zeitrahmen auf einem Diagramm dar. Das Zeitdiagramm zeigt die möglichen engen Umkehrungen, das Vier-Stunden-Diagramm löscht unbrauchbare Signale, das Tagesdiagramm genehmigt eine lange Dauer der Tendenzbewegungen. Fig. 8. Die Renko-Anzeige auf GBPUSD, H1, H4 und D1 In der Abb. 9. Die Regel sagt: bauen Sie die Aufwärtslinie zwischen den nächsten roten Steinen mit mindestens einem blauen Ziegel zwischen ihnen und verkaufen, nachdem der Ziegelstein unter der Linie erstellt wird. Und das Gegenteil: bauen die Abwärtslinie zwischen den nächsten blauen Steinen mit mindestens einem roten Ziegel zwischen ihnen und verkaufen, nachdem der Ziegelstein über der Linie erstellt wird. Die Farben werden nach der Abb. Fig. 9. Blaue und rote Pfeile markieren die Linienzeichenstellen und große Pfeile markieren Signale für Verkauf und Kauf. Fig. 9. Ein Beispiel für GBPUSD, H4, 25 Punkte Indikator Fazit Die Renko-Chart ist für Anfänger und Profi-Händler interessant. Viele Jahre sind vergangen, aber es ist immer noch auf den Märkten verwendet. In diesem Artikel wollte ich Ihre Aufmerksamkeit auf das Diagramm zu ziehen und die Renko-Chart-Analyse zu verbessern. Ich habe versucht, die detaillierte Methode des Renko-Diagrammaufbaus zu zeigen. Ich freue mich, neue Ideen und Verbesserungen für den Indikator in Betracht zu ziehen und sie vielleicht auch in Zukunft umzusetzen. Es gibt mehrere Möglichkeiten der Indikator-Implementierung, finden Sie Ihre Methoden der Umsetzung auch. Vielen Dank für Ihr Interesse Ich wünsche Ihnen erfolgreichen Handel und neue Handelsstrategie Umsetzung. Department of State Offenheit für ausländische Investitionen Indien setzt die Kontrolle der ausländischen Investitionen mit Grenzen für Eigenkapital und Stimmrechte, zwingende staatliche Genehmigungen und Kapitalkontrollen. Seit 1991, da es langsam ein Programm von Wirtschaftsreformen umgesetzt hat, hat der GOI allmählich viele dieser Zwänge entspannt. Nichtsdestoweniger bleibt eine komplexe Reihe von Beschränkungen, zusammen mit einem Unterströmung des Ressentiments gegenüber ausländischen Investitionen von einigen Vierteln. Ausländische Direktinvestitionen (FDI) sind nach wie vor in einigen Sektoren oder Teilsektoren verboten. Seit Mitte der 1990er Jahre hat Indien in vielen Sektoren zugelassen, dass FDI-Zulassungen in mehreren Sektoren zugelassen und die Liste allmählich erweitert werden. Gegebenenfalls benötigen ausländische Investoren keine staatlichen Lizenzen oder Genehmigungen und informieren die Reserve Bank of India (RBI) über ihre Investitionen. Andere Sektoren bedürfen der Genehmigung durch den Ausschuss für ausländische Investitionsförderung (FIPB) oder den Kabinettausschuss für ausländische Investitionen. Im Rahmen der staatlichen Genehmigungsstrategie werden die Anträge für ADI-Vorschläge, die nicht von Nichtansässigen getragen werden, und Vorschläge für ADI in Einzelmarken-Einzelhandelsgeschäften im Wirtschaftsministerium des Finanzministeriums eingeholt. In der Abteilung für Industriepolitik und - förderung, dem Ministerium für Handel und Industrie, werden Vorschläge für Direktinvestitionen im Einzelmarkenhandel und bei NRIs eingeholt. Die Regeln variieren von Industrie zu Industrie und werden häufig geändert. Obwohl die Veränderungen zu einer größeren Liberalisierung tendierten, ist der Investitionsprozess nicht immer transparent oder unkompliziert. Im Januar 2005 zum Beispiel, die GOI entspannte Beschränkungen für neue FDI in Indien durch ausländische Partner von Joint Ventures. Die bisherigen Regeln, die in der Pressemitteilung 18 im Jahr 1998 veröffentlicht wurden, erforderten eine Freigabe durch den indischen Partner und die Genehmigung von GOI für jede neue Investition, die häufig einem Missbrauch unterliegt. Die neuen Regeln beibehalten die Beschränkungen der Mehrheit der bestehenden Joint Ventures, aber lassen neue, ihre eigenen Bedingungen auf kommerzieller Basis zu verhandeln. Die Fähigkeit einer lokalen Firma, ihre Geschäftsstrategie für ausländische Partner zu beschränken, wurde reduziert, aber Ausstiegsstrategien und Auflösungsverfahren für bestehende Gemeinschaftsunternehmen bleiben ungewiss. Equity Caps für ausländische Portfolioinvestitionen sind teilweise in FDI-Caps enthalten. Es gibt keine allgemeinen Regeln, die die Kombination von ausländischen Direktinvestitionen und ausländischen Portfolioinvestitionen, die im Aktienbesitz eines bestimmten Unternehmens zugelassen sind, angeben. In einigen Fällen ist die Portfolio-Investition in der FDI-Kappe in anderen enthalten, sind ausländische Portfolio-Investitionen nicht unter die FDI-Cap, obwohl die Regierung von Indien buchstabiert, wo verschiedene Caps vorhanden sind. Die GOI plant, einheitliche Richtlinien für Direktinvestitionen in allen Sektoren zu formulieren. Eine Änderung des Gesellschaftsgesetzes verweigert die Stimmrechte an ausländischen Investoren, die Vorzugsaktien in indischen Gesellschaften halten, wenn ihre Bestände die FDI-Grenze überschreiten. Ausländische Investitionen sind in vielen Bereichen oder Teilsektoren von Immobilien, Multi-Brand-Einzelhandel, juristische Dienstleistungen, Sicherheitsdienste, Kernenergie und Eisenbahnen verboten. Einige Formen der Immobilien-Entwicklung, wie integrierte Gemeinden, sind erlaubt FDI. Nicht-Resident Indians (NRIs), jedoch sind erlaubt, in Wohn-und Immobilien-Entwicklung zu investieren. Sie dürfen auch bis zu 100 Prozent Eigenkapital in Zivilluftfahrtunternehmen halten, wo ausländisches Eigenkapital ansonsten auf 49 Prozent begrenzt ist. NRIs sind berechtigt, doppelte Staatsbürgerschaft zu behaupten und neue Investitionsmöglichkeiten in Indien als Bürger zu genießen. Die Kapitalabflüsse für indische Staatsbürger werden zunehmend entspannt. Zur Eindämmung des Geldflusses durch indische Einwohner durch ihre NRI-Partner in Übersee verbot die indische Regierung im Jahr 2003 alle Investitionen von Overseas Corporate Bodies (OCBs - einem Unternehmen oder einer anderen Gesellschaft, die NRIs direkt oder indirekt im Umfang von mindestens 60 Prozent gehört ) In indischen Unternehmen durch das Portfolio sowie die ADI-Strecken. Die GOI zog auch die Möglichkeit der Eröffnung und Aufrechterhaltung neuer Nicht-Resident Externe Konten, Devisen nicht ansässige Konten und gebietsfremden gewöhnlichen Konten in Indien durch OCBs. Ein Verbot der OCB-Beteiligung an der Börse im Rahmen der Portfolio-Anlage bleibt bestehen. Die Privatisierungspolitik der GOI erlaubt es ausländischen Investoren, für den Verkauf der staatseigenen Einheiten zu bieten. Das Privatisierungsprogramm blieb jedoch nach einem Regierungswechsel im Mai 2004 bestehen. Ausländische Investoren erhalten zum Zeitpunkt der Erstinvestition oder nach der Investition eine nationale Behandlung. In Bereichen, in denen eine Lizenzierung erforderlich ist, diskriminieren Verfahren nicht ausländische Unternehmen. In bestimmten Konsumgüterindustrien werden jedoch Ausfuhrverpflichtungen und örtliche Inhaltsanforderungen für ausländische Investoren verhängt. Bestehende Unternehmen können auch die automatische FDI-Genehmigung verwenden, um ausländisches Eigenkapital für FDINRI-Investitionen zu erhalten, vorausgesetzt, der Sektor fällt unter den "automatischen Weg". Voraussetzungen sind (i) die Eigenkapitalerhöhung muss eine Erweiterung der Eigenkapitalbasis des Unternehmens begleiten (dh die NRI-ausländischen Investoren können nicht einfach bestehende Aktien erwerben) (ii) die Anlage muss eine Devisentermittlung beinhalten und (iii) der Verwaltungsrat der indischen Gesellschaft muss Seine Zustimmung geben. Branchenspezifische Richtlinien für ausländische Direktinvestitionen in Schlüsselindustrien (alphabetisch sortiert): Werbung und Filme: 100 Prozent FDI mit automatischer Genehmigung sind erlaubt, aber bestimmte Bedingungen gelten für die Filmindustrie. Landwirtschaft: Keine FDI ist in der Landwirtschaft erlaubt, noch dürfen Ausländer Ackerland. FDI in der Saatgutindustrie Blumenzucht, Gartenbau, Viehzucht, Aquakultur und Anbau von Gemüse und Pilzen ist ohne Einschränkungen auf der automatischen Route erlaubt. 100 Prozent FDI ist auch in Teeplantagen erlaubt, aber Vorschläge bedürfen einer vorherigen Zustimmung der Regierung. Allerdings gibt es obligatorische Veräußerung von 26 Prozent Eigenkapital des Unternehmens zugunsten eines indischen Partners oder der indischen Öffentlichkeit innerhalb von fünf Jahren. In FloricultureHorticulture AquakulturSeed DevelopmentDienstleistungen im Zusammenhang mit Agro und verwandte Produkte, 100 Prozent FDI ist durch das automatische Genehmigungsverfahren ohne jede Bedingung erlaubt. Airport Infrastructure: 100 Prozent FDI erlaubte frische Projekte durch automatische Route. FDI bis zu 74 Prozent in bestehenden Projekten durch die automatische Route für höhere FDI in bestehenden Projekten erlaubt ist FIPB Genehmigung erforderlich ist. Zur Teilnahme an einem Ground Handling-Geschäft an den Flughäfen können ausländische Unternehmen bis zu 74 Prozent halten. NRIs sind zugelassen 100 Prozent FDI in Bodenabfertigungsdiensten. 100% FDI ist auf automatischer Route für Instandhaltungs - und Reparaturorganisationen, fliegende Ausbildungsinstitute und technische Ausbildungsinstitute zugelassen. Alkoholische Destillation und Brauerei: Es gibt keine FDI-Grenzwerte. Die automatische Genehmigungsroute ist in diesem Bereich vorhanden, aber eine Lizenz von der GOI ist erforderlich. Asset Reconstruction Companies: FDI ist auf 49 Prozent begrenzt. Vorherige Zustimmung der Regierung ist erforderlich. Es sind keine Portfolioinvestitionen zulässig. Wenn eine Einzelinvestition mehr als 10 Prozent des Eigenkapitals übersteigt, unterliegt die Genehmigung der Verbriefung und dem Wiederaufbau von finanziellen Vermögenswerten und der Durchsetzung des Sicherheitszinsgesetzes 2002. Kernenergie: FDI ist auf 74 Prozent für die Gewinnung und Mineralextraktion, die Integration und den Wert beschränkt Zugabe in Bergbau und Mineralabscheidung. Die FIPB-Zulassung unterliegt den Richtlinien des Atomausschusses. Automobile: Es gibt keine FDI-Caps oder lokale Anforderungen oder Ausfuhrverpflichtungen. FDI im Automobilbau ist unter der automatischen Genehmigungsroute erlaubt. Banken: Die FDI-Grenze für private Banken beträgt 74 Prozent, einschließlich aller ausländischen Portfolioinvestitionen. Automatic approvals are granted, however, no individual foreign bank may own more than 5 percent in an Indian bank, and no non-bank, foreign or otherwise, may own more than 10 percent without prior approval of the Reserve Bank of India. For state-owned banks, the FDI limit remains at 20 percent. At all times, at least 26 percent of the paid up capital must be held by residents. Wholly owned subsidiaries of foreign banks are exempt from this requirement. The Foreign Institutional Investment (FII) limit remains at 49 percent. Foreign banks in India have the option to operate as branches of their parent banks or as subsidiaries. Shareholders of banking companies may exercise their voting rights to a maximum of 10 percent of equity, even if they hold more equity. Legislation to remove this voting rights cap is stalled in Parliament. Broadcasting: FDI (including portfolio investments) is limited to 20 percent in FM terrestrial broadcasting, with prior government approval, subject to guidelines issued by Ministry of Information and Broadcasting. For direct-to-home broadcasting and up-linking hubs, foreign investment from all sources is limited to 49 percent (with a maximum FDI component of 20 percent), again with prior government approval. In satellite broadcasting also, FDI is limited to 49 percent with prior government approvals. TV channels, irrespective of the ownership or management control, have to up-link from India provided they comply with the broadcast code. FDI is limited to 26 percent (including portfolio investment) in news and current affairs channels up-linking from India. 