Guide
How does the Nifty 50 5mint Strategy strategy work ?
The Nifty 50 5mint Strategy is a customizable breakout trading strategy implemented on TradingView. At its core, it operates within a defined trading session, filtering trades by specific days and times as set by the user (e.g., Monday to Friday, 10:00 to 15:10).
- The strategy uses a lookback period and identifies the highest high and lowest low values within this period to determine potential breakout points. Users can adjust this lookback period, defaulting to 10 periods.
- Integration of Bollinger Bands (BB) and the option of including or excluding BB crossovers conditions helps in gauging volatility and breakout confirmation.
- Additional conditions such as Dema (Double Exponential Moving Average) and VWAP (Volume Weighted Average Price) crossovers can be activated or deactivated based on user preference.
- Buy conditions are triggered when the closing price surpasses the highest high of the lookback period, provided that the script identifies Bollinger Band crossovers, Dema-VWAP crossovers, and that these signals occur within the defined trading session.
- Sell conditions are signalled when the closing price is below the lookback period's lowest low, alongside satisfying the BB, Dema-VWAP, and session conditions.
- The strategy also offers a Trailing Stop Loss (TSL), with options for a fixed stop loss or a dynamic trailing stop based on a trail factor related to the lookback period. The type of stop loss applied can be determined by the user.
To aid visual understanding, the script is designed to change the background color on the chart to green for buy signals and red for sell signals once the strategy