My Weekly Trading Strategies of Bank Nifty (14-12-2020 to 18-12-2020)

  1.    Trading Day 14-12-2020:



Above is Hourly Chart. On 14-12-2020 first Hourly candle closed exactly near resistance zone of 30700-30800 and formed Doji kind of candle, indicating range bound session with support around 30300. During such days we neither go long nor short hence decided Not to trade. Hence, that day i did not trade.

My View:- Neutral.


 2.    Trading Day 15-12-2020:



Above is Hourly Chart. On 15-12-2020 also same kind of situation on chart formed "Strong" Bearish Candle near yesterday high. Considering such a big red candle i have decided to go short. And therefore initiated Bear Call Spread. However, from immediate 2nd Hourly candle market recovered and ended day with loss of Rs.1450.

My View:  Bearish considering strong red candle.

My Probability:  My probability was 80% that there will be downside. And 20% probability that market may move high.

My Trade:

Buy 31000 Call option. 2 lot
Sell 30800 Call option. 2 lot
Stop loss. 30750

End of Day Result: Loss of Rs.1,450.


3.    Trading Day 16-12-2020:



Above is Hourly Chart. On 16-12-2020 again red candle at resistance zone of 30800, and hence decided Not to trade. And waiting for closing above 30800 at day end.

My View:  Neutral.

4.    Trading Day 17-12-2020:


Above is hourly chart of Bank Nifty. On 17-12-2020 it was expiry and on expiry day i mainly execute Butterfly covering 300-350 point range of expiry. 1st candle was Doji hence i decided to formed Butterfly in such a way that it should cover range of 31000 to 30500 and if that happens then i will be in profit. And if market starts moving above 31000 or below 30500 then i would be in maximum loss of Rs.1100. Because at 31000 there was massive shorts hence difficult to cross and same at 30500 there was massive long hence difficult to break.

My Trade:

Butterfly

Buy 31000 Call Option 2 lot ( Expiry 17-12-2020)
Sell 30800 Call Option 4 lot ( Expiry 17-12-2020)
Buy 30600 Call Option 2 Lot (Expiry 17-12-2020)
Maximum loss Rs 2200
Maximum Profit Rs.7000

End of Day Result: Profit of Rs.3880.



5.    Trading Day 18-12-2020:



Above is Hourly chart of Bank Nifty. On 18-12-2020 scenario was exactly same as 15-12-2020. 1st Candle was strong bearish and then recovery, and i have also did the same thing and again trapped here. And ended my day with loss of Rs.710/-.

My View:  Bearish considering strong red candle.

My Probability:  My probability was 80% that there will be downside. And 20% probability that market may move high.

My Trade:

Buy 31000 Call option. 1 lot
Sell 30800 Call option. 1 lot
Stop loss. 30650

End of Day Result: Loss of Rs.710.


(Total Profit during the week comes to Rs.1720.)

My Rule of Trading (Nifty & Bank Nifty Option Only.)

1.    Wait till closing of 1st Hourly Candle.

2.    At closing price of Hourly candle i decide Trend. (Bullish, Bearish, Neutral).

3.    After that i apply Probability Ratio of situation formed on chart.

4.    Then take trade.

5.    Exit if Stop Loss Hit and Book Profit if Probability wins.

6.    Capital Requirement Rs.35000 to Rs.38000.


(Rule Base Trading helps to Consistent Performance Else Ready for Accident....✈๐Ÿ™†)


Thank You..

Happy Trading.
"Learn & Earn"...!!


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