100 percent FDI is permitted in entertainment and general interest channels. Under the revised Up-linking policy announced by the GOI in December 2005, FDI up to 49 percent is permitted with prior approval of the Government for setting up Up-linking HUBTeleports. Cable Network: FDI is limited to 49 percent (inclusive of both FDI and portfolio). Prior approval is required and the approval is subject to Cable Television Networks Rules, 1994. Cigarscigarettes of tobacco: There is no FDI limit but prior government approval and an industrial license is required. Civil Aviation (domestic airlines): FDI is limited to 49 percent under the automatic route for air transport services including domestic scheduled passenger airlines. For non-scheduledcharteredcargo airlines, the FDI limit is 74 percent. Helicopter services are allowed 100 percent FDI on automatic approval basis. Foreign airlines are allowed to own the equity of companies operating helicopter servicescargo services, however, they may not make either a direct or indirect investment in an Indian domestic airline. NRIs and domestic companies may own 100 percent of a domestic airline. Although frequently debated, India has yet to open its state-run international airlines to outside investment. The US-India quotOpen Skiesquot agreement, signed in April 2005, allows unrestricted access by U. S. carriers to the Indian market, and by India carriers to the U. S. market. 100 percent FDI is permitted to new and existing airport construction projects under the automatic route subject to Ministry of Civil Aviation regulations. Existing projects, however, have to seek FIPB approval beyond 74 percent FDI. CoalLignite: FDI is allowed up to 100 percent in coal processing plantpower projects, but limited to 74 percent for exploration and mining for captive consumption. Proposals in private sector companies are approved automatically. FDI is limited to 49 percent in state-owned units. Coffee Processing and Warehousing: 100 percent FDI is permitted under the automatic route without any condition. Commodity exchanges: Overall FDI of up to 49 percent (including FII) is allowed with prior government approval, however, FDI equity limit is 26 percent. FII purchases are restricted to secondary market subject to certain conditions. Construction Development Projects: Construction and maintenance of roads, highways, vehicular bridges, tunnels, ports and harbors, housing, commercial premises, resorts, educational institutions, infrastructure and township is allowed at 100 percent FDI, with automatic approval subject to certain minimum capitalization, minimum area of development conditions issued under Press Note 2 of 2005. Courier Services other than distribution of letters: 100 per cent FDI is permitted however, FIPB approval is required. Defense and strategic industries: FDI is limited to 26 percent, subject to a license from the Defense Ministry and guidelines on FDI in production of arms and ammunition. There are no automatic approvals. DrugsPharmaceuticals: FDI is allowed up to 100 percent for drug manufacturing on automatic approval route E-commerce: FDI up to 100 percent is allowed in business-to-business e-commerce with no divestment requirements. FDI is limited to 49 percent under the automatic approval route. No FDI is allowed in retail e-commerce. Hazardous chemicals: 100 percent FDI is allowed through the automatic approval route. However, a license is needed. Food Processing: 100 percent FDI is allowed with automatic approval for most products with the exception of malted foods, alcoholic beverages including beer, and in a protected category reserved for quotsmall scale industriesquot where foreign equity ownership up to 24 percent is allowed. FDI up to 74 percent is allowed with automatic approval for cold storage facilities. Health and Education Services: FDI is limited to 51 percent with automatic approval. Higher equity proposals need FIPB approval. Hotels, Tourism and Restaurants: FDI at 100 percent is allowed with automatic approval. HousingReal Estate: No FDI is permitted in the retail housing sector. NRIs, however, may invest up to 100 percent. FDI up to 100 percent, on prior government approval, is permitted for projects such as the manufacture of building materials and the development of integrated townships, including housing, commercial premises, resorts, and hotels. Industrial explosives: FDI at 100 percent on automatic route is allowed subject to obtaining license from appropriate authorities. Information Technology: FDI at 100 percent is allowed with automatic approval in software and electronics, except in the aerospace and defense sectors. Insurance: FDI is limited to 26 percent in the insurance and insurance brokering. While FDI approval is automatic, a license must first be obtained from the Insurance Regulatory and Development Authority. In July 2004, the GOI announced its intention to increase the FDI cap to 49 percent, but this change first requires parliamentary approval of an amendment to the Insurance Regulatory and Development Authority (IRDA) Act. In December 2008, the GOI introduced this amendment bill in the upper House of the Parliament (Rajya Sabha). However, the introduction of the bill is the first step in a lengthy process and an increase in the FDI limit to 49 percent would take effect only after approval from both Houses of Parliament. Investing companies in infrastructure sector other than telecommunication sector: FDI at 100 percent is allowed with prior government approval subject to sector-specific conditions. Legal services: No FDI is allowed. The GOI is currently engaged in consultation with local law associations for exploring possibilities of opening up the sector to foreign lawyers. Lottery, Gambling, Betting: No FDI in any form is allowed. Manufacturing: FDI at 100 percent is allowed, with automatic approval, in the manufacture of textiles, paper, basic chemicals, rubber, plastic, non-metallic mineral products, metal products, ship building, machinery and equipment. FDI had been limited to 24 percent in a protected category reserved for quotsmall scale industriesquot (SSI), but the government announced in December 2007 that it intended to remove that cap and allow SSI FDI caps to be governed by the overall FDI policies in their sectors. The FDI change had not yet been made effective as of December 2008. The government has been steadily decreasing the number of industry sectors reserved under the SSI policy - from a peak of 800 industries in the late 1990s - and currently reserves just 35 specific goodsservices for SSIs with a capital investment of less than 250,000. A higher percentage of foreign equity may also be approved if the company obtains a license and undertakes to export 50 percent or more of its product. Mining: 100 percent FDI is allowed, with automatic approval, for diamond and precious stone, goldsilver and other mineral mining. Non-Banking Financial Companies (NBFCs - Merchant banking, underwriting, portfolio management, financial consulting, stock-brokerage, asset management, venture capital, credit rating, housing finance, leasing amp finance, credit card business, foreign exchange brokerage, factoring and custodial services, investment advisory services): FDI is allowed up to 100 percent with automatic approval. For joint venture operating NBFCs, subsidiaries for undertaking other NBFC activities are allowed. Foreign investors can set up 100 percent operating subsidiaries without any conditions if they bring in 50 million in capital. Capital norms are as follows: if FDI is less than 51 percent, 500,000 needs to be provided up front if FDI is between 51 percent and 75 percent, 5 million must be invested up front and if FDI exceeds 75 percent, 50 million is needed, out of which 7.5 million must be fronted and the balance invested in two years. Approvals may not be used to undertake holding company operations pertaining to downstream investments. Petroleum: FDI limits (along with tax incentives, production sharing and other terms and conditions) vary according to the sub-sector. Foreign Investment Promotion Board (FIPB) approval is required for refining with public sector unit automatic approval is granted to all other activities. Discovered small fields 100 percent Unincorporated joint venture 60 percent Incorporated joint venture 51 percent Refining with domestic private 100 percent Refining with public company 49 percent Petroleum productpipeline 100 percent Marketing and marketing infrastructure 100 percent LNG Pipeline 100 percent Exploration 100 percent Investment Financing 100 percent Market study and formulation 100 percent Pollution Control: FDI up to 100 percent is allowed with automatic approval for equipment manufacture and for consulting and management services. Ports and harbors: FDI up to 100 percent with automatic approval is allowed in construction and manufacturing of ports and harbors. Power: FDI up to 100 percent is permitted with automatic approval in projects relating to electricity generation, transmission, distribution, and power trading other than nuclear reactor power plants. Print Media: Foreign investment is restricted to 26 percent for news publications with editorialmanagement control in the hands of resident Indians. 74 percent cap is applied to non-news publications. FDI is permitted up to 100 percent in printing Science and Technology magazinesjournals, subject to prior government approval and guidelines issued by Ministry of Information and Broadcasting. Professional services: FDI is limited to 51 percent in most consulting and professional services, with automatic approval. Legal services, however, are not open to foreign investment. Railways: FDI is not allowed in train operations, although 100 percent FDI is permitted in auxiliary areas such as rail track construction, ownership of rolling stock, provision of container services, and container depots. Retailing: The government allows 51 percent FDI for retail trade in Single Brand products, subject to Government approval. FDI is still not allowed in any other retail activities, including in retailing of goods of multiple brands where the same manufacturer produces such branded products. However, large multinational retailers are exploring franchise-like joint venture deals with Indian partners that do not violate the FDI bar. Roads, Highways, and Mass Rapid Transport Systems: FDI up to 100 percent is allowed with automatic approval for construction and maintenance. Satellites: FDI is limited to 74 percent for the establishment and operation of satellites with prior government approval. Shipping: FDI is limited to 74 percent with automatic approval for water transport services. Special Economic Zones: For setting up the Zones and for setting up individual units in the SEZs, 100 percent FDI is allowed through the automatic route, subject to Special Economic Zones Act, 2005 and Indias Foreign Trade Policy. Stock Exchanges: FDI including FII up to 49 percent is allowed in stock exchanges through FIPB approval. FDI limit is 26 percent and FII ceiling is 23 percent. No single foreign investor can hold more than 5 percent stake. Telecommunications: FDI limits are listed below. FDI can be made directly or indirectly in the operating company or through a holding company subject to licensing and security requirements. FDI up to 74 per cent is allowed under the automatic route in all telecom services higher FDI needs FIPB approval. All FDI limits are inclusive of portfolio investments. The revised GOI guidelines on telecom services mandate Indian shareholding not less than 26 percent in any case. The Department of Industrial Policy and Promotions Press Note No. 3 of 2007 sets out new security conditions which have to be adhered to by prospective investors in the telecom sector. National and International 74 percent Long Distance 74 percent Equipment manufacturing 100 percent (automatic approval) Global Mobile Communication 49 percent Radio paging, Internet Service 74 percent Providers (ISP) with international gateways and end-to-end bandwidth ISP without international 100 percent gateways, voice-mail and e-mail (FDI proposals above 49 percent require GOI approval, 26 percent divestment within 5 years) TradingWholesale: FDI at 100 percent is allowed through automatic route, for activities like exports, bulk imports with export warehouse sales, as well as cash and carry wholesale trading. However, in case of test marketing or if the items are sourced from the small scale sector, then FIPB approval is required. Single brand retailing is allowed subject to the FIPB approval and FDI limited to 51 percent. Venture