While trading the debit strategies measuring the risk-reward ratio matters a lot for the options trader. Though you might have a bullish opinion about the market. However, the overall objective of the trader is to maximize the gain and minimize the losses.
There are a lot many bullish strategies out there where one can follow when Nifty is falling. However, one particular strategy makes me more interested from a risk-reward perspective. It is a three-legged strategy that can be executed if you know the clear support zones in Nifty.
High probability bottom signal in Nifty Future on the EOD charts. Autocorrelation maintains negative which indicates a possible mean reversion mode in Nifty futures and the oversold smooth oscillator indicates the oversold level. 8498.1 is the previous low on 10th Feb 2015. And also noticeably there is a gap below 8427 which remains open since 15th Jan 2015.