BANKNIFTY | Pattern Analysis | 11 Dec | Algo

Dec 12, 2020

11 Dec was as range bound day. In these scenarios our key objective is to sell at the highs & buy the lows as much as possible with rapid execution times. It's preferable to be in either long/short at any point in the market.

Entry 1: Short at 30780 Reason : TL break, Signal generated & cash flow negative
Exit 1: Booked at 30550 Reason : Critical pivot is green(bullish bias ) and high probability of bouncing back
Entry 2: Long at 30650 Reason : Took support at critical pivot & cash flow turned positive from here on
Entry 3/Exit 2: Reversed Long to Short at 30720 Reason : Drastic change in money flow with break in TL
Entry 4/Exit 3: Reversed Short to Long at 30450 : Reason : Drastic change in money flow with break in TL
Exit 5: Booked Longs at day's closure 30625

The core idea is to capture the pattern formations along with understanding the support resistances for the day. For all the shorts the SL was set at day's high & trailed every time the lows are broken. This minimizes the risk of loosing profit or going wrong significantly.