Double Trap Intraday Technique

One of my friends uses a curious technique to catch the following nifty movements

1) Large opening gap (against the trend - likely to be filled)

2) Unsustainable Intraday large and sudden up or down spike (Likely to be reversed considerably)

3) Nifty bluff as per outer circle theory

4) Any punter knee-jerk shock-move (likely to be reversed)

The beauty of the technique is that this is perfect for

1) Those who do not want to miss any surprise move

2) Who want minimum tension and always want to trade very very safely

3) and yet want to make big money!!!

The technique:

Buy current month's Futures and Sell next month's Futures (equal no. of lots)

This will ensure that no sudden big move is missed on either side.

Square-off the profitable side at the extreme as per the conditions mentioned below and let the
loss-side reduce (likely to zero).

As an alternative, you can even short one more lot at the time of squaring the profitable one.

Conditions:-

The profit making side of the trade should be squared-off only at the extreme when the baseline (in case of upmove), and topline (in case of downmove) satisfies the following two conditions:-

a) it becomes horizontal and bounces up

b) and then crosses that horintal line when extended to the next foot

and strict stop-loss should be followed after the profit-side is squared-off.