Intr Say Tra NG Straes
Intr Say Tra NG Straes
Intr Say Tra NG Straes
We can categorize or divide our strategies as per different time frames & situations
for better understanding.
Take the following figures and trade plan with you on the basis of calculations given
below. We will call it Brok ers Strategy ( BS )
Now BS = D / 3
Now on trade day if STRONG share opens anywhere between Pr. Close & BUY PRICE
you can BUY first & keep for sell @ SELL PRICE as your target.
The Trap :- As the broker opens the share at a price lower than Pr. Close one gets
the feeling as if the share has become weak and sells it, thus falling in the trap.
On trade day if WEAK share opens at or above SELL PRICE you can SELL first & buy
later @ BUY PRICE as your target.
The Trap :- As the broker op ens the share at a higher price than the Pr. Close one
gets the feeling that the share has become strong and buys it thus falling in the trap.
Note: For this strategy Preferably take shares with high volumes & less volatility(not
operator driven stocks). This strategy will not work in GAP OPENINGS. This strategy
requires you to be very fast in taking decisions and accordingly positions.
Furthermore One should co mpulsorily come out or close the position in the
mentioned time frame. Life is not that easy and if you find that your position was
wrong immediately square it ( close it)
REMEMBER TO CLOSE POSITION WITHIN THE TIME-FRAME MENTIONED
FEEDBACKS WELCOME
The intraday movements of share prices are generally governed by Support &
Resistance levