Intraday Trading Flashcards
Where we can find nifty 500 stocks
Go to one google drive on tech60 you will find spreadsheet of all 500 companies
(Every week or month need to change the file or update the file)
How we find the levels for Intraday
In 1 day candles pick where sharp pivot is formed along with multiple touch and multiple correction in that level. (Yellow)
And
In 5 min do the same thing (pick where sharp pivot is formed along with multiple touch and multiple correction in that level.) (white)
And
In 5 min look for Ichimoku violet lines with multiple touch (sharp point) (violet)
Box all the three lines
Line need to form near the exit point of the pattern or before the exit point of the pattern
Avoid : if line is formed after the breakout of the pattern
When to enter trade?
Look for pattern conform along with lines (all 3 lines) and when candle moves and get completed about all the 3 lines enter the trade.
What are the things we need to see before entering the Intraday trade?
- Look for pattern formation
- Look for levels (all 3 levels)
- These 3 levels need to formed on top of the pattern
(Additional Optional) - Look for pivot point to set the Fibonacci retracement important levels (Less risk - 0.618, more risk - 0.5, second entry - 0.382)
- Look for advance harmonic patterns
- Look for ABCD pattern
- Look for channels
- Look for Trend
- Candle stick analysis
- Pivot points
- Impulse leg
- Fibonacci extension
- Elliot waves
- Cluster formation
- Look for Divergence
What are the patterns available?
- Reverse
(Double top, Double bottom, Head and shoulders, Raising Wedge, Falling Wedge) - Continuation
(Falling Wedge, Raising Wedge, Bullish Rectangle, Bearish Rectangle, Bullish pennant, Bearish pennant) - Bilateral
(Ascending Triangle, Descending Triangle, symmetrical Triangle)
(Optional)
- Harmonic patterns
(Bat pattern, Gartley pattern, Butterfly pattern, crab pattern, deep crab pattern) - Divergence pattern
(Bearish Divergence, Bullish Divergence)
What is market structure?
Market structure is made 4 things:
HH - Higher highs
HL - Higher Lows
LH - Lower Highs
LL - Lower Lows
Page No : 3 and 4
What is Trend?
Draw line from down to above with multiple touch is called Trend
(Minimum 2 touch forms a trend)
Based on this draw major trend line (1w or 1D candle)
And
Draw minor candle (1H, 30 Min, 15 Min)
Look for trade at trend area touch point on the line
Page no : 12
Detailed explanation on Levels ?
It is nothing but a stright line which touches multiple pivot points (look body of the candle not the vix) along with multiple correction and tap and wix touching the line forming the levels
Tapping region means?
In a trend when HH and HL forming in sideways this region is called tapping
Which indicates change in trend director
You need to draw counter trend and check the levels and need to look for Trend reversal opportunity
Page no: 17
Candle stick analysis
Page no : 20
Meribozu - 2 big candle red and green on next to next with no wix - one side victory
Spinning top - 2 candle next to next with small body and long wix - in decision
Engulfing - one single large candle with big body small wix - Buyers full control
Candle with small body with large wix at top and small vix at bottom - buyers loosing control
Candle with no body and long wix at top and small vix at bottom - Reversal Formation (Buyers are gone)
Engulfing candle - 2 candle - one is small and another one is large (small candle should be inside big candle) no wix formation - momentum has shifted reversal)
2 candle - shooting star and Hanging man is formed at the major level (Resistance) Reverse in trend
2 candle - hammer and inverted hammer is formed at the major level (support) Reverse in trend
2 candle - spinning top and doji - Reversal in trend
Evening star seller dominant - 3 candles - middle candle (small candle with large wix on top and small wix on bottom) left and right candle are large in size
Morning star Buyer Dominant - - 3 candles - middle candle (small candle with large wix on bottom) left and right candle are large in size
Macro candle - multiple candle into 1 candle is called macro (for 5 min, 15 min candle is the major candle)
For exhaustion we need to see micro candle
Example: If we plan to trade on 4H we need to doji on 1H
Don’t look for the candle stick pattern on same time frame increase the time frame (major candle)
Location is everything
We always need to take trade on exact location
For example end of the pattern or touching the trend line, fib level of 0.613, Elliot waves (2,4,5,b(2)), High low or lower high region
Page no : 23
Channels
Candles inbetween 2 trend line is called channel
Optional
Inbetween 2 lines there will be middle line with lot of pivot points and correction confirms channel
Chart patterns
Page no : 27
Reversal patterns
Double Top
Point of first Pullback(Neck line)
2nd Point can’t be higher than 2nd Point
Double Bottle
2 points should be fall in major support level
2nd point can’t be higher than 1st point
(Optional) Neckline level 0.618
Head and shoulders:
3rd point can’t be higher then the 2nd point
