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Nifty Option Buying Setup

Nifty Option Buying Setup

Nifty 50 on 5 minute time frame 

Select ATM Strike


1. Price closes above VWAP.

2. Volume increases above Avg Volume.

3. Price above Avg trading price.

4. Open Interest decreases below average.

5. RSI above 60. 

6. Quantity 450 / 9 lots.

7  SL -27% Trailing SL is important here

8. Target 81% 

9. Trailing stop loss by 5min candle close/ day Low / Close to 10

10. Pyramiding if RSI goes about 72 

11. Average out if price remains within Buying price & -27%. SL Price for 1 hour. 

12. Risk management 2% loss over 21= 4000 Per trade

13. Draw down up to 20% max 40 k.

14. Losing streak 1 losing trades-2

15. Wining streak 4 -wining trades-4

16. Highest profit 5 k 

17. Highest Loss 4.8 k.   Total Earnings = 9k

18. Trade After 10.30 Place Limit order of ATM CE LTP-18 ATMPE LTP-23


Depending on RSI of CE /PE decide variable value. 

Read Open interest & decide accordingly. 

Study line of least Resistance using OI analysis.

Discipline and consistency is key here.

Risk to Reward Ratio 1:3 

Inspired By Madan kumar & Jitendra Jain

https://twitter.com/madan_kumar

Markets with Madan | Trading and Psychology

https://twitter.com/jitendrajain

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