Loading documents preview...
Chart Analysis IntradayMoney.in
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips...!
•Traders have a tendency to immediate think that using micro timeframes is the key ingredient to scalp trading success •Traders also focus on sophisticated tools, tactics, and techniques for trying to “beat” the markets
IntradayMoney.in
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips...!
IntradayMoney.in
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips...!
IntradayMoney.in
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips...!
IntradayMoney.in
www.intradaymoney.in
2 Price Action
www.dailyniftytips.in only sure shot tips...! 2
2
3
2
1
2 2 2
ENTRY
Major Up Trend •Higher Highs •Higher Lows
Bullish moves on lower time frames
IntradayMoney.in Higher highs and higher lows provide evidence of bullish price action/uptrend
www.intradaymoney.in
Higher www.dailyniftytips.in Timeframe only sure shot tips...!
Price Action
Price action from prior day close Gap Up
Flat Open
Gap Down
How much?
IntradayMoney.in Phase 2 •Up trend •Higher Highs & Higher Lows
www.intradaymoney.in Higher Timeframe
Price action from prior day close
www.dailyniftytips.in Gap Up only sure shot tips...! How much of a gap?
Gap 2. Bullish Rally Flat Open
IntradayMoney.in
Prior Day Close
Gap Down
Phase 2
www.intradaymoney.in Higher Timeframe
Price action from prior day close
www.dailyniftytips.in Gap Up only sure shot tips...! Prior Day Close
2. Bullish Rally
Flat Open
IntradayMoney.in
Gap
How much of a gap?
Gap Down
Phase 2
www.intradaymoney.in
Use the Market Cycle to identify whether price action is trending or non-trending
Use trending criteria and Fibonacci retracements to gauge
www.dailyniftytips.in Higher highs and higher lows, higher openings implies uptrend only sure shot tips...!
Lower highs and lower lows, lower openings implies downtrend
Chart formations & patterns with setups and confirmation of price testing extremes of patterns
Identify beginning of trending price action
Prior price action contained in upper and lower boundary, or
Overlapping price action
Anticipate end of trending price action
Trending criteria is NO longer valid and satisfied
IntradayMoney.in
Use very detailed chart analysis and Fibonacci retracement analysis to gauge quality and speed of trend, respectively
Look for prior pivot highs/lows, flag patterns, broadening patterns and/or triangles for confirmation
www.intradaymoney.in Price Action
www.dailyniftytips.in only sure shot tips...!
Ideal trading situation Higher Opening Ranges
ENTRY
IntradayMoney.in LONG Entry •Up trend •Higher Highs & Higher Lows
www.intradaymoney.in
Pre Morning www.dailyniftytips.in Market Session only sure shot tips...! Session
Mid-day Session
Late day Session
Failed Patterns
Momentum
Gaps News Events
•Fills
Rallies
After Hours News Events
Opening Range Overnight Futures
Reversal Times
IntradayMoney.in
Reversal Times
Reversal Times
Analysis
Volume Declines
Volume Returns
Volume Declines
News Events Analysis
Volume Increases
www.intradaymoney.in
Strong Buy After W Patterns
Focus only on long trades during uptrend
Only consider at most 3 trade setups in up trends
Why? So you can focus on trading with the direction and 1st trade is W pattern and next two trades
www.dailyniftytips.in Look flag patterns, only surefor shot tips...! broadening patterns or triangle patterns
are likely to follow from natural pull backs (i.e., 3 or 5 Elliott Wave)
Strong Short-Sell After M Patterns
Focus only on long trades during down trend
Look for flag patterns, broadening patterns or triangle patterns
Only consider at most 3 trade setups in down trends
Why? So you can focus on trading with the direction and 1st trade is M pattern and next two trades
IntradayMoney.in
are likely to follow from natural rallies backs (i.e., 3 or 5 Elliott Wave)
www.intradaymoney.in
Strong Buy After W Patterns
Identify previous Phase 4 downtrends
www.dailyniftytips.in Identify sideways price action (Phase 1) only sure shot tips...!
