Nifty Positional Formula:
Monthly 2-3 sure calls can be predicted with this method.
- Buy Nifty future when both slow stochastic and fast stochastic give buy signals respectively (Make sure the stoch value is around 20 for buying)
- Sell Nifty future when both slow stochastic and fast stochastic give sell signals respectively (Make sure the stoch value is around 80 for selling)
HOW TO FIND OUT THE PROFIT BOOKING AND STOPLOSS SIGNALS
There are 2 methods to find the Stop Loss for your trade
Fixed SL MethodAfter Buy/Sell call generates, keep 150 to 200 points target (2% for nifty index and 5% for stocks) as well same stoploss. In this case, you do not get any huge profits even in case of free fall or sudden rise of markets in our direction
Trailing SL MethodSecond and most effective way of finding the stoploss is, once after the Buy/Sell call generates, initially place 150-200 points SL (This is to ensure that, we will not end up with big loss even if market moves against our trend). Keep trailing the SL till both the studies give reverse signals