Nifty - Intraday trade Setup - Very Simple

Nifty - Intraday Trade Set up

Many are asking me what is my intraday trade set up for Nifty and Bank Nifty. I go by very simple and traditional set up for Intra day trading on Indices. Used to trade in Nifty index and Bank Nifty index. However I use Moving averages of 12 and 34 EMAs to understand the direction and pause in the move.

Below is the sample chart which is clearly explained my method of trading in Intraday. Any of you can test it on live or back test the method and use if you think it is useful.

Timeframe used: 2 Minutes candle
Moving Averages used: 12EMA, 34EMA, 200EMA
RSI: 14
Stochastic: 14,3
MACD: 12, 26, 9

Whenever I see Positive divergence, I never hesitate to take buy Nifty. In the same way whenever I see some Negative divergence, never hesitate to book my profits or go short on Nifty with strict SL of 10 - 15 points.

In every trade we can see 30 to 40 points in Nifty if clearly observing the divergences.
The posted chart is of 7th August 2013. I have been giving this method of trading to many of my friends who are interested in trading of Nifty. Its been long time since I write in my blog with a new method. I would like to make use of this time to share this method which is very helpful and easy to those who felt that they could not afford automated systems and be a intra day trader.

Yesterdays Chart:

Hope you guys can make use of this method to grow. Thank you !