Capital: FDI is allowed up to 100 percent in venture capital funds (VCF) and venture capital companies (VCC) through the automatic route, subject to Securities and Exchange Board of India (SEBI) regulations and sector specific FDI limits. VCFs and VCCs may own up to 40 percent of unlisted Indian companies. Investment in a single company by a VCF or VCC may not exceed five percent of the paid up corpus of a domestic VCF or VCC. Conversion and Transfer Policies There are no restrictions on remittances for debt service or payments for imported inputs. In some sectors, investments in the development of integrated townships and NRI investment in real estate may be subject to a quotlock-inquot period. Profits and dividend remittances are permitted without approval from the Reserve Bank of India (RBI). Income tax payment clearance is required, but there are generally no delays beyond 60 days. RBI approval is required to remit funds from asset liquidation. Foreign partners may sell their shares to resident Indian investors without approval of RBI, provided shares were held on a repatriation basis. GDRADR proceeds from abroad may be retained without restrictions except for an end-use ban on investment in real estate and stock markets. FIPB approval is required for converting non-repatriable shares to repatriable ones. Up to 1 million may be remitted for transfer of assets into India. Individual professionals including journalists and lawyers are allowed to keep 100 percent of their earnings from consultancy services rendered abroad in foreign currency accounts. The Indian rupee is fully convertible for current account transactions. Current account transactions are regulated under the Foreign Exchange Management Rules, 2000. Prior RBI approval is required for acquiring foreign currency above certain limits for specific purposes (foreign travel, consulting services, foreign studies). Capital account transactions are open for foreign investors, subject to various clearances. In recent years, with growing foreign exchange reserves, the Indian government has taken additional steps to relax foreign exchange and capital account controls for Indian companies and individuals. For example, individuals are now permitted to transfer abroad for any purpose up to 200,000 a year without approval. The GOI now allows all NRI proposals for conversion of non-patriable equity into repatriable equity under the automatic approval route. At the end of 2008, the exchange rate was Rs.47.10 to 1, compared to Rs.39.80 at the end of 2007. Foreign Institutional Investors (FIIs) may transfer funds from rupee to foreign currency accounts and vice versa at the market exchange rate. They may also repatriate capital, capital gains, dividends, interest income, and any compensation from the sale of rights offerings, net of all taxes without approval. The RBI accords automatic approval to Indian industries for foreign collaboration agreements up to 400 per cent of the net worth of the Indian company. For technology-transfer agreements with foreign companies, Indian firms may remit royalties up to 5 percent for domestic sales and 8 percent for exports without approval but recurring royalty payments, such as patent licensing, are normally limited to eight percent of the selling price over a ten-year period. Royalties and lump sum payments are taxed at 20 to 30 percent. Where technology transfer is not involved, royalty payments for the use of trademarks and brand names are limited to 2 percent on exports and 1 percent on domestic sales. In case of technology transfer, payment of royalty includes the payment of royalty for use of trademark and brand name of the foreign collaborator. Foreign banks may remit profits and surpluses to their headquarters, subject to the banks compliance with the Banking Regulation Act, 1949. Banks may also issue credit cards without RBI approval. Banks are permitted to offer foreign currency-rupee swaps without any limits to enable customers to hedge their foreign currency liabilities. They may also offer forward cover to non-resident entities on FDI deployed after 1993. Expropriation and Compensation There have been few instances of direct expropriation since the 1970s. While a program of privatization of state-owned enterprises stalled since 2004 with a change in the ruling government, there has been no reversal in the overall movement away from public ownership of industry. After years of negotiation, the Government of India in 2005 persuaded state-owned financial institutions and the State of Maharashtra to reach a settlement with U. S. investors, the Overseas Private Investment Corporation, and other foreign lenders on the investment dispute surrounding the Dabhol power project. A comprehensive commercial settlement was subsequently achieved in 2006. There has been significant progress in resolving several payment disputes that American power sector investors have with the State of Tamil Nadu. The GOI, which has limited jurisdiction over commercial disputes involving matters under state jurisdiction, has been helpful in convincing Tamil Nadu to settle these commercial disputes. The United States continues to urge the GOI that to create an attractive and reliable investment climate, India and its political subdivisions need to provide a secure legal and regulatory framework for the private sector, as well as institutionalized dispute resolution mechanisms to expedite resolution of commercial issues. At least two U. S. pharmaceutical companies with production and distribution facilities in India have yet to resolve long-standing disputes with the GOI (dating from the 1980s) resulting from Indias drug price-control regime. Foreign investors frequently complain about a lack of quotsanctity of contracts. quot Although Indian courts are independent, they are backlogged with unsettled dispute cases. Critics say that liquidating a bankrupt company may take as long as 20 years. In an attempt to unify its adjudication of disputes over commercial contracts with the rest of the world, India enacted the Arbitration and Conciliation Act of 1996, based on the UNCITRAL (United Nations Commission on International Trade Law) Model Law. Foreign awards are enforceable under multilateral conventions like the Geneva Convention. The International Center for Alternative Dispute Resolution (ICADR) has been established as an autonomous organization under the Ministry of Law and Justice and Company Affairs to promote settlement of domestic and international disputes through different modes of alternate dispute resolution. India is not a member of the International Center for the Settlement of Investment Disputes, but is a member of the New York Convention of 1958. The Permanent Court of Arbitration (PCA, Hague) and the Indian Law Ministry have agreed to establish the regional office of the PCA in New Delhi to make available an arbitration forum to match the facilities offered at The Hague at a far lower cost. The work to set up the court in New Delhi is progressing. Performance Requirements and Incentives Local sourcing is generally not required, but has been mandated for certain sectors in the past. In some consumer goods industries, the GOI requires the foreign party to ensure that the inflow of foreign exchange and foreign equity covers the foreign exchange requirement for imported goods. In 2002, the GOI removed measures previously requiring local content and foreign exchange balancing in the automobile industry. Plant Location: Industrial undertakings are free to select the location of a project. The earlier restriction prohibiting location of factories near urban settlements was lifted in July 2008. However, projects will still need clearance by the concerned state pollution board and the environment ministry. Employment: There is no requirement to employ Indian nationals. Restrictions on employing foreign technicians and managers have been eliminated, though companies complain that hiring and compensating expatriates is time-consuming and expensive. The RBI permits remittance of a per-diem rate up to 1000, with an annual ceiling of 200,000 for services provided by foreign workers payable to a foreign firm. Employment of foreigners in excess of 12 months requires approval from the Ministry of Home Affairs. In addition, there are certain employment restrictions in the telecommunications industry. Majority directors on the boards of telecom companies including the Chairman, Managing Director and Chief Executive Officer, should be resident Indians. The Chief Technical Officer and the Chief Finance Officer should also be resident Indian citizens. The chief officer in charge of the technical network operations and the chief security officer for all telecom companies have to be resident Indian citizens. Taxes: The GOI provides a 10-year tax holiday for knowledge-based start-ups. Most state governments also offer fiscal concessions. Large state and central government fiscal deficits, along with attempts to reform both the direct and indirect tax regimes throughout India, have increased uncertainty over tax liability for investors. The general trend, however, has been toward simplification of the tax code, a reduction in tax rates and exceptions, and greater transparency in tax administration. The 2008 annual supplement to the FTP announced some incentives for the export community, including a duty reduction to 3 percent from 5 percent for capital goods imported under the Export Promotion Capital Goods scheme (EPCG is an export incentive scheme that seeks to modernize production facilities) and sector-specific incentives in farm products, toyssports goods, gemsjewelry, IT hardware and telecommunication sectors. Indiarsquos Foreign Trade Policy exempts exporters from service tax, and provides for duty-free import of inputs and capital goods, exemption from excise taxes on capital goods, textile machinery, components and raw materials, as well as exemption on sales tax at the federal and state level. Import of consumables, professional equipment, and spare parts in the service sector are allowed duty-free up to 10 percent of the average foreign exchange export earnings in the preceding three years. Tax holidays are available in the form of deductions for priority sectors. Deduction of 100 percent of the profits from business for a period of 10 years is available for infrastructure industries. Income by way of dividend, interest, or long term capital gains in respect of infrastructure companies is 100 percent tax exempt. Right to Private Ownership and Establishment Subject to certain sector-specific restrictions, foreign and domestic private entities may establish and own businesses in trading companies, subsidiaries, joint ventures, branch offices, project offices and liaison offices. The GOI does not permit investment in real estate by foreign investors, except for company property used to do business and the development of most types of new commercial and residential properties. NRIs are permitted 100 percent equity investment in real estate. FIIs can now invest in real estate Initial Public Offerings (IPOs). They can also participate in pre-IPO placements undertaken by such real estate companies without regard to the FDI stipulations. To establish a business, various approvals and clearances are required such as: incorporation of the company registration and allotment of land permission for land use in case of industry located outside an industrial area environmental site approval sanction of power and finance approval for construction activity and building plan registration under State Sales Tax Act and Central and State Excise Acts and consent under Water and Air Pollution Control Acts. Industries such as petrochemicals complexes, petroleum refineries, cement thermal power plants, bulk drugs, fertilizers, dyes, and paper (among others) need to obtain environment clearance from the Ministry of Environment and Forest. The GOI passed the Securitization Act in 2002 to introduce bankruptcy laws. The requirement to obtain government permission before shutting down some businesses, however, makes it difficult to dispose of company assets. Protection of Property Rights The legal system puts a number of restrictions and imposes a stamp