1st 15 minute range breakout system for day trading.
Thanks you for expressing your interest in Trading system that I’ve backtested on Bank Nifty and shared the results over tradingview.com.
A friend has told me about this system and I backtested this manually out of sheer curiosity.
Follow is how this system can be applied and used.
*Step - 1*
Rule : Mark high and low points of first 15 minute movement / candle of nifty .
Let us understand it using Bank Nifty’s Nov. 18th movements as an example.
Above is the Chart, with high and low marked clearly.
*Step - 2*
Rule : Wait for B.Nifty to break this range in either direction.
As you can see, B.Nifty break the low on IInd 15 min. candle, but closed above that, the very next candle did closed below the low.
The 1st 15 min. low was marked at 31036, and 3rd or 9:45 Candle closed at 31009.
*Step - 3*
Check for corresponding EMA on RSI or some other indicator, and if it is not in sync with B.Nifty fall or rise, ignore the breakout,
If it is in sync, take a long or short position depending on side of breakout.
Since the RSI was well below the EMA line, we could have taken a short position near 31009, as both the conditions have met.
1. Nifty closed below the low of 1st 15 min. candle.
2. RSI is below EMA at the time of close.
*Step - 4*
Short or long position in Bank Nifty can be covered with a gap of approx. 100 points or more if the indicators permit.
Today, Bank Nifty did fall further and provided opportunity to close the position with a gap of approx. 100 points.
This system works equally well on Nifty and even individual shares.
*Step -5*
Theoretically the stop loss for such positions should be B.Nifty closing above the high of first 15 mins. In some cases (like today) this high is very far, waiting for such a high stop loss is not practical.
EMA on RSI indicator may assist in closing the position in profit or giving a viable stop loss, in such cases.
Looking at today's example, if RSI exceeded EMA around 12:30, 14th - 15th candle. Incase one has not been able to close the position by then, there was an opportunity to close this short in little profit.
You may use some other indicator to determine reversal, that you find more comfortable or reliable.
EMA on RSI combination does a good job for me, I prefer trade long or short on the basis of confirmation of this indicator combo.
You may find it here :
if you find it useful, LIKE it and add it to Favorites on this page itself. It will be handy in your indicators list then.
Send me direct message or post your queries below, if you need any more clarification.
A friend has told me about this system and I backtested this manually out of sheer curiosity.
Follow is how this system can be applied and used.
*Step - 1*
Rule : Mark high and low points of first 15 minute movement / candle of nifty .
Let us understand it using Bank Nifty’s Nov. 18th movements as an example.
Above is the Chart, with high and low marked clearly.
*Step - 2*
Rule : Wait for B.Nifty to break this range in either direction.
As you can see, B.Nifty break the low on IInd 15 min. candle, but closed above that, the very next candle did closed below the low.
The 1st 15 min. low was marked at 31036, and 3rd or 9:45 Candle closed at 31009.
*Step - 3*
Check for corresponding EMA on RSI or some other indicator, and if it is not in sync with B.Nifty fall or rise, ignore the breakout,
If it is in sync, take a long or short position depending on side of breakout.
Since the RSI was well below the EMA line, we could have taken a short position near 31009, as both the conditions have met.
1. Nifty closed below the low of 1st 15 min. candle.
2. RSI is below EMA at the time of close.
*Step - 4*
Short or long position in Bank Nifty can be covered with a gap of approx. 100 points or more if the indicators permit.
Today, Bank Nifty did fall further and provided opportunity to close the position with a gap of approx. 100 points.
This system works equally well on Nifty and even individual shares.
*Step -5*
Theoretically the stop loss for such positions should be B.Nifty closing above the high of first 15 mins. In some cases (like today) this high is very far, waiting for such a high stop loss is not practical.
EMA on RSI indicator may assist in closing the position in profit or giving a viable stop loss, in such cases.
Looking at today's example, if RSI exceeded EMA around 12:30, 14th - 15th candle. Incase one has not been able to close the position by then, there was an opportunity to close this short in little profit.
You may use some other indicator to determine reversal, that you find more comfortable or reliable.
EMA on RSI combination does a good job for me, I prefer trade long or short on the basis of confirmation of this indicator combo.
You may find it here :
Send me direct message or post your queries below, if you need any more clarification.