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Hit and Run: - Number7

Hit and Run is an intraday and swing trading strategy that looks for price breakouts or rejections near key pivot point levels on high volume. The trader watches for the price to cross or fail to cross double or multiple pivot lines, then enters a position in the direction of the momentum if volume is also higher than previous bars. Positions are held until the price reaches twice the stop loss distance or the next pivot point, with stops placed below recent lows for rejections and above the breakout bar's low for breakouts. Examples are shown applying this to BankNifty, Nifty, and HDFC Bank futures on 10-minute charts.

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Siva Prakash
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562 views31 pages

Hit and Run: - Number7

Hit and Run is an intraday and swing trading strategy that looks for price breakouts or rejections near key pivot point levels on high volume. The trader watches for the price to cross or fail to cross double or multiple pivot lines, then enters a position in the direction of the momentum if volume is also higher than previous bars. Positions are held until the price reaches twice the stop loss distance or the next pivot point, with stops placed below recent lows for rejections and above the breakout bar's low for breakouts. Examples are shown applying this to BankNifty, Nifty, and HDFC Bank futures on 10-minute charts.

Uploaded by

Siva Prakash
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Hit And Run

-NUMBER7
Introduction
 Price action is the key to day trading. As a trader we should focus on
two things during intraday trading.
 1) BreakOut
 2) FakeOut ( Rejections)
 Breakout and FakeOut occurs at a key levels, Key levels could be weekly
supply/demand zones, Fibonacci levels, Monthly high or lows or Pivot
Points.
 Intraday/Swing highs/lows happens with a climax volumes. Climax
volumes are those, where major retail stops gets triggered by the smart
money.
 In the next slide will explain the concept “Hit and Run” . Price rejects or
gives acceptance near a particular key level and gives a confidence to
trade in the direction of the price action momentum. It is applicable to
intraday and swing trading.
Hit And Run

 Name itself suggests it is Hit and Run. To trade this setup you need, Key
levels and price action along with volumes.
 Intraday time frame, 10mins chart.
 Key levels, you need to use two Pivot points, Standard Pivots and
Fibonacci Pivots. If you are a Zerodha kite user, you have both in the
study tool.
 Don’t trade after 3pm IST based on this concept.
 Key levels generated based on the pivot points.
 Next you need volumes chart, and 10mins candle stick chart.
 In the next slide, will share the formula for the pivot points.
How To trade?
 You need to mark out the double Or Multiple pivot lines on the charts. Wait
for the price to cross (BreakOut) or fail (FakeOut). Then take the trade
based on the direction of the price momentum. If price rejects then take the
opposite side, if price breaks Out, then take the position in the direction of
the price.
 Make sure you will check volumes near those levels, then only consider the
trade, else ignore. Volumes, should be higher than the previous 3-4 bar’s.
For example: Current bar’s volume is 30k, then previous bars should have
less than 20k atleast.
 During rejection wait for the price to trade above the pivot line, when it
close above the pivot then take the trade, and keep the stop below the
recent swing low + filter ( add 1-2 Rs). You can wait for two bar’s close.
 During BreakOut wait, check the volumes of the bar, and the close should
be above the pivots. Then take the trade, and stop will be the low of the
breakout bar. You can wait for one more bar to close above the pivots.
 Target will be twice the stop from your entry or nearest single pivot.
BankNifty Future
10mins chart
Examples:
Nifty Future
10mins chart
Stock Futures Examples:
HDFC Bank Future
10mins chart
Examples:

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