SENSEX Directional Option Signals with Trend and Session Filters

Summary

This intraday SENSEX strategy generates directional signals associated with buying calls or puts. It allows entries during two specified trading windows, checks that price is above or below a 200-period moving average, and requires RSI to cross directional thresholds, ADX to indicate trend strength, and current volume to exceed its 20-period average. A daily trade counter limits the number of entries. The script logs an at-the-money strike estimate and sets equal point distances for the profit target and stop.

The document gives rules and order parameters, not a measured evaluation of their results. Although its description presents the signals as option-oriented, the code submits long and short positions on the chart symbol; it does not model option premiums, contract Greeks, or option-specific execution. The position sizing and rupee comments also do not align consistently with the displayed unit and point settings, so the stated risk and payoff should not be treated as verified. No backtest evidence is included.

Key ideas

• Entries are limited to two intraday windows and a configurable daily trade cap.
• The long and short signals combine a 200-period moving average, RSI thresholds, ADX, and relative volume.
• The strategy defines equal point-based stop and target distances and estimates an at-the-money strike.
• The code trades the chart instrument and does not simulate option pricing or option-specific risks.
• The document gives no performance data, and its sizing and payoff annotations are not clearly consistent.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.