Wednesday 31 October 2018

Morning Star - Rule Book

Rule Book: Morning Star

1) Forms in downtrend setup
2) Three Candlestick Pattern
3) First Candle is has red real body
4) Second Candle gaps down having small real body or doji (either colour)
5) Third Candle has the green real body, ideally gapping up from the second candle and close near to the high of first candle
6) Entry Level for intra day - open on fourth day should be near the closing of third day
a) 50% at the closing of the third candle
b) 50% at the 50% level of third candle with the SL of low of second candle

For delivery,
a) 50% at the 50% level of third candle with the SL of low of second candle
b) 50% at the 75% level of third candle


Examples are discussed on our Youtube Channel. Click here to view the same







[11/3, 1:13 AM] Ganesh Baser EqTech-1422: Morning Star -  Stock movued up from 235 to 260

Evening Star -  Stock moved down from 255 to 225 levels

[11/3, 1:14 AM] Ganesh Baser EqTech-1422: 12th oct morning star formed... 23rd oct evening star


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Thursday 25 October 2018

Gaps - Rule Book

[10/23, 2:22 PM]: 
Screen always and always wish to give money to rule followers

Rules say :

1. Stock in downtrend
2. Open Gap down
3. It will try to fill the Gap
4. Go short on Gap filled level

HDFC Bank -

Yesterday's Closing - 1998.90
Today Open at - 1973
Gap filled at around 1 pm (1998.90)
High - 1998.90
Now stock is at 1983

Screen badi dayawaan hai
Banana chahti aapko danwaan hai
Suno karo jo woh kehti hai
Dekho kaisey phir aapki pocket yuh khilti hai

[10/24, 12:38 PM]: Yesterday, the rule of gap was discussed with an example of HDFC Bank -

Today, again the same rule worked -

HDFC Bank -

Yesterday's Closing - 1985
Today Open at - 2004
Gap filled at around 10:30 am (1985)
Low - 1982.20
Now stock is at 1997

You need screen to make you rich. Follow it.

Members Contribution

[3:51 PM, 10/25/2018] Gap means
Venkataraman B: A Gap represents the area where no trades takes place. Price charts offen shows Gaps. Generally this occors on between close of the market on day and the next day open.  Gap may be upwards or downwards movement

[3:37 PM, 10/25/2018] Gap means
Chandrashekar: A “GAP” is empty space between one price bar and the next. Gaps occur when price significantly changes from CLOSE of one price bar to the next, with no trading place in the empty space between bars. Gaps occur unexpectedly, that’s why there will not be any trading between the two candles. Generally Gaps will occur when market opens in the morning. It will be like gap up or gap down.

[10:56 AM, 10/25/2018]: Rule Worked
Rahul Sharma: Today hdfc bank followed the same. Opened gap down and filled the gap till yesterday's closing and shorted there now again towards days low .
Exited gain 10 points easily GAP RULE

[11:27 AM, 10/25/2018] Rule Worked
Dheeraj Magdum: Same trade. Sunpharma closed gap. Shorted at 71 booked profit at 62.5


[10/25, 9:36 PM]

Parag Soni: Sun Pharma last closed 570.70
Open 565 then fill gap at 570.
Made high of 572. But if we notice there is a reversal candle at 15 min time frame. So shorting with day's high

For Target we use ATR
Daily ATR of Sun Pharma (21)

Now look at today's action

OPEN 565
THEN 572 (565-572=-8)
NoW ATR (21-8=13) FOR DOWN SIDE

LOOK AT LOW (565-13=552)

[1:55 PM, 10/25/2018] Rule Worked
Aditya Jha: Indusind bank today on 5 min chart first it tried to fill the gap of yesterday then it recovered and filled todays gap down opening....am i correct mam



[3:09 PM, 10/25/2018]: Indusind gone


[3:49 PM, 10/25/2018] Twist in the Rule
Swapnil Wadkar: Daily initiative : Today's Term "GAP" : Subtype "Novice GAP" :- Novice gap is a gap which occur when a stock/scrip is in trend {up or down} and open with a gap on the side of trend {Gap up for Uptrend Stock and Gap down for down trend stock} In the above chart, the stock had 2 support level which were below the yesterday's  closing price... Today it opened on the 2 nd support zone.. which made the above support zone to turn to resistance and hence the prices start to fall from that resistance level.    

