Learnings from Subhasish Paani... Power of Stock.

 

3 Simple Rules applies to almost all time frame.

1.  Bollinger band(20, 1.5)- It applies to all time frame starting from monthly for long term investing- how long is long term depends on person to person.

Bollinger band(20,1.5) weekly time frame very useful for any type of stocks to hold.

2. Inside Candle - mostly useful for intra-day 15 min chart- One/first candle and than second candle (full size) inside/within the first candle.

Most importantly check the previous trend of the market movement   and than if you find inside candle check in which side the next candle break out is happening- if it is in the side of trend take your full quantity position, and if the breakout in opposite side trade half quantity. Learn to give small and frequent Stop-losses to get good big movement on the break-out side.

Take trade on breakout of the baby candle. For stop-loss -keep according to inside candle or the size of previous candle.

In sideways market there will be losses / frequent Stop-loss. But one should not miss a TRENDING MARKET there will be good profit. 

In this INSIDE CANDLE -ONE WILL NEVER MISS BIG TREND.

One modification-one can do is -if you trade after breakout of the mother candle, sometimes stop-loss will be very big, so you can take a trade just after the baby candle is formed and breaks-out in the next candle, For Stop-loss- some times if mother candle is small, stop-loss can be low/high of mother candle . or. if mother candle is very long Stop-loss can be low/high of the baby candle.

If a big trend is coming, we can get the big trend after the inside candle

Inside candle never misses the big trend, may have to give small losses. Big move generally comes IN THE SIDE OF the TREND.

if you don't understand the TREND, still take the trade, and take the Stop-loss if get stopped.

It mostly works in Bank Nifty, works in liquid stocks also. 

Best in bank Nifty- it helps to catch 80-90% of the TREND.

First you see a trend/small trend and price will pause- In the PAUSE- we see a INSIDE CANDLE and than the TREND starts...↕↑↓

3. 5-EMA -   5-EMA moves almost along with price in 5 min. intraday price chart- It works because 5EMA moves along with the price and maximum number of candles move by touching the 5EMA while going up or going down, And than a time comes in the market , when price moves away from 5-EMA either on the Upside/ downside- It means there is a deviation between the price and the 5EMA indicator.

After the deviation for 1-2-3 , 5min. candle, either the price will move again toward the 5-EMA or the 5-EMA will go near the price.

We take the trade after the deviation .

Setup=  5 min time frame for selling , BUY PUT/PE

ENTRY- A candle should close above 5-EMA without touching the 5-ema(deviation), Low of the candle should NOT touch the 5-EMA. Colour of candle can be red /green

Not touching 5-EMA candle becomes the Alert Candle, If the next candle is above the previous candle, then this candle becomes alert candle. Whenever the low of the Alert candle is broken on the downside- WE TAKE PUT BUY TRADE...!!!Same candle high is our Stop-loss. - Minimum 1:3 target can be achieved. As this is the place of TREND CHANGEべብ

90% of the time Trend Reversal will not be missed. This is the rule for Entry.

REVERSE for BUYING in 15 min chart.

For stocks- concentrate in liquidity, see for news in stocks to see movement.