Nifty and Bank nifty option scalping strategy
It's a complete rule-based strategy
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@bhatiamanu
@kuttrapali26
@KommawarSwapnil

Rules to be followed
1⃣ Time frame 2 min
2⃣ Trade only between 9:20 am to 10 am
3⃣ Deploy RSI with 40 as overbought and 20 as oversold setting
4⃣ Trade to be initiated or squared off only on candle closing basis
5⃣ No trade zone if RSI is between 40 and 20
6⃣ R2R 1:1 OR 1:2

1⃣ Example
🟢1st candle RSI above 40.
🟢 Use the high of this candle as an entry condition
🟢 When any follow-up candle closes above high take entry and keep low of the candle as SL.
🟢 SL is to be booked only if the candle closes below SL line on closing basis

2⃣ Example
🟢condition of RSI got full-filled
🟢 follow-up candle didn't breach the high of candle till 10 am
🟢Hence entry condition not satisfied hence no trade initiated

3⃣ Example
🟢RSI was above 40 in 1st 5 min
🟢 Entry was taken when high of the 1st candle was broken on a closing basis
🟢All the other rules should also be followed

A complete guide on "How to use MACD"
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The thread will teach you.
🌟Building blocks of MACD
🌟How to interpret MACD signal
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@bhatiamanu @kuttrapali26 @KommawarSwapnil

🟢The black dot is calculated by taking difference between 12ema and 26ema.
🟢9ema is applied on the blue line which results in the creation of an orange line which is also called the signal line
🟢Histogram is plotted by taking the difference between the blue and orange line

Using MACD line (blue color) for Trend identification
🟢If MACD line is above 0 - Primary trend +ve
🟢If MACD line is below 0 - Primary trend -ve

Identification of Trend-reversal
🟢when MACD line cross below zero line primary trend changes to -ve
🟢when MACD line cross above zero line primary trend changes to +ve

Identifying the starting point of corrections
🟢Histogram turning light red is starting of +ve correction (some time fall continues)
🟢Histogram turning light green is starting of -ve correction
🟢sometimes light red/green color will also indicate starting of consolidation

Let's understand how to trade gap-up/gap-down,
by understanding gap-theory
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Tags: #StockMarket #sharemarket #Investing #Trading #Breakoutstocks #StocksInFocus #NSE #BSE

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@bhatiamanu @kuttrapali26 @krunalparab_ @KommawarSwapnil

Following are the different types of Gaps.
1⃣ Gap-up
2⃣ Gap-down
3⃣ Common gap
4⃣ Breakaway gap
5⃣ Continuation gap
6⃣ Exhaustion gap
7⃣ Island gap

1⃣ What is Gap-up?
When the opening price is above the high of the previous day, we get a gap-up.
🟢How to trade?
➡️Trade in the direction of the gap-up as long as the price remains above the opening of that day.

2⃣ What is Gap-down?
When the opening price is below the previous day's low it's considered as gap-down
🟢how to trade
➡️Look for only shorting opportunity until the high of 15 min candle is not breached.

3⃣ What is the common gap?
When you see gaps forming within a range, then such gaps are called common gaps.
🟢How to trade
➡️Common gaps within a range will always get filled. so look for trading in the direction of gap filling