Bank nifty Intraday Chart
Sunday, May 24, 2009
Tuesday, May 19, 2009
Thursday, May 7, 2009
Okay, before i write this post, I must say that this is actually a strategy of Sudarshan ji (www.sudarshanonline.com), who often comes on CNBC TV18. His blog is a must read. He is superb.
Okay, so now having credit Sudarshan ji as the one who has devised or informed all of us the readers of his blog about this strategy let me proceed to tell you what it is.
Very simple - In the first 15 minutes, Nifty forms both a high and a low. Now this is the 15 minute range for the day. When after this 15 mins we wait for price to move above or below this range. We wait for a candle to close above or below the high or low before we initiate our trade.
So if the high and low for Nifty in first 15 mins was 3660 and 3640, we go long if we get a 5 minute candle close above 3660 and short on a close below 3640. Every trade must have a stop loss level, and so the stop loss level for these trades would be the opposite side of the ranges. So if one goes long then stop would be a candle close below 3640 and vice versa.
I have to confess I haven't personally tried out this strategy. So don't take too much risk with this. First test the strategy with one lot of Nifty Futures before venturing out to trade with larger lot sizes.
Leave a comment if you have any confusion.
Monday, May 4, 2009
So this is what is called whipsaw. You take a positions which was not to be and gets stopped out for a loss and then you go long again. It may happen that a lot of the trades one takes turn out to be whipsaws or get stopped out within a day or two. That's part and parcel of the game. The key point is that as long as one makes enough money on the large trending moves which is good enough to take care of the losses on many whipsaws its fine.
So we closed our short position today at 3600 and have gone long again at the same level.