tax on the transfer of land, making title unclear, often making buying and selling transactions difficult. There is no reliable system for recording secured interests in property, making it difficult to use property as collateral or to foreclose against such property. India has generally adequate copyright laws, but enforcement is weak and piracy of copyrighted materials is widespread. India is a party to the Geneva Convention for the Protection of Rights of Producers of Phonograms and the Universal Copyright Convention, and a member of the World Intellectual Property Organization (WIPO) and UNESCO. India has not yet ratified and incorporated into domestic law the WIPO Internet treaties. The nodal ministry has reportedly prepared the draft amendments to update the Copyright Act, which still need intra-agency approval before they can be approved by the Cabinet. Trademark protection is good and meets international standards. The Trade Marks Act (1999) and implementing regulations accord national treatment for trademark owners and statutory protection of service marks. Although U. S. firms report few trademark related problems, Indias weak judicial system can make it difficult to exercise rights established by the law. India is currently working on amending its Trademark Laws to make them compliant with the Madrid Protocol. The Indian government in November 2008 approved modification of the Trade Marks (Amendment) Bill, 2007 to ensure better protection for Indian trademarks in designated member countries and afford reciprocal protection to trade marks from member countries abroad. The amendment Bill is expected to be passed by the Parliament. In 2005, India expanded product patent coverage to include pharmaceuticals and agro-chemicals, sectors of significant interest to U. S. firms. Embedded software may also now be patented. The GOI introduced these changes through presidential ordinance in order to meet on time Indias commitments under the Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS). On March 23, 2005, the Indian Parliament approved legislation to make permanent the change to Indias patent law that the GOI had introduced by temporary ordinance. The new law extends product patent protection to pharmaceuticals and agricultural chemicals. However, the new law lacks specificity in several important areas such as compulsory license triggers, pre-grant opposition provisions, and defining the scope of patentable inventions. India also provides protection for plant varieties through the Plant Varieties and Farmers Rights Act. Indian law does not provide for protection against unfair commercial use of test or other data that companies submit to the government in order to obtain marketing approval for their pharmaceutical or agricultural chemical products. The GOI is working on legislative changes based on recommendations made by the GOI data protection inter-ministerial group, also known as the Reddy report. A small but growing domestic constituency of Indian pharmaceutical companies, technology firms, and educational institutions favors improved patent protection. Indian law provides no protection of trade secrets. The GOI in October 2008 put forth draft legislation for public comment. In 2000, India passed legislation (Designs Act 2000) to meet its obligations under the TRIPS Agreement for industrial designs. The Indian government in September 2008 announced Design Rules 2008 detailing classification of design to conform to the international system and to take care of the proliferation of design related activities in various fields. Indias semiconductor Integrated Circuits Layout Designs Act 2000 is based on standards developed by WIPO. However, this law remains inoperative due to the lack of implementing regulations. Transparency of the Regulatory System Even though India has made much progress on economic reform since 1991, the economy is still constrained by excessive rules and a powerful bureaucracy with broad discretionary powers. Moreover, India has a decentralized federal system of government in which the state governments possess broad regulatory powers. Regulatory decisions governing important issues such as zoning, land-use and environment can vary from one state to another. Opposition from labor unions and political constituencies has slowed reform in such areas as exit policy, bankruptcy, and labor law reform. Despite these shortcomings, central government efforts to establish independent and effective regulators in some sectors, such as telecommunications, securities, and insurance, have shown positive results. In December 2004, the GOI also created an independent pension regulator as part of its larger program to reform Indias pension system. It also established a Competition Commission and has indicated its intention to strengthen the commodities futures markets. SEBI enforces corporate governance, which is considered better than in many other emerging markets by foreign institutional investors. Financial disclosures are strict though there is scope for improvement. Efficiency of Capital Markets and Portfolio Investment The Indian capital market has grown rapidly in recent years, with market capitalization on the Bombay Stock Exchange hitting new highs before the 2008 financial crisis battered stock markets around the world. Spot prices for index stocks are usually market-driven and settlement mechanisms are close to international standards. Indias debt and currency markets lag behind its equity markets. Although private placements of corporate debt have been increasing, the daily trading volume remains low. The Indian stock markets lack broad liquidity, although high transaction costs and systemic risk have come down with recent regulatory and administrative improvements. Institutional improvements and better regulations have helped to reduce episodes of market manipulation, which had caused a lack of confidence by retail investors who invested primarily in public sector debt instruments and debt-oriented mutual funds. SEBI has initiated further policy changes such as allowing all investors to short sell, introducing borrowing and lending of shares, and introducing Real Estate Investment Trusts that would be listed in the market. These measures add depth and breadth to the market making it more liquid than before. In 2004, the GOI announced its intentions to integrate the commodities and securities markets and to revamp taxes on securities transactions, although this is still being debated. The GOI eliminated the tax on long-term capital gains on stocks and this year increased the tax on short-term capital gains to 15 percent from 10 percent. The GOI imposes a securities transaction tax of 0.075-0.012 percent. Foreign Institutional Investors (FIIs) have a relatively small (compared to their global portfolios) but growing presence in India. However, after 11 consecutive years of net inflows, FIIs made net sales of about 13 billion in the Indian capital markets as of year-end 2008. The 2008 net outflow contrasts with net inflows of approximately 17 billion in 2007. While FIIs are allowed to invest in all securities traded on Indias primary and secondary markets, in unlisted domestic debt securities, and in commercial paper issued by Indian companies, the GOI imposes several restrictions that vary by type of investment. For example, the GOI has hiked the amount of FII investment in government securities and corporate debt by taking the total investment to 8 billion. The FII limit in corporate debt was raised in 2008 and again in early 2009 in light of reduced capital inflows. The new limit is 15 billion in a single fiscal year on a first-come, first-serve basis subject to a ceiling of 200 million per registered entity. FII equity holdings in a single company are also capped at a level below the overall sector-specific foreign investment limits unless specifically authorized by that companys board of directors. FIIs investing in Indias capital markets must register with the Securities and Exchange Board of India (SEBI). They are divided into two categories: (a) Regular FIIs - those which are required to invest not less than 70 per cent of their Indian exposure in equity-related instruments, and (b) 100 percent debt-fund FIIs -- those which are permitted to invest only in debt instruments. The list of eligible FIIs has been expanded to include endowment and university funds, foundations, charitable trusts, and hedge funds. SEBI allows foreign brokers to work on behalf of registered FIIs. The FIIs can also bypass brokers and deal directly with companies in open offers. FII bank deposits are fully convertible and their capital, capital gains, dividends, interest income, and any compensation from the sale of rights offerings, net of all taxes, may be repatriated without prior approval. Non-resident Indians (NRIs) are subject to separate investment limitations. They can repatriate dividends, rents and interest earned in India and their specially designated bank deposits are fully convertible. The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), both based in Mumbai, use screen-based trading systems. Computers and telecommunications links permit automated buysell transactions. Other regional exchanges and the National Over-the-Counter Exchange in Delhi also have computer-trading systems. The efficiency of the capital market has improved because of the compulsory depository system for most stocks, abolition of the traditional speculative quotbadlaquot system of carry forward trades, and introduction of derivatives trading by way of stock options and index trading. SEBI regulates all market intermediaries. Securities can be transferred through electronic book entry. The National Securities Depository Limited, which is promoted by the NSE, commenced operation in 1996. The BSE, the other market with national reach, has also set up a depository system. Together, the NSE and BSE account for 96 percent of total turnover in the stock markets. The NSE and BSE are the worlds fourth and fifth largest stock exchanges in terms of volume of transactions, although they are smaller in terms of market capitalization compared to the worlds largest markets. Companies incorporated outside India can raise resources in Indias capital market through the issuance of Indian Depository Receipts (IDRs), subject to certain conditions established and monitored by SEBI. Companies are required to have pre-issue paid-up capital and free reserves of least 100 million, as well as an average turnover of 500 million during the three financial years preceding the issuance. Indias banking industry (with total assets of about 1082 billion in March 2008) is split into three categories - - 28 public sector banks (70 percent of total assets in the banking system), 23 private banks (21 percent), and 28 foreign banks (about 8.4 percent). According to official figures, the ratio of non-performing loans to total assets for public sector banks was 2.3 percent in 2007-08 compared to 2.7 percent the previous year. A Board for Financial Supervision ensures compliance with guidelines on loan management, capital adequacy, and asset classification. All banks operating in India are regulated through the Reserve Bank of India (RBI) whose authority the GOI has limited gradually as part of the economic reform process. Domestic banks are mandated to extend 40 percent of their loans to quotpriorityquot borrowers (agriculturists, exporters, and small businesses). A similar requirement for foreign banks is 32 percent of loans to exporters and small businesses. In April 2003, the lending commitment for regional rural banks in priority sectors was raised to 60 (from 40) percent. In addition to imposing sector lending requirements, the dominance of state-owned banks in the market also allows the GOI to exert influence over individual lending decisions. The GOI has been slowly liberalizing external commercial borrowings (ECBs) in the last few years, although in the last two years it has treated it as a source of foreign capital to turn on and off in response to currency and balance of payment needs. It currently allows ECBs under the automatic route up to 500 million for meeting rupee expenditureforeign currency expenditure for