Index trading strategy for 05-02-2010
AN INDEX OPTION TRADING COMPANY
WE ARE NEITHER A BULL NOR A BEAR
SHREE MAHALAXMAYE NAMHA
OPTION EARNINGS (GROUP)
DATE 04-02-10
Dear friends
Here is a trading strategy for05-02-10 along with this you can earn on nifty index. There is also a procedure how to use the trading
NIFTY SPOT CLOSES ON 04-02-2010
NIFTY SPOT CLOSES 4845.35
|
H4 |
|
Long breakout |
|
H3 |
|
Go Short |
|
H2 |
|
|
|
H1 |
|
|
|
|
||
|
L1 |
|
|
|
L2 |
|
|
|
L3 |
|
Go Long |
|
L4 |
|
Short Breakout |
|
How to use this system |
|
|
Look at the opening price for the stock/futures/commodities/currency. |
|
Scenario 1
Open price is between H3 and L3
For Long
Wait for the price to go below L3 and then when it moves back above L3, buy. Stop loss will be when price moves below L4. Target1 - H1, Target2 - H2, Target3 - H3
For Short Sell
Wait for the price to go above H3 and then when the price moves back below H3, sell. Stop loss will be when price moves above H4. Target1 - L1, Target2 - L2, Target3- L3
Scenario 2
Open price is between H3 and H4
For Long
When price moves above H4, buy. Stop loss when price goes below H3. Target - 0.5% to 1%
For Short Sell
When the price goes below H3, sell. Stop loss when prices move above H4. Target1 - L1, Target2 - L2, Target3- L3
Scenario 3
Open price is between L3 and L4
For Long
When price moves above L3, buy. Stop loss when price moves below L4. Target1 - H1, Target2 - H2, Target3 - H3
For Short Sell
When the price goes below L4, sell. Stop loss when price moves above L3. Target - 0.5% to 1%
Scenario 4
Open price is outside the H4 and L4
Wait for the prices to come in range and trade accordingly.
http://in.groups.yahoo.com/group/safearn
Visit http://optionearnings.blog.com
Send feedback
HAPPY TRADING DATE 04-01-10
SAFEARN TEAM
safear@yahoo n.in
09837043233
