Cpr By Kgs Notes

“CPR by KGS” a signature program by,

K. GOMATHI SHANKAR, MTech Founder & CEO Guest Speaker at Goodwill Commodities Pvt. Ltd, LIBA Certified in Finance Management, NISM Certified Research Analyst in Stock Market, NCFM Certified Technical Analyst in Stock Market.

Scalper’s Trading Academy www.scalpers.in Prime Mover, Mr. Gomathi Shankar MTech (Biotechnology) Contact, Whatsapp E-mail Twitter Trading view

: : : :

+91-730-5432-730 [email protected] www.twitter.com/kg18shankar https://in.tradingview.com/u/KGShankar/

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

My credits and gurus

FRANK OCHOA

OLIVER VELEZ

ASHWANI GUJRAL

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Classification of Derivatives trading Underlying asset (Stocks, Index, Commodities)

(Apple)

Derivatives contract (Futures & Options)

(Apple juice)

Futures contract

Options contract

Similar to equity cash, with predefined quantities

Contains options terminologies along with predefined quantities

Call option

Put option

Market bullish Buy call option

Market bearish Buy put option

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Why Derivatives trading? From (Apple)

We are deriving (Apple juice)

For

Which is Predominantly used by

Underlying asset (Stocks, Index, Commodities)

Any type of contracts/agreements have an expiry. E.g. Monthly rental contracts; Yearly rental contracts Similarly

Derivatives contract (Futures & Options)

Hedging

Futures and Options are having monthly expiry. (Index options has weekly expiry).

FII’s and DII’s

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

What is Hedging? Assume your holding XYZ company shares for 5 lakh rupees

This is called as hedging

E.g. If the company delivers a poor quarterly results or if the company defaults in any of the legal cases

Now, you can take counter position in futures and options. e.g. short futures, buy put option, sell call option.

Company share price decreases, so your holdings 5 lakh will be in loss of few lakhs

To recover the losses in your holdings you need some alternative ways

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Simple example for hedging

Your buying a house. (buying ABC shares)

This is called hedging

You have to pay monthly EMI. (temporary loss of ABC company)

Used for paying monthly EMI. (Temporary loss of ABC company Profit from F&O of ABC company)

Your renting the house monthly. (buying F&O of ABC company)

Money from rented house. (Profit from F&O of ABC company)

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Futures trading • • • • • •

Futures contracts are introduced similar to forward contracts. Futures contracts have pre-defined quantity of shares called market lot. Future is a contract (agreement) so it have expiry on last Thursday of every month. If future price is lesser than spot price we call it as discount. If future price is greater than spot price we call it as premium. On the day of expiry both future and spot price becomes equal. Forward contract

Futures contract

Contract made directly between two person.

Organized contract made through an exchange

Possibility of counter party risk

Since it is regulated by the exchange no counter party risk

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Types of participants Three types of market participants in derivatives market:

Hedgers: Corporations, investing institutions and banks all use derivative products to hedge. Speculators/Traders: They try to predict the future movements in prices of underlying assets and based on the view, take positions in derivative contracts. Arbitrageurs: Arbitrage originates when a trader purchases an asset cheaply in one location and simultaneously arranges to sell it at a higher price in another location.

Types of contracts Futures and Options have three month contracts: • Near month contract (Current month – February) • Next month contract (March) • Far month contract (April) Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

OPTIONS BUYING When you will make profits?

30 L worth house

News: Shopping mall comes near house

House value increases to 50 L

1% token advance ₹ 30,000

When you will make profits? While options buying

1% token advance Increases ₹ 50,000

Definitely you will buy the house

Reason, house value increased your in huge profits

Result: Your in profit of 20k (20 L)

OPTIONS BUYING When you will make profits?

You think nifty will go up as per your analysis

News: India wins the world cup

Nifty will go from 10,000 to 12,000

You buy 10,000 call option (Strike price) for ₹ 1000 (Premium)

When you will make profits? While options buying

Call option increases from ₹ 1000 to ₹ 2000

Definitely you will book your profits

Reason, Nifty value increased your call option also increased your in huge profits

Result: Your in profit of ₹ 1,000

OPTIONS BUYING When you will make losses?

30 L worth house

News: Cemetery comes near house

1% token advance ₹ 30,000

When you will make loss? While options buying

Definitely you will not buy the house

Reason, house value decreased your in huge loss

House value decreases to 10 L

1% token advance decreases ₹ 10,000

Result: Your in loss of 30k because you will break the agreement

OPTIONS BUYING When you will make losses?

