Directional Strategy

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Chart Setup

Plot 200EMA and 21EMA on CandleStick chart.

UP Trend: Price above 21EMA… 21EMA above 200EMA
DOWN Trend: Price below 21EMA… 21EMA below 200EMA

Long Entry:

Buy BankNifty Future and Short ATM current weekly BankNifty CE

Two types of entry can be taken:
i) If price crossed 200EMA upside… wait for 21EMA to cross 200EMA… if price is far above 21EMA wait for it to retrace back and bounce from near or touching 21EMA (taking support at 21EMA)… Enter Long trade
ii) Price is in UP trend (Price > 21EMA > 200EM)… once price crosses 21EMA and comes near or touches 200 EMA… wait for it to get rejected from that level (look for dojis, inverted hammers or spinning candles)… significant distance should be there between 200EMA and 21EMA… Enter Long trade.

Short Entry: Just opposite of Long Entry

Short BankNifty Future and Short ATM current weekly BankNifty PE

Two types of entry can be taken:
i) If price crossed 200EMA downside… wait for 21EMA to cross 200EMA… if price is far below 21EMA wait for it to retrace back and bounce from near or touching 21EMA (taking support at 21EMA)… Enter Short trade
ii) Price is in DOWN trend (Price < 21EMA < 200EM)… once price crosses 21EMA and comes near or touches 200 EMA… wait for it to get rejected from that level (look for dojis, inverted hammers or spinning candles)… significant distance should be there between 200EMA and 21EMA… Enter Short trade.

Stop Loss

There is no S/L in this strategy. We just reverses the trade when opposite signal comes.

Profit Booking

Book Profit at 30-35pts and close trade. Wait for next opportunity.

This is a directional strategy with conservative approach. As we said that we target minimum profit, this strategy aims to earn both ways. When trade moves to our favor we make less profit but we eventually reach our target as we aim for a minimum profit. When trade moves opposite we earn by saving the loss by half. This way we protect capital.

This is a risky strategy. If you are experience enough you can follow our trades. These are absolutely free.

NOTE: Don’t trade this strategy on the expiry day. If you want to trade this on expiry day (Thursday) trade next weekly series option.

If you have any queries please feel free to drop us a email at trademysystem at gmail.com.

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