%Learning%: In such case we should plan a 50-50 approach on trading., Mean we should take a 50% position at the resistance level and another 50%when the gap is filled generating a limited risk but more profit.


[11:30 AM, 10/25/2018]: How our group member saved from losses because of Gap Rule
NF me Galti se Gap theory opposite laga di. Jab tak yaad aaya, loss me tha.. booked immediately and saved money. Only 1k loss. Nahi to 5 6k ho jata..πŸ™ˆ



[10/26, 4:01 PM]: Rule Book - *Gap* -

What we learned?

Stock in downtrend, if there is a gap (gap down opening) - it will try to fill the gap and start moving downwards and vice versa

Now, many of the rules conflict with each other. For example,

1) Stock in downtrend
2) Opened gap down at support levels and price continue to fall
3) After a while tried filling the gap (Our thought process currently is it will continue downtrend)
4) However, in reality price is increasing
5) Such candle can be named as Hammer, Piercing line, Bullish Engulfing, etc
6) Stoploss come handy in such cases

This is the reason we keep hearing there is no surity but a probability in stock markets. The one who become 100% sure or believes he is always 100% right, is the one who will stop progressing further.

Bottom line is if you find 70% of the times rules are working, you should be pleased. It probably means you’ve sharpened your technique and there is a room to grow. If you find 100% of them working 100% of times, you should worry. It probably means your technique is muddled.

Spend your weekend to read more and more articles on gaps and share with us the best study material you find on theory gaps.

[10/31, 2:23 PM] Suyog Shanbhag:



[11/1, 9:43 AM] Swapnil Wadkar EqTech-1259: Gap filled short as rule says


[10/31, 7:54 PM] Ganesh Baser EqTech-1422: Bharat forge filling gap to 602…?
[10/31, 7:57 PM] Ganesh Baser EqTech-1422: Seems Morning star formation too


[11/2, 9:46 AM] Ganesh Baser EqTech-1422: Gap filled

[1
[11/3, 12:48 AM] Ganesh Baser EqTech-1422: Tata Motors have the gap between 206.3 to 208.50



Wednesday 24 October 2018

How to read Open Interest, Volume and Price Data to make profitable trades


Open Interest and Volumes helps us to ascertain the strength and weakness in the price movement. Reliability of trend increases when both Open Interest and Volume are trending in same direction along with price. Declining price with declining open interest indicate the base has been formed. Rest combination in between price and open interest indicate weakness in trend

Pin this


Example: Zeel Oct 2018 Expiry Data




Any questions / comments - share it through comment section or ask us in group.

Happy Learning, Happy Trading, Happy Earning. 

Monday 1 October 2018

Trades - Oct 2018


_____________________________________________________________________

[10/3, 9:43 AM]: DHFL 

MADE LOW - 304 HIGH 328

_____________________________________________________________________


[10/3, 12:40 PM]: Jet Airways seems Bottoming out - 

Look for short covering - 

176 good support 

Buy with sl 168 

Target - 

πŸ”΅183.50

πŸ”΅ 188

πŸ”΅ 192

πŸ”΅ 198


πŸ”΅ 215
_____________________________________________________________________

[10/3, 1:16 PM]: Jet hits first targetπŸ’₯πŸ’₯πŸ’₯πŸ’₯

[10/3, 1:20 PM]: *DHFL*

334 From -276

_____________________________________________________________________

[10/3, 2:36 PM]: mother'sun Un-Healthy 

230 PE - on sustaining below - 244 

Cash target 232 /

STOPLOSS - 5.20

_____________________________________________________________________

[10/3, 11:18 PM]: Complete Caution - 

No Leverage - 

Panic Button Possible πŸ”΄/ Brokers Margin Calls

Jet - bottom - 158
_____________________________________________________________________

[10/4, 11:10 AM]: Exit - Mothersun Sumi 240 Pe
_____________________________________________________________________

[10/5, 12:48 PM]: Large Caps - On Caution

Stay away from buying
_____________________________________________________________________

[10/5, 12:50 PM]: Maruti ready to break 7000
_____________________________________________________________________

[10/5, 3:04 PM]: Escorts - 540PE

Buy Best 

Stoploss - 6

Target cash - 565
_____________________________________________________________________

[10/5, 3:17 PM]: Don't carry shorts in Midcaps - Bottoms done with closing
Maruti - 6800
_____________________________________________________________________


[10/3, 9:43 AM]: DHFL 


07/10/2018, 9:13 pm: Muthoot Finance- Complete short on weekly chart. Shooting Star candle. Symmetrical triangle breakdown. Indicators have shown divergence and is going down.

