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the Open -
candle Close
Open 564
Close 583
19
Range of
the High -
candle Low
High 588.95
Low 561.6
27.35
50% 13.675
---- > To draw a Demand zone or a Supply zone you require 3 things -- >
Plotting Demand Zone -- > Highest body of the base & Lowest wick of the Base
a) Rally-Base-Rally
b) Drop-Base-Rally
a) Drop-Base-Drop
b) Rally-Base-Drop
a) Drop-Base-Drop
Leg In - Red
Base - Red/Green
Leg Out - Red
b) Rally-Base-Drop
Leg In - Green
Base - Red/Green
Leg Out - Red
Drawing Zones --
Exception Rules --
Drop-Base-Drop Pattern - If leg out candle wick is higher than basing candle wicks shift your
Rally -Base-Rally Pattern - If Leg out candle wick is lower than basing candle wick Shift the
Rally-Base-Drop pattern - If Leg in Candle wick is higher than basing candle wick shift dista
Drop-Base-Rally Pattern - If Leg in candle wick is lower than basing candle wick shift distal
ck of the Base
candle wicks shift your distal line to Leg out candle wick
ng candle wick Shift the distal line to leg out candle wick
1) Different Trading styles - Hourly Inc,Daily inc,weekly inc & Monthly inc.
4) Identifying Demand & Supply levels ( Concept of Boring & Exciting candle)
6) Exception Rules
7) Trends
8) Entry Types
9 ) Odd Enhancers
Odd Enhancers -
---------------------
If price leaves the level with 2 exciting candles --- > 2 points
If we have 7 or more - 0
3) How far did the price move before coming back to the zone?
If prices have travelled 3:1 ----> 2 Points
The rule is --- > For a zone to be called as a good zone you should have a minimum score of 6
In real world of options it is Option SELLERS & not "BUYERS" that make money consist
1) Time Value
2) Intrinsic Value
Note ; For your call option to make money,it is just not sufficient for markets to r
How will you decide whether to Be a buyer or a Seller of Options --- >
a) Historical volatility - Gives you an idea of how prices have moved in the past
b) Implied Volatility - Gives you an idea of how the prices are expected to move in
Trading Rule : -
a) If IV > HV the option prices are said to be over valued --- >It makes sense NOT t
b) If IV < HV the option prices are said to be undervalued ---- > It makes sense NOT
LIQUIED UPTION
AXISBANK
BANKNIFTY
BHARTIAIRTEL
BHEL
CAIRN
DLF
HCLTECH
HDFC
HDIL
HINDALCO
HINDUSTANUNILVR
ICICIBANK
IDFC
IFCI
INFY
ITC
JINDALSTEL
JPASSOCIAT
LT
MCDOWELL-N
NIFTY
ONGC
PFC
PNB
RANBAXY
RCOM
RELCAPITAL
RELIANCE
RELINFRA
SBIN
TATAMOTORS
TATASTEEL
TCS
hat make money consistently.
cient for markets to rally.But markets should rally with a fast pace
If there is an opposing level of supply or demand exit at that level and book
profits
If there is no opposing level of supply or demand on the same time frame then let
profits run and either book partial profits at 2:1 or then book final profits at a
higher time frame level
If there is a market which is making all times highs or lows after entry divide this
trade into 3 bracket orders
1 st Bracket order Exit at 2:1
Bring the 2 nd and the 3 rd bracket order at 1:1
2 nd Bracket order Exit at 3:1
Bring your 3 rd Bracket order at 2:1
3 rd Bracket order Exit at 4:1 or greater
Wait till get your 4:1 greater or get ready to get stopped at 2:1 for a profit….
Define a risk limit per trade = Rs 1000 per trade
3 Bracket orders You are only going to loose 1000 rupees
One order for 2:1 Rs333
One order for 3:1 = Rs333
One order for 4:1 or more Rs333
Life of an hourly income trader
1. Need to go through all the 24 CTP sessions and watch the recordings at
least once or 2 times
2. Submit your personal trading plan to your mentor
3. I will attend all the live trading sessions during the day
9:00 am - 10:00 am – Focus more on Hourly Income and Daily Income Trades
g Picture
Trend Zones
HIT 60 mins 15 mins 5 mins
DIT Long:- we can look for a stock which is above 10Ema daily and approaching daily de
DIT Short:- we can look for a stock which is below 10Ema on daily and approaching dai
WIT
Long: -
we
can
look
for a
stock
which
is
above
20/21s
ma on
daily
and
appro
aching
daily
dema
nd
with
locatio
n
analysi
s.