You think nifty will go up as per your analysis

News: India lost the world cup

Nifty will go from 12,000 to 10,000

You buy 10,000 call option (Strike price) for ₹ 1000 (Premium)

When you will make loss? While options buying

Call option decreases from ₹ 1000 to ₹ 0

Definitely you will book losses

Reason, Nifty value decreased your call option also decreased your in huge loss

Result: Your in loss of ₹ 1,000

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Option seller mindset

Option buyer mindset

Option selling

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Option buying

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Put option buyer

Call option buyer

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Options trading • Option buyer has the right to buy, no obligation (Not compulsory) to sell. • Option seller has an obligation (Compulsory) to buy. • Option is a contract (agreement) so it have expiry on last Thursday of every month. ICE CREAM

OPTIONS

Validity, 15 mins only

Validity, 1 week for index options and 1 month for stock options

After 15 mins ice cream becomes zero

After 1 week/month options becomes zero

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

expiry

Open chain data importance. Understanding open interest: Open interest is the total number of option contracts outstanding for an underlying asset (Nifty or Banknifty or any stocks or commodities). Either buyers having position not yet sold or sellers having position not yet bought. Yellow shades represent buyers are maximum which is called as IN THE MONEY (ITM).

White shades represent sellers/writers are maximum which is called as OUT OF THE MONEY (OTM). Strike price selection: Strike price is the price per share for which the underlying security may be purchased or sold by the option holder. Always we have to select yellow color shaded strike prices for call/put option buying. Ignore the 1st yellow color shaded strike price and select the 2nd / 3rd yellow color shaded strike price, which is called as deep ITM. Because, the premium decay will be very less in these strike prices. Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Understanding open interest

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Strike price selection

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Strike price selection

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Strike price selection

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Strike price selection

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Basic terminologies in options. Strike price: Strike price is the price per share for which the underlying security may be purchased or sold by the option holder. Option price/Premium: It is the price which the option buyer pays to the option seller. Expiration Day: The day on which a derivative contract ceases to exist. It is the last trading date/day of the contract. Like in case of futures, option contracts also expire on the last Thursday of the expiry month. Spot price: It is the price at which the underlying asset trades in the spot market. Open Interest: Open interest is the total number of option contracts outstanding for an underlying asset. Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Option buying vs Option selling Option buying

Option selling

Less capital required

More capital required

Loss limited to premium

Loss is unlimited

Profit unlimited

Profit limited

Needs trending market

Needs rangebound market

(breakouts in either side up or down)

(needs sideways market inside a range)

Needs charts, technical analysis

Needs options data

Time is an enemy

Time is a friend

Preferred trading is scalping only

Preferred trading is intraday; positional

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

What is scalping? • Scalping is a trading style specializing in taking profits on small price changes, generally soon after a trade has been entered and has become profitable. • It requires a trader to have a strict exit strategy, because one large loss could eliminate the many small gains the trader has worked to obtain. • Constant attention is needed. • Huge wealth creation is not possible. • P&L restricted. • Only disciplined trader will succeed (scalping success ratio 5% and failure ratio is 95%).

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Why banknifty scalping? • Banknifty is always a liquid instrument. • Best volatile instrument available in indian stock market which is suitable for scalping. • You can make profit in any direction (up or down). • Gives good return on our capital (even 100% returns). • We can do many trades in a single day.

• Don’t want to study and research a lot. • Zero overnight position risks. • We can start with small capital.

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Qualities of a successful scalper. • Finding out the right trade setup. • Perfect entry.

• Perfect risk : reward ratio. (options 20 pts; futures 50 pts) • Perfect exit. • Booking partial profits if necessary.

• Good money management.

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Scalping

requires Strong technical knowledge When you’re strong, you can easily do Price Action Trading (PAT)

using Price Action Trading Indicators

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Price Action Trading (PAT)

People think we use only Candlestick patterns

People think we use only Support, resistance, trend lines But the truth is, we use indicators.