3rd point should be in 50%, 61.8% or anything of retracement level
Neck line will be horizontal or any angle
(Optional) If 3rd point crosses 50% of 2nd point enter trade at 50% and SL at top of 3rd point
Raising Wedge
Upward move is very fast with big candle
Down line is sharper than above line
Look for HH and HL to form a pattern
Continuation pattern
Continuation wedge
Top line is shallow almost parallel
Bottom line is aggressive and step then the top line
LL to LH is aggressive
Falling Wedge flag:
Both the lines are parallel
LL to LH is aggressive
LH to LL is slow movement
Rectangle wedge flage
Both lines were parallel and straight
Pennants:
Slanting line at the top
Very small slighting line at the bottom
Forms closed look , forms high pressure at the end
Bilateral chart patterns
Ascending Triangle:
Flat line at the top
Slanting line at the bottom
It will be formed in channels
Adjust the trend line while formation of triangle pattern
Pressure building at the end
Symmetrical Triangle
No resistance and no support
No flagpole need to form
Look at the side ways market
It is in range market (consolidation)
We get early entry don’t wait for retracement after breaking pattern
About Fibonacci
Retracement & Extension
Retracement
Golden ratio - 0.618
Main ratio - 0.382, 0.5, 0.618
Secondary ratio - 78.6, 88.6
Extension
Main Ratio - 100, 127.2, 161.8, 2
Feb extension can draw using point B and C in the order (C - B - C)
For retracement starting with 1 ending with 0
For extension start with 1 and end with 0 but you need to have the retracement point
Mechanics
We need big trend either up or down with big momentum (impulse leg) and retrace back touch any of main or secondary ratio.
Fib retracement
Fib retracement are used to enter an existing trend
What is Pivot levels or points
Pivot means swing high and swing low
Swing High - Formation of 3 candles (close of left and right candle should be lower then the middle candle)
Swing Low - Formation of 3 candles (close of left and right candle should be higher then the middle candle)
Swing low and swing high (pivot points) should be marked from the wix end to wix end
For up trade retracement should be marked from 1(down) and 0(up)
For down trade retracement should be marked from 1(up) and 0(down)
What is clustering
Inside the the swing high and swing low, you see fib retracement level in that point you see lot cluster formed (multiple touch and multiple levels were formed very near each other) this is called cluster
Make a box of the cluster and executive this point for trade
What is Elliott waves
Page no: 51
8 wave pattern
Components required
1. Pivot points (swing point)
2. Fibonacci (Retracement, Extension)
2 things in Elliot waves
(One is impulse wave with 5 upward point
Two is correction wave with 3 points)
Upmove Elliott waves:
Start to 1st point upward
1 to 2 is correct downwards
2 to 3 is directional upmove
3 to 4 is correction downwards
4 to 5 is directional upmove
Then there will be trend change
5 to a(1) - directional downmove
a(1) to b(2) - correction upmove
b(2) to c(3) - directional downmove
Note:
Point 2 trade is aggressive
Point 4 trade is conservative
Trading psychology
Wave 1:
Downtrend getting over extended
Big consolidation pattern (totally 3 months on daily)
Wave 2:
Once it fall huge in wave 1, now selling volume gets drying out.
So there will be upmove with little correction on downside
Here it may form more than 6 months flat pattern with strong resistance to break
Once it break and going for correction we need to be ready
Wave 3:
Once it has pushes up and beak the point one it conform the Elliott wave
What is Divergence Trading
Page No: 74
Go to chart and click RSI indicator
When you find on candles moving upward (mark the two upward points with line)
The same two points you need to look at RSI moving downwards (mark they 2 points in RSI with line) this is called Divergence (RSI indicating stock going to move downwards)
Divergence is seen when the movement of price action (HH in candle seen LL in RSI indicator) begins moving in the opposite direction (LH as HL)
Ossilator :
RSI, MACD, Stockhostic, TDI
2 types of Divergence
Regular - Reversal of trend (high probability)
Hidden - Continuation of trend
Regular - reversal happen near trend line pattern, fib levels
Standard double top / bottom (second point high or slight high then first point
Staggerd double top / bottom (second point very high then first point)
Vise versa for downtrend Divergence
Note : use RSI (13) as a period
You can have Divergence in RSI anywhere, but it is not extreme or over sold or over bought levels.
Crossing or touching 80 & 20 overbought and oversold region it is good place for Divergence.
80 - 90 and 10 - 20 it is place for finding Divergence (regular)
90 - 100 and 0 - 10 it is great place for finding Divergence (regular)
Strength always want to back to medium level on RSI (level 50)
Harmonic patterns
Page no: 80
Bat pattern: (XABCD pattern)
Finding B:
ⅰ)Retracement From x(1) to A (0)
Point between 38.2% to 50.00%
Finding : C
i)Retracements From A(1) to B (0)
Point at 88.6%.
