Trading notes

Trading notes

29NOV16

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This is how trading happens

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21nov16 – ‘U’ SHAPE FORMULA :
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16NOV16 – IMPORTANT OBSERVATION 
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Observation from below says
that once the candle has crossed BELOW 50 sma you can keep buying the PUT
that once the candle has crossed ABOVE 50 sma you can keep buying the CALL

3

 

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16NOV16 – IMPORTANT OBSERVATION 
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To be on safe side now , without much experience buy a call and put daily and wait for the double profit ,low risk and less efforts

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10NOV16 – IMPORTANT OBSERVATION 
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On WEDNESDAY of you will get very low prices up and down CALL & PUT which expire on THURSDAY

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10NOV16 – LESSON LEARNT — RISK ON FLUCTUATING MARKET AT LOW INVESTMENT 
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When the market is very much fluctuating BUY a CALL & PUT within WEEK EXPIRY . This will enable you to get unlimited profits
Yesterday if i could have invested in both @600 rs each i could have earned
4000 + RS

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10NOV16 – LESSON LEARNT — WHY do we FAIL
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We fail in trading for following  reasons
1. Waiting for more profits
2. Selling too quickly
3. Buying at higher price
4. Tendency to jump in when prices are too fast
5. Buying a PUT when MACD is positive ,
Buying a CALL when MACD is in negative
6. Not risking to buy at low prices on both sides within  Week expiry 

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9NOV16 – LESSON LEARNT
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MAKE THE HABIT OF
“WAIT FOR PROPER TIME TO ENTER
MAKE SOME PROFIT AND
GET OUT OF IT “
NEVER WAIT FOR FULL PROFIT

Keep taking profit and enter again
you Will surely get a chance to enter again

Today i was seeing a chance to make +1500 i waited for more and later it went o – 2500
means i lost totally 4000 so next time get out with small profits
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8NOV16 – A CHART SEQUENCE ( ICC) – INDICATOR , CONFUSTION, CONFIRMATION
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First it gives you a indicator of whats going to happen
Then it confuses your whether it will happen or not
Then it shows confirmation of your indicator 

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8NOV16 – A NEW FORMULA – LOOK FOR FALL OR RISE ON 50 SMA
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{50 sma is First priority than MACD
Even if MACD is Positive and candle is below 50 sma play only on SMA not on MACD)
CALL
First look at MACD positive only for a call , Then
if the candle is above 50 sma
look for opportunity when will the candle fall from high to low
but still above 50 sma then
(if candle is not coming down dont enter)
Also check if MACD Line is above zero then
wait for fist green then , Buy a CALL
and sell at top  and
[REMEMBER : Never TRADE if MACD line is very close to ‘0’ zero line
it is very risky ]

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PUT

Based on 50 sma ( 30 min) see if the candle is BELOW 50 sma look for opportunity when will the candle MOVE UP from LOW but still BELOW 50  sma Buy a PUT and sell at top

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6NOV16 – A NEW FORMULA -buyers sellers observation 
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ONE BIG CANDLE CAN MAKE BIG DIFFERENCE

Today i found an interesting observation that is

Any Trading is based on 3 observations

  1. Just look at what happened recent  past was there a STRONG BUY OR STRONG SELL in recent past and then make a decision
  2. Whether the STOCK / INDEX price went up or down today
  3. How did the traders react to the PRICE Rise/ Fall
  4. Watch the ORB range to decide the direction of the Traders psychology

MOST IMPORTANT THING IS “LOOK at the over all trend and recent trend and take that direction for CALL/ PUT. It mostly workds

PRICE RISE

If There was a PRICE RISE and the traders BOUGHT the stock ( continuous big green up candles) means in  near future there will be a price rise  – CALL

If There was a PRICE RISE but the traders Started selling  the stock ( continuous big Red down  candles) means that the traders were waiting for long time to sell the stock and they thought let me sell now and buy again

PRICE FALL
If There was a PRICE FALL and the traders SOLD the stock ( continuous big RED DOWN candles) means in  near future there will be a price FALL – PUT

If There was a PRICE FALL but the traders Started BUYING the stock ( continuous big GREEN UP candles) means that the traders were waiting for long time to BUY the stock and they thought let me BUY now and SELL again

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FINAL SETUP

Method 1 : (5 min)
(5MIN) MACD (30,200,50) AND sma(50,200)
( 30 MIN ) 50,200 sma , MACD( 20,100,30)
(Daily) 6 sma,12 sma , MACD( 12,26,9)

 When to BUY a CALL:(5min) or 30 min

Whenever the candles cross above 50 sma check if MACD histogram is also positive above ‘0’ line then BUY a CALL.

