Hi Mohit
you must have seen a lot of trading calls from brokerage houses give pivot r1 r2 s1 s2. These points are used by day traders for entry points, profit booking, stoploss.
price is in bullish territory above pivot and in bearish territory below it.
its good to form the trading strategy based on the market cues. Its safer to let the market trade for some time and establish some trend before trading.its difficult to write strategies for all scenarios because one has to be reactive to how things are unfolding in the market.
strategies can be
going long above the pivot and keeping a stop loss below it and booking profit at r1.
going short below the pivot with stop loss above it with aim to book profit at s1.
general observations are
1) if some level is tested again and again its chances of getting broken increases.if market keeps testing a support again and again in intraday its more likely it will be broken.
2) once a level is broken say support is broken it becomes resistence and if resistance is broken it becomes a support.
Mohit I personally have a positive bias for markets week ahead but some news flow can completely change the outlook. markets are volatile
and giving big ups and downs so if you plan to trade do it with caution and strict stoploss. I was hesitant to give out any strategy which can mislead some new member on messageboard but at the same time
I did not want to disappoint you.
with regards
Deven
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