HOW TO USE NIFTY INTRADAY

After years of trading the nifty in intraday trades and request from several followers of this page to have a comprehensive page on how to use this page for best effects in different market scenerio, finally i prepared this documentation. Every attempt is made to make it cover all market situations and to explain how rational decisions can be made, it is always to some part matter of judgement. Hence the followers are advised to paper trade first using these strategies, and when in confidence start actual trading. 

Following are the different strategies using this page for different classes of traders,

A) Based on breaking of swing high/low.( more trades /more risk)

B) Based on stochastic and rsi. (moderate trades/moderate risk) 

C) Based on wave behaviour. ( very few trades/low risk) 

detailed discussion follows

A) Based on breaking of swing high/low.( more trades /more risk)

This strategy is for those who take several positions everyday and their trading style is scalping type, in high quantity is traded for the small move in nifty. This method of trading uses the pre-fed orders in the direction of the stochastic.

Long trade entry and exitrules:

Buy rule : place buy order at recent swing high+5 points (when rsi & stochastic are moving up.)

Sell rule : Place sell order at buy price + one step* of chart

{* one step: This is one of the great feature of the yahoo chart that it automatically expands when the volatility increases and the distance between two horizontal lines in the grid is refered as the one step)..

Note: Add or substract the difference betweent the spot and future prices in order prices , the chart shows the spot nifty prices

These trades are illustrated below.

Short trade entry and exit rules:

short rule : place short order at recent swing low-5points when rsi & stochastic are moving down.

cover rule : Place cover order atshort price - one step* of chart

{* one step: This is one of the great feature of the yahoo chart that it automatically expands when the volatility increases and the distance between two horizontal lines in the grid is refered as the one step)..

Note: Add or substract the difference betweent the spot and future prices in order prices , the chart shows the spot nifty prices

These trades are illustrated below

Some key tips to follow this system:

1)Always trade in the direction of main trend, you can trade the reactions also but the chances of hit and miss are more if you are trading in the direction opposite to the main trend.

2)Stoploss: As soon as you get the position ( buy/short order executed) apply a stoploss of one step below/above the entry price.

3)Avoid the choppy days, you can identify the choppy day when the size on one step is 5 points only…

4)Never think that I will enter when the high/low is crossed , you will never get the price, because the break of that price cause the jerk move in the nifty.

5)Feed also sell/cover order at the same time. Don’t decide to exit manually, this will include the emotional interference in the trading.

6)Use higher quantities so as to make good profit.

7)Avoid trader after 2:30 pm, more chance of hit and miss case.

AVOID TRADING THE CHOPPY DAY (MORE CHANCE OF HIT AND MISS)