NITS - NIFTY INTRADAY TRADING SYSTEM

28 dic 2023

NIFTY

Hello Traders..!

This is another indicator / system to make use for NIFTY & BANK NIFTY Intra day trading.
This is my Gift to the traders for this New Year 2024. Use this to your Edge and make some profits. All explained below.

https://www.tradingview.com/x/XOjJ607x/


NIFTY INTRA-DAY TRADING SYSTEM

Explanation of Arrays:
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## FIRST 15 MIN SESSION BOX ##

From 09:15 to 09:30 where the initial orders will get collected and Auction takes place.
DO NOT engage into any trade in this session. Let the Box develop.


## INITIAL HIGH / LOW FORMATION SESSION ##

This session is from 09:15 to 10:30.
We can observe the Initial High or Low being formed for the day, that is VALID TILL 11:30.


## NO-TRADE ZONE / ACC. AREA / DAY’S H OR L CONFIRMATION SESSION ##

From 11:30 to 12:30
90% of time this is the session where the whole Day’s High or Low will get confirmed. Sometimes the market may violate this Session!
DO NOT engage into any fresh trade in this area.
Once the box is developed, you can see the Mid price line will be formed which is valid for the afternoon Trading session till 15:30.


## SIGNAL LINE, MIDDLE PRICE LINE, SESSION HIGH LOW LINES ##

Middle Price Line – the dotted line (Red colour) is Mid Price Line for the Initial session box. This acts as an important price level for the whole day.

Signal Line – the Solid line that will form after 10:30. Consider this price line as very important price line to which the price reacts with a good momentum, either break through or rejection and valid for the whole trading day.

Session High Low price line – high and low prices of the Initial session box which acts as a good Support / Resistance / Target / Stop loss. Even previous session’s price lines can also be used for the current day too.


## TREND BOX ##

Multi-Time frame trend box will show the real-time trend on different time frames. This box will be very helpful in trade decision. Please note that at least THREE HIGHER TIME FRAME TRENDS must be in the same direction to support your trade criteria for the better confirmation.


## VOLUME IMBALANCE ##

These orange coloured boxes are very tiny imbalances between prices that were formed during price movements. Algorithm will try to fill these imbalances on its way of filling orders. These price imbalances can be used for our edge while taking trades.


SOME TIPS:
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1) Avoid Break out trades

2) Always trade the pull backs

3) Keep your Stops above / below the KEY LEVELS

4) Always follow the Higher Time frame trend while taking a trade.
If you trade in 1m TF consider 5m trend
If you trade in 5m TF consider 1H or 15m trend

5) Consider the higher TF closure of prices only, to validate the break out.

6) Trade what you see, market can do anything it wants.

7) Do not worry about losses. It happens and that is the business.

8) End your trading week in green no matter how big or small the profit is. Consistency is the key this business.

9) Keep in mind that the Market does two things only, either it will FILL THE GAP or GRAB THE LIQUIDITY. Just plan your trades accordingly. Liquidity levels like Previous Session / Day / Week / highs and lows.

10) The Market is a continuous business. It does not end for the specific day. It will not end its Buy or Sell model unless it completes its cycle, hence TRADE WHAT YOU SEE and not WHAT YOU THINK!

11) Unless the key swing high / low is broken and closed, DO NOT consider that move as a reversal. Consider that as a Liquidity grab. And it will continue in its previous trend.


HOW TO TAKE TRADE USING NITS: (one of the Techniques)
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As explained above, Do not engage in trade for the first 15 minutes.
Once the 15m box forms then look for divergence between NIFTY and BANK NIFTY.
Both Indices are supposed to trade in the same direction but at key levels and times, these instruments will make DIVERGENCE with its Highs and Lows.

Ex: one Index will make LOW AND LOWER LOW and at the same time other will make LOW AND HIGHER LOW. This deflection can be used for taking Buy Trades.

Ex:

https://www.tradingview.com/x/sr0E1wW9/

If the Divergence forms at the Bottom then the market will move upwards.
If the Divergence forms at the Top then the market makes down move.
To confirm this divergence, the price will move away from that deflected Lows or Highs.

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POINTS TO OBSERVE
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Mostly the first 15 min range that forms will either be very large candles or normal candles with rejection wicks or Shaved bar (open and H/L same)

Whenever you observe a very large wide range bars within the 15min range, consider the Day’s high and Low is already formed. And the market will be hovering inside that range only. Very useful for taking 50 points scalping here and there by using the signal line and middle line or Acc box mid line. In this scenario you have three important info of the day, OPEN HIGH & LOW established already, The market will only look for its close.

Ex:

https://www.tradingview.com/x/e1UmOjVs/

If the market trades with normal candles, then consider your trades in two parts.
From 09:30 to 11:30 and from 12:30 to 15:30 as 11:30 to 12:30 will confirm the current day’s High / Low hence do not take a fresh position within that time.

1) Initial session trade – If the price does not break and close the 15 min range high/low, consider it is going to reverse and continue its trend till 10:30

Ex:
https://www.tradingview.com/x/xd8ekrO1/


2) Mid session Trade – mostly the market accumulates positions and collects orders between 11:30 to 12:30 for the afternoon session. Once the session box is developed, the middle price line will form. Wait for the market breakout and close off this session’s high or low in Higher TF. The market will continue in the direction of breakout from this session and continue till 15:30. Hence wait for pull back till its mid price / high or low price lines of this Acc box and take trade in the initial breakout direction keeping stop above or below the session’s high or low.

Ex:

https://www.tradingview.com/x/RBx4xDmk/

## Fixed Range Volume Profile as a Tool ##



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Note:
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Kindly do not ask for any codes or script details. The one technique what I explained (Divergence method) is more than enough for making a consistent earnings. Please study and back test / forward test for yourself for atleast 2 weeks time. Every traders aspect and mindset is different in seeing the market movements. Please design your own methodology and CONSIDER this as a BUSINESS..!

JUST.....

Believe the System
Be patient
Be Disciplined &
Be a Successful Earner..!!

LET YOUR ENDS MEET

(Hope I explained well)