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Gap up / gap down intraday strategy with simple entry / exitI get queries from a lot of people who don't want to study technical analysis much. They're just focused on getting a predefined trading strategy, which they can use effectively in the market without looking much at the charts . So, in this video, I share a strategy which has been given really good results and it works a lot of times and I believe the probability of this particular strategy is close to around 65 to 70%. It has simple entry and exit rules, and you can only apply this particular strategy when the market opens gap up or gap down. See, whenever the market opens gap up or gap down, there is high volatile period of the market during the beginning half an hour or an hour. And in that period of time,if you place a trade, then you have a good probability if market moves as per expectation. As you can see these days, nifty and back nifty have been creating gap up and gap down opening almost on a daily basis. In this case, the first rule is that if the market opens gap up by more than half a percent. So for example, if bank nifty opens gap up by more then 200 points. , then only you can apply this strategy. And on the other hand, if nifty opens gap up or gap down by more than 50 or 60 points, then only you should think of applying this particular strategy. Small gaps do not count in this strategy. So if bank nifty gaps down or gaps up by only 50- 60 points, then avoid this strategy altogether. See, whenever the market is opening gap up or gap down, there are two possibilities. The market might continue the current trend. For example, if the market opens gap up, the chances are that the market might move higher, or the other possibility is that the market might go sideways the whole day. So ,in this case, whenever you see the market opening gap up or gap down by more than half a percent, just have to follow this simple procedure. Just plot the 15 minute chart with a 20 exponential moving average. Why 20 exponential moving average because the market usually gets good support and resistance around the 20 moving average. You can expect the market to stall around the moving average for a lot of times if you take a trade. So ,you just have to plot the 15 minute chart, and if the market gaps up or gaps down, you just have to watch the first 15 minute candle. So if the market opens gap up and it forms a bullish candle. Then , what you can do is you can sell puts if price breaks the first 15M candle high. You can sell puts with the stop loss at the low of the candle. If the market comes below the low of the candlestick the first 15 minute bar, then you exit your position and book the loss. Why sell puts? The idea behind selling puts is that during the first 15-30 minutes, the volatility is on a very higher side during that period. And if at that point of time you start to sell options, then with the passage of time, as the market starts to move sideways, the volatility reduces. And, what occurs is a concept called IV Crush. The volatility starts to reduce very quickly and that will give you a benefit if you sell a put, even if the market goes sideways. So for example, the market formed a very big bullish candle, and the criteria is if it crosses the high of the candle ,sell puts . So, the whole day, if the market is moving sideways/upwards , the volatility crush will start to happen. And with the passage of time, you'll start to see the benefit of the IV Crush and the time decay. So this is a very handy strategy which you can apply. Always remember, keep the stop loss below of the first 15M candle. It's a very effective technique, and it's based upon gap openings. And ,the first 15 minutes usually tell us who is on the stronger side, who's winning , buyers or sellers. So make sure the gap is big and whatever bar is being formed in the first 15 minutes. If the bar is bullish, you sell a put If the price crosses the high of that candle stick, and stop plus below the low of that candlestick. It's an effective rule based strategy and you can back test it on nifty and bank nifty. And you can also check its reliability, its effectiveness, you can also add this particular strategy in your tool kit. So I hope this strategy will provide some sort of value to you in your trading. And if you find the video helpful, don't forget to like this and share it and also comment your thoughts. Thank you very much and take care.
Editors' picks
NSE:BANKNIFTYEducation
by piyushrawtani
26
Trade using Pitchfork and PitchFanPitchFORK + PitchFAn is very acuurate When it comes to find the point of reversal. In this chart one can easily find the point of reversal just by looking at important levels of pitchfork. If pitch fork is drawn accurately it will definitely help you in your intraday/positional trading. Draw pitchfor at daily time frame and then use it in your trading either on hourly/30min/15min/5min it will give you amazing results. good luck guys....
NSE:NIFTYEducation
by Abhi_The_Chart_Reader
HOW TO TRADE IN RANGE BOUND MARKET Every week we got one or two days where there is no momentum and market trade in a Range. this is best scenario for option selling. sell CE option on top Using nearest resistance as SL. Then Hedge position with selling PE near Support. you will make money in all scenario ,if market remains in a range , breakout or Breakdown. 1 . RANGE BOUND MARKET :- you will get benefit from premium cutting. 2. break out :- if nifty gives Range breakout and sustain , in that scenario , we Exit from CE , and carry out PE position using Trail SL. 3. Break down :- if nifty confirm Breakdown , same thing exit from PE call an d carry with CE. Hope I can answer your question .if you have any doubt plz message me. Thanks PS :- option selling is Risky .Test your setup and practice on paper and then take trade.
