It is a multiple trading strategy in especially in nifty to trade each trend and 5 EMA,Price Closing of the candle,
And 2 period RSI is used to make decisions for your intraday trades. As per 2 period RSI —- 5 indicates overbought
levels and 95 indicates oversold levels which play a considerable role in making decisions. Check out the charts
for making confirm decisions.
Above Nifty Chart Shows Buy/Sell Signals Buy means Buy or Exit Shorts .
Sell Means Short or Exit Longs
Enter Long – Exit Short Strategy
If Price Closes above 5 EMA then Enter long or Exit Short
Enter Short – Exit Short Strategy
If price Closes below 5 EMA then Enter Short or Exit Longs
For Intraday :
Use 5 min-EMA or 15 Min Charts …. Use Above rules for
your entry and exit
Note : Buy/Sell Decision Should be taken only on closing of the candle
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i would like to know how the 2 period RSI is used to make or confirm decision for buying or selling in your example ? Thank You.
Thats a pretty old strategy no more working in this matured market.
If 2 period rsi is outdated, Then what would you prefer for nifty futures trading and the how many minutes candel stick chart is better for interday trading.