This is my scenario.
I bought nifty index option at 8000. after some time it becomes 8020(after buying it is maximum index). after that index decreased by 5 points, so nifty is 8015, here i have to sell it.
Now 8015 (after buying it is lowest index). If it increased +10 points, then i have to buy it.
If it is continuously increasing, don’t sell it, when it is decreased by 5 points sell it. If it is continuously decreasing don’t buy it. once it is increased +10 points from the lowest, then it has to buy.