Wait for confirmation that support has held and prices are moving in an uptrend with higher highs and higher lows
After price action breaks above the neckline of the W patterns, buy 1.5 x normal position size
If risk is acceptable, place stop under pivot lows or underneath Phase 1 lows
Strong Short-Sell After M Patterns
Identify previous Phase 2 uptrend
Identify sideways price action (Phase 3)
Wait for confirmation that resistance has held and prices are moving in a downtrend with lower
IntradayMoney.in
highs and lower lows
After price action breaks below the neckline of the M patterns, Short 1.5 x normal position size
If risk is acceptable, place stop above pivot highs or above Phase 3 highs
www.intradaymoney.in
Quality Trends
Most opening prices will be in the area of
www.dailyniftytips.in the prior bar’s close (NOT a lot of only sure shot tips...!
Inferior Trends
area of the prior bar’s close (lots of
overlapping bars).
overlapping bars).
New bar moves in the same direction of
New bar’s open and close are near the
bar’s extremes.
All of the above create certainty – few Gaps, Tails, Engulfing, Piercing , or Outside bars.
Often, pullbacks reverse in the area of minor Demand or minor Supply.
Close may or may not move in the
direction of the prior bar’s direction.
the prior bar’s direction.
Most opening prices will not be in the
New bar’s open and close may not be
near the bar’s extremes.
IntradayMoney.in many Gaps, Tails, Engulfing, Piercing , or
All of the above create uncertainty – Outside bars.
Often, pullbacks break through areas of minor Demand or minor Supply.
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips...!
Focus on Speed of uptrend Long Setups
1. Sideways Bottoming Action
3. Sideways Topping Action
Focus on Speed of downtrend
IntradayMoney.in Short Setups
1. Sideways Bottoming Action
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips...!
2
2 1
3
3
1
1 2
Up Trend
1 Up Trend breakdown
2
3
3
IntradayMoney.in Breakout Breakdown
Odds of success depends on higher timeframe Market Cycle
www.intradaymoney.in Price Action
TARGET
Price Action
www.dailyniftytips.in only sure shot tips...! REWARD ENTRY
RISK
200 MA STOP
20 MA
IntradayMoney.in ENTRY
Consider STOP - Trailing 20 MA
www.intradaymoney.in
Odds of success depends on higher timeframe Market Cycle www.dailyniftytips.in only sure shot tips...!
Down Trend breakout Down Trend
Breakout
1
Breakdown
2 3
1 2
3
IntradayMoney.in 2
3
1
1
2
3
www.intradaymoney.in SHORT
www.dailyniftytips.in only sure shot tips...! STOP RISK ENTRY
200 MA 20 MA
TARGET
Higher Timeframe Phase 4
IntradayMoney.in Consider
STOP - Trailing 20 MA
www.intradaymoney.in
One of the most common reasons for failed trades is the inability to distinguish Quality trends from Inferior trends. www.dailyniftytips.in only sure shot tips...!
Quality Trends
Inferior Trends
Quality trends have a higher level of predictability and certainty.
Inferior trends have a lower level of predictability and certainty.
Controlled price bar arrangements and controlled pullbacks that reverse at supply or demand lead to certainty.
Uncontrolled price bar arrangements and uncontrolled pullbacks that reverse at supply or demand lead to uncertainty.
IntradayMoney.in
You Must be Able To Distinguish Quality from Inferior Trends, THEN be Disciplined Enough to Trade Only the Quality Trends.
www.intradaymoney.in
Trend Strength Attributes
Trend angle
Quality
Distance between major pivots
Bearish candles in an uptrend result in insignificant price corrections
Time vs. price correction
www.dailyniftytips.in Correction angle only sure shot tips...!
Pivots provide the market’s reference point in shifts between Supply and Demand.