permissible end-uses for all borrowers. In October 2008, the requirement of a minimum average maturity period of seven years for ECBs of more than US 100 million for rupee capital expenditure by the borrowers in the infrastructure sector was abolished. In August 2007, the GOI had permitted ECBs of more than US 20 million per borrower per financial year only for foreign currency expenditure for permissible end-uses and those up to US 20 million were permitted under the automatic route. In June 2008, hotels, hospitals and software companies were allowed to use ECBs of up to US 100 million per fiscal year, for the purpose of import of capital goods under the approval route. The definition of infrastructure for the purpose of utilizing ECBs was expanded in October 2008 to include mining, exploration and refining while payments for obtaining licensespermits for 3G spectrum by telecom companies were classified as eligible end-uses for the purpose of ECB. The central bank also authorizes an additional 250 million in ECBs with an average maturity of at least 10 years, under the approval route. All companies except banks, financial institutions and non-banking financial companies (NBFCs) are eligible to pursue ECB or provide guarantees for such loans. In January 2009, in order to enable more ECBs, the GOI removed interest rate ceiling caps on ECBs and allowed NBFCs to access multilateral or bilateral official ECB loans for infrastructure. ECB funds cannot be used for investment in the stock market or real estate. Takeover regulations require disclosure on acquisition of shares exceeding five percent of total capitalization. Acquisition of 15 percent or more of the voting rights in a listed company triggers a public offer for an additional 20 percent stake as per SEBIs Substantial Acquisition of Shares amp Takeovers Regulations. Companies may buy back their shares in the market to make inter-corporate investments. From October 2008 consolidation through creeping acquisition up to 5percent has been allowed to persons holding 55 percent and above but below 75 percent, subject to the condition that such acquisition can only be via open market purchases in the normal segment, and no consolidation via bulk block negotiated deal or through preferential allotment would be permitted. RBI and FIPB clearances are required to acquire a controlling stake in Indian companies. Cross shareholding and stable shareholding are not prevalent in the Indian market. The Hostile Takeover Code and the SEBI Takeover Committee regulate hostile takeovers. The Committee makes ad hoc decisions on takeovers, and tends to protect the target firm when takeover bids come from foreign entities. In general, there have been few incidents of politically motivated attacks on foreign projects or installations in recent years. There were no politically motivated attacks on U. S. companies operating in India in 2008. There are some violent insurgent movements in Kashmir and some northeastern states, as well as a Maoist guerilla movement in some eastern states. In addition, India has been the target of Islamist terrorist attacks, including bombings in 2008 in Jaipur, New Delhi, Bangalore, Hyderabad, Guwahati, and Ahmedabad, as well as the November 2008 sea-borne terrorist attacks on Mumbai, which killed six Americans and other foreigners. Prior to Mumbai, major terrorist attacks had not specifically targeted hotels and facilities frequented by American travelers. Corruption is a major concern. In the past, the government procurement system, especially for telecommunications, power and defense, has been particularly subjected to allegations of corruption. Several government employees and public figures have been indicted or convicted under anti-corruption laws over the last eight years. The legal framework for fighting corruption is provided in the following laws: the Prevention of Corruption Act, 1988 the Code of Criminal Procedures, 1973 the Companies Act, 1956 and the Indian Contract Act, 1872. Amended anti-corruption laws since 2004 have given additional powers to vigilance departments in government bodies and made the Central Vigilance Commission (CVC) a statutory body. The GOI intends to amend the Prevention of Corruption Act (PCA), 1988 through an inter-ministerial group to prescribe a sanction-granting authority for prosecution of Members of Parliament, Members of State Legislatures and local bodies. U. S. firms have identified corruption as one obstacle to foreign direct investment. Indian businessmen agree that red tape and wide-ranging administrative discretion serve as a pretext to extort money. According to some foreign business representatives in India, corruption lies in the lack of transparency in the rules of governance, extremely cumbersome official procedures, and excessive and unregulated discretionary power in the hands of politicians and bureaucrats. Clusters have developed, however, such as in the New Delhi suburb of Gurgaon, where the business climate is relatively free of corruption. Officials of foreign businesses in these areas say that local political and bureaucratic machinery generally leaves them alone. Bilateral Investment Agreements The GOI states that it has concluded 57 bilateral investment promotion agreements (BIPAs). These included agreements with the United Kingdom, France, Germany, Malaysia, and Mauritius. Negotiations are also underway with other countries. The United States does not have a bilateral investment treaty (BIT) with India as yet, but the two countries launched BIT exploratory discussions in 2008, with formal negotiations scheduled to commence in early 2009. India and the US already have a double taxation avoidance treaty. Several tax disputes are pending which are addressed during regular meetings between the two countries Competent Authorities. OPIC and Other Investment Insurance Programs The U. S. and India signed an Investment Incentive Agreement in 1987 that covers the Overseas Private Investment Corporation (OPIC) programs. OPIC is currently open in India for all its programs, specifically supporting three regional private equity funds and five global funds. OPIC projects in India are in the following sectors: energy and power, telecommunications, manufacturing, and services. India is a member of the World Banks Multilateral Investment Guarantee Agency (MIGA). Although there are more than 7 million unionized workers, unions represent less than one-seventh of the workers in the organized sector (primarily in state-owned concerns), and less than two percent of the total work force. Most unions are linked to political parties. Worker-days lost to strikes and lockouts dropped 50 percent during the decade 1991-2000 from the previous decade. The payment of wages is governed by the Payment of Wages Act 1936, and the Minimum Wages Act, 1948. Industrial wages range from about 3.50 per day for unskilled workers, to over 150 per month for skilled production workers. Retrenchment, closure and layoffs are governed by the Industrial Disputes Act, which requires prior government permission to layoff workers or close businesses employing 100 or more workers. Permission is not easily obtained. Private firms have successfully downsized using voluntary retirement schemes. Foreign banks are also required to get the RBIs approval for closing branches. Comprehensive Legislation on Labor Reforms was introduced several years ago but is still stalled in the Parliament Consultative Committee. The prospect of a new government in 2009 will require the reintroduction of this legislation. The proposed law contains stringent provisions for strikes and lockouts. The Comprehensive legislation was meant to integrate both the Trade Unions Act and the Industrial Disputes Act in a single piece of legislation. In addition, a key amendment to the Industrial Disputes Act would increase the threshold limit to 300 employees for seeking government approval before laying-off workers. Foreign Trade ZonesFree Trade Zones The GOI has established several foreign trade zone schemes to encourage export-oriented production. These provide a means to bypass many of the domestic economys fiscal and infrastructural obstacles that otherwise make Indian goods and services less competitive in international markets. The most recent of the schemes is the Special Economic Zone (SEZ), a duty-free enclave with separately developed industrial infrastructure. Other schemes include the Export Processing Zone (EPZ) and the Software Technology Park (STP), both of which are designated areas for export-oriented activities. In addition, India allows an individual firm to be designated an Export Oriented Unit (EOU). All of these schemes are governed by separate rules and granted different benefits. In May 2005, the GOI passed new legislation called the quotSpecial Economic Zones (SEZ) Bill 2005quot endorsing its commitment to a long-term and stable policy for the SEZ structure which had previously been only an administrative construct. Pursuant to certain controversies over land acquisition for SEZ development projects, the GOI issued new guidelines for SEZ in 2006. Although legislative changes have been introduced through a new Land Acquisition and Rehabilitation Act, some political unrest over SEZ development projects continue. SEZs are regarded as foreign territory for the purpose of duties and taxes, and operate outside the domain of the custom authorities. SEZ units are allowed to retain 100 percent of their foreign exchange earnings in special Export Earners Foreign Currency Exchange accounts. They are free to sell goods in the domestic tariff area (DTA) on payment of applicable duties. Sales from DTA firms to SEZ units are on par with regular trade transactions and hence eligible to benefit from all export incentive and foreign currency exemption schemes. In addition, many state governments have granted a sales-tax exemption for DTA-SEZ sales. SEZ units are also exempt from the central governments service and excise tax regimes. SEZ businesses are expected to be a positive foreign exchange earner within five years from the commencement of production. None of the FDI equity caps are applicable to units in SEZs, including those sectors reserved for small-scale industries. SEZs are exempted from the requirements of industrial licensing. The new law increased the tax holiday period (phased out over time) from 10 years to 15-years for both SEZ developers and SEZ production units. The SEZ legislation also provides for the establishment of an International Financial Services Centre to facilitate financial services for SEZ units. Offshore banking units (OBUs) are permitted to operate in SEZs, virtually like a foreign branch of a bank, to make available financing at international rates. The OBUs enjoy some exemptions from Reserve Bank (central bank) of India requirements, but other limitations have constrained their popularity. Subsequent to the first and main promulgation of SEZ Rules in February, 2006, 531 SEZ projects have been approved so far, and formal notifications for 260 SEZs have been issued. Land acquisition for SEZs has become a controversial issue because of the alleged allocation of large blocks of agricultural lands to upcoming SEZs. This has prompted the government to issue guidelines that only uncultivable land can be acquired for SEZ development or if fertile land is involved then it should not be more than 10 percent of the total area and adequate compensation and rehabilitation need to be provided. However, the compensation and rehabilitation provisions are not transparent. There is also land ceiling of 5000 hectares on large SEZs which has become a contentious issue for many SEZ developers. EPZs are industrial parks with incentives for foreign investors in export-oriented business. STPs are special zones with similar incentives for software exports. EPZSTP units may import intermediate goods duty-free. The minimum net foreign exchange earning as a percentage of exports by EPZSTP units is required to be at least 3 percent. EPZSTP units may sell up to 50 percent of their level of exports on the domestic market after payment of taxes, with the exception of motor cars, alcoholic beverages, tea, books, and refrigeration units. EOUs are industrial companies established anywhere in India that export their entire production. There are approximately 2300 fully operational EOUs in India. They are granted: duty-free import of intermediate goods duty - free income tax holiday up to 2009 exemption from excise tax on capital goods, components, and raw materials and waiver of sales taxes. EOUs may sell up to five percent of quotsecondsquot on the domestic market after paying appropriate taxes. Foreign Direct Investment Statistics Table A: Inflow of FDI by top 5 countries ( million)RSI 5 Day Look Back for Entry and Exits by Jake (Thailand) I have had very positive results using the RSI (Relative Strength Indicator) 5 day look back for entry and exits in my swing trades. The usual default of the RSI is 14 days on most chart settings (ie. Stockcharts). For a swing trader with a 2 to 5 day time frame the RSI (14) day look back is inadequate. I know this site advocates using the Williams indicator to help with entry and exits but I find the RSI (5) to be more robust. Just my personal choice. The RSI(5) strategy is simply a timing devise for entry and exit, it is NOT a set up. The entry begins when the RSI (5) is below 30 and starts to move above 30. Once it crosses 30, I enter the stock. 