It is now widely recognized that:
1. The market begins at 9.15 a.m. and takes around 45 minutes to settle down and display its real colors (around 10 a.m.).
2. Gambhir players arrive about 2 p.m. and set the tone for the day.
This method will assist you in discovering:
1. Market Trends in the First Half
2. How will the market react between 2 and 3:30 p.m.?
To use this approach, simply follow these steps:
1. Constantly observe charts
2. You should be able to draw straight lines on charts.
Draw straight lines to mark the highs and lows between 9.15 AM and 10 AM.
Consider the following example:
Lupin's began the day at approximately 896 and had risen to roughly 908 by 10 a.m.
This range is indicated on the chart above.
The higher the price, the greater the resistance, and the lower the price, the greater the support.
Around 10.15 a.m., the price decisively broke over the upper level at 910.
This was an indication to purchase. The price eventually reached 940.
Take Indraprastha gas as another example:
Using the same approach as before, we get 292 as resistance and 289 as support in Indraprastha Gas.
At 10.05 a.m., the price fell below 289 and fell to 185.80, from which it began to rise.
If you had shorted at 10.05 a.m., you could have profited by more than 1%.
This Strategy's Rules:-
1. Purchase when the price breaks over the resistance level.
2. Sell when the price falls below the support level.
3. Gains of up to 2% are possible.
4. Set your stop losses to around 0.75%.
5. Take note of the length and number of candles that pass above or below the ranges - the longer, the better.
H/W For You:-
Serious players are expected to arrive about 2 p.m.
And now comes the hard part: learning to trust yourself.
Draw a range on any FNO stock between 1.30 PM and 2 PM, as in the previous manner, and observe price activity after 2 PM.
Remember that professional players come around 2 p.m., therefore by setting the range to 2 p.m., you can get numerous BTST (or even more) signals.
This assignment will assist you in establishing fundamental chart patterns and eventually improving your chart reading abilities.