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Narrow CPR Trading Strategy Guide

The document outlines trading strategies based on pivot lines, CPR (Central Pivot Range), and historical data analysis for options trading. It emphasizes the importance of market trends, volatility, and specific entry and exit points for trades, particularly on expiry days and throughout the week. Additionally, it includes guidelines for calculating VWAP and SMA for open interest, as well as specific rules for trade entries based on price movements and patterns.

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sandeep sasidharan
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46 views1 page

Narrow CPR Trading Strategy Guide

The document outlines trading strategies based on pivot lines, CPR (Central Pivot Range), and historical data analysis for options trading. It emphasizes the importance of market trends, volatility, and specific entry and exit points for trades, particularly on expiry days and throughout the week. Additionally, it includes guidelines for calculating VWAP and SMA for open interest, as well as specific rules for trade entries based on price movements and patterns.

Uploaded by

sandeep sasidharan
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

1.

Above pivot line buy and below sell


2. Narrow cpr trending, wide cpr rangebound
3. If it is not trending(ie, range bound)(less volatility) on narrow cpr day then high change is next day
may be trending
4. Intraday 5mins,positional 1hour
5. If it crosses R1-PH level,enter long and target R2,scalping. Enter at break of high of a swing(day’s
high…for next target aim (R3 and R2)-middle
6. If the distance between R1 and PH is less then trending else range bound

….……………………………………………………………………………………………………………………………………………………..
1. Fetch the hist data for price (normal way)
2. For options, there are 2 situations-(a)only on expiry day and (b)all days

For (a) only expiry days,


1. Find the high and low of each day.
2. Get the hist data for all the strike prices in that range for that day. Calculate vwap and apply SMA(9)
or SMA(8) on open interest.
3. To maintain the continuity of SMA from the previous day we can consider the open interest data of
the previous day( this only if needed or if possible easily)(first do without previous day)(need to check
if it’s a good idea)
4. To fetch the previous day data, we need date of the previous day.(use date from price_data df for
previous day data)

For (b) all days,


1. Find high and low of that week,I.e, from start of new expiry to end of expiry(eg: Friday to Thursday)
2. For this we can use something like slicing the data based on expiry dates(same expiry dates in one
list)
3. After getting high and low for that week, get the hist data for all the strike prices in that range.
Calculate vwap and apply SMA(9) or SMA(8) on open interest.
4. To maintain the continuity of SMA from the previous day we can consider the open interest data of
the previous day, i.e, one day before the start of the week( this only if needed or if possible easily)
(first do without previous day)(need to check if it’s a good idea)
5. To fetch the previous day data, we need date of the previous day.

By observation enter as soon as vwap crosses and when OI is about to fall.


Rate of change of (OI or any other)
Price should cross vwap before OI fall
Variable RR
Round numbers(target may be slightly below them, same way for stoploss)
Nifty may be 100s strike and BNFTY 500s
Try incresing rr on expiry and low rr on other days
One observation is opt price has to move up crossing 20MA first and then vwap,I.e, vwap should be
below 20ma (

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
Godzilla rules:
1. Enter only if the next candle breaks the shooting star. Not on 2nd or 3rd
2.

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