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Nifty-BankNifty Positional Trading Strategy Using Supertrend

Nifty and BankNifty future contracts are the most favorite future contract of the positional traders. In positional trading, one holds stocks for few days or weeks. I have developed this Nifty-BankNifty positional Trading Strategy Using Supertrend. In this strategy we will use Supertrend indicator along with MACD. MACD will help us to reduce the false signals generated by SuperTrend.  So lets check the strategy.

Settings for SuperTrend:

We will use default setting(7,3). If you want faster signal, you can change SuperTrend setting to 7,1.5 but it will also generate lot of false signals.

Settings for MACD:

We will use default setting for MACD i.e 12,26,9 and Timeframe for Chart is 30Min.

After the settings up the indicator, we will check when to take entry and when to exit.

Buy Signal:

When SuperTrend shows Buy signal and MACD is above the Zero line, take the long position in the contract.  Ignore the Sell signal when MACD is above/overlapping the Zero line and continue your long position untill Sell criteria is met.

Sell Signal:

When SuperTrend shows Sell signal and MACD is below the Zero line, take the Short position in the contract. Ignore the Buy signal when MACD is below/overlapping the Zero line and continue your Short position untill Buy criteria is met.

Guys you need to strictly follow the MACD position as I mentioned above to reduce the false signal by SuperTrend. Otherwise this strategy will be less effective.

I will show this strategy in below Nifty and BankNifty charts. You can also backtest this strategy before using it.

You can check Buy/Sell Signals in below charts to get better understanding of this Nifty- BankNifty Positional Trading Strategy.

BankNifty Chart:

BankNifty Positional Trading Strategy

Nifty Chart:

This is strategy works very well with me. Do backtest it and let me know the results of it.

By Aniket

Aniket is a successful internet entrepreneur having vast expertise in Digital Marketing and Equity Market. He loves to share his ideas and has no plan to stop it.

15 replies on “Nifty-BankNifty Positional Trading Strategy Using Supertrend”

Hi. Thanks for the simple explanation.

“When SuperTrend shows Buy signal and MACD is above the Zero line, take the long position in the contract”.

My question is: If Supertrend shows Buy signal and MACD is below the zero line at that point, but eventually goes above the zero line with the supertrend still showing the buy signal, Can I go LONG after that happens?

Say the supertrend gives a BUY signal and MACD is below zero at that point.
But after a while the MACD goes above zero, Can we then at that point, GO long?

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