Zeta Diamond Burst

28 Mar 2021

What is Scalping?

Scalping is a trading strategy aimed at profiting from quick momentum in a volatile index or stock.


Traders who use such strategies place anywhere from 10 to a few hundred trades in a single day.

The idea behind such type of trading is that small moves in an index or stock price are much easier to capture than the larger moves.

Traders who use such strategies are known as scalpers. When you take many small profits a number of times, say 10 points scalped 20 times per day, they can easily add up to large gains.

An Option Buyer's Biggest Enemy is Time Decay and when you scalp, you do not allow the time decay to eat your Option Premium as your Entry and Exit is often quick enough.


What is Zeta Diamond Burst?


Zeta Diamond Burst is a momentum based indicator which tries to detect momentum based upon price action and volume.

When it thinks a move has the potential to turn into a good scalping move, it generated its Buy/Sell Signals.

If the momentum continues, Blue Diamonds (for up move ) and Purple Diamonds (for down move) keeps appearing on the chart.


How to Take Buy/Sell Entry with Zeta Diamond Burst?


Whenever you see a Buy Signal, take Entry if a follow up candle also starts going in the same direction.

Your STOP LOSS could be just 0.5% below your Entry Price, hence, no big loss even if things go wrong.

Keep moving your STOP LOSS up as the price moves in your favour and when market turns around or you see a SELL signal, it is time to book your BUY position profit and take Entry on SELL Side now and so on.


For how long you should stay in the trade?


Scalping trades for Bank Nifty should last only 1 to 5 minutes if move is not going in your favor, this will save your capital from Theta Decay erosion.

If more and more diamonds are appearing in the same direction, then hold your position for more than 5 minutes, till opposite signal comes.



This cycle continues as and when new signals emerge.