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Markets keeps going from accumulation-> advance-> Distribution -> Declines -> Accumulation & this cycle goes on.
Mostly everyone knows this.
But point is that how to make use of this ?
Mostly everyone knows this.
But point is that how to make use of this ?
I can only share what I do.
Once market is in consolidation or range bound, I love to play short strangle of both sides of the range.
As it gives breakout, I play it as this would b a trap or false breakout.
This is when I m completely naked short with SL of breakout candle H/L.
This is when I m completely naked short with SL of breakout candle H/L.
If it was false breakout, I ll make money.
If not, then As it hits SL of naked position, I m sure that most probably that’s it gonna blast in same direction.
Then by conventional methods I chalked out target for profit booking.
If not, then As it hits SL of naked position, I m sure that most probably that’s it gonna blast in same direction.
Then by conventional methods I chalked out target for profit booking.
I ll play this move by debit spread intraday or for Positional credit spreads.
As it reach near targets zone, it time for profit booking as it would go for consolidation.
Again start from strangle & this cycle goes on.
Again start from strangle & this cycle goes on.
Only Points I ll emphasis for you all that
Make your system such that you don’t miss any big move & at the same time you gets an clue in advance as it gonna rangebound.
Make your system such that you don’t miss any big move & at the same time you gets an clue in advance as it gonna rangebound.
Keep the things as simple as you can make understand a illiterate person too.
2nd:-
Accept only that much loss which you can recover next day itself.
2nd:-
Accept only that much loss which you can recover next day itself.