Indicators enhancing or supporting or helping in PAT

Moving Average

Pivot points

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Moving Average • A moving average is a technique often used in technical analysis because it is a trend following indicator. • Simple moving averages (SMA) takes the arithmetic mean of a given set of prices over the past number of candles, for example over the previous 20, 50, 100, or 200 days. Simple Moving Average

20 SMA

50 SMA

TWINS, Same character Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

200 SMA

20 – 50 SMA Tricks

Rising railway track pattern

Falling railway track pattern

20 – 50 flat and zig zag

20 SMA attract candles

Bullish trend

Bearish trend

Sideways trend

Opening trade at 09:15

Higher high, New day high

Lower low, New day low

Use 200 SMA trick, 200 hate candles

If RTP breaks 200 SMA, then it is HP-RTP

200 SMA Tricks Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

The Powerful 20 SMA and 50 SMA (use only for intraday 5 mins chart) Simple Moving Average 20 and 50 : – The 20 and 50 is so important to intraday traders that no chart is ever studied or viewed without it. That’s because of its power and reliability. – No chart is a chart unless it is accompanied by this important technical indicator. – We use it on every time frame or chart we look at. General character of 20 and 50 – – – – –

Most of your trades should be in sync with the 20 and 50. If the 20 and 50 is rising in a smooth fashion, your focus should almost always be long. Conversely, if the 20 and 50 is declining in a smooth fashion, your focus should almost always be short. If the 20 and 50 is flat, your focus should be to avoid trading. Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

a)

Rising Railway track pattern –

–

If and when the 20 - 50 is rising, both 20 – 50 it will serve as strong support.

–

Higher highs and higher lows are the sign of bullishness.

–

In that case, look for buy/long at or near 20 - 50.

–

It is safe to enter long when day high is broken with a green candle close.

–

Target: Nearest CPR level; SL: Below 20 sma.

b)

Falling Railway track pattern –

–

If the 20 - 50 is declining, it will serve as strong overhead resistance.

–

Lower highs and lower lows are the sign of bearishness.

–

In that case, look for sell/short at or near 20 - 50.

–

It is safe to enter short when day low is broken with a red candle close.

–

Target: Nearest CPR level; SL: Above 20 sma. Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Short opportunity

Short opportunity

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Short opportunity Short opportunity

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Short opportunity

Short opportunity

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Short opportunity

Short opportunities

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Short opportunity Short opportunity

Short opportunity

Short opportunity

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Short opportunity

Short opportunity

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Short opportunity

Short opportunity

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

long opportunity long opportunity

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

long opportunity

long opportunity

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

c)

20 – 50 flat and zig zag –

–

When a stock is consolidating in a sideways pattern, the 20 - 50 will be flat, zig zag

and usually positioned right in the middle of the sideways trend. –

If and when this is the case, it’s better to avoid the trade.

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

d) 20 SMA attract candles like a magnet (UNIQUE CHARACTER ONLY FOR 20 SMA) –

–

Stocks cannot remain extended too far above or below the 20 sma.

–

If and when stocks get too far, a violent snap back is expected.

–

This is when the Intraday Trader can intelligently look to take advantage of a counter trend move.

–

We should take position for a very quick scalping, not recommended for trailing profits.

–

Reversal most likely to happen exactly at R1/PDH; S1/PDL.

–

Target is always 20 sma only.

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

QUIZ TIME Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

The Mighty 200 MA (use only for intraday 5 mins chart) 200 Period Simple Moving Average (200ma) – • The 200 is so universally watched, in all time frames, that for all practical purposes, • It is the king of all moving averages. • So, rarely stocks fail to obey the 200. • It’s power, force, and reliability are so great, We use the 200 on all time frames.

General character of 200 a) Flatness is king: •

While the 20 is most powerful when it is rising and declining (trending), the 200 is most powerful when it is flat.

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

b) 200 SMA hate candles when 20-50 are flat and zig zag:

•

Candles doesn't have the power to break 200 when 20-50 are flat & zig zag.

•

Whenever a stock declines to a flat 200ma, it will almost always experience some form of rebound.

•

If the rare cases in which it does not rebound, the stock is almost certain to at least stop for a while.

Similarly, •

Whenever a stock rallies to a flat, overhead 200ma, it will almost always experience some form of resistance back down.

•

If the rare cases in which it does not experience a reversal back down, the stock is almost certain to at least stop for a while.

Trade decision:

• Entry will be exactly at the reversal candle at 200 sma. • Long/short target will be 20 sma. Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

QUIZ TIME Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

c) 200 SMA love candles when 20-50 are forming RTP (High probable RTP):

• Candles have the power to break 200, when 20-50 are forming RTP. • When candles are below 200 and if 20-50 are forming RTP then we can expect the candles to break 200 easily due to the influence of RTP where 20-50 breaks 200 from bottom to top. • It also denotes short covering or trend reversal if candles & 20-50 crosses 200 after several days.

