Before diving into Chart Setups, it's crucial to grasp the fundamental aspects of our trading approach to ensure complete clarity on our methods.
Note: Any mention of candles refers to one-hour (1H) candles.
Trading Candles Overview
Nifty Futures on NSE trade for over 6 hours, resulting in 7 candles each day:
6 one-hour candles starting at 9:15 AM (C1: 9:15 AM - 10:00 AM) and ending at 3:00 PM.
1 half-hour candle from 3:00 PM to 3:30 PM (C7).
We have three trading windows:
10 AM at the completion of C1
1 PM at the completion of C4
2 PM at the completion of C5
If a trade is initiated at C1, no further trades are taken that day. Trades are exited by 3:25 PM, with no carry-forward positions.
Why Three Trading Windows?
C1 (10:00 AM): Early morning trade to capture any strong opening move, either with or against the trend, which tends to gain momentum quickly.
C4 (1:00 PM) and C5 (2:00 PM) : Late afternoon trades to avoid market drift in the morning and early afternoon. Gives you the opportunity to watch the market action for the first four or five hourly candles and wait for any identifiable setup. Normally, trades in these windows are more reliable.
Why No Overnight Positions?
Exiting all positions by 3:25 PM minimizes overnight risk, avoiding potential adverse developments in foreign markets.
Note: We have a separate strategy for overnight positions based on high-performing setups.
Why No Technical Indicators?
Our strategy relies purely on price action, avoiding technical indicators. Popular indicators often mislead traders, as smart money exploits them to counter technical traders. Most traders using these indicators consistently lose, and we avoid falling into this trap.
Indicators like RSI and Stochastics can be misleading, showing divergences and false signals. Instead, we focus on the most accurate representation of market conditions: price action.
Our setups are based on pure price action to present the clearest market truth without indicator-induced noise.
Moving Forward
With a solid understanding of our system's foundation, we can now explore the specific setups. We have identified 4 Bullish and 6 Bearish Setups, eliminating some bullish setups based on poor backtesting results.
6
In the following posts, we detail each setup with ample chart examples to help you recognize these setups amidst market noise. We cover trade conditions and win ratios for all setups.
Our goal is to simplify and profit from Nifty Futures trading by cutting through the clutter and focusing on what works. Master these setups with dedication, and you will see substantial rewards.
Please click on "Next Post" to move to the first Bullish Setup: Bullish Engulfing.
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