Trading in very volatile market environment may not be suitable for all traders, as risk of hitting stop loss in maximum here. Anyways I am going to teach you how to trade in such scenario. You will need to have intraday chart of nifty future and then just apply RSI indicator with default setting as 14 periods there. Look at (Study) the market movement, simple observations will let you know support and resistance on charts. Then note these levels on charts by drawing horizontal line, each for support and resistance. Now when nifty future moves towards support and RSI is under 30, buy at cmp with 30 points target and 15 points stop loss. In other case, nifty future moves towards resistance and reading on RSI is above 70, short nifty future at cmp with target 30 points from entry level and 15 points stop. This strategy will work in very volatile market (consolidation), but not when market starts to chase the trend.
About Bhaveek PatelBhaveek Patel is one of the most successful traders, technical analyst, and investor, his areas of interest include stock market, forex, and gold trading. Apart from this, he is often seen in the golf course. He is having more than 10 years of experience in trading, had placed his first order on 19 June 2006 with IndiaInfoline.
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