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| Simplest Intraday Option Strategy |
Introduction
“Are you struggling with intraday options trading? This simple yet highly effective strategy based on candlestick patterns can help you achieve a 1:3 reward ratio consistently!”
This strategy is designed for intraday option buyers who want to trade with high-probability setups based on pure price action and candlestick psychology. It works best for Nifty and Bank Nifty options, offering a potential risk-reward ratio of 1:2, 1:3, or even 1:4 when executed correctly.
Unlike indicator-based strategies, this approach focuses on market psychology, institutional footprints, and smart money traps to help traders enter at the right time and maximize profits.
Time Frame to Follow
15-Minute Chart (Best for intraday trading)
How This Strategy Works?
1. Align Your Trade with the Daily Trend
- Check the daily chart first. If Nifty is in a bullish trend, look for a 100+ point fall on the 15-minute chart.
- If the daily trend is bearish, look for a 100+ point rally before spotting reversal signals.
- Avoid trading against the higher time frame trend.
2. Identify Strong Market Movement (100+ Points Trend)
- The market must move at least 100 points in one direction before you look for a reversal pattern.
- If the move is less than 100 points, the reversal candle may not be reliable.
- This movement can happen due to a breakout, gap-up, or gap-down opening.
3. Look for a Strong Reversal Candlestick (Alert Candle)
- After a 100+ point move, start watching for a Hammer, Inverted Hammer, Bullish Engulfing, Bearish Engulfing, or Doji.
- This candle is the alert candle—it signals that a reversal might happen.
- The longer the wick, the stronger the signal.
4. Entry Confirmation – Wait for High/Low Breakout
- For a Call Option (CE): Enter above the high of the reversal candle.
- For a Put Option (PE): Enter below the low of the reversal candle.
- Never enter immediately after the candle closes—wait for the high/low to break.
5. Stop-Loss Placement (Avoid Stop-Loss Hunting)
- For CE Entry: Stop-loss = Low of the reversal candle
- For PE Entry: Stop-loss = High of the reversal candle
- Do NOT place SL at the exact level—brokers and big players often trigger stop-loss hunting by hitting exact levels before reversing.
6. Target Calculation (Using Alert Candle Size)
- Measure the size of the reversal candle (alert candle).
- 1st Target: Double the candle’s size from the entry point (1:2 RR).
- 2nd Target: Triple the candle’s size (1:3 RR).
- Final Target: 1:4 RR (Trail SL once 1:2 is hit).
Trade Example & Chart
Check below charts for Example trade.
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| Nifty 14 feb 2025 Chart A classic Doji Reversal pattern formed after a 200-point drop, leading to a 1:3 Risk-Reward trade. |
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| Nifty 7 feb 2025 Chart. A classic Hammer pattern formed after a 100-point drop, leading to a 1:3 Risk-Reward trade. |
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| NIfty 12 feb 2025 Chart. A classic Doji pattern formed after a 100-point drop, leading to a 1:3 Risk-Reward trade. |
Why This Strategy Works?
Aligns with Market Trend: Avoids counter-trend trades, increasing accuracy.
Pure Price Action-Based: No indicators, just market psychology.
Avoids Fake Breakouts: Entry is only triggered after confirmation.
High RR Potential: Small SL, big profit potential.
Works 3-4 Times a Week: No need to trade every day—wait for quality setups.
Final Thoughts
This is a high-probability options buying strategy that requires patience and discipline. Instead of trading every move, focus on waiting for the perfect setup with a strong market movement and a confirmed reversal pattern.
Master this strategy, and you can consistently extract profits from the market!
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