Identify levels for Intraday Trading
Intraday Trading is highly risky when it comes to options specially! Many Traders not only loose money but confidence as well in their intraday trades. Banknifty is the one reason for this Greed & Fear! Let’s understand how to identify major levels to consider trades execution in Banknifty Intraday Trading.
As renowned author “Shive Khera” says, “Winners Don’t to Do Different Things, they do things Differently!”
As a Trader, how can we increase our winning ratio? Answer is simple, Plan your trades than entering randomly! Here is how.
For trading Intraday, we should definitely know what Big Boys (FIIs, DIIs, HNIs & PROs) are doing for the day. We should flow accordingly! This can be identified from Weekly, Daily & Hourly (W,D,H) Charts. For example, refer below chart of Bank Nifty as of 27 Dec with last 3 days Daily candles & we can easily plan our move! In this chart, BNF has crossed down 50 DMA on 23rd Dec but volume on this drop are declining. Following day, if BNF has to fall, it must breakdown 23rd DEC Low & go further down. But as expected one round of support is expected on Daily chart. Instead of falling further, it takes support at low of earlier day & starts moving up! We can go long when 23 Dec High is broken on 26th Dec Intraday!