Evening star on monthly and again a shooting star and look at volumes big red candle which means he has distributed on the top to retail

08/10/2018, 8:11 am: Titan has also formed H&S pattern in weekly chart. Breaking the channel on downside should fill the gap this time




08/10/2018, 9:30 am: Mother sun - 226 Γ°ΕΈ˜Ε“

08/10/2018, 10:08 am: First half - market will favour hourly dips and range bound trades

08/10/2018, 10:11 am: Tata motors - 212.60 low - All Target hit

08/10/2018, 12:23 pm: Escorts hits target

08/10/2018, 2:57 pm: Manappuram - Short covering Candidate

Will not take much risk -

80CE
Buy : .60

Stoploss - .30

Target - 1.6

09/10/2018, 9:27 am: Place Selling Bids -

Manappuram -



@.80

10/10/2018, 8:24 am: Happy Navratri to everyone and looks like market will also open on a positive note. Newsflows for nbfcs seem to be improving on the liquidity front which has been the biggest concern. Reports of nbfcs being able to raise money, banks like SBI coming forth to use the opportunity to buy loans and thus provide liquidity, all this augurs well and should bring some respite for the nbfc space. For power sector too, there could be some policy decisions taken which can help.

10/10/2018, 10:31 am: Manappuram -

80ce
 1.5

Booked early Γ°ΕΈ˜Ε“Γ°ΕΈ˜Ε“

10/10/2018, 10:32 am: Nifty Range -

10344 / 430

10/10/2018, 11:50 am: Jet Airways

192 should hold -

24Lac shared traded at one go...seems bottom is near....
 On breaking previous high 203

Target 212

Can also traded 220CE

Buy Best

Target cash 212

Stoploss 4

10/10/2018, 2:41 pm: *NBCC*

Buy  - 60 CE

Best Buy -

Cash Target - 57.10 , 60.10

STOPLOSS - 1.30



11/10/2018, 9:44 am: Jet Airways

196

12/10/2018, 3:20 pm: Ktkbank -

Buy - 85 PE

Best Buy

STOPLOSS .80

Target 2.90



[10:03 AM, 10/14/2018]: Nifty  - Stable outlook for Monday  - opening  - very strong support  - 10397 , - However  - Immediate resistance - 10514 - Buy Nifty  - 10433-40 Target  - 10540



[10/15, 7:50 AM]: CNX- IT  - Short term - Target Achieved on IT index  - Short Initiated at 15840- with 14400 - Achieved  -

[10/15, 7:50 AM]: CNXIT - though results have started pouring - there is still room on bottom formation  - 14150  /- stands good reversal point and look to buy and accumulate -/ next three months post results - the IT sector may outperform - depends if markets remains stable









[10/15, 8:05 AM]: Nifty - Range ( Monday)

πŸ”΅ 10433

πŸ”΅ 10397

πŸ”΄10514

πŸ”΄10540

πŸ”΄10615

[10/15, 8:18 AM]: Reliance Industries

πŸ”΅Buy - 1117 

πŸ”΄S L. - 1108 (HCL)

⛳Tgt - 1142

Mothersun

πŸ”΅ Buy - 237.10 

πŸ”΄ SL -  234 ( H: CL)

⛳ 240.80 , 243, 248 ,251

Escorts

πŸ”΅Buy - 591- 593

πŸ”΄SL -   584

⛳ 603 , 618

Markets expected to be in range - Short term trades  recommended- Strategy - Buy supports and Sell Resistance

[10/15, 1:23 PM]: My attitude is that I always want to be better prepared than someone I am competing against. The way I prepare myself is by doing my work each night.

