This is an effort to find out a new trading method, to get a safe trade for the common man who doesn’t have any charting software or any other tools day trading in nifty. We expect that this method can give a decent return in a single trade ( at least 20 points).
We are predicting a trading zone with upper (High) and lower (Low) boundary for the day, within which we will be trading. The method is still under observation.
Method to trade :
1) Enter the trade only if NIFTY enter the above trading zone either from upper side or from lower side whichever comes first once the market opens. There will be no trade if nifty doesn’t enter our trading zone
2) All the level mentioned here are for SPOT NIFTY ( adjust your levels accordingly for F&O trade)
3) If the open is below the LOWER BOUNDARY, and cross it and move upwards, or the open is just above the LOWER BOUNDARY, move downward , touch the LOW level and move upwards, then BUY
4) If the open is above the HIGHER BOUNDARY, and breach it and move downwards or open is just below the HIGH move upward, touch the HIGHER BOUNDARY and move downwards, then SELL
5) Entry to be made whichever the case comes first once the market opens
6) In either case, the STOP LOSS will be 13 points from the trading zone boundary
7) If the stop loss is hit, then there will not be any other trade for the day
8) This method is applicable only for the first trade of any day (whichever the case come first).
9) Profit booking can be made once you get 20 to 25 points, or else a trailing stop loss may be put to protect at least 12 points profit and wait for higher levels.
10) Any trade which gives 20 points or more will be considered as “successful trade” and any profit below 20 points will be considered as “partial success trade”.
11) Stop Loss hit trades will be considered as “failed trades”
This is not a trading call to anyone. This post is purely for observatory purpose.
RESULTS OF NIFTY TRADING ZONE PREDICTION - 12/03/2012 :-
Today nifty entered our trading zone thru the upper boundary around 9.30am. So it was SELL at 5374. Nifty made a low of 5327 and squred off the position around 5336. Therefore it is a profit of 38 points.
RESULTS OF NIFTY TRADING ZONE PREDICTION - 07/03/2012 :-
Today nifty entered our trading zone, thru lower boundary around 9.26am. So it was a BUY at 5200. nifty made high of 5200 around 9.33. However, nifty came down quickly so that, could not exit.
Nifty came down and hit our stop loss point of 5186. so it was -14 points in the first trade.
Nifty again entered our trading zone, around 10.24am. Again it was BUY at 5200. NIFTY made a high of 5242.70 and started coming down. Squared off the position at 5234.
Second trade gave 34 points profit.
One more trade chance was there around 2.51pm once again nifty entered the trading zone thru lower boundary. However in our method, maximum two trades only ( second trade is applicable only if first trade hit the stop loss). Therefore it is net 20 points today.
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