Index Intraday Strategy -
In this strategy, we have kept the name "Max Pain."
The Max Pain strategy works in index intraday perfectly.
The Max Pain strategy is a simple calculated strategy.
One can apply this strategy for Nifty / Bank Nifty / Usdinr and many more.
Only a trader should wait for the index, to reach the max pain levels.
MAX PAIN STRATEGY -
How to Calculate 1st Max Pain -
1) Open the index day charts.
2) Note down the previous days high.
3) Note down the present-day low.
4) Add both previous day high & present-day low. ( previous day high + present-day low )
5) Divide the answer by 2.
6) You will get 1st max pain.
7) previous day high + present-day low / 2 = 1st Max Pain.
How to Calculate 2nd Max Pain -
1) Open the index day charts.
2) Note down the previous days low.
3) Note down the present-day high.
4) Add both previous day high & present-day low. ( previous day low + present-day high )
5) Divide the answer by 2.
6) You will get 2nd max pain.
7) previous day low + present-day high / 2 = 2nd Max Pain.
How Max Pain 1st & 2nd works for traders -
a) If the Market opens flat & test both max pain on the downside, we will see a strong rally on the upside.
b) If Markets opens gap up & moves on the upside, after some time if markets come & test the max pain. Then we will see a strong bounce back on the upside.
c) If Markets opens gap down & tests Max Pain on the upside, we may see a small upside.
d) If Markets opens @ the Max Pain levels, we will see a whole day bullish on the upside.
How to Calculate Live Max Pain -
1) Open the index hourly charts.
2) Note down the previous days last hour high.
3) Note down the present 1st hour - live market day low
4) Add both previous day high & present-day low. ( previous last hour high + present-day 1st hour low )
5) Divide the answer by 2.
6) You will get live market max pain.
7) previous day last hour high + present-day first hour low / 2 = Live market Max Pain.
How Live Market Max Pain works for traders -
a) This Max Pain we will get only after the 1st-hour Live market Candle Closing.
b) This Max Pain Works Only for shorting the Market in Intraday.
c) If Markets are at higher levels & Live Max Pain is at lower levels, surely Markets will retest the live max pain levels.
d) If Markets are at lower levels, like gap down openings, Markets will always test Live max pain on upper levels.
e) If Markets are at a flat near the Live Max Pain Levels, then the trend will be decided as above bullish & below bearish in a live market.
f) If Markets from upside test the live max pain levels towards the downside, again we may see a bounce back from live max pain levels.
g) If Markets from the downside test the live max pain levels towards the upside, again we may see a pullback towards the downside from live max pain levels.
One Can focus on Max Pain Levels & Prepare Your Own Trade Set.
