Next step go to : Daily volatility : click on archives

Next step go to column NIFTY
Next step go to column Current day volatility today which is column M in the Excel sheet
Now the close price is 7975.50 as on 17.09.2014
Volatility is 0.0071
Calculate now as below
7975.50 * 0.0071 = 56.62 ( 56.62 IS THE MOVEMENT FOR THE DAY )
56.62 * Fibonacci ratio of 0.381 = 56.62 * 0.381 = 21.57 is the Derived number
Now let us calculate the Buy price and Targets as below

Our Buy price is Closing price 7975.50 + 21.57 = 7997.80
So our buy should be only above 7997.80 level
What is the stop area : The stop area is 2 to 3 points just below the closing price 7975.30 -3 =7972 is the stop
So Buy Nifty cash above 7997.80 with a stop at 7972 ( strict )
Targets are as follows

Movement price we arrived multiplied by the following Fibonacci ratios ( 56.62 is the movement price arrived )
56.62 * 0.681 = 38.55 + 7975.50 ( close price ) = 8014
56.62 * 0.781 = 44.22 + 7975.50 = 8019
56.62 * 1.000 = 56.62 + 7975.50 = 8032
56.62 * 1.381 = 78.19 + 7975.50 = 8053
56.62 * 1.681 = 95.17 + 7975.50 = 8070
So now we buy Nifty spot above 7997.80 with a stop at 7972 for targets of 8014 - 8019 - 8032 - 8053 - 8070

Reverse the calculations for sell side or Short
We sell Nifty only below 7975.50 - 21.57 = 7953 with a stop 3 points above close 7978 .50
Targets are 7936 - 7931 - 7918 - 7897 – 7880
Finally unless you are too Bullish or Bearish you can calculate the nos with Fibo * 2

Buy Nifty spot above 7997.80 with a stop at 7972 for targets of 8014 - 8019 - 8032 - 8053 – 8070

Sell Nifty spot only below 7953 with a stop at 7978 .50 for targets of 7936 - 7931 - 7918 - 7897 – 7880

Coming to the set up : The price should trade for a minute are two to take up the trade
The zones in between Buy above and sell below are no trade zone before a direction is seen.

Book profits in phased manner as soon as the price hits its first 2 or 3 targets book 50 to 60 % of traded qty
For Balance 40 % Trail stops strictly

Paper trade before you are convinced and only than start to follow

How to calculate target and stop loss as per Volatility? Reviewed by Money99 on 18:52:00 Rating: 5