If you are a trader your first priority will to know the overall trend, if you are a nifty future trader or bank nifty future trader you must have an idea which way market will be moving. You need to take the position in direction of daily trend and not against it; these are one of the principles of a successful professional trade. You will need a charting software and EOD data for nifty future and bank nifty future, on charts you will first of all place an indicator named slow stochastic. This indicator will be used to get us entry signals on nifty future and bank nifty future. Steps to follow:
1. Look for the trend; find out the trend on daily chart by simple observation. We will need only uptrend or downtrend, no for ranging markets.
2. If trend is up, then you will look only buy crossovers on indicator, if trend is down you will wait for only sell crossovers. Trading in direction of daily trend will make a difference in trading.
3. Strategy to maximize profit will be to keep scaling-in to position till this trend continues. Once there is end of the trend, you will need to exit all your trading positions.
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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Thanks Bhaveek for this beautiful article. I enjoy reading this. I appreciate your thoughts and ideas. This is really praiseworthy.