I have created a trading strategy on BankNifty based on Market Internals - and TICK
These Market Internals, also known as Breadth Tools helps in identifying the overall market sentiment.
Just doing some on Price action doesn't provide good results.
Price action along with gives a meaningful insight.
But simple information is not sufficient to take a directional view on the markets. A segmentation of POSITIVE and NEGATIVE gives a clear picture of the symbol movement.
We can get the information FOR ANY STOCKS anywhere. But, INFORMATION FOR AN INDEX ALONG WITH POSITIVE AND NEGATIVE VOLUMES are not available in normal trading platforms. We need to construct the based on the underlying stocks(12 stocks for BankNifty ). And this tool provides the exact feature.
In a nutshell,
1) THIS TOOL PROVIDES BUY/SELL INDICATIONS on the BANKNIFTY based on the underlying stocks' PRICE AND
2) THE INFORMATION IS BIFURCATED INTO POSITIVE AND NEGATIVE , WHICH HELPS IN DECIDING THE MARKET DIRECTION.
This post is for today's market movements and the tool has predicted the right direction and it has helped in achieving a MINIMUM PROFIT OF 150 POINTS on BANKNIFTY .