Pushkar Raj Thakur: Business Coach
Learn about a trading strategy called Brahmastra or triple confirmation intraday strategy that can be used for swing trading or positional trades. The strategy uses three technical indicators, including Supertrend, VWAP, and MACD. The strategy offers a low stop loss and high profit potential, which can be backtested on any stock. Triple confirmation is necessary before trading using this strategy. The volume-weighted average price (VWAP) guides traders about the right entry and stop loss.
The Brahmastra Trading Strategy: Triple Confirmation Intraday Strategy
Introduction
Trading is an art, and trading in the stock market requires skill and knowledge. It is not just a game of luck; success in trading requires a consistent and effective strategy. Today, we are going to talk about the Brahmastra trading strategy, which is also known as the triple confirmation intraday strategy. This strategy is not only for intraday trading, but it can also be used for swing trading or positional trades. In this article, we will discuss this strategy and the three technical indicators that you need to apply to your chart.
Understanding the Technical Indicators
Before we dive into the Brahmastra trading strategy, it is important to understand the three technical indicators that we will be using. These indicators are the Supertrend, Volume Weighted Average Price (VWAP), and Moving Average Convergence Divergence (MACD).
The Supertrend is a trend following indicator that shows the current trend of the market. It consists of a green line and a red line in the chart. The green line indicates a bullish trend, and the red line indicates a bearish trend.
VWAP is a volume-weighted average price that helps traders to identify the right entry and stop loss. It guides traders on where the price is likely to move.
MACD is an oscillating indicator that shows the relationship between two moving averages. The blue line is the fast line, and the red line is the slow line. MACD helps traders to identify the direction of the trend.
The Brahmastra Trading Strategy
The Brahmastra trading strategy is a unique and effective strategy that is based on triple confirmation. To use this strategy, you need to apply the three technical indicators to your chart. Let us take an example of Bank Nifty futures chart to explain this strategy.
The first step is to look for a crossover between the blue line and red line in the MACD indicator. If the blue line crosses the red line from below, it is a signal to buy, and if it crosses from above, it is a signal to sell.
The second step is to confirm the signal with the Supertrend indicator. If the Supertrend is showing a bullish trend, it confirms the buying signal, and if it shows a bearish trend, it confirms the selling signal.
The third and final step is to check the VWAP indicator, which tells us the right entry and stop loss. If the price is close to the VWAP line, it is a good entry point, and if it goes away from it, it is a stop-loss point.
The Triple Confirmation Intraday Strategy
The triple confirmation intraday strategy is an effective strategy for intraday trading. It is based on triple confirmation, which ensures that traders make a profitable trade. Let us take an example to understand this strategy better.
Suppose the blue line crosses the red line in the MACD from below, indicating a buying signal. The Supertrend confirms the bullish trend, and the VWAP line indicates a good entry point.
Now, this is where the triple confirmation comes into play. If all three indicators align, it confirms the buying signal and ensures a profitable trade. This is the essence of the triple confirmation intraday strategy.
Backtesting the Brahmastra Trading Strategy
Backtesting is an essential part of any trading strategy. It helps traders to determine the effectiveness of their strategy and refine it further. The Brahmastra trading strategy is no exception. You can backtest this strategy on any stock, and it will work effectively.
Conclusion
Trading in the stock market requires an effective strategy, and the Brahmastra trading strategy is a reliable strategy. Its unique triple confirmation approach ensures that traders make profitable trades. The three technical indicators, Supertrend, VWAP, and MACD, form the backbone of this strategy. If you are planning to implement this strategy, it is advisable to backtest it first to ensure its effectiveness.
Remember, patience and discipline are key attributes for a successful trader. Stick to your strategy and manage your risk, and you will surely achieve success in the stock market.
