When you open a business news channel at 3:15 p.m. you might have seen anchor asking analysts about STBT or BTST. STBT means sell today buy tomorrow whereas BTST means buy today sell tomorrow. Momentum refers to gains of a stock in 3 consecutive days. In this strategy we observe that the candle’s body of second day needs to be greater than candle’s body of first day and third day’s candlestick body needs to be greater than day two.
If the condition is met then the rules are :
- Trade those stocks which are in futures and options.
- Buy on the third day at 3:25 p.m.
- Sell on the fourth day at pre open.
- No stop loss or target.