With strong rallies in the American markets, we can assume that the Nifty will have a gap open. A big gap has two possibilities: the gap will be filled, or, strong momentum will take the move forward. The 15 minute rule can be used to control your trades. If the gap is going to be filled, then price has to go lower, meaning that it will break the 15 minute low. Therefore, this low then becomes a stoploss, a selling level as well as a support level. Given today's SGX Nifty price, it may be wise to (a) look for a dip to the 15 minute lows for a buying on dips opportunity / (b) buy above the 15 minute high with a stop below the low.
This is Sudarshan's blog - sudarshanonline.com. It discusses the technical analysis of Indian Stock Markets emphasising on online day trading and futures trading strategies.

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Blog Archive
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▼ 2011 (213)
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► November (16)
- Nifty ready for an upmove?
- Does blogging help in trading?
- Low Risk outperforms High Risk
- Divergence Trading
- Better late than Never
- How to catch falling knives - Don't Try
- Intraday trading
- Nifty: Trading range Breakdown
- Expectations from trading - contentment
- CNXIT–A Look at charts
- Stop Loss and other issues
- Trading as a Business
- Gold at New Highs
- Return of Common Sense
- ABAN is showing some strength.
- Mid Cap Wake up call?
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► October (28)
- Answers to comments oct31-11
- Process of Consolidation Likely
- Nifty Pattern Targets Reached
- Happy Diwali
- Stock Selection (based upon their historical volat...
- M&M Consolidation
- Niftnear ORB Trade
- A dip in an ongoing up trend
- TATA Motors Life Cycle
- Hindalco touches support
- Mystery of the missing trailing stop
- Nifty Live Oct 12-11
- Point and Figure Charts
- Aiming for a better trade
- Long term view of Nifty
- Zen stories for Traders
- Hero Motor Corp at its support level
- NR 7 in Nifty Weekly Chart
- trading with a gap open
- Silver Pushes against Resistance
- An unusual continuation pattern in the Nifty
- Sudden Rally
- Nifty at 4750
- There is a time to be old and a time to be bold
- Afternoon review
- Nifty - Long Term View
- Higher High - Higher Low pattern in CNX IT
- Bear market shows its strength
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▼ September (53)
- The Bear Story
- Nifty in a well defined range
- Morning View Sept 29
- Nifty Options Trade
- Nifty on way to close higher for this F&O settleme...
- Learning Ideas
- Short term trend is up
- Something Better
- A tale of two trades
- Before the Open - Sept 26-11
- Reliance - something better
- Nifty - A long term view
- Adding value to your analysis
- Silver takes a tumble
- Mid day musings
- Intermediate trend is in control
- Risk is Off Again
- Nifty Resistance Holds
- Stoploss and range expansion
- Mid Day Musings
- Nifty at resistance
- It is Probability
- Day after a Narrow Range Day
- Some days are dull - that's fine
- Current Pattern in the Nifty
- Why a rogue Trader does not get caught
- Why a view is important for me
- Silver - a bear move possible
- Watching the Markets during the day
- Trading tactics for day traders
- The Nifty gets a floor
- A better morning
- Do not average a loss
- Value of Financial Stocks
- Morning + Dollar Index
- RALLY in the DOLLAR INDEX
- Thoughts on investing
- Now it looks like a trading range
- Choppy days likely
- Nifty in a trading range
- Reliance - drawing retracements
- Gold - the one that got away
- What the Swiss Franc move means for Gold
- Morning View sept 7
- What is your ATM
- What the blogs are writing
- In the contraction phase
- Morning thoughts Sept 5
- Nifty - short term view
- Gold Revisited - Yes, charts work
- Have a view before markets open
- Trading with a clean chart
- Why is Heromoto bullish
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► November (16)

6 comments:
Sir,
I have a short position in Nifty@4970(Oct Series).I took it yesterday afternoon looking at the Advance decline ratio.Which was very bearish(1:6),but the market went up.As the short-term trend is still bearish,I did not square-off. Please guide me as to what to do now.
respected sir,it may frustating for you as i am posting again n again. i have few query and waiting for your response
•How to develop a view on markets each day before we actually start trading
how to identify choppy trend ?
In 2 period RSI what should be upper limit and lower limit we should adjust??and the limit setting in ADX ??
in case possible please upload the presentation in newsletter strategy regarding view on markets each day before we actually start trading
Sudarshan ji ,I have seen and also traded the 15 min rule as explained by you many times right from 2009 I remember.
Now the thing is the rule works on "GAP DAYS."Now please Sir,explain what do u consider a gap as at one level of thought opening price is always different from previous day closing.So by this definition every day is gapday.
Now common sense leaves us two alternatives to define a gap:
1)Gap is formed when opening price exceeds high of previous day.
2)Gap is formed if opening price is X percent higher/lower then closing price.
Now what is this X is the big question.
Please Sir,Elaborate.In absence of any good answer,presently I trade the 15 min only if open is higher then high of previous day.
Hi Sir, as said, I have been trading this 15 min rule for quite some time. However, with high volatility and gap openings, it has become psychologically difficult to trade this method. Problem is : For ex: If ATR of Nifty is 100 and Nifty opens with a gap of 80 points and further moves 20points in 1st 15 mins(total of 100 pts up)and breaks above the high of 15 mins. Psychologically it difficult to go long at this point for Intraday trader. So, can you share some thoughts as to how to handle this situation? Thank you
I have just begun to read your blog. I am reading the archives as well. In one of your previous posts, I came across the term ORB trade. What is an ORB trade?
oh, ok. I got what ORB means in your archives. Will post my next questions, if any, after reading thru all the archives.
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