80 of the time I will hold this stock until it crosses above 80. At this time, I sell the stock when it crosses below 80. The other 20 of the time, I sell before it gets to 80 because I can see from the chart (area of resistance) that it probably wont get to 80 so I just sell the stock when it hits resistance. By the way, I do not use trailing stops. I use the RSI (5) 80 rule or sell when the stock hits a resistance price area. Also, I will usually sell the stock if it goes up 4 straight days in a row or goes up 10 in two days. I do not like to give back profits and so I am not willing to allow the stock to retrace any price that I feel will invalidate my riskreward ratio. Of course, I have my 2 stop loss in the trading plan when I enter and use the money managment sizing concept advocated in this site as well. If anyone is interested, I will be glad to write up my swing trade set up for you to evaluate. In the meantime, I recommend trying the RSI(5) strategy for entries and exits. It can also be used as a filter or confirmation signal of the swing trade pullbacks. Best of trading. Comments for RSI 5 Day Look Back for Entry and Exits Great article, Ive been using the RSI for guidance but will try this. Are there any type of stocks, sectors, commodities, etc. that one should look for or avoid Just wanted to say thank you for, firstly, posting the original RSI 5 Day Look Back. article and your clarifications and comments over the years. I noticed some differences between your earlier comments (c. 2008) and the more recent ones regarding your filters and which MAs you use for your initial watch list as well as the min. volume traded per day (from 20,000 in 2008 up to 500,000 in the most recent mention of volume I could find). Did you change this based on your market observations or based on your trading results (or both) I presume its because things change and you are always learning and refining. After a mere 4 years of watching charts (FX, equities, commodities) I feel that your style suits me more. Ive been using AmiBroker to scan and back test for a few weeks now and Ive found that, when looking over the trade signals generated and taken by the system (admittedly based on my basic coding abilities), there are many trades which I would never have taken myself if Id simply used AmiBroker as a scanner with some basic inputs and then checked each at EOD with no automatic trade entry. Again, its possibly due to my lack of coding skill but I do like to have an automated method of scanning for opportunities based on rather broad criteria and then making the decision myself on whether or not to take them. Systematic Discretionary. ) Thanks again for the interesting insights into your trading method All the best Jonathan Jake you are a God sent. i thank you for revealling this. the strategy worth more than 4000 us dollar. once again thanks Clarity On RSI abovebelow 30 and on RSI belowabove 80 plus elaborate ur EXIT STRATEGY by: Baig May 12, 2008 My Swing Set Up (requested by Alvan) by: Jake Jake it is just amazing to read ur artcile on RSI 5 PLUS ur trading setup jake need clarity on BUYING SHORT SELLING tht is RSI ABOVEBELOW 30 RSI ABOVEBELOW 80.THAT is when to Buy when to Short Sell as RSI belowabove 30 belowabove 80. PLUS need to know your EXIT strategy of the(May 12, 2008 My Swing Set Up (requested by Alvan) by: Jake) Hi Jake. wonderful entryexit strategy..it helpmed me a lot. thanks for the posting. for those who wants to know about trade set ups, look for divergence set ups. I personally use it almost all the time. just do google with macd divergence if you dont know about divergence. try trading the hidden divergence for consistent low risk entryexits. Viel Glück. Dear Jake , I followed your article with interest. I am a swing trader. also now look at day trades. Ob. I like the positioncharts. I carry forward my trade. You mentioned that you keenly follow 52 week highs. On the contrary. I follow 52 week lows. As you are aware that. in a Stocks yearly cycle. it will make a low. Even the best of stocks do that. Though good stocks may fall 1020 another stock may fall, 2030. but may be fundamentally a good stock. May fall due to newsqtly. results etc. I have followed this pattern. Infact certain stocks fall. to a 52 week low and end up in green the same day, and continue to rise for the next few sessions. At times most of the time operators are at work. Coupled with your strategy of RSICCI AT 5. I feel that this holds promise. As there are more stocks touching 52 week lows than highs. Please let me have your thoughts on this. Warm Regards, R. SINGH. Hi there I just wanted to know how you setup your charts for the entry and exit also how do you setup your charts to any luxe stocks for potential trading. Im a beginner need basics help this strategy does help but need more if possible Im looking to do swing trading at first and move to possibly later on to day trading If you need to reach me my email is nerdoman0gmail Any tips and suggestions from anyone helps tremendously Thanks for the detailed reply, Jake. Could you also refer to the issue of intraday signs you look for You said your time frame is five days. You also said when I enter, I use the 15 minute chart to give me some safe areas (lower risk) to help my riskreward ratio. How do you detect safe areas in 15 minute charts What indicates good enough riskreward ratio Do you measurecalculateestimate this ratio Thanks jake for instant reply, still small clarification needed, if u dont mind me asking, so u apply RSI 5 on daily chart. and u look just 5 candles, as week is only of 5 days if u please dont mind can u share a chart as picture is worth more than words as im weak in understanding theory, my email id is naresh. rayikantigmail Hi The time frame that I trade in is between 1 to 5 days, that is why I use the RSI(5). The (5) represents how many days the RSI indicator goes back in time, 5 days. I never day trade, meaning open and close a trade the same day. I always stay overnight. So, precision for the entry price is not part of my system. I can be wrong on the entry price by some margin and it wont affect the trade as long as I can wait out and see if my trade develops in a positive outcome. I do not trade in a smaller time frame than one day, one complete candlestick of 24 hours. I do not use 5 minutes, or 15 minutes, or 30 minute time frames. I often get out of a trade if I feel the trade has run its course. Meaning, I either have lost or won the amount of money I suspect completes the trade. I am a discretionary trader not systematic, therefore, all my decisions are based on random suspicious events, not mathematical algorithms. I do not care if I am correct or not. It doesnt matter. All I care about is if my winnings exceed my losses. I do not play gaps. Meaning, if there is a recent gap in the chart within about 3 months time frame, I usually stay away especially large gaps. If I am in a trade, and the trade gaps up to my benefit, I stay in the trade as long as the trade stays above the gap. I move my trailing stop up to the low of the gap. If the trade gaps down, against my trade, I exit quickly. For me, volume isnt really an indicator for a trade, rather, I use volume to make sure the trade has proper liquidity. I do not trade thin traded stocks. I like at least 50,0000 shares traded daily, more the better. I might look at the On Balance Volume indicator to give me some feel for supply and demand, but I dont base my trades on its measurements. I usually only have 1 to 3 open trades per week. I find more than 3 open trades too difficult to keep up with. I keep my position size to no more than 5 of my balance in one trade so at anytime I am only exposing 15 of my balance. Other amounts are allocated to other purposes such as dividend stocks, or less risky asset allocations. The RSI(5) lookback system is a risk on trade and I limit my risk on to 15 of my total balance. Hi jake rsi 5 should be used on 5 OR 15min OR 30MIN timeframe. Questions regarding RSI(5) trading method by: Altern I really like your approach. It sounds very logical and easy to comprehend. Could you please comment on a several points I have 1.You said The other 20 of the time, I sell before it gets to 80. What are the signs at these cases What indicates it wont get till RSI(5)80 2.How do you deal with gaps in trade you have Do you immediately close your trade 3.Do you use volume as entryexit indicator or is it there for stock screening purposes only 4.Could you elaborate on usage of flag pattern How do determine it started How do you determine its over How is it combined with RSI(5) 5.How many trades are you in, using your method, at any given moment Or, alternatively, what portion of your trading money is inside trades I do not mean right now. I mean statistically, over time. Are there times when you dont find trades (that fit you method) at all for long periods of time Or, on the other hand, how do you deal with too many candidates Thanks in advance, Altern Hi I am a discretionary trader. This means that I do not have a mathematical method or system for choosing which stocks to play that can be replicated by others. As a discretionary trader I play stocks based on my own unique way of visualizing the patterns I see on the chart. I give these patterns meaning or significance based on my years of experience playing those patterns. So, when you ask me how do I further define my daily watch list I can tell you generally what I look for but this is not an objective back tested, statically valid experiment. My way of playing stocks i neither correct or wrong, its just my unique style. For me the most important aspect of trading is to know what all the major broad indexes are doing, are they trending up, down or ranging. I look at 3 year, 1 year, and 6 month time frames. I like to know what all the sectors and industries are doing. I use etfscreen to help me get a feel for the relative strength of all the markets. I spend about an hour a day pulling out about 100 charts and examining the trends. I want to know what Gold is doing, all commodities, agriculture, the overseas markets, everything. I want details. Once I know the markets, their trends, I select the strongest markets to play that are going up. And that includes short selling if markets are down like in 2008. I want to follow the strongest trends. I like to use the 20 day, 50 day and 200 day moving averages to help me know the trends. Simply, I look for the strongest trends, I then find areas of support, I wait for the short term traders to sell and take their profits, and then I enter on the small dip they created in the chart. Many people who trade the markets use an algorithm or a back testing model that they can follow. As for me, I dont. Ive tried many different models and black box systems and they do not work for me. Its my personality. I just cant trade using a method designed by others. I trade with my eyes. I enter and exit based on what I see on the charts. I trust my instincts more than theories, math, or a designed system. Its like this how do you catch a baseball As the baseball is projected to you do you measure the wind velocity or air currency to determine how you will catch it Do you calculate the distance in mathematical terms to know how to place your hands to catch the ball Probably not. Well, thats how I trade stocks. Same as I catch a baseball. I just look at it and trade. Same, I just catch the baseball. I have no idea how I do it. I just let my body catch it. Same with stocks. I just enter and exit based on what I see. Too simple I know. but works for me. Hi I use finviz to generate my initial watch list. Also, chartmill is also very good. You can play around with the screens to suit what youre looking for, but in general, my screen consists of: Price over 10 Average volume over 50,000 shares traded daily. 