Trading Steps

The American markets rallied for the second day on Friday. This should set thet one for a higher open on Monday in Asia (including India). If we open higher and maintain the gains, then we are looking at a possible breakout from the trading range. The minimum targets for the range may be 3050 approximately. Will this come about ? No one can say this for sure. Traders should go with market flow. The flow seems to be on the bullish side.
How do you trade ?
If you are a swing trader, planning to take positions for a few days, then buy calls / futures / nifty ETF using the 15 minute rule .Your stops should be the mid point of the range, about 2790. If the trade moves in your favor, you can move the stop loss to break even. The management of exits is a very personal decision. I am only giving indicative ideas.
If you are a day trader, then buy after the five minutes from the open, above the five minute high. You can plan for an exit on any range expansion (big sudden move) in your favor. You can also plan for a reentry after a dip. In any case, going short will not be a good idea.
What can go wrong ? Everything. There is no guarantee that the markets will move up. But traders work on probability. That favors buying.
Please understand that day trading / swing trading is meant only for professional traders who are adequately capitalized.
Have Fun!