SELL ENTRY - latest 15 minute candle that crosses cvwap and closes below
both pvwap and cvwap, sell entry will be below low of that candle
EXIT POINTS
TARGET :
o NF - 30-35 points
o BNF - 90-120 points
o Crude - 30 points
o Others - 1-1.2% from entry level
STOP LOSS :
o NF - 25 points
o BNF - 60 points
o Crude - 20 points
o Others - 1% from entry level
FAQs and OTHER TIPS
Fake breakout cannot be totally avoided. However, those who want to cut
down on the risk of fake breakout, can avoid taking trades on first vwap.
They can take a vwap pullback trade which I will elaborate and document
later
Agreed that strategy works less on range bound days but whether a day is
range bound or not that we get to know only during the day. No way to
identify beforehand if a day will be range bound. One can only predict.
However, one can avoid taking trades the day after a trending day,
assuming it is usually a range bound day
In past, this strategy has given more than 60% results and with 1:1 Risk
reward ratio, it is excellent. You can do your math.
5. On what instruments does this strategy work ?
This strategy works on all instruments, i.e., all stocks, indexes, commodities,
currencies, etc. However, it works best on high beta stocks, Nifty Future,
Bank Nifty Future and Crude.
High beta stocks are fast moving stocks. Stocks that move equally or faster
than the movement of index are called high beta stocks. Their beta is
usually equal to or greater than 1.
Few examples are : Axis Bank, Adani Ent, DLF, Rel Infra, Tata Steel, Tata
Motor, Idea, SBI, Canara Bank, IBHF, Just Dial, LTHF, Jubilant Food,
Hindalco, Bajaj Finance, Reliance, etc.
Vwap indicator takes into consideration volume, time and price. Hence, no
other indicator is required. We don't use any other indicator except vwap.
If you want to use, you can use on your own discretion and comfort.
There is no strict rule against using a lower time fram. if you are
comfortable, you can try on a lower time frame like 5 minutes or 3 minutes
as well. Strategy says 15 minutes so if you deviate, do your back-testing and
then deviate.
It is ideal to risk 1-2% capital in your trade. So if your capital is say 1 lac,
max risk should be 2000. Hence you can trade in one lot of NF (25*75=
1875)
CHARTS
NF CHART DEPICTING SELL ENTRY AND TARGET ACHIEVED
For information on how to trade Gap up and Gap down usinf vwap, read :
https://drive.google.com/file/d/1bjGwir6BAaUVyKwWiHE0nszkLX5mPzzD/view?us
p=sharing
THE END