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    Current 5 Mts Trading Strategy Chart and Trade Timings

    Uploaded by

    winnit25
    This document outlines a 5-minute trading strategy for Nifty options. It recommends tracking the 5-minute chart from 10 AM to 3 PM and selecting option strike prices at 9:45 AM based on the Nifty May futures price. The strategy uses the SMI indicator and a 9-period moving average on the futures chart to identify bullish and bearish crossovers as entry signals. It provides details on entering put options after a bearish crossover or call options after a bullish one, using a stop loss and 2.5 point profit target. Following the guidelines for multiple trades per day while avoiding reversals and expiry days can potentially yield moderate daily profits with limited risk.

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    © All Rights Reserved
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    Current 5 Mts Trading Strategy Chart and Trade Timings

    Uploaded by

    winnit25
    538 views3 pages
    This document outlines a 5-minute trading strategy for Nifty options. It recommends tracking the 5-minute chart from 10 AM to 3 PM and selecting option strike prices at 9:45 AM based on the Nifty May futures price. The strategy uses the SMI indicator and a 9-period moving average on the futures chart to identify bullish and bearish crossovers as entry signals. It provides details on entering put options after a bearish crossover or call options after a bullish one, using a stop loss and 2.5 point profit target. Following the guidelines for multiple trades per day while avoiding reversals and expiry days can potentially yield moderate daily profits with limited risk.

    Original Title

    5mins_Strategy.docx

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    This document outlines a 5-minute trading strategy for Nifty options. It recommends tracking the 5-minute chart from 10 AM to 3 PM and selecting option strike prices at 9:45 AM based on the Nifty May futures price. The strategy uses the SMI indicator and a 9-period moving average on the futures chart to identify bullish and bearish crossovers as entry signals. It provides details on entering put options after a bearish crossover or call options after a bullish one, using a stop loss and 2.5 point profit target. Following the guidelines for multiple trades per day while avoiding reversals and expiry days can potentially yield moderate daily profits with limited risk.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    538 views3 pages

    Current 5 Mts Trading Strategy Chart and Trade Timings

    Uploaded by

    winnit25
    This document outlines a 5-minute trading strategy for Nifty options. It recommends tracking the 5-minute chart from 10 AM to 3 PM and selecting option strike prices at 9:45 AM based on the Nifty May futures price. The strategy uses the SMI indicator and a 9-period moving average on the futures chart to identify bullish and bearish crossovers as entry signals. It provides details on entering put options after a bearish crossover or call options after a bullish one, using a stop loss and 2.5 point profit target. Following the guidelines for multiple trades per day while avoiding reversals and expiry days can potentially yield moderate daily profits with limited risk.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    The document outlines a 5 minute trading strategy using Nifty options that relies on SMI and 9 period moving average indicators on futures charts to identify bullish and bearish crossovers and enter positions. It recommends aiming for 2.5 point profits per trade and provides guidance on position sizing and timing gaps between trades.

    The strategy uses SMI and 9 period moving average indicators on Nifty futures charts to identify bullish and bearish crossovers. It looks for prices to close above or below the moving average on options charts to signal entries. Spindle top candlestick patterns are used to identify times to exit positions.

    The steps are to wait for a bullish or bearish crossover on the futures chart, enter the corresponding put or call options, using a close above or below the moving average as a confirmation. Stop losses are the prior candle's low. Profits are booked at 2.5 points or on a spindle top pattern.

    Current 5 mts Trading Strategy

    Chart and Trade Timings:

     Track 5 mins chart


     Trade timing 10.00 am -3.00 pm

    Option Strike Price Selection:

     Option strike price selection time is 9.45 am


     Option strike price is selected based on Nifty near month futures price, for May – Nifty
    May Futures should be considered
     Strike Price = Nifty May Futures CMP – 200 points
     Put Option Should be below 200 Points from CMP
     Call Option Should be Above 200 Points from CMP
     Near week expiry should be considered for trade

    For example: If, Nifty May Futures Price = 8800 at 9.45 Am, then the options selected for the trades are
    – 8600 PE and 9000 CE

    Trading Methodology for one lot –

     Indicators followed – SMI and 9 Period moving average


     Chart to be followed – Nifty Futures Chart
     Pivot Points To Be Considered – Always make note of support resistance mentioned in the
    money control website. This will help to take decisions when the prices are approaching support
    resistance zone in addition to the indicators
     Step 1: Wait for SMI to cross over in Nifty Futures Chart ; SMI set up- 10,3,3,10
     In case of, Bullish Cross Over – The focus is on CE
     In case of, Bearish Cross Over – The focus is on PE
     Step 2: Post Bullish/Bearish crossover in the futures chart, open the respective options chart
    o Call Options chart for bullish crossover
    o Put Options chart for bearish cross over
    o Wait for price to close above/below the 9-period moving average in the put/call options
    chart.
     Step 3: Entry point
    o Enter Put Option in case of bearish cross over + price close below moving average
    o Enter Call Option in case of bullish cross over + Price close above moving average
     Step 4: Stop Loss
    o The stop loss should be the low price point of the candle prior to candle crossed the
    moving average
     Step 5: Profit Booking
    o 2.5 points above the entry point as sell price
    o Spindle top candle stick patter formation above/ on the EMA means, the trend is over
    and it is time to exit (refer spindle top pattern in the below image
    o Do not wait for more than 3 candles
    Do’s and Don’ts –

     Follow the strict stop loss and strict 2.5 points profit booking price for first 3 months
     Avoid near strike price options
     Wait for cross over and price settle (above/below) to complete. Don’t be in hurry, let both the
    indicator provide the trade signal
     On in average, there is a chance for 3-4 trades in a day based on the cross over strategy. Each
    trade can provide 2.5 points profit without SL trigger. i.e., 8-10 points possibility = INR 600-800
    Gross Profit/Day/lot. The capital required per trade 6000-10000 INR.
     Provide, 30-45 mts gap between trades. Do not enter trades back to back
     Wait in patience, this trade set up happens even in the worst and best market
     No intra-day trade in expiry day, i.e. Thursday
     This trade setup can provide opportunity for huge profits of 10-30 points per lot. But it is
    advisable to focus on 2.5 points per lot for the first 3 months
     The reverse positions will also be profitable and can be entered based on the maturity of the
    trader. This strategy can be avoided for the beginners. For example,
    o Selling CMP Call options during => bearish cross over + price close below moving
    average
    o Selling CMP Put Options during => bullish cross over + Price close above moving average

    18th May, was a highly volatile day, Nifty lost 350 Points. Yet, there were four trades based on
    the strategy

    Bearish Cross Over Bearish Cross Over

    Bullish Cross Over


    Bullish Cross Over
    Spindle top formation after entry

    Spindle top formation after entry .


    This can be green or red

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