Trading With The Flow!!!

Since our markets are not opened for the all 24 hours and gaps are pretty common in our stratergy, the first 5 minute bar gains a lot of significance.We take into account the first bar which involves OPEN HIGH LOW CLOSE..out of these the OPEN HIGH LOW can be a lot of those what we call "flick'trades.That can amount to 1. A bar which "practically" which has manupulative figures of open high and low 2. it can allow happen that different softwares may or may not capture these flick trades…
In order to resolve that i thought if we could use something more tradeable figure which could be say " average traded price" of the first five minute bar….

any thoughts ???

Keep flowing

Saurabh,

Opening and closing are manipulated only in Nifty (Index) spot figures as it is not traded directly and hence does not have any actual traded price. Nifty futures or futures closing price is calculated as weighted average of last 30 minutes but here also we do not see the closing price but only the last traded price as per the chart of the previous day. Closing price has relevance for MTM settlement daily in futures. Similarly next day opening on Nifty Spot can be taken with a pinch of salt but Nifty futures price reflected on the chart is actual traded price right from the start except probably some freak trade which occurred at the opening second with very low volume which may not be recorded and normally does not have much significance in our trading as we tend to see prices from the chart which record prices which were traded with some volume.

Bee

thanks a lot bee sir… for ur input… :)

Keep flowing

Welcome Saurabh. Please do not call me sir. There is only one "Sir" in this forum - Saint Sir.
Bee