NVK Setup is a intraday trade setup which is a popular trade setup among icharts members
The set up for Long trade:
Price is making a double bottom or even slightly lower low.
RSI is rising.
1st Entry – near the 2nd low seeing the RSI +ve div
2nd Entry – when price Trendline is broken
SL – 5-8 points below that double bottom lows
So the first entry is only having SL of 5-8 points and 2nd one maximum around 15 points.
Profit Booking – The target is always a new days high or when we get closer to that.
For Short trade set up – it is just reverse……
the trade should be ignored if otherwise
1) the double bottom/top should occur within max 1 hr.
2) the peak/trough in between shouldn’t be a day’s high/low.
3) In between the double bottom/top – there shouldn’t be RSI crossover of 50