For example: In the example given midpoint is 4997, and the Value of nifty futures at the time of making observation( at 10.45 am)is 4999. It is just 2 points difference.
Since price of nifty > midpoint ......we go long.
Had i noted a few seconds later (at 10.46am), due to the heavy volatility in market, Value of nifty might have been less than 4997,the mid point, Say at 4995.
And here, Since price of nifty < midpoint .....we go short.
Does this mean this method will hold good only when time duration is exactly calculated? or, will be more accurate when the "difference between the midpoint arrived and the value of nifty is more, than in narrow range"?
Regards
Saivenkat.
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what i do is once i calculate the swing for the day,i take the 1/2 of swing to enter..eg. if the swing for the day is 68 points and day high is 5100..i shot below 5100-(68/2)=5100-34=5066..i go short below 5066 fo a tgt of another 34 points..stoploss is 34 points above day low..that is if day low is 5050..stoploss is 5084..same way if day low is 5050..i go above 5084 for a t gt of 5118..