 When to SELL a CALL:
>Again after buying CALL  if candle crosses below 50 SMA SELL it irrespective of MACD histogram positive or nagative. Similarly for a PUT.

>OR SELL CALL if MACD histogram is NEGATIVE Even if the candle is above 50 SMA

If candle is below 50 SMA but MACD Histogram is not negative NEVER BUY A PUT 
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4NOV16 –  It should be falling more tomorrow
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As per my law and observation
1. if candle is below [30 min ,50 SMA  ] then it will fall more down
2. if candle is above [30 min ,50 SMA  ] then it will rise more  up

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2NOV16 – Finally my plans gave me results
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 Today i have earned around 1300 rs using these setups
But problem is i am still investing on both sides in a safe side game
FROM NOW
I will only invest on one side using 50 sma and MACD positive/ negative histogram ( 30 MIN)

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27OCT16 – MACD SETUP for 30 MIN ( 20,100,30)
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27OCT16 – EOD
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Took a 03NOV16 -CALL 19900CE @18  Based on 5 min, 50 sma , and MACD Positive histogram
and since 30 min histogram is also positive

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27OCT16 – Another method using 30 min , MACD 
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27OCT16 – Proof for below formula
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Here is the Proof for Below formula. I made a profit of 1000 Rupees by investing @8.

CP =8*4=320 
SP =35*4=1400 
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26OCT16 – SUPER FORMULA
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Simple concept is 

using Both 50 SMA ( 30 MIN ) & MACD (30,200,50) 

Whenever 50 SMA crosses down and MACD also shows histogram bars negative 

>>>That is the point you should enter trade

Again when candle crosses 50 SMA up and MACD shows histogram positive

3

Since 50 sma ( 30 min) =  200 SMA ( 5min) 
.
Everytime the candle crosses 50 sma( 30 sma ) You can expect a change in trend if there is no change in trend , then next day it will go the opposite direction again
.
Like today nifty at 19200 and candle crossed below 50 sma(30m) then take a PUT
If next day the candle crosses above 50 sma then sell PUT and buy CALL 
This is surely going to work 
2
2
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26OCT16 – 30 Min MACD (30,200,50) 
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It is hence proven fact in OCTOBER 2016 that if we follow above setup with MACD on 30 min we can surely see the profits by taking a call/put with strike price at +/-  600 to 800 of strike price
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24OCT16
just like BETTING do buy on +800 and -800 CE /PE 
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What you do in betting is you wait and see for the proper time when the Cost price is very low but the reward and risk are 5 to 10 times you bet on that team
Similarly you should wait and see on what day and time you can buy a CALL / PUT options at  +800 / -800 points target at around 60 to 100 Rs and enter into the trade. generally when there is a up / down against the trend you will get such prices.
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24oct16
SMA OBSERVATION
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A very good observation is that 
5 min 200 sma =
30 min 50 sma =
Daily 10,20 sma cross = 
Weekly 10 sma 
Weekly Chart, 10 sma will surely show which stock is on full profilt
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22oct16
————
Every 600 – 800 points up or down you shd take a another call and put because that will have sure  chance to reach and buy call / put exactly at +/- 800 points 
After 2 nd or 3rdday buy another lot
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20oct16Always buy both put and call @40 or less because 

CALL            40* 40 =1600 
PUT            40* 40 =1600 

Total investment = 3200

If CALL happens to rise from 40 to 120 , and PUT goes from 40 to 5 then 
CALL     120*40 = 4800 
PUT       120*5 = 600
Total SP -CP  = 5400 – 3200 = 2200  ( Profit )
What you lose is just the other side 1600 
Always save the option price list this will be useful at end of month

20oct16 : Use MACD 200 sma for long profits

Use below setting for having a long position like if MACD(30,200,100) is showing better signals. You can identify a PUT even when MACD is positive

if MACD is NEGATIVE Keep taking a PUT whenever the chart shows a HIGH you can be sure that there will be a FALL

And if MACD is positive you can keep buying a CALL whenever there is a FALL

2

19oct16 : Which options shd we buy

Since there is always a chance of crossing +800 or -800 points in a month
Purchase only +800 CALL or -800 PUT which might be costing you around Rs. 100( Rs 40 is much better )
Since thse are sure shot you can expect them to hit

18oct16 : channel trading (30min minimum)

Take 2 base points (means lowest points uptrend started )and draw a channel and then use upper line to adjust the height using two highest points
Whenever the candles cross upper or lower channel again draw a new channel and trade

uptrend : take base point as lowest and draw

downtrend : take highest 2 points as base points and draw

17oct16 

If 30 min chart is going sideways means its going to turn other direction compared with recent past before side pattern …atleast for 1 day it will go other way

