An Essential Trading skill that Every trader Needs 

Each trading day presents a different kind of structure. And as a trader, we should have a well-tested plan and set-ups to deal with those structures.

And today’s market structure was rangebound, which is one of the most challenging structures to trade. But in such a situation also, our Rangebound trends method (RBT METHOD) picked the exact turn for the day. 

So, let’s have a look at today’s Bank Nifty Intraday chart to understand how we traded in today’s difficult market. 

a different kind of structure

The Bank Nifty opened with a gap and started trading in a range. And that was the perfect opportunity to use that range structure to find the breakout trade for the day.

And the same happened. That sideways structure (which happened) after the market opening (see green oval) gave a solid signal for the sell trade around 12:00 pm. And from the sell point index fell nearly 200 points. 

In fact, after the first break from the selling point, there was an up move, but still, we held the position with confidence. The bank nifty moved up after the initial break down, but it didn’t hit the trailing stop-loss in that upside. 

And that’s how we used that sell signal for the day. 

Click on the image to enlarge it for better viewing
Click on the image to enlarge it for better viewing
Click on the image to enlarge it for better viewing

So, that’s one of the ways to trade the markets where there is no clear trend. That’s a skill that every trader needs because markets trade in a range most of the time.

Here is one more post on the Rangebound trends to help you understand more about its process: Profit Opportunities of Today’s Rangebound Market.

About the author

Divesh Jotwani is a full-time trader in the Indian stock market. He has spent over 20+ years researching and discovering WD Gann's methods and applying them day in and out markets.