20 day moving average above 50 day moving average. Price 0-10 below 52 week high. Performance more than 20 up for the 52 weeks. This screen gives me about 500 stocks to look at. I then use the charts display to look at all 500 stocks and just scroll down the page. It takes about an hour to look at all 500 with a glance. I then write down about 50 stocks that look good from my eye level. With these 50 stocks I go to stockcharts and put up all 50 stocks. I look at the 3 year, 1 year, and 6 month charts using the 20 day, 50 day and 200 day moving averages to help guide my eye. I choose stocks with very nice 45 degree angles going north from the bottom of the page to the far right edge. I dont like stocks that meander all over the page. I look symmetry. So from the 50 stocks I might get 20 stocks that have very nice price prints that are consistent and appear easy to see trend lines, support and resistance areas. I then draw some columns on paper and write down the 20 stocks with price areas for the moving averages, pivot points, support and resistance and finally the high and low areas. After the market opens for 1 hour, I then see how each of the 20 are behaving. I usually watch them all for about 30 minutes to an hour and choose 1 or 2 or maybe 3 that behave very easily. By this I mean the spreads between bid and ask prices are very narrow, maybe 1 or 2 pennies. I dont like jumpy stocks or stocks that are difficult to buy. If a stock I like hits my pivot point areas, and the rest of the market is cooperating, and the volume is starting to come into the stock, well, I just might purchase it assuming all other criteria is ok. No major news, stock not going ex dividend, or earning reports coming soon. The RSI (5) is also on my screen. I like to see it hooking upwards. It will be rising from below 30. So, once the RSI(5) starting going up, (price is going up), and the trend appears to be resuming then I that might warrant an entry. I never risk more than 5 of my total balance to one position. Most of the time its more about 3. My stop loss is usually between 5 and 8 below the entry price. I dont use price targets for profit taking. I tend to just let the profits go until the pattern I am trading breaks down. Do you have email address, so that I could send you my plantform in excel to you. Actually Im not full time yet trader. I have employer, thats why I cannot always look at running trend chart. What can I do, I need to check price by hourly then I will key into my excel file. So that RSI will prompt to me result. My email address is: gwisdom1378gmail Hi If your time frame is 60 minutes then sounds like you are day trading. I do not day trade. My time frame is 5 days. I hold the stock for as long as the pattern confirms itself. When the pattern that I bought breaks down then I sell the stock. Since I do not work in 60 minute time frames I hesitate to give you a suggestion. But in general, the best strategy is for you to paper trade various moving averages within your time frame and keep accurate and precise records. After some time you will begin to get a feel for what moving averages work best for your time frame according to your winloss ratio. One common idea is for the trader to use one moving average that is a much longer time frame to help set up the trend, then, switch to the shorter time frame to help with your entry and exits. So, for example, if you are using 60 minute time frames you might consider using the 5 day moving average for your long term trend, making sure it is going up, and using a 15 minute time frame to judge a possible entry. The website, bigcharts is an excellent free site that has these moving averages already in default. Just load up your symbol and chart out the moving averages and time frames you want. Guten Morgen. So may I know if Im using time scale 60mins, so what should I set for my SMA Hi Oscillators have absolutely nothing to do with trend identification. They only measure price swings within a trend or within a range. If you want to find trends, you have several options. The easiest is probably the moving averages. First select a time frame for the trend you are seeking. If you want to find a one year trend stick with the 200 day and 50 day simple moving average as your guide. If you want to find a 3 month trend, stay with the 50 day and 20 day moving average trend. Nothing magical about these numbers, (periods), its just what is most popular. You can play around with the periods to find something that suits you better. Another way to identify trends is to simply draw trendlines. It is easy to learn. Many websites can teach you how to draw a trend line if you dont already know. Another way, is to look for stocks making new 52 week highs. If the stock is hitting new highs then most likely it has a strong up trend. Oscillators just help you with entry and exits, not trend identification. So, first decide on your time frame, then find the trend, then choose your entry area, define your risk, select an exit target, then execute. Simple as pie. May l know your opinion regarding oscillators vs SMA which one is more accurate chart to measure up trend and down trend Thanks Hi As a general rule I do not short uptrending stocks. Nie. I only short sell in bear markets and I go long in bull markets. Just common sense although I am always amused at how uncommon this mistake is. So, now, the US markets are all in a very strong bull market. I would not short stocks now. Just because the RSI(5) is moving down from 80, does mean to take a short position especially if the stock and the market are in strong uptrend. You can do two things: 1) take profits when the RSI(5) moves down from 80. 2) Hold the stock and wait out the move to see if the stock climbs higher. Either one is ok. You might consider taking profits then wait for the dip to stop. When the stock goes back up to resume its uptrend, climb back on the stock. Remember, the RSI is only a guide to help you enter and exits trades. It can be a signal if you want it to although I prefer to rely upon my own judgement, the RSI(5) only gives me a clue. Again, never short uptrending stocks and never go long a downtrending stock unless of course you like to gamble and find it amusing to do so. In that case, enjoy. Dear Jack, lf the chart show me now SMA is up trend but RSI-5 show me from 80 drop to 70. So can l do short now or I just can do long but not do any short because my SMA chart show me as up trend Thanks Hi Ron I use the RSI with a 5 day look back, not 14 day look back. The reason I do this is because my average holding period for most of my trades is 5 days. But its important to understand that there is nothing magical or correct about 5 days. It is simply the number I use that fits my trading style. If you intend to hold a stock for a longer period of time, say several months, then a 14 day look back would probably suit that trading style better. As for Apple stock (AAPL), I wouldnt go near it. Not because its a bad company or bad trade. Its just that I do not trade stocks in a downtrend. AAPL is in a terrible downtrend at the moment. Nothing wrong with the company per se, its just that I dont trade weak stocks. I trade strong stocks. In fact, I only trade stocks that are reaching 3 year highs and are double every few years. Also, I never day trade, meaning I am in and out of a trade in one day. In fact, I almost always give my trades a few days to prove if I am right or wrong. Usually within 5 days I know if I was correct in my trade or not. Again, the RSI(5) is NOT a trading system. Nicht annähernd. You can substitute the RSI with any other oscillator and probably get the same or maybe even better results. The oscillator is only to be used as a guide or at best a signal. But the ultimate decision to buy, sell, or hold is more of an intuitive calculation based on the traders experience. For me, my favorite and most successful trades have been with very strong stocks, making new highs every few weeks, that form a high tight flag, maybe retreating for 3 or 4 days, but never drop below the last high, AND then the RSI(5) gets around the 30 mark. My goal is never to miss a great trend. My system does not care when I enter or when I exit, only that I am in a great trend and make a profit from it. Or, if I am wrong, that I get out of the trade with a small loss. Not sure if I answered your questions or not. But, do research on the flag pattern and see if you can mix it with an oscillator that works for you. Then, make sure you trade strong stocks that have very nice and powerful up trends. If you are going long a stock do not buy down trending stocks like Apple. Unless of course, you are a gambler. Personally, I do not like gambling so I tend to stick with trades with higher probabilities. Just my style. rsi(5) is not a system, its an entry guide by: jake Hi Vincent If you read my earlier posts you will see that I use the RSI(5) simply for guidance on an entry helping me to quantify short term dip (usually 3 to 5 days). Thats all it does, no more and no less. Regarding the question you asked me about the fundamentals of the stocks you intend to trade, I can only tell you what I do, not what I advise others to do. Having said that, I do not allow the fundamentals of a company to affect my decision making process. I might look at the fundamentals just for curiosity but I do not trade a stock using fundamental data. Making decisions is at the heart of the trade. I choose to use only one data point to guide my decisions and that data point is the price. I try to find a stock when the trend is strong demonstrating it has the capacity to rise quickly. I wait for a 3 to 5 day sell-off which usually brings the RSI(5) down below 30. I enter when the stock begins to rise off that low. I hold the stock as long as it is above the price I paid for it. I have two exits one is a stop-loss which tends to be between 5 and 10 below the price I paid. My profit trailing stop is about 5 below the nearest high. As long as the price stays up above the last high and rises, I hold the stock. I sell when it breaks that support which tends to be about 5 below that high. All this is complicated enough. No need to further complicate it with fundamentals. Remember, I only intend to rent the stock for a few days, maybe a couple of weeks. I do not feel I own the stock or that I am part of a business. Stocks for me is to trade, not to own, therefore the fundamentals of a company do not matter to me. Fundamentals are important for investors who intend to hold the stock thru thick and thin business cycles. Hi Treso For me, I dont use the RSI(5) as a mechanical decision making tool. I am not strict about letting it tell me when to enter or exit trades. I use it as a guide post to let me know when extremes in price are being met. Extreme readings are usually under 30 and over 80. If I am swing trading, meaning two thing (1) my time frame is 1 to 5 days and (2) I enter on a low swing of a price movement into support and exit on the high swing into resistance. Das ist es. The RSI(5) can let me know about extremes in price which can make me feel better about the odds of the swing going my direction. If the RSI(5) is in the middle of the range, say between 40 and 70 its not helpful to me so I dont do anything, I dont enter and I dont exit (if I have a trade on). But, after 5 days, if the trade still