Similarly, • When candles are above 200 and if 20-50 are forming RTP then we can expect the candles to break 200 easily due to the influence of RTP where 20-50 breaks 200 from top to bottom. • It also denotes long unwinding or trend reversal if candles & 20-50 crosses 200 after several days.

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

long opportunity long opportunity

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

long opportunity

long opportunity

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Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

QUIZ TIME Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Pivot Points (use only for intraday 5 mins chart) What is a Pivot Point? • A pivot point is a technical analysis indicator, or calculations, used to determine the overall trend of the market over different time frames. • The pivot point itself is simply the average of the high, low and closing prices from the previous trading day.

• On the subsequent day, trading above the pivot point is thought to indicate ongoing bullish sentiment, while trading below the pivot point indicates bearish sentiment.

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Types of pivot points There are 6 types of pivot points: • Classic • Traditional • Fibonacci • Demark

All these type of pivot points Tells us the intraday levels like entry, exit, stop loss.

• Woodie • Camarilla

Why do we use CPR pivot points? CPR not only shows the intraday levels like entry, exit, stop loss. But, also the intraday trend through wide variety of strategies which will be discussed henceforth. So, CPR is a dual role indicator

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

CPR Pivot Points Formula:

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Moving average

CPR

Trending:

Trending:

• RTP (20-50 parallel) • HP-RTP (20-50 breaking 200)

• • • • •

Sideways:

Sideways:

• 20-50 flat & zig zag • 200 sma hate candles

• • • • •

Narrow CPR Inside CPR Trend reversal CPR Asc or Des CPR Virgin CPR

Wide CPR Outside CPR Camarilla + CPR Asc or Des CPR Virgin CPR

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Narrow CPR (Trending day expected)

R1 as well as PDH

S1 as well as PDL

Wide CPR (sideways day expected) R1 as well as PDH

S1 as well as PDL Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Narrow CPR: • Ncpr denotes trending day, but all Ncpr will not be a trending day because we need RTP in a Ncpr. • Ncpr + RTP = trending day. • If there is no RTP in a Ncpr then the market will be a sideways or less trending. So, we can expect a RTP and trending market on the next day. Wide CPR: • Wcpr denotes sideways day, but all Wcpr will not be a sideways day because we may get RTP in a Wcpr. • In that case we need to book quick profits and exit. • Wcpr + 20-50 flat & zig zag = sideways day.

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Ascending CPR (Bullish trend expected)

Day 3 Day 2 Day 1

Descending CPR (Bearish trend expected) Day 1 Day 2 Day 3

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Ascending cpr: In a ascending cpr, the overall trend is assumed to be bullish so our intention should be on the long side only. Market is expected to take a pull back or retracement at cpr and then the bull rally continues. In this case PDL will not be broken, if it’s broken and market close below PDL we can expect trend reversal.

Descending cpr: In a descending cpr, the overall trend is assumed to be bearish so our intention should be on the short side only.

Market is expected to take a pull back or retracement at cpr and then the bear rally continues. In this case PDH will not be broken, if it’s broken and market close above PDH we can expect trend reversal.

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Virgin CPR Expected target current day cpr Case: 1

Market opens here

Current day CPR or Market opens here

Virgin CPR

or Market opens here Current day CPR

Case: 2 Expected target current day cpr

Note: For better accuracy, validity of virgin CPR is 1 day. Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

OPEN TRICKS

REVERSAL

DIRECT

(Green candles at R1 and Red candles at S1

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(Red candles at R1 and Green candles at S1

DIRECT

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DIRECT

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REVERSAL

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REVERSAL

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Inside CPR DAY 1

1. 2. 3. 4.

DAY 2

If day 2 CPR is inside day 1 CPR it’s called as inside CPR. Trending day expected. RTP or HP-RTP expected. If day 2 is not trending, day 3 will be a trending day.

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Outside CPR DAY 1

1. 2. 3. 4.

DAY 2

If day 2 CPR is outside day 1 CPR it’s called as outside CPR. Sideways day expected 20-50 flat/zig zag + 200 SMA hate candles expected. If day 2 is having RTP/HP-RTP book small profits.

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Trend reversal CPR DAY 1

DAY 2

Ascending CPR we will expect a bullish day.

