Here is the OrderFlow chart of BN for the past 2 days.
We use this mechanical trading system in line with the analysis and the knowledge we have from Market profile.The OrderFlow is a conservative estimate of the buying and selling power of the market intra day, with a red denoting sellers in control.Once a signal is generated it needs to be part- booked at the closest PS1/ PS2/ PS 3 if short or PR1/ PR 2/ PR 3 if long.
Along with these signals, today’s trade was an easy 80 % rule trade day which went on to hit it’s objective at VAL in both the Nifty as well as the Bank Nifty.You can read about the 80 % rule trade in this post here. With an 80 % success ratio this rule cannot be overlooked.
A third point which I wanted to point out was the inability of the market to stay above PP0 in the first hour of trade. The PP0 represents a redefined value point for the day, with a market staying above PP0 being positive and a market below PP0 to be red.
Here is a 60 min intra day chart for the past 2 weeks which explains the importance of the PP0. Profits are to be booked at ps1/ ps2/ ps3 or pr1/ pr2/ pr3.