doesnt move in my direction I may choose to take a time stop. It depends if I see better opportunities and need the cash for that new trade. I like taking small losses. Doesnt bother me a bit. Also, as I mentioned to you before, I am a discretionary trader. I make decisions based on what I see on the chart. In the old old old days, you could call this work, tape reading. Remember, I dont believe in right and wrong about how to trade stocks all that matters is that you can make money fairly consistently and that the system you choose is simple and easy to perform. My test for if a system is simple is if I can explain it to a 12 year old and they understand. I always trade in the direction of the major trend ALWAYS. As soon as I see the moving averages starting to crossover in various time frames and support after support is being broken (on the down side), then I go short. When the moving averages are crossing over upwards and resistance is being broken, making new highs, I go long. Einfach. You can tell that to a 12 year old and they get it. Thats as simple as it gets. Thats what I do. I suggest you not make a drama about trying to figure out the BEST entry and exit schemes. Rather just experiment, paper trade, and see what works for you. Keep a journal and record your experiences. Maybe one day you will discover that the entry and exit prices are not the most important part of your system. Rather focus on money management and risk control, that is your staying power. Hi Jake, Thank you for your reply. I have other questions. First question is what about your target variation in the stock price. You said once the stock price cross the 80 RSI(5) indicator you sell your positions. If the variation hits 10 you sell. But sometimes the price just start to walk sideways and the RSI take too long to reach 80, or even worse, the price and RSI start to fell. What you do when it occurs Second question is about entry timing. Craig in this website says to wait and time our entries. Do you do that I say, you wait the 10SMA about 30EMA for long positions Or you dont care about the market index Hi Treso I live by my core belief that the only thing in the world (and the markets) that is certain is Change. So, I always give myself the opportunity to change my mind and be inconsistent because for me the definition of wisdom is usefulness. If the ideaconceptbehavior is useful, then, it is a good decision to apply that method. What was useful yesterday, last month, last year, or ten years ago may not apply for conditions on the ground today. And with todays technology change comes extremely quickly. For this reason, I dont put much effort or time in backtesting systems. What worked in the past may or may not have any relevance. I believe many people spend time and effort back testing systems because they dont trust what they see. They want the math to back up their ideas. Thats ok, if its useful to that person to do so, then fine, not an issue. But for me, I rely more upon my eyes, what I see happening on the charts. Its not right or wrong, its just the way I experience the reality of what is happening in the markets. The math is nice to play with, fun, but I have taught myself not to rely upon the odds based on statistics but rather on what I observe. So, regarding your question about the probabilities of an RSI(5) entry exit system I dont have any data for you cause I never back tested the system. I simply use the RSI(5) as a guideline to help visualize where the best entry and exit area might be. You can adjust the number to (2) or (10) or the default of (14) it all depends on your particular trading time frame. For me, I trade in a time frame where the average holding period is about 5 days. Secondly, you asked me if I use the same signals as 5 years ago. Basically, yes. But, I have learned a lot more about markets and how I respond to markets over the last 5 years so I believe as I grow as a trader I am making more (and better) decisions based on how I feel the market is moving and less on indicators or oscillators. Again, I am a discretionary trader and rely more upon my observations on the charts than numbers. As an analogy, I use indicators and oscillators like a pilot might use clouds to navigate thru weather but his flight plan is not dependent upon those clouds unless of course its a hurricane. Lastly, for me, trading the markets is as much an exercise about learning how I respond to the market flow as it is about making a living. There isnt only one way to do it. In fact, the beauty of trading is that you create your own market reality. The market gives you the raw data and the creativity is how you use it. Sorry about the english, it is not my main language. I loved this website because I could understand many things in a simple way. I am starting to do swing trades. I wish to build some statistics about my strategy and I want to know what can be a good win chance(). I liked your entryexit strategy and I wish to give it a try. Your first comments started in 2008 and I wish to know if you modifiedimproved your strategy or still using the same signals Hi The question to me is do I time my entry into the market. Truth is, ALL entries are a product of time, no getting around this fact. Even people who DONT time the market, but rather choose an arbitrary time to enter the market are still timing the market BUT the difference is this: They are not consciously deciding the time to enter by using a method or system for entrie rather they are jumping in the market based on a pre-selected date aka..dollar cost averaging. But this is still timing the market, just not using any filters or market observations. Having said that, I play both the long and short side of the market. I am as comfortable shorting SPY as I am going long. For me, shorting SPY is just like playing backhand in tennis. Once you get used to it, it adds a whole nother tool to your game. And, I only short SPY or IWM, thats the only two instruments I short. So, the first question I ask myself each day is this: Am I long or short the market I use 3D trend evaluation (short, intermediate, and long term moving averages) and make a decision on how I feel the probabilities look for the next 3 to 5 day outlook. If I am short, this does not necessarily mean I will sell all my long positions, but I might hedge them with by shorting SPY. I use the 50 day moving average for my long term base line. My 30 day MA is intermediate and 10 day MA as my short term. I run my trades between this terrain. Also, about entries and exits, one of my rules is not to make it a DRAMA. Entries and exits are an area for me not a number. It is true that I will get filled with a very specific amount, but I always have a entry and exit area space that allows for bad fills and poor executions. Point is, I dont allow myself to play the hesitation game because of a few pennies either way. I use limit orders to enter and market orders to exit. NO DRAMA means that I just enter when the signals say go and I dont wait for the last 18 move above a most recent swing high. In fact, I love to enter as the stock is moving to its next low swing cause the riskreward improves. Also, I dont watch the market all day (night time for me). I just enter at a time when I think the risk is lower than the potential for reward. I really believe in making swing trading as easy as possible. I try and focus on my execution and performance and let the outcomes take care of themselves. Stop Loss Swing Exit (Requested by Lou) by: Jake I believe that consistently successful swing trades are based on 80 psychological factors, 10 systemmethod, and 10 luck. The pychology of an entry is 80 hope and 20 apprehension. The psychology of an exit is 80 regret and 20 relief. With this model as my meta-framework, my exits are based on making exit decisions that minimize regret. Regret comes in three forms: 1) Regret that I exited too early and left money on the table (the stock goes up without me). 2) Regret that I exited too late and the market took back some or all of my profits. 3) Regret that I took the trade in the first place and have an immediate loss of capital (ie..stop-loss is hit). I have two swing trade exits a stop-loss exit and a profit-taking exit. Stop-Loss Exit (long trade): This procedure is fairly mechanical. The Stop-Loss is a price which, when penetrated by the close of the previous day, violates the assumption of my entry. There are two parts to the stop-loss exit: Part 1: The Signal. The signal is the close of the previous day. If this close is beneath the price that violates the trade then a sell signal is registered in my trade log. The stop-loss price can be any logical marker on the chart depending on the time frame I am trading such as a moving average (10 day, 20 day, 30 day,), a price congestion area, the lowest bar of X days, it doesnt matter where I place my stop-loss price as long as it makes sense via the chart. Part 2: After the first hour of trading the next day after the signal was triggered, if the stock continues to go down beneath my stop-loss price then I quickly sell the stock. If instead, the stock whipsaws back above the stop-loss intraday and holds up at the closing, then I hold for another day. I stay with the loss until the stop-loss is violated at both the close and the next day after the first hour of trading. My position size is such that my risk never exceeds my regret loss amount. Rule 1: I never lower my stop below the original stop-loss price I set at the entry. Rule 2: I never second guess my stop loss sell decision. Rule 3: I wait for the signal first (close of previous day) before I make the stop loss sell decision the next day after the first hour of trading. Rule 4: I know my Regret number (amount of risk) and never exceed that amount. Rule 5: In case of a catastophic maximum negative price excursion against me (usually 10 or more) intraday, I always sell first, ask questions later. I will explain my profit-taking exit in another comment on this thread tomorrow. My swing trades only use three pieces of data: price, volume, and time. Absolutely no fundamental information at all. Filter 1: Price is above 15 and average volume (90 days) is above 20,000 shares traded daily. Filter 2: Price is above simple moving average (30). Filter 3: On Balance Volume has been increasing for the last 30 days. Filter 4: RSI(5) is below 70. Filter 5: The price has been decreasing for at least 1 day (I prefer 3 to 4 days) prior to entry. Filter 6: The stop-loss area (exit) must be within 2 of the entry price. The chart must offer me an easily recognizable and identifiable exit (ie..support area, 10 day MA, 30 day MA, flags and pennant patterns are best). I look for rising bottoms, symetrical rising trends, higher highs and higher lows. This is done with visual observation of the chart in multiple time frames. From these 6 filters I usually have a list of 50 to 100 stocks in my watch list for the trading day. Takes me about an hour per day. After the first hour of the trading day (10:30am) I load up my watch list in real time. I cross off any stocks that are red (going down). I cross off any stocks that are up more than 2 from yesterdays close (too high). This usually leaves me with about 15 to 30 names that are tradeable that day. They are in my sweet spot with a justificable riskreward potential. Filter 7: I check each of the 15 to 30 names on my list by sector and industry. I cross off any names whose sectors and industry are not rising and beating the SP 500 within multiple time frames (1 week, 1 month, 2 month) Now I might have 10 to 15 names. I take the 10 to 15 names and note duplication of industries within these names. I compare each stock against the ones in the same industry by relative strength within multiple time frames (1 week, 1 month, 2 months). I buy the strongest name in that industry. Once I enter the stock I never exit the same day. Remember, this is only half the trade, the entry. The exits are much more exasperating, difficult, and emotional. If you have an interest in this subject please let me know and I will explain that piece of the trade to you. Otherwise, I hope you might gleen some ideas from my above contribution. Enjoy Your Trading Jake Thailand