• But, day 2 candles will reject CPR and will go up or down changing the trend into bullish or bearish. • RTP or HP-RTP can be expected

Descending CPR we will expect a bearish day.

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Camarilla pivot points + CPR

Cam R3 inside CPR For short trade

HP reversal from cam R3 or Direct downtrend. HP reversal from cam S3 or Direct uptrend.

• 20-50 flat/zig zag. • 200 SMA hate candles expected.

Cam S3 inside CPR For long trade

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Important candle psychology (only for intraday 5 mins) REPETITIVE PATTERNS

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

GIANT RED CANDLE • The first candle of 5 mins chart is a giant red candle. • This should exactly at or near S1/PDL. • This giant red candle low should be broken at anytime of the day and with another red candle close below this giant candle. • Now, short position can be initiated at this closing red candle.

• Note: I have observed this personally in banknifty only for any other instruments kindly backtest once.

(or)

Short here Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Short here

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

MARKET STUCK INSIDE R1/PDH & S1/PDL • Whole day market stuck inside R1/PDH and S1/PDL.

• Sideways market is expected. • Apply 200 sma hate candles tricks and dow theory. • If there is no chance for 200 sma hate candles and dow theory then strictly avoid.

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

BIG BULL BREAK OUT (Bahubali or Hero candles) Big bull break out is nothing but a sideways or range bound channel is broken upside by a single big bull candle.

It happens when there is no clear trend in the market and only sideways market occurs.

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

BIG BEAR BREAK OUT (Bahubali or Hero candles) Big bear break out is nothing but a sideways or range bound channel is broken downside by a single big bear candle. It happens when there is no clear trend in the market and only sideways market occurs.

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

DOW THEORY

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Stock selection methodologies. For stock selection you can select any methodology but, you have to stick with our tricks for taking position.

Few commonly used stock selection methodologies: • NR7 • Trendlines breakouts • 2 days inside day • Inside day • Moving averages breakouts • Narrow CPR

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Why traders lose money in trading?

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

• They don’t know the trend. Now, you know how to identify the trend using SMA, CPR.

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

• Multi tasking during trading. Most traders trade for money. They never consider trading as a business so they multi task while trading by watching 100 stocks in a single time, hearing music's, watching news channels, speaking/chatting through mobile phones.

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

• They don’t know position sizing. Taking heavy positions as if they’re competing with warren buffet.

Experienced trader

Beginner

emotion position

Heavy position Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Risk management and Money management Don’t risk more than 2% per day. Take 2 trades per day with 1% risk each. Capital : ₹ 1,00,000 Risk : 2% of capital which is ₹ 2,000 (2 trades ₹ 1,000/trade) Position sizing: Bank nifty stop loss : 25 points (your target should be minimum 25 pts) Market lot : 20 quantities (1 lot) Total risk in rupees : ₹ 500 Since, your risk is ₹ 1,000 you can place 1 more lot i.e. 2 lots only you should trade. • • • • •

Continues 3 days losses don’t trade for 3 trading days. Go back to study mode, refresh your mind. When your total loss for the month becomes 10% stop trading for the entire month. If your in loss of 10% don’t infuse further capital for the month. If your profitable take out your profits, keep the capital 1 L as it is. Maintaining a trade journal is compulsory, because trading is a business not a game. Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

Few words by your mentor: ▪ Imagine, Your allowed to take only 12 trades a year. So, 1 trade per month. Now, will you take this trade?

▪ Think this again and again before taking any trade. ▪ Whether you win or lose, challenge yourself to maintain the starting capital at the end of the month. ▪ Take small profits initially build up confidence and positivity. ▪ Try playing test match with the markets, don’t lose your wicket.

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in

I wish you all success in your trading journey. "I fear not the man who has practiced 10,000 kicks once, but I fear the man who has practiced one kick 10,000 times" by Bruce Lee. “Take up one idea. Make that one idea your life; dream of it; think of it; live on that idea. Let the brain, the body, muscles, nerves, every part of your body be full of that idea, and just leave every other idea alone. This is the way to success, and this is the way great spiritual giants are produced.” by Swami Vivekananda. As a trading mentor, I advise you to practice my trading method again and again so that one day you can live your dream life of becoming a full time trader.

THANK YOU.! “Together we grow, as a price action trading community” - Gomathi Shankar (CPR by KGS)

Gomathi Shankar, Founder & CEO Scalpers Trading Academy www.scalpers.in