NIFTY_2min_FVG_sell_Strategy

This strategy is designed for scalping Nifty on a 2-minute chart, focusing exclusively on short entries. The script's purpose is to identify and act on specific bearish patterns based on volume analysis and price action.

Concept & Core Logic
The strategy operates on a two-stage confirmation process:

Volume Absorption: The initial condition seeks to identify potential bearish movements by detecting signs of buying pressure being absorbed by sellers. This suggests that a upward move may be losing momentum.

Fair Value Gap (FVG) Confirmation: After a volume absorption signal, the strategy waits for a Bearish Fair Value Gap (FVG) to appear. A short entry signal is generated only after a candle closes below the FVG zone, serving as confirmation of bearish intent.

Risk Management
The strategy employs a fixed take profit and stop loss for each trade, based on the Nifty underlying price:

Take Profit: The exit signal is triggered when a trade reaches a 30-point profit.

Stop Loss: The exit signal is triggered when a trade reaches a 35-point loss.

Intended Use
This tool is intended for traders who:

Utilize mechanical, rule-based systems for intraday trading and scalping.

Are interested in studying a structured approach that combines volume analysis with price action inefficiencies like Fair Value Gaps.