It is based on simple strategy based on volatility.
Average Range of Scrip for 14 days is taken into consideration. A range is arrived.
If the scrip moves even 50% of Average range we are likely to hit the target n make profit.
Select your favourite stock. Fill up the excel sheet as per instructions. Arrive at Buy and Buy Target and Sell and Sell Target.
Price ideally should open between Buy and Sell price.
Our bet is that if the price opens between Buy and Sell Prices, it is locked in 20% of the Average Range. Even a 50% shake out of the Range will knock our Buy target or Sell target. Though it looks similar to breakout strategy, i visualise it as blow out.
Thatz the reason, i am insisting on One Trade Per Day.
Variation can be added to the setup as follows.
1.On Gap Up or Gap Down days, instead of close, consider open to arrive at Buy or Sell.
2. For those who are interested to catch, the trending markets, just lock in as free trade.
3.My stop loss is opposite order. Though it looks at higher side, I feel comfortable keeping it like that. You can tweak it as per your comfort.
4. When Stop Loss hits, we should reverse the trade by doubling our quanitity. If second trade also hits SL, then it would be wiser to pack up for the day. Start next day, with a positive hope.
For rule 3 and 4, a variation is by increasing target price.
5. Be quick enough to place orders when the market opens.
6. Since it is not taking into consideration any analysis except figures, I would suggest those who are interested in this setup, to backtest it on your favourite stocks and to papertrade for atleast 5 to 10 trading days. This effort is a must.
Average Range of Scrip for 14 days is taken into consideration. A range is arrived.
If the scrip moves even 50% of Average range we are likely to hit the target n make profit.
Select your favourite stock. Fill up the excel sheet as per instructions. Arrive at Buy and Buy Target and Sell and Sell Target.
Price ideally should open between Buy and Sell price.
Our bet is that if the price opens between Buy and Sell Prices, it is locked in 20% of the Average Range. Even a 50% shake out of the Range will knock our Buy target or Sell target. Though it looks similar to breakout strategy, i visualise it as blow out.
Thatz the reason, i am insisting on One Trade Per Day.
Variation can be added to the setup as follows.
1.On Gap Up or Gap Down days, instead of close, consider open to arrive at Buy or Sell.
2. For those who are interested to catch, the trending markets, just lock in as free trade.
3.My stop loss is opposite order. Though it looks at higher side, I feel comfortable keeping it like that. You can tweak it as per your comfort.
4. When Stop Loss hits, we should reverse the trade by doubling our quanitity. If second trade also hits SL, then it would be wiser to pack up for the day. Start next day, with a positive hope.
For rule 3 and 4, a variation is by increasing target price.
5. Be quick enough to place orders when the market opens.
6. Since it is not taking into consideration any analysis except figures, I would suggest those who are interested in this setup, to backtest it on your favourite stocks and to papertrade for atleast 5 to 10 trading days. This effort is a must.
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