Swing Trading in Bank NiftyBank Nifty is the most popular index in India which offers good volume, good liquidity and significant moves.
However, Trading Bank Nifty is not everyone's cup of tea. Most new and even seasoned traders burn their hands regularly when the market does not behave the way it is expected to behave.
New traders learn lot of technical jargon, they learn to draw Support/Resistance Lines, Pivot Points, and deploy so many indicators which only add to the confusion.
What you need to be a successful Bank Nifty trader is, an auto analyzing tool which draws new Support/Resistance lines automatically as new areas of Supply/Demand emerge and it should also delete the previous Support/Resistance lines automatically so that your chart remains clutter free.
Your tool should be back-tested over a period of at least 4 years, and should provide consistent returns on paper with less than 35% maximum draw-down.
Also, after analyzing all the factors, it should give you clear cut Buy/Sell Signals, Entry/Exit & Re-Entry points (if stop loss is hit) and so on. The tool should also allow you to set up Buy/Sell alerts which you can use to feed your algo-trading set up.
When all this stuff is taken care of by the indicator, all you need to be successful is 'Focus' on your chart or you may leave it to your algo set-up.
The manual trader's days are numbered as more and more people are going towards algo-trading which offers the much needed speed required to trade weekly options.
When expiry is nearby and there is sudden spurt in Bank Nifty, the algo set up will execute the trade in seconds without your intervention, while doing so manually will take at least 1 min. by when the trade might escape the sweet spot.
