Market profile based Trading System and Trading strategy

I am posting this Trading strategy as it seems simple and easy for any layman.

Nifty futures is bracketing (sideways trading) after an up trend for the last 5 days. Now it is testing the bracket top.

Trading strategy today depends on whether nifty breakout above the five day bracket and gets follow through or it opens within the bracket or the breakout attempt fails. When the market is bracketing and open is within the bracket or previous day’s high low range, the trading strategy is to fade moves to the extremes of the bracket. However eventually a breakout will occur, identifying the breakout at proper time is important. The five days of bracketing action has formed a good balance and now breakout from this balance is expected anytime. When the breakout happens, monitor it for follow through in the breakout direction and for strength. If the breakout fails, it is likely to test the other bracket extreme. The close on Friday was around bracket top and today’s trading action may give important insights into the direction of next vertical move in Nifty.

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Nifty Futures Pre Market Analysis - 7/7/2011

Nifty is trading in a Bracket, it is the balancing time after an up move. The buying tail on Wednesday is a key reference point. Getting short in the hole caused the afternoon rally. A breakout/failure from VA offers opportunity. If opens out of balance, then the bracket extremes are key reference points. Strategy is to buy near bracket low and sell around bracket high. If opens above VAH and holds VA, then it may rise up to bracket high.

Nifty Futures Pre Market Analysis for 5/7/2011

Well, the nifty futures remains one time faming up. However an excess formation may be underway. Inside day and Balanced Day. Volume is lower. A bracket formation is underway.

When u see a balanced profile, usually the asymmetric trade opportunity is breakout from balance. There is good probability that we had a short term excess on 1/7, but it is not a strong one.

1. Single prints, coincides more or less with the single prints from previous day. Upward breakout should be       traded with extreme caution. Observe volume for clues of breakout failure.
2. Poor Low from previous day not repaired. We carry forward this information.

There is an anomaly on the shorter time frame profile chart. This area coincides with the single prints discussed in 1. So this level may be a strong resistance point and day high may be formed around this level.

If market opens higher and volume is not coming, then nifty will be attracted back to the prominent POC 5665. Same is true for a lower opening also.