NSE:NIFTYEducation
by ASHWINIKUMAR2101
2
INTRADAY TRADING PSYCHOLOGY (near LONG TERM SUPPORT/RESISTANCE)I come across many times when people fall in trap when they see breaking of long term support or resistance in intraday by merely seeing on small timeframe (TF) like (1-5 mins). I suggest those friends to wait for the confirmation of such breakout on higher timeframe like 15-30 minutes atleast. In this example I would like to make you understand this psychology and how you can make most of it in intraday trading. Bharatforge started falling right from the beginning and broke its long term support at smaller TF and you can see how they trapped the bears. (You can see many examples like this on this day like which I traded in PEL (Horizontal support 1300) and BPCL (Trendline support) We could have initiated a countertrend trading when it came above the support but that I will not recommend if you are not pro. Instead, bharatforge formed a beautiful double bottom at this support (bullish piercing candle pattern as well). So, this trade becomes high probable with first target to swing high. SL to be maintained below the support. So, in intraday FIND SUPPORT / RESISTANCE and FIND PATTERN. This way you can make consistence profit. Thank You. Happy Trading
NSE:BHARATFORGEducation
by Retailer_ki_dost
8
No Update in NIFTYHello, As i mentioned in my yesterday post that I will sell Nifty if it will sustain below 12225. Today Sold 12300 and 12250 call as per my plan. I have also mentioned in the comment that there Nifty will fill the gap between 12130-12030 in coming days and it should make new bottom above 11930 or 12000-12050 zone. Short Term View is: 12300 is a Very Strong Supply Zone. 12000-12050 is strong demand zone. Still Nifty is bullish in higher time frem. Intraday View: Minor Demand Zone @ 12160. Strong Supply Zone @ 12200-12225 Very Strong Supply Zone @ 12300 Trading Plan for Tomorrow. I will take a short position If Nifty will come to 12200-12225 and 12300. I will take a short position If Nifty will sustain below 12160. I will avoid to take a long position. Thank x Tread Well.
NSE:NIFTYEducation
by Swapilchoksi
Revised Analisys in NIFTYPlan A: Fresh Entry Zone: -- If it will come to 12055-70 and will sustain above this zone. -- If it will come to 12020-12035 and will sustain above this zone. Plan B: NF is trying to come out from the sideways zone 11880-12020. So Both Side Option writing is may be risky. This is a buy on dips market. Plan C: Avoid Short Position. The buyer will use every minor and major dip for a long position. Strong bounce is expected from 11980 and 11915 zones. I will update nifty levels on telegram or twitter.
NSE:NIFTYEducation
by UnknownUnicorn5967506
Nice Trap: A Trade CommentaryTrading @ 254.70 when the sock came to my notice. Took some intraday support from 253-253.70 and had been consolidating for some time in 254.10 to 254.80. I looked at the daily chart, it was positive uptrend. I looked at the tape. There was huge seller @ 255 which the buyers were absorbing as the stock completed consolidation on 5min. chart. I wanted to take the trade above 254.80 with a stop of 254.10 in mind and target near day's high @ 258. I got in as the stock broke the consolidation range. It was an aggressive BO trade. But immediately after the stock hit 255.45 past consolidation range, it reverted back to the consolidation area in the next 5 min candle. I was paying a psychological price of not waiting for confirmation. Stock made a low of 254.15 and took a breath. Bids moved as high as 254.80 before the 255 sellers came back. The number of shares and no. of orders were increasing from 2000s to 3000s at 255 level. But the stock managed to pullback to 254.95 now as I have been writing this commentary live with one eye on the tape :) I know that if it fails this time to move past 255 it ll break 254. Earlier I missed TataMotors trade which I wanted to sell below 425. I did not place the limit order b'coz I wanted to sell on pullback as there were more buyers in the stock than seller before breakdown and wanted to reassess the situation. But it never pulled back before it hit near 422. Anyways, NBCC is failing to cross 255 and is coming down. I reduced position @ 254.70. The stock is trading at 254.10 stop level. I did not use hard stop and also there were big buyers at 254 so I waited and decided to get out below 254 only. Stoploss hit. So was it a wrong trade in a stock which is in uptrend ; Opened with a gap with huge volumes ? Not at all b'coz sometimes the overall market sentiment pulls down an out performer. Its part of game. I may reconsider buying it lately. Hit like, comment and follow. Trade safe, be healthy. Regards Bravetotrade
NSE:NBCCEducation
by Bravetotrade
6