🎯 Reliance 
1119 to 1142 dot -

🎯 Escorts 
590.80 to 604 dot -

🎯 Motherson Sumi
237.10 to 242 - dot 

🎯 Nifty 
10514 to 10410
10433 to 10522

Learning helps in getting succuss - 100% success πŸ’°πŸ’°

I chase rules and money chase me πŸ˜‰

Done for the day. Happy Trading.

[10/15, 4:28 PM]: You don't need too many stocks to earn money. Just playing with even one stock will give you money more than your desires

Example: Escorts

Opened 609
High 609
Low 588.70

Even if you have played with this stock intra day - you could have traded from 591 to 600 thrice in today's session and winner all three times. 

LEARN. LEARN. LEARN. All money lies here for you to fetch. 


See you tomorrow with new opportunities to make money 🎯

[10/16, 8:11 AM]: Tuesday Oct 16, 2018

Every trader has strengths and weakness. Some are good holders of winners, but may hold their losers a little too long. Others may cut their winners a little short, but are quick to take their losses. As long as you stick to your own style, you get the good and bad in your own approach.”

Trades for the Day 

πŸ“Œ BEML

πŸ”΅ 610

πŸ”΄ 603 ( HCL)

⛳ 624, 628, 642


πŸ“Œ M&M

πŸ”΅ 732.10

πŸ”΄ 724 (HCL)

⛳ 742, 748


πŸ“Œ DLF

πŸ”΅ 154, 153.40

πŸ”΄ 151.50 (HCL)

⛳ 156, 159, 163


*Strategy*

Nifty expected to trade in range - Would adapt same rule as yesterday - 

Buy - Weakness and Sell Strength 

πŸ”΅ 10397

πŸ”΅ 10433

πŸ”΅ 10470


πŸ”΄ 10540


πŸ”΄ 10630



[10/17, 8:43 AM]: *Market View* -

Gap Up Opening -

Sgx - 100 Points up..

Immediate support - 10653

Check the strength - of reversal and trade

Nifty -

πŸ”΄ 10743

πŸ”΄10836

πŸ”΅ 10700

πŸ”΅ 10675

πŸ”΅ 10653

πŸ”΅ 10611

Stock Trade -

Escorts

Phase One

πŸ”΅ Buy - 640.50

πŸ”΅ Buy M - 631.10

πŸ”΄  SL -      624( HCL)

⛳ 658.  ⛳665

Scalp -

DLF -

πŸ”΅ BUY - 161.40 ⛳ 163.20

[10/17, 8:47 AM]: Nifty Trade -

Short Sell Nifty -

πŸ”΄ 10738

πŸ”΅SL - 10754

⛳ 10700, 680


[10/17, 12:11 PM]: Good Day -

πŸ”₯ DLF scalp gave exact One Rupee

πŸ”₯ Escorts from 631.10 (average 635.80) to 648



[10/21, 12:28 PM]: Coming back to USD INR - 74.98 $ is strong resistance and i dont see much of strength holding above the point - It should not in any case consolidate over and above, because if it does, then...........look at the chart.......




[10/22, 10:33 AM]: HDFC BANK

NOVEMBER 1900 PE

πŸ”΅Buy Best

πŸ”΄ Stoploss - 16

⛳ target - cash 1948, 27 ,1883

[10/22, 11:12 AM]: Dish - TV

Huge volumes


Seems heading for down circuit



[10/22, 2:11 PM]: Keep watch on KTKBANK

For Downside

[10/22, 2:27 PM]: Once it's break - 96 and sustains below 95.5

Short -

[10/23, 9:34 AM]: πŸ”₯ Hdfc Bank PE 30 now

πŸ”₯ Dish T V 42.30 now

πŸ”₯ Ktkbank 95 now
[10/23, 2:22 PM]: πŸ”₯ Ktkbank 93.25 now

Intra day can look at 92 levels and remember it's a positional short.