Finding D
i)Retracement From X (1) to A (0)
Point at 88.6%
ii) Extension From B(1) to C(0)
Point Between 161.8%. to 261.8%.
Stoploss : place below the Point X
Target : point C
Butterfly pattern:
Finding B:
ⅰ) Retracement From X (1) to A(0)
Point at 78.6%
Finding C:
ⅰ) Retracement From A (1) to B (0)
Point between 38.2 -88.6%
Finding D :
ⅰ) Expansion X(1) to A (0)
Point at 127.2%
ii) Expansion B(1) to A(O)
Point between 161.8 (or) 261.8
Gartley pattern:
Finding B:
i) Retracement From X (1) to A(0)
Point at 61.8%
Finding C:
ⅰ) Retracement From A (1) to B(0)
Point between 38.2%. to 88.6%.
Finding D :
ⅰ) Extension from B (1) to A(0)
Point between at 127.2% - 161.8%
ii) Retracement From X(1) to A(0)
Point at 78.6%.
Stoploss Below D or X
Target: C
Crab pattern:
Finding B:
Retracement From X(1) to B(0)
Point between 38.2 to 61.8%.
Finding C:
Retracement From A (1) to B (0)
Point between 38.2 to 88.6%.
Finding D :
Extension From X(1) to A (0)
Point at 161.8%
Extension From B (1) to A (0)
Point at 224 (or) 361.8%
Each pattern with explanation
Reversal patterns
Double Top
Point of first Pullback(Neck line)
2nd Point can’t be higher than 2nd Point
Double Bottle
2 points should be fall in major support level
2nd point can’t be higher than 1st point
(Optional) Neckline level 0.618
Head and shoulders:
3rd point can’t be higher then the 2nd point
3rd point should be in 50%, 61.8% or anything of retracement level
Neck line will be horizontal or any angle
(Optional) If 3rd point crosses 50% of 2nd point enter trade at 50% and SL at top of 3rd point
Raising Wedge
Upward move is very fast with big candle
Down line is sharper than above line
Look for HH and HL to form a pattern
Continuation pattern
Continuation wedge
Top line is shallow almost parallel
Bottom line is aggressive and step then the top line
LL to LH is aggressive
Falling Wedge flag:
Both the lines are parallel
LL to LH is aggressive
LH to LL is slow movement
Rectangle wedge flage
Both lines were parallel and straight
Pennants:
Slanting line at the top
Very small slighting line at the bottom
Forms closed look , forms high pressure at the end
Bilateral chart patterns
Ascending Triangle:
Flat line at the top
Slanting line at the bottom
It will be formed in channels
Adjust the trend line while formation of triangle pattern
Pressure building at the end
Symmetrical Triangle
No resistance and no support
No flagpole need to form
Look at the side ways market
It is in range market (consolidation)
We get early entry don’t wait for retracement after breaking pattern
Where to set stoploss for Intraday trading
Stoploss will be set under the 3 levels with v shape or n shape formation on candle
Optional
Also check fib levels whole placing the stoploss
How to pick the target levels in the Intraday
Above or below the pattern where you find swing points with multiple correction and wix touch keep it as a target point
Put multiple target point (2 or 3 target points)
How to analyse how many quantity of stocks required to buy
Go to Google drive (tech60) and open the file (Intraday Trading Quantity Calculator)
Check the risking amount (1 or 2%)
And give the input (strike price and stoploss point)
It will automatically show total quantity and position you need be (buy or sell)
How to place SL order
If I go long trade (buy)
Once you buy the share
Now go click sell options or exit option in position tab
Click SL and you get 3 column
1) Quantity
2) Target price
3) Price
In target price mention 1st value
Example: if I bought share at 88
Put trigger price as 85
And price box mention 84.8 (2nd value)
Price will get executed inbetween these 2 values (85 and 84.8)
If incase it jumps below these 2 points price will become limit order which is risky
Vise versa for short order
How to place SL-M order
Here you have only 2 box
1) qty
2) Trigger price
In Trigger price you need to mention the maximum loss that you can bare
If price touch or cross or jump this price , the order will became market order and execute any price which is in the market
Intraday process to follow
1) level (yellow and white lines) outside or inside no problem but they need be near each other and near to the pattern
Note : if levels inside pattern and near each other works great
2) After crossing the pattern and levels (near each other) look for V or n or pullback.
3) place the SL below or above V or n or pullback
Note : level means yellow and white lines (not the violet lines)
Check list while executing the trade
Pattern
+
Levels (yellow and white) yellow box
+
Pivot (swing high or swing low) (rose)
+
Pullback (green box)
