Today We are going to reveal one of the trading clue about Nifty which is very useful for Short term trading in nifty.
This clue can be found in NIFTY INTRADAY 5MIN CHART
Click here to see the CHART LIVE
As you can see in the chart above , Observe that on 21-02-2017 12.00PM NIFTY formed a 5min candle with a volume of 688.5k Quantity which is the BUY trigger for us.similarly if it is a red candle it is a sell trigger for us.
Trigger Our trigger is any candle on 5 Min chart with a volume > 600000
If the candle is green it is BUY Trigger for us
If the candle is red it is SELL Trigger for us
The Entry here would be (High+low)/2 of that candle which here is 8877.1+8872.9/2 = 8875 and Stoploss would be the low of the previous day's low price for BUY and previous day high price for SELL
Target The target for the trade is
For Buy Triggers Entry Price + 10 Points for every 100k volume for example in this case it is 8875+68.85=8943.85
For Sell Triggers Entry Price - 10 Points for every 100k volume
EXIT Trigger Apart from exit by way Stop loss or target there might be situations where you need to exit from the opposite trigger i.e SELL for BUY and BUY for SELL
For Example in this case if NIFTY before reaching the target of 8943.85 forms a red candle with the trigger volume then you should exit your trade.
This clue can be found in NIFTY INTRADAY 5MIN CHART
As you can see in the chart above , Observe that on 21-02-2017 12.00PM NIFTY formed a 5min candle with a volume of 688.5k Quantity which is the BUY trigger for us.similarly if it is a red candle it is a sell trigger for us.
Trigger Our trigger is any candle on 5 Min chart with a volume > 600000
If the candle is green it is BUY Trigger for us
If the candle is red it is SELL Trigger for us
The Entry here would be (High+low)/2 of that candle which here is 8877.1+8872.9/2 = 8875 and Stoploss would be the low of the previous day's low price for BUY and previous day high price for SELL
Target The target for the trade is
For Buy Triggers Entry Price + 10 Points for every 100k volume for example in this case it is 8875+68.85=8943.85
For Sell Triggers Entry Price - 10 Points for every 100k volume
EXIT Trigger Apart from exit by way Stop loss or target there might be situations where you need to exit from the opposite trigger i.e SELL for BUY and BUY for SELL
For Example in this case if NIFTY before reaching the target of 8943.85 forms a red candle with the trigger volume then you should exit your trade.
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