*Screen always and always wish to give money to rule followers*

*Rules say* :

1. Stock in downtrend
2. Open Gap down
3. It will try to fill the Gap
4. Go short on Gap filled level

*HDFC Bank* -

Yesterday's Closing - 1998.90
Today Open at - 1973
Gap filled at around 1 pm (1998.90)
High - 1998.90
Now stock is at 1983

*Screen badi dayawaan hai*
*Banana chahti aapko danwaan hai*
*Suno karo jo woh kehti hai*
*Dekho kaisey phir aapki pocket yuh khilti hai*

[10/24, 12:38 PM]: Yesterday, the rule of gap was discussed with an example of HDFC Bank -

Today, again the same rule worked -

*HDFC Bank* -

Yesterday's Closing - 1985
Today Open at - 2004
Gap filled at around 10:30 am (1985)
Low - 1982.20
Now stock is at 1997

You need screen to make you rich. Follow it.


[10/24, 2:37 PM]: Hdfc Bank - Trading on lower band of triangular pattern  - ready to break



Nifty - 4 hours trading on lower end - cautious

Reliance Infra - Cup & Hamdle, Inverse Head and shoulder



[10/25, 8:35 AM]: *Nifty*

First hour is very crucial - If unable to hold or bounce - Check for lower lows -

Look for follow up buying - to trade reversal - if you find lacking strength - just stay away from taking positions -

However market players should attempt two moves

πŸ“ŒTo stress market so much that people may not role over their positions

πŸ“ŒTo give them rollover move and stress in next series - which can be first week -

πŸ“ŒBoth above cases should be based on open interest analysis -

Complete Caution

Markets expecting reversal and mass retail is not expecting severe downfall......

Selling attempt could come on large caps if nifty has to fall further -

So complete watch on nifty 50 which are standing in range since last 15 days

*3,8,13 - EMA - TO TRADE ON LARGE CAP MOVES*

[10/26, 9:50 AM]: HDFC Bank

Book Profits - 27

[10/29, 9:08 AM]: Call for First Hour

Icicipru

πŸ”΅Buy Above - 328.80

πŸ”΄ Stoploss - 322.50 (HCL)

⛳ Target - 332.50, 336.40 , 342

Nifty - Expected to open strong - Gap up....Need to see sustaining upper levels with Good Follow up buying -

Try attempting first dip buy with minor SL - If carries - Trail ⏫⏫⏫

Strategy -

Check for Range Breakout to trade today -

[10/30, 9:00 AM]: Supports

πŸ”΅10226

πŸ”΅10206

πŸ”΄10258

πŸ”΄10298

[10/30, 9:11 PM]: *Indusindbank*

πŸ“ŒFresh Short - 704100

     Closing - 1362

⛳Target Price - 1343

Gap Down Expected -

Open Scalp Buy - Opportunity

[10/30, 9:27 PM]: Nifty - Hourly Move - Morning Trade - Nifty

πŸ”΅ Buy - 10166

πŸ”΅ Buy More - 10113..

πŸ”΄ Stoploss - 10079 (CL)

⛳ Target -     10216, 316

Formation - Cup n Handle -

Strong bargain Buy Opportunity -

πŸ”΅ 107.10

⛳ 111

⛳ 115

⛳ 120



[10/31, 8:02 AM]: Tech Mahindra

Morning Momentum - Gap Fill trade - 717
Closed - 685

*Results today*

*Canara Bank*

Comes usually in market hours -

Banking shares are trading strong and the momentum speak s of trend sustaining -

Thinks stock should be bought on profit booking and trading bounce anticipated

Buy Orders - Pyramid

πŸ”΅ 244.10

πŸ”΅ 237

πŸ”΅ 231


πŸ”΄ 227 (CL)


⛳ 266 , 274


*Above situation play on result sounding at par...with no surprise

[10/31, 10:19 AM]: *Intra day trading is like surfing. You can't fight the waves. You have to befriend them while training yourself. Like waves Mr Market dont bothers who you are. As you cant fight with nature because nature always has the last laugh. Same is with stock markets.*

🎯 Indusind
From 1365 to 1342 done
From 1343 to 1348 done too
Now 1336
Will enter in reverse trade

🎯 Tech Mahindra
From 685 - 707

[10/31, 11:04 AM]: Tech mahindra - 720 , indusinbank  - Reverse trade  - Initaited in favor

[10/31, 11:25 AM]: Tech Mahindra 740

[10/31, 2:07 PM]: Nifty hits all targets

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