A 196 point day in the NF and a 472 point one in the BN left us with smiling faces at the close, as OrderFlow and basic rules of market profile helped us stay abreast of the changing dynamics of the market.
In the end, the gains from the day were as much as the range in both the Nifty as well as BankNifty.
At Vtrender we have always stressed that the best way to trade the markets is always to follow price and volume action only.
Any derivative of price will not tell you half the information which price is conveying to you.
The rules are simple- Buyers live above value high and sellers below value low
Longs are right above value and the day's developing point of control ( also called dpoc) and shorts are right below this.
Our orderflow is tailored to recognize this basic rule amongst several others, which is way we end up being on the right side of the market most of the times.
In both the charts above, we have followed the same rules.
Longs have been taken above vwap and dpoc and shorts below it.
These charts are projected in the trading room along with these signals
Simple rules! Great profits!!