60 min chart NSE:SAIL, LONGAll the lines marked are Fibonacci retracement and extension levels means Support and resistance
Strategies
Nifty May 27 F&O StrategyNifty
CMP 14578
Last time when Nifty was at 14800 we felt that Nifty may not go below 50 day EMA
and felt it could be a buy on dips market.
- however currently Nifty is trading below 20 day & 50 day EMA
- RBI special announcement event with regards to Banking support done
We were cautious and went for a conservative strategy of selling Nifty 06 May expiry 14400 Put at 70
Nifty despite being down the strategy has yielded a profit to us
CMP 32
Option strategies may be less profitable per trade but if used properly it can increase your probability of more winning trades.
If today's closing is below the EMAs there is more likelihood of further downside
Positional Target for the current set up 14140 / 13800
Given the set up one may consider
selling Nifty 27 May 2021 expiry
15000 Call option
in the range of 140 - 160
cmp 144
Max profit potential at CMP Rs 10800/- per lot
Loss in strategy only if Nifty closes above 15144 on 27 May 2021
Be alert if Nifty closing is above 14720.
The strategy provides enough scope to adjust / exit with less damage if Nifty moves otherwise
Take care & safe trading...!!!
Disclaimer:
- The view expressed here is my personal view
- Past performance is not a guarantee for future predictions
- Use this for educational purpose
- Any decision you take, you need to take responsibility for the same
- It's your hard earned money. Treat it wisely
- Trade / Invest keeping in mind your trading style, goals and objectives, time horizon & risk tolerance
- if trading in F&O, understand that F&O trading involves risk
- Do take proper risk management measures
- Do your own analysis and consult your financial adviser if need be
HEG - Clean Bowled At the Top 4550 (Current Price - 1040)What a fall as suggested to be careful close to the tops of 4550 -just surpassed & made new high to only trap the bulls - post the idea was published in Sep 2018 as mentioned below. click the chart / idea to refer last one.
What Next ?
Going below 830 Lows -
It starts next downward cycle for target 350-400 & below 350 for 140-150 below 90 -It will be "neat & clean" for lows close to year 2000.
VWAP: The Ultimate Day Trading ToolVWAP stands for Volume Weighted Average Price. In simple terms it is the average price weighted by volume. Don't worry I ll explain.
The Calculations:
Firstly the average of the high, low, and close: (H+L+C)/3, is calculated (technically known as the typical price). This typical price is multiplied by the candle's volume (depending on time frame used). The cumulative total is calculated with each successive candle. Cumulative volume is also calculated along with this. Then divide the cumulative total of price-volume by the cumulative total of volume.
And we get VWAP. Fresh calculation start every day at 9:15am and end at 3:15pm.
Sounds difficult?? Simply apply the tool on a chart and you are ready to go.
Applications:
Vwap is used by institutional players having huge orders. VWAP helps these institutions determine the liquid price points, near the vwap, for a stock over a very short time period. VWAP serves as a reference point for prices for one day. As such, it is best suited for intraday analysis.
For me personally, it works best on any where between 1 minute to 5 minutes timeframes. I suggest you to read the full post before reaching at conclusions :)
Two Strategies:
Hit and Run:
We buy as the price pulls back to the vwap. We wait for a signal candle reflecting buying interest and pull the trigger. Here we place the stop below the vwap or the previous swing low, whichever is lower. The advantage is that on this lower timeframe stop will be small. For exits use targeted approach. One can also trail.
The Value Trade:
Buying below the vwap is generally considered as a good buy.
Two variations--
1) As the price breaches vwap wait for price to also break an important swing low for the day with immediate reversal supported by volume. Buy above this high volume candle with a stop below it.
2) Price breaches vwap and makes a low X. Wait for the price to pullback to vwap (Y) and then head lower again to X or make a higher low near X. Here Y would be the entry point. with stop at X.
Both these strategies can also be used for shorting a stock. You just have to read it upside down.
# Also keep in mind that day trading is not as easy as explained above.
1) We also analyse daily, hourly and lower time frames before pinpointing entry on 1 minute chart.
2) Trades taken in the direction of trend yield handsome returns.
3) We also have to take into consideration the overall indices movement.
4) Notice if the stock has been out-performing the indices.
# In trading world, nothing works 100%. So active trade management and efficient money management is essential to avoid unbearable losses.
As I always say, "Greed and Fear are traders' enemies". We can't eliminate them but they can be managed patiently.
Before applying this strategy you should first test it for few days to learn trade execution. I suggest you to use them on top gainers and losers. One has to be fast and fully concentrated in the morning. But if you missed the morning move, that does not mean the end of world. Wait for the next opportunity and grab it. Just practice, practice and practice more. It ll make you perfect.
Hope this post will enhance knowledge of some traders.
Do hit like button for better stuff in future.
Regards
