NIFTY_2min_FVG_Buy_Strategy

Summary
This strategy is designed for scalping Nifty on a 2-minute chart, focusing exclusively on long entries. The script's purpose is to identify and act on specific bullish reversal 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 bullish reversals by detecting signs of selling pressure being absorbed by buyers. This suggests that a downward move may be losing momentum.

Fair Value Gap (FVG) Confirmation: After a volume absorption signal, the strategy waits for a Fair Value Gap (FVG) to appear. A long entry signal is generated only after a candle closes above the FVG zone, serving as confirmation of bullish 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 25-point profit.

Stop Loss: The exit signal is triggered when a trade reaches a 30-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.