Budget Day Trading Strategy With Line Break Chart

Budget Day Trading Strategy

This is a re-written version of my post of 2017. I thought that republishing my old post can give you an insight to day-trade the budget 2019. The Union Budget 2019 is scheduled on 5th of July 2019. 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.

Three Line Break Chart

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.

What Exactly is our Budget Day Trading Strategy?

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 strategycan be used on either Zerodha Pi or Kite with same settings. 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 break chart. Now check the image below:

Line Break Chart Strategy

6 line break chart on 1 minutes time frame you can get even 25-30 candles in the same direction. So almost zero whipsaws 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 can’t get you out. Test this line break chart strategy this Union Budget Day 2019 and comment your results below.

Author: Indrajit Mukherjee

Indrajit is a professional blogger and trading system developer. Amibroker expert, Wordpress expert, SEO expert and stock market analyst.Trading since 2002, he has started the journey of StockManiacs.net on 2008. He follows Indian and world stock markets closely.

9 thoughts on “Budget Day Trading Strategy With Line Break Chart”

      1. Mr.Indrajit Mukherjee can you provide me “Line Break Chart Buy Exploration” formula for Metastock. I am ready to pay for it.Please reply.Thanks.
        Akhlaque Ahmed
        [email protected]

  1. In the line break chart shown do we enter or exit for every change in the color of candle. How do we know for how lobg a particular trend will continue

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