HOW TO TRADE NIFTY/BANKNIFTY USING SUPERTREND

  • Identify the underlying trend of the market on a higher time frame.

  • After identifying the underlying trend, you will have a bias. For example, In a Bullish market, always look for a long trade. Never short a Bullish market. Likewise, in a Bearish market, always look for a short trade.

    snapshot
  • For opening a trade, use an hourly time frame. Other time frames work too, but if you are an amateur, the hourly time frame will provide less noisy signals.

  • BUY on the signal(Blue arrow in this case).

  • Use 8-EMA as trailing stop loss.

  • Place Stop Loss just below the close of the previous candle. If the Previous candle is too small then, place the SL below the close of the Previous-to-Previous candle.

  • SELL(Close Longs) if >50% body of the candle closes below the 8-EMA.

  • You can also use a fixed Risk-Reward ratio if you do not want to use a trailing stop loss.

  • The same principles can be followed to open SHORTS. Hence, I am not writing them again.

  • This strategy can be applied to Banknifty or other equities/commodities etc.

    snapshot
  • You can backtest this strategy and paper trade for some time.

  • Always remember there is no holy grail in trading. It's a game of probability.


Let me know your views in the comments.

P.S: This is NOT investment advice. This chart is meant for learning purposes only. This is my personal journal. Invest your capital at your own risk.


Technical Indicatorssupertrendsupertrend_candle_breakoutsupertrendstrategyTrend Analysis

Rajat Kumar Singh,
B.Tech (Delhi Technological University)
Global Community Manager, TradingView

✅ Telegram: t.me/johntradingwick
✅ Blog: tradingwick.in/
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