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4oct16

Follow Divergence values of MACD ( DAILY ) CHART and you can predict the future see here example

if it is negative you can predict as put in future

if its positive you can predict a call for the month

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28sep16

ORB TRADING STRATEGY

Opening Range Breakout (ORB) is a commonly used trading system by professional and

Trading Strategy

Quite Simple and straightforward. Rules in the next section needs to be adhered to increase the success rates dramatically.
Any stock creates a range in the first 30 minutes of trading in a day. This is calling Opening Range. The highs and lows of this timeframe is taken as support and resistance.

1. Buy when the stock moves above the Opening Range high.
2. Sell when the stock moves below the Opening Range low.

PLEASE NOTE THAT THE ABOVE SYSTEM IS GENERIC, THE RULES BELOW WILL MAKE IT A SPECIFIC SYSTEM. IF YOU ARE FOLLOWING THIS SYSTEM, PLEASE FOLLOW ALL THE RULES FOR BUY / SELL STRICTLY.

General Rules – Applicable for both Buy and Sell:

Opening range is defined by the high and low made in the first 30 minutes.

5 min chart with 5 EMA and 20 EMA used for making trading decisions.

Entry should be made only on close of the 5 min candle outside the opening range.

20 EMA is one of the key technical indicators used in this system for trend trading. Stop loss is always kept at 20 EMA for riding the profits.

Volume confirmation – Breakout candle should show increase in volume.

Optional confirmation- One of the two indicators – MACD or Stochastics should be favorable for the trade. (We have four indicators in Simplified Technical Analysis – Moving Averages, RSI, MACD, Stochastics. The idea here is at least two indicators should confirm the trade.).

This is purely optional condition to enter trade.

  • Respect support and resistance levels. Do not buy just below a resistance or sell just above a support.
  • Always trade with 2 lots and book 50% as soon as you see few points profit. Second lot will be used for taking advantage of days trend.

Rules for Buy

  • Stock should be trading above the 20 EMA line before the breakout.
  • Buy when the 5 minutes candle closes above the opening range.
  • 5 EMA line should be above the opening range at the time of breakout.

Where to keep Stoploss

Initial Stoploss – Low of the Opening Range.
Trailing Stoploss – As the stock moves in your direction and you are in profits, book 50% , trail the stoploss at 20 EMA. A close of 5 min candle below 20 EMA confirms exit.

When to book full profits

When the 5 min candle closes below the 20 EMA in the case of longs.

Rules for Sell

  • Stock should be trading below the 20 EMA line before the breakdown.
  • Sell when the 5 minute candle closes below the opening range.
  • 5 EMA line should be below the opening range at the time of breakout

21sep16

WHAT I HAVE LEARNT FROM MY TRADING GAME EXPERIENCE IS
THROUGH TRADING OR ANY THING MONEY COMES IN BITS AND PIECES
FIRST BE PREPARED TO COLLECTS THOSE BITS
BEFORE THOSE BIG JACKPOTS COME TO YOU

THESE BITS CAN ONLY MAKE THOSE JACKPOTS


MACD ( 30 min ) method 

In this method we first draw a ORB rectangle based on 1st day of month and look at the MACD positive or negative. 

TRADING PROCESS :

  1. Based on MACD value buy a CALL / PUT 
  2. Next day if you get some profit sell it and buy again at same pice
  3. But if on next day  you get a surprise trend moving other direction than what you expected , then dont be panicked dont sell your CALL ( if you bought one ) but buy a PUT instead and wait over some days until you will see profit based on ORB break out.
  4. then sell your profit positions  (say CALLS) but again buy those CALLs at some fixed prize which you can afford say ( Rs. 100) 
  5. continue this process you will surely get good profits

18sep16

WHETHER 5 MIN OR 30 MIN after BUYING THE OPTION keep loooking at the option MACD graph to be +ve

simple way to invest using MACD ( 5 mins)
steps :

  1. look whether MACD is positive or negative
  2. if it is positive take a call and wait for your first profit and get out
  3. vice versa if negative
  4. you can take any number of CALLS/ PUTs looking at the direction

MACD ( 30 MIN)

strategy for MACD 30 mins is

  1. MACD takes direction +ve or -ve and
  2. you take a CALL / PUT
  3. wait for 2 to 4 days you will get enough profit
  4. get out of it
  5. again enter when the direction changes

look at these screenshots in word document

bank-nifty-macd-history

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