Wednesday 7 November 2018
Saturday 3 November 2018
Price Action Strategy Using Moving Average & Candlestick
November 03, 2018
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17 comments
The price action strategy trading is most simple yet powerful stock market strategy you’ll ever find.
Timeframes : 15 Minute
Pairs : Indian Stock (Future Script)
Indicators: Moving Average(SMA,20)
Chart: Candlestick, Bar chart
For Buying
candle opening should be below of Moving average(20,SMA)
and close price should be above moving average(20,SMA) line
Trade setup
Entry Point: once candle high break then go for Buy
Stoploss: Candle Low keep stoploss
Target: 1% of Scrip or keep Candle High low difference or
best way keep trailing stoploss once 1% target achieved
Example mentioned below
For Selling
First identify Conditions for Selling
candle should be Open=High
candle opening should be above of Moving average(20,SMA)
and close price should be below moving average(20,SMA) line
Trade setup
Entry Point: once candle Low break then go for Sell
Stoploss: Candle High keep stoploss
Target: 1% of Scrip or keep Candle High low difference or
best way keep trailing stoploss once 1% target achieved
Saturday 27 October 2018
Nifty Formed Inverted Cup & Handle Pattern
October 27, 2018
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1 comment
As its name implies, there are two parts to the pattern: the cup and the handle. The cup forms after an advance and looks like a bowl or rounding bottom or Top or . As the cup is completed, a trading range develops on the right-hand side and the handle is formed. A subsequent breakout from the handle's trading range signals a continuation of the prior advance.
- Trend: To qualify as a continuation pattern, a prior trend should exist. Ideally, the trend should be a few months old and not too mature. The more mature the trend, the less chance that the pattern marks a continuation or the less upside potential.
- Cup: The cup should be “U” shaped and resemble a bowl or rounding bottom. A “V” shaped bottom would be considered too sharp of a reversal to qualify. The softer “U” shape ensures that the cup is a consolidation pattern with valid support at the bottom of the “U”. The perfect pattern would have equal highs on both sides of the cup, but this is not always the case.
- Cup Depth: Ideally, the depth of the cup should retrace 1/3 or less of the previous advance. However, with volatile markets and over-reactions, the retracement could range from 1/3 to 1/2. In extreme situations, the maximum retracement could be 2/3, which conforms with Dow Theory.
- Handle: After the high forms on the right side of the cup, there is a pullback that forms the handle. Sometimes this handle resembles a flag or pennant that slopes downward, other times it is just a short pullback. The handle represents the final consolidation/pullback before the big breakout and can retrace up to 1/3 of the cup's advance, but usually not more. The smaller the retracement, the more bullish the formation and significant the breakout. Sometimes it is prudent to wait for a break above the resistance line established by the highs of the cup.
- Duration: The cup can extend from 1 to 6 months, sometimes longer on weekly charts. The handle can be from 1 week to many weeks and ideally completes within 1-4 weeks.
- Volume: There should be a substantial increase in volume on the breakout above the handle's resistance.
- Target: The projected advance after breakout can be estimated by measuring the distance from the right peak of the cup to the bottom of the cup.
Saturday 29 September 2018
1-2-3 Strategy – Price Action Strategy
September 29, 2018
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2 comments
The forex 1-2-3 price action pattern trading is most simple yet powerful forex strategy you’ll ever find.
Question: When to use Forex 1-2-3 Price Action Pattern?
Answer: It works for any time.
The 1-2-3 pattern work best when the patterns follow the direction of trend (it also works against the trend). The pattern is also easy to identify on the chart and you can find it every day.
We’re going to use MACD indicator as a combination to filter bad trades.
The basics of MACD:
When the histogram flips up, then look for buy only.
When the histogram flips down, then look for sell only.
The Forex 1-2-3 Strategy Method:
The 1-2-3 pattern in an uptrend
1.Existing trend
2.Higher high
3.Higher Low
***Break out of 2 (green line), results in strong continuation of price to up direction.
The 1-2-3 pattern on downtrend
1.Existing trend
2.Lower Low
3.Lower High
***Break out of 2(red line), results in strong continuation of price to down direction.
It’s not that complicated to learn this pattern. It takes a while to recognize and remember the pattern.
The setup divided into two parts:
Buy Setup
Sell Setup
The buy setup:
Make sure the MACD histogram is flipping up
Apply the 1-2-3 pattern.
Set a pending order just 1-3 pip above the 2
Stop loss on 3
More Examples for buy setup:
The Sell Setup:
Make sure the MACD histogram is flipping down.
Apply the 1-2-3 pattern.
Set a pending order just 1-3 pip below/on the 2
- Stop loss on 3
- More Examples
Profit Target discussion:
Count the pip range of A. Most of time, the Length of A=B. If the A=60 pip. B is also 60 pip.
Day Trading Strategy Using Supertrend
September 29, 2018
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26 comments
This SuperTrend day trading strategy is a simple trading strategy & its easy to spot the signal of SuperTrend green or red and also has simple trading rules which stock traders can find easy to use
Timeframes : 5,10,15 Minute
if two continuous timeframe Buy supertrend indication appear like
Script 1% target
Day candle low
Script 1% target
Timeframes : 5,10,15 Minute
Pairs : Indian Stock (Future Script)
Buy Rules
#1: Entry Point
if two continuous timeframe Buy supertrend indication appear like
5 minute & 10 Minute
5 minute & 15 minute
10 minute & 15 minute
check if open = Low
5 minute & 15 minute
10 minute & 15 minute
check if open = Low
#2: Target Pointt
Script 1% target
#3: Stoploss
Day candle low
Muthootfin_19_Sept_2018
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Sell Rules
#1: Entry Point
if two continuous timeframe Sell supertrend indication appear like
5 minute & 10 Minute
5 minute & 15 minute
10 minute & 15 minute
check if open = High
5 minute & 10 Minute
5 minute & 15 minute
10 minute & 15 minute
check if open = High
#2: Target Pointt
Script 1% target
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Risk Disclaimer
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