Logic and Application
- For trading in index futures following the market trend.
- Using renko charts , analyze the overall market trend whether bullish / bearish / sideways
- Using volume profile , analyze the current price trend to get signals for trade entry
- Using heikin ashi chart and chandelier exit , enter and exit trades with maximum threshold stop loss limits
Steps
- On index futures select renko chart with option traditional view and 100 points (10% of overall price value)
- Review and conclude overall market trend from renko chart , if higher highs formed then bullish , if higher lows formed then bearish
- Select Volume profile indicator , with settings number of rows 100 and plot Point of control POC line. Plot this for past 2 to 3 days
- If the volume POC level of current day is below previous day POC , its bearish . If above then Bullish view.
- On 5 min time frame , use Heikin ashi chart .
- Select chandelier exit indicator with settings for ATR 3 and multiplier 3. Buy and Sell points get displayed
- Wait for the signal for price to cross above POC line for trade entry
Profit Loss levels
- Profitable in direction of trend
- Exit if personal risk reward target levels reached
- Exit at Stop loss Sell signal indicated by chandelier exit
- For long trends , trail stop loss at chandelier exit levels