No trades exist if there are no clear voids between Supply and Demand.
Deep moves into Supply and Demand create an opposing void to consider.
IntradayMoney.in
The deeper the move, the greater the odds of moving through it.
Certainty (or the lack thereof) can be seen in candle arrangements.
By definition, breaking a major pivot will break a trendline.
Proper Trend Analysis leads to High Probability Trades!
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips...!
IntradayMoney.in
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips...!
• By focusing less on naming conventions and more on the “WhatHow-Why-Where-When”, traders are more equipped to identify trending price action and exploit it for profits with the use of candlesticks
IntradayMoney.in
•Candlestick patterns provide a hidden confirmation of price action and its anticipated “next likely steps”
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips...!
IntradayMoney.in
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips...!
IntradayMoney.in
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips...!
Bullish
Bearish
Engulfing
Engulfing
Bullish 50%
Piercing
IntradayMoney.in 50%
Bearish
Piercing
www.intradaymoney.in
Short Entry Setup
Initial Stop
Fibonacci Retracements
A
www.dailyniftytips.in only sure shot tips...!
C 2 1
3
B
Flags
2/3 Bar Reversal Entry
IntradayMoney.in Preliminary target
Most traders only focus on at most the potential chart pattern, or the candlestick reversal pattern…and ignore the price action reaching the preliminary target as… confirmation of trending price action
www.intradaymoney.in Transition Among Phases
www.dailyniftytips.in only sure shot tips...!
1
2
A
B 3
Flags
1
2
3
1
Parallel
2
C
Flags
1
2
C A
3
3
B
IntradayMoney.in
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips...!
Reference for Trend Quality
IntradayMoney.in
www.intradaymoney.in
Quality Trends
Most opening prices will be in the area of
www.dailyniftytips.in the prior bar’s close (usually <20% into the only sure shot tips...!
Inferior Trends
area of the prior bar’s close (usually
>50% into the prior bar’s range).
prior bar’s range).
New bar moves in the same direction of
New bar’s open and close are near the
bar’s extremes.
All of the above create certainty – few Gaps, Tails, Engulfing, Piercing , or Outside bars.
Often, pullbacks reverse in the area of minor Demand or minor Supply.
Close may or may not move in the
direction of the prior bar’s direction.
the prior bar’s direction.
Most opening prices will not be in the
New bar’s open and close may not be
near the bar’s extremes.
IntradayMoney.in many Gaps, Tails, Engulfing, Piercing , or
All of the above create uncertainty – Outside bars.
Often, pullbacks break through areas of minor Demand or minor Supply.
www.intradaymoney.in
Defined: Reference points identifying shifts between the forces of supply and demand
www.dailyniftytips.in only sure shot tips...!
Description: Begin with higher low bars on each side of a bar (low pivot) or with lower high bars on each side of a bar (high pivot)
Not until the next bar is complete will you know whether it is a significant pivot and reference point
IntradayMoney.in
NOTE: Pivots have varying degrees of significance.
Pivot analysis is the only objective style of trend analysis and position management!
www.intradaymoney.in
To attain a larger gain in a profitable position, you might have to let the future contract correct.
Doing so may cause you to lose prior gains while attempting to attain a larger one.
www.dailyniftytips.in There’s no way around this. However, the odds are with you if the contract hasn’t yet reached a prior only sure shot tips...! area of supply or demand.
Reference Points of Demand in a Long Position
Prior bar’s low; after a multi-bar move, exit part of the position under a prior bar’s low
Prior pivot low
If a long position is within a price void, hold part of the position, no matter that it violates a prior bar’s low.
IntradayMoney.in
Let the contract pull back and wait for a pivot to form.
Once a pivot is formed, bring your stop under that pivot low.
As a contract moves closer to supply for longs, bring the stop under the prior bar’s low.
Using two prior pivot lows is an option for a 3-lot exit.