Nifty Options – 3 Powerful Indicators Must for Trading!

keltner channel kst indicator nifty options trading stock market Apr 10, 2024

Options trading requires understanding of momentum and measure if there is a statistically significant breakout using Keltner Channel.

Which are the Powerful Indicators to use for Options buying?

Below chart shows application of 3 powerful indicators – Keltner Channel, Volume Profile and KST momentum indicator. Each of these have its own merits. When all gets in sync there is a strong buying opportunity.

Nifty 22500 Call Option 25th April 2024 expiry:

Nifty 22500 Call Option shows application of Keltner Channel, Volume Profile and KST on 15 minutes time frame.

Volume profile – This indicator helps to understand the area where major volume has taken place. We can see that 280 is the level where lot of activity has happened in this option price with value area high near 340 levels. The shaded green colour is where 70% of the volume has taken place. This is suggesting that for this call option 340 is immediate support and if the same is broken 22500 call options can move directly to 280 levels as there is no support in between.

Keltner channel – shows the possible area of breakout. Prices on 8th April showed a very strong breakout which was accompanied by accumulation near 280 as indicated by volume profile and The KST momentum indicator gave strong positive move from 0 line and also signal line on 15 minutes chart.

Currently we can see that prices are moving within the Keltner channel with support at 340 and resistance at 410 levels.

KST indicator - this indicator is a very powerful time indicator and it measures if the momentum is building up or slowing down. On 8th April breakout we saw the upside build-up in the momentum.  Currently the same indicator is now moving below the 0 line suggesting lacklustre movement and this is also in sync with Keltner channel.

In short, as soon as Nifty options prices give breakout from the given range of 410 – 340 and there is confirmation from Keltner channel we can then aim for targets as per Volume profile.

 In a nutshell, one can combine 3 powerful trading indicator to trade options directly.

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