Best Nifty Strategy-Must Read

[timepass]

Seems like a bearish pin bar today !!!

 

[eXimius]

nifty crashed to 4860
if i was not writting here then must have earned 10 points more
anyway friends this is my last post as this thread is not apt to write coz i m going against gann method.
But still i had good time here.
bye
:thanx::thanx::thanx::thanx:

Start a new thread..........

 

[khushi00]

1. Rising open interest in an uptrend is bullish.
Correct

2. Declining open interest in an uptrend is bearish.
Not necessarily, it may also mean just profit booking / short covering by buying back sold contracts which result in declining OI

3. Rising open interest in a downtrend is bearish.
Correct

4. Declining open interest in a downtrend is bullish.
Not necessarily, it may also mean just profit booking / long covering by selling back bought contracts which result in declining OI

5.Whenever there is significant Increase in PE OI and decrease in CE OI , it indicates bullishness , right?
right, but the strike should be at the spot value. If it is below spot means it is becoming support.

6.While checking this OI , should we check only the strike prices which are near the Future price ?
Options are related to Spot and not future prices coz expiry is taken at spot and settlements done at spot prices. Even Future prices are settled at spot prices on expiry day.

7.Also in Business-standard , I read in the Markets section , the editor tells about Supports and Resistances with reference to the increase and decrease in OI , how can it be interepreted ?
Increasing OI in calls at a particular strike means resistance nearabout those levels in Spot
Increasing OI in puts at a particular strike means support nearabout those levels in Spot.
But again, for example - if at 9000 strike, CE OI is 3million and PE OI at 5million then it is obvious that support is much greater than resistance and inverse.

-written by:
MurAtt

 

[khushi00]

What Does Open Interest Mean?
1. The total number of options and/or futures contracts that are not closed or delivered on a particular day.
2. The number of buy market orders before the stock market opens.

Open Interest
1. A common misconception is that open interest is the same thing as volume of options and futures trades. This is not correct, as demonstrated in the following example:

-On January 1, A buys an option, which leaves an open interest and also creates trading volume of 1.
-On January 2, C and D create trading volume of 5 and there are also five more options left open.
-On January 3, A takes an offsetting position, open interest is reduced by 1 and trading volume is 1.
-On January 4, E simply replaces C and open interest does not change, trading volume increases by 5.

 

[sujay74]

very true, really this is a very nice and simple strategy for intraday.

 

[khushi00]

Today close on 4925(spot) once if break & Volume next resistance @ 4945, 4970 level
If not break Friday’s high & Trade below 4850(spot) non stop slide upto 4800, 4770 level….
^^^^this is simple strategy^^^^

 

[khushi00]

Spot levels that i would try to follow today
5009 confirmed bull
4964 upbreakout
4948 may go up
4938 will see to sell
4893 my pivot
4874 will see to buy
4863 may go down
4847 down breakout
4803 very bearish
^^^^ little bit complex ^^^^

 

[khushi00]

As i was discussing here my trading style....
above is phase I where we have to settle our mind before market opens, according to prev. day
and will see how nifty moves according to these levels then we try to mix intraday data with these levels......

 

[khushi00]

thinking to short around 4865

 

[khushi00]

weak bearish mode so now thinking of 4870 level
shorted @ 4870 for trgt 4855 n stop 4880