NIFTY CHART STUDY FOR OCTOBER 20 2023

 NIFTY OPTION BUYING STRATEGY.


Before you go through this article for chart study. make sure,  this is not a buy or sell tips or suggestion and we are not SEBI registered adviser. this is just a personal view.


you will see something new in this chart study. what was nifty telling you today. the view is just for option buyer. this strategy is without any indicator. later in other articles we will share, another strategies too with some indicator.

now see this chart below . the chart is from trading view and, its a 5 min chart.


1st you draw high and low on 1st 5 min candle. 

now the very next candle broke the high. this is the range breakout.but big players will confuse you and attract you to enter this. you mark that high of second candle too. if you get a breakout at 19586 with big green candle, then you enter the call, or else wait. to buy put, you will have to wait for proper break down below 19519.


before buying, wait for proper setup. dont just jump to buy call or put. 1st let the exact breakout candle form  at days high or  break down candle at days low.


In option buying, if you are a intraday buyer make sure you dont buy every day, wait for proper day and proper setup. 


in this high low break down or break out strategy you will not get buying signal from exact low, but when you buy, mostly a momentum is confirmed. 


your stop loss will be approx 15 to 30 points and target will be minimum 20 points or you will have to trail the stoploss. 


but after back-testing this strategy, it was 70% positive trade. out of 10 6 to 7 trades were success full and 2 to 3 trades hit stop loss. 

also make sure you buy 1 lot and buy ATM strike prices. on the day of expiry or near expiry days, the risk is more but profit will be huge. 

so if you want to buy risk free then avoid buying when there is only 1 or 2 days left for expiry, buy next week expiry options. 


in this strategy, you will see, if you apply it properly, you loosing is 20 to 30 points that is 1000 to 1500 rupees.


and your winning is also 1000/- to 1500/- rupees. its 1:1 strategy. 

there are many examples of this strategy , which i have back-tested. if you want to take a look at that too, comment me and i will share that too, in my next articles on nifty option buying. 


Comments

Post a Comment

Popular posts from this blog

NIFTY OPTION BUYING FOR 12TH OCTOBER

Image
SAFE STRATEGY FOR NIFTY OPTION BUYERS NIFTY SPOT CHART FOR 12TH OCTOBER 2023. CALL BUYING STRIKE PRICE 19850 AND PUT BUYING STRIKE PRICE 19800   see the chart below for 19850 buying is 165 and high is 174. so approx 10 points.  in this case, let the premium cross 174 with good volume, or else dont enter the trade.in the volume chart there is no volume at all. now in put chart for 19800 you can see 123 is low, so you can buy at 123 if there is volume for buying, here stop loss is 113. so if you enter here, you target can be  139, it reached till 152. but there was no volume so we exit fast, in option buying dont buy if there is not much scope of big target, or else if you enter the trade, exit fast, if volume is missing. PLEASE NOTE, BEFORE READING AND SEEING THIS STRATEGY, MAKE SURE THIS IS JUST FOR EDUCATION PURPOSE. I AM NOT SEBI REGISTERED. IT’S NOT CALL OR PUT BUYING ADVISE.  I AM JUST SHARING MY VIEW. IF YOU LIKE IT. YOU CAN FOLLOW. PLEASE BACK TEST AND DO YOUR ...
Read more

warren buffet option trading strategy

 Warren Buffett, the legendary investor and chairman of Berkshire Hathaway, is known for his value investing approach and generally avoiding complex financial instruments like options. Buffett has often advised individual investors to focus on long-term, fundamental investing rather than trying to speculate with options or other derivatives. His investment philosophy is built on the following principles: Invest in What You Understand: Buffett recommends investing in businesses and industries you understand. He often emphasizes the importance of investing in companies with durable competitive advantages, also known as economic moats. Buy and Hold: Buffett is a proponent of long-term investing. He suggests holding onto quality stocks for the long haul, rather than trying to time the market or engage in frequent trading. Margin of Safety: He advocates buying stocks when they are undervalued, with a margin of safety. This means buying stocks at a price significantly lower than their in...
Read more

Best "Nifty option strategies" For buying "Intraday Nifty options"

Image
 "Nifty option strategies" As you all know, we are here to discuss about nifty option buying. we focus on buying option and not selling. option selling is considered is safe trade buy its very costly and required big capital to trade.  but for option buying, the capital required is very less, and if you practice hard then there are good chances to succeed in nifty option buying too. Its said 9 out of 10 buyers loose money. so its risky, but to be in then winning trade, you can follow some good strategy.  What is  "Best Nifty options to buy".  As per my view i will say, go for far options while buying, dont go for very near expiry. near expiry will be less costly, but very risky if trade goes against you.  Is it good to get "Nifty option trading tips" Getting tips from someone is not bad, but following that tip blindly is very risky, i suggest you to first learn and understand options. then do some practice with paper grades, then once you are confident, go...
Read more