Nifty_2MIN_ Rangereversal_Long _Strategy

Summary

This strategy is an intraday trend-following system designed for the Nifty index on a 2-minute timeframe. It focuses exclusively on long entries, seeking to identify high-probability recovery points within an established uptrend.

Concept & Core Logic

The strategy identifies entries based on a confluence of trend direction, price recovery levels, and specific candlestick patterns:

Trend Confirmation: The script utilizes the slope and positioning of the 20-period and 200-period Exponential Moving Averages (EMA). A long signal is only considered when the trend is determined to be positive, ensuring trades align with the broader market momentum.

Recovery Zone Filtering: To avoid buying at local peaks, the strategy filters for entries that occur when the market has retraced but is showing signs of recovery. Specifically, it looks for price to be within the 35% to 75% recovery range relative to the day's high.

Candlestick Trigger: The actual entry trigger is a "Bullish Reversal" sequence:

Two consecutive bearish candles (representing a minor pullback).

Followed immediately by a strong bullish candle (representing the resumption of strength).

Risk Management

The strategy uses fixed point-based exits to maintain a disciplined approach:

Take Profit: 30 points (underlying Nifty price).

Stop Loss: 35 points (underlying Nifty price).

Intended Use

This script is designed for traders interested in mechanical trend-following systems. It provides a structured way to observe how moving average slopes and specific price action sequences interact during intraday recoveries.

Disclaimer: This script is for educational and informational purposes only. It is not financial advice. All trading involves risk, and past performance is not indicative of future results. Please conduct your own research and backtesting before making any trading decisions.