I bet most of you are intraday traders. Everyone has a different style of trading but according to me this is by far the safest way to trade. It is really simple. Here are steps –
Open your instrument on a 15-minute chart
For example purpose lets assume we will trade in Nifty. The chart will look like below –
Click on the graph like button and choose MACD and RSI. Make sure RSI is set at 30 and 70 or 20 and 80 as per your convenience.
When the market opens at 9:15 AM, don’t take immediate trade. Wait for first 15 minutes. The high and low of first 15 minutes usually becomes an indicator of the day’s trend. If the second tick closes above the high of 1st 15 minutes market may go up and vice versa.
Look for RSI and MACD indicators. If RSI is near 20 or 30 and MACD is showing Bullish Crossover ( Red line Crossing the Blue line from above) it is a Buy signal. If RSI is near 70 or 80 and MACD is showing Bearish Crossover (Red line crossing Blue line from below) it is a Sell signal.
You may overlook RSI but don’t overlook MACD as it is true indicator
The above process can done on all trading instrument as the fundamental is same for all, however, when trading in stock futures beware to have enough capital as margin that can assume any knee-jerk reactions.