Make Big Profit On Budget Day 2017 Using Line Break Chart Strategy
The Union Budget 2017 is scheduled on 1st of February 2017. In general budget days are typically volatile where sharp up and down moves take place in the market throughout the day. So novice traders lose money trying to trade that volatile market. Now how to survive these kind of markets and pull out big profits using simple tricks? In this post I shall discuss my simple line break chart strategy to survive the budget day trading.
In my previous post I have already discussed Three Line Break Charts in my post: How To Use Three Line Break Chart? Download TLB Amibroker AFL. You already know that line break charts will print a candle of different colour if high or low of a specific number of previous bars are broken. So three line break charts will show reverse candle only if high or low of previous 3 bars are broken. If you do not have access to line break charts you can get it in Zerodha Pi OR Zerodha Kite.
We will make a small tweak to line break chart strategy to trade the volatile market. Now only budget day, you can trade any volatile market, you can trade any news event with this strategy. So what is the strategy? First login to your Zerodha Pi. This strategy is Pi specific. Open your scrip, say Nifty-50 index. Now open a 1 minute candle chart. Now change the candle chart to line break chart and select line break parameter as 6 instead of 3. So our setup for the volatile market is a 1 minute 6 line breat chart. Now check the image below:
6 line break chart on 1 minutes tome frame you can get even 25-30 candles in same direction. So almost zero whipsaw and you can ride the trend fully in a volatile day. This strategy will eliminate the chance of getting in and getting out too early. You can avoid entries in small whipsaws and once you enter in trade once again small whipsaws cant get you out. Test this line break chart strategy this Union Budget Day 2017 and comment your results below.
Indrajit is a professional blogger and Trading System developer, Amibroker expert, Wordpress expert, SEO expert and Stock market analyst. Trading since 2000, he has started the journey of StockManiacs.net on 2008. He follows Indian and world stock markets closely.