Nifty Option Buying Setup 13, 34 EMA Crossover

Nifty Option Buying Setup 13, 34 EMA Crossover

1. We only need 2 Indicators.

Indicator 1- 13EMA

Indicator 2 - 34EMA

Both indicators are compulsory and should be exponential(EMA) instead of Simple moving average.(SMA)

2. Whenever this Setup meets a condition where 13EMA crosses 34EMA from below.

Whenever the 13EMA crosses 34EMA from below it is a LONG (BUY) SIGNAL.

Buy Nifty CE Option Nifty Spot - 50 (ITM), should be multiple of 100.

4. Whenever this Setup meets a condition where 13EMA crosses 34EMA from above.

Whenever the 13EMA crosses 34EMA from above it is a Short (Sell) SIGNAL.

Buy Nifty PE Option Nifty Spot + 50 (ITM), should be multiple of 100.

5. If you want to stay longer in the trade then buy options of next expiry, else you can by options of current expiry.

6. Time Frame for Intraday trades should be 5 mins.

7. For positional trades we can use Timeframe above 1 Hour

8. When to Place Order?

Place order after 13 and 34 EMA cross candle close.

9. Order execution

Place buy order in 2 steps, half at current price and half at current price -20.

10. Stop Loss

Stop loss should be 1/2 % of your trading capital, based on this you can calculate how many Nifty lots you can buy.

11. When to exit

Exit when your daily target meets or next crossover signal occurs.

Your suggestions and observations are welcome.

Comments

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