Introduction

In this blog, I'll share an incredible trading strategy that can revolutionize your approach to trading. 

This strategy allows you to confidently trade intraday and swing trading styles. 

 

The Simple Strategy

The strategy is quite straightforward. To get started, head over to TradingView and apply two indicators. 

First, use the "Trendlines with breaks" indicator, which automatically draws trendlines and provides buy signals when breakouts are confirmed. Secondly, add the "Super Trend" indicator.

 

Adjusting Indicator Parameters

In the Trendlines with breaks indicator settings, change the length to 12 and select "Show only confirmed breakouts" in the options. 

For the Super Trend indicator, set the factor to 1.6.

 

Detailed Video

 

Setting Up the Chart

For intraday trading, a 5-minute or 15-minute timeframe works best. 

Add both indicators to your chart, and you should see how they complement each other.

 

 

Buy Signal

For a buy trade, wait for the price to break above the trendline and close above it while simultaneously receiving a buy signal from the Super Trend indicator. 

Look for a green "B" next to the breakout candle, indicating a confirmed breakout. 

Your stop loss should be set to the low of the candle preceding the breakout, and the target can be the next resistance level.

 

 

Sell Signal

For a sell trade, wait for the price to break below the trendline and close below it while receiving a sell signal from the Super Trend indicator. 

A red "B" next to the breakdown candle confirms the breakout. 

Set your stop loss to the high of the candle preceding the breakout, and the target can be the next support level.

 

 

Trade Execution and Risk Management

Execute the trade as soon as the criteria are met without waiting for the high or low of the breakout candle to break. 

Always maintain a risk-reward ratio of at least 1:2.

 

Backtesting Results

Let's now look at the backtest results from 29th May 2023 to 27th June 2023. 

In one month, there were 15 trades with one stop-loss hit, resulting in a net profit of 357 points or Rs. 17,850 in Nifty.

 

 

Patience and Follow-Through

Remember, trading requires patience and discipline. 

Stick to the strategy and allow it time to play out. 

Avoid jumping to conclusions based on a few initial trades.

 

 

Conclusion

This powerful strategy can transform your trading approach, enabling you to trade both intraday and swing with confidence. 
Take the time to understand and backtest the strategy before implementing it in live trading. 
Remember, consistency and patience are key to success in trading.

I hope you find this strategy useful and beneficial. 
Don't forget to like and share this blog with others who can benefit from it as well. 
Happy trading!

 

Disclaimer

This blog post is for informative purposes only and should not be considered financial or investment advice.

Trading in financial markets involves risk, and past performance is not indicative of future results. Always conduct your research and seek professional advice before making any trading decisions. The author and publisher are not responsible for any losses incurred from the use of the information provided in this post.