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.
Read full strategy