WIT Short: - we can look for a stock which is below 20/21sma on daily and approaching
OOL):-
oving averages.
When you combine them with candlesticks they would be even more powerful.
Pivots are based on mathematical calculations using previous days High,Low & Close.
The pivots trading strategy equally effective in Equities.Commodities & currency mark
The reason they wors so effectively, is because a lot of traders have been using them
them mathematical points of reversals.
Many times you will observe these pivot levels coincide with a high probability Deman
Prices above the pivot -- > Bias Bullish -- Tilll the R1 or the nearest supply zone
buy for HIT & DIT.
Prices are beloe the pivot -- > Bias would be bearish -- > Till S1 or S2 levels.
PP -- > Prices open above the pivot they would normally retest the pivot once before
PP --- > Prices open below the pivot they would normally retest the pivot before goi
Trading Strategies Using Pivot points :
There are different ways of using pivot points.You have to use them based on the broa
3) They can be used to anticipate the points of reversals.( OTA core strategy)
They can open above the Pivot ---- > Stay above the pivot for app 15-20 Mins with bul
They can open below the Pivot ---- > Stay below the pivot for app 15-20 mins the bias
powerful.
l S1 or S2 levels.
core strategy)
pp 15-20 Mins with bullish candles the bias for the markets is positive
Type of trading
style
Monthly Income
Trader
1. Plot the Dz’s and Sz’s on the Nifty, BankNifty and USDINR Daily Time
Frame
2. Use the Ignite Scanner or the Relative Strength tool within Trade Tiger to
identify Strong Vs Weak Sector 12 month period
3. Find the strong stock within a strong sector and find a weak stock within
the weak sector with respect to the Nifty….
4. Create a market watch of Strong Vs Weak Stocks based on relative
strength and apply the core strategy rules to the above stocks….
Life of a monthly income Trader
1. Follow the pre-market and be aware of all that is
happening on the news front and the global markets front
2. Use the Ignite scanner to find strong Vs weak stocks with
respect to the Nifty
3. Create a market watch of strong stocks and weak stocks
4. Compare the strong stocks with the Nifty
5. Compare the weak stocks with the Nifty
6. Ideally for a monthly income trader you want the stock
and the Nifty index to be at a level(Demand Zone/Supply
Zone)
7. If the stock is in a Demand Zone but Nifty is not in a
DZLook at the sector the stock belongs to Long
Trade(Futures or take delivery of the stock)
8. If the stock is in a Supply Zone but Nifty is not in a SZ
Look at the sector the stock belongs to Short
Sell(Futures)
9. Multiple time frame analysis
Trend is likely to bend its end
Buyer or a seller of that stock or index or sector?
Style of
Trading
Curve(Higher
Time Frame)
Trend(Intermediate
time frame)
Zone(Lower
Time Frame)
Monthly
Income
Freshness Price has the left the level but has never ever
come back to the level yet
2. Profit Margin
Make sure that when you a plan any trade your opposing level
should be at least 3:1 or greater
We know that for a zone to be created we require 3 elements
1. Leg-Out
2. Base
3. Leg-In
Curve Monthly
3 months for a new level to be created
Trend Weekly
Trend after 3 weeks
Zones Daily
At least 3 days
Agenda :
1. Creating an action plan for a weekly income trader
2. Cover the broader market analysis (Nifty, Banknifty, USDINR and Sensex) Price Action(How to
read price action)
3. Potential weekly income trade setups(Stocks, Commodities)
4. Aggressive Vs Conservative Trader
Action plan for weekly income trader:
1. Create a trading plan and follow that trading plan deligently.
(Stick with the profile that your mentor has created for you for at least 3-6 months)
2. Try to keep your position size small when you are at the very beginning of your trading journey
For example if you are doing 1000 shares per trade do only 500 shares and repeat this process for
months and tabulate all your results
3. Depending on your results being good you may increase your position size to 750 in the 7 th
month. If the results are bad then reduce your position size to 250 shares and trade for the next
2-3 months.
4. Pre-Market Routine
1. www.marketwatch.com
2. www.sgxnifty.org
3. www.sharekhan.com
4. Use the Ignite Scanner and scan for Strong Vs Weak Stocks with respect to the Nifty
a) Ignite Weekly Income Bullish_V
b) Ignite Weekly Income Bearish_V
Trader
-6 months)
g of your trading journey
nd repeat this process for 3-6
ct to the Nifty
h on the curve?
Low on the curve?
to move up or either move
res to do so.
eward :risk for the trade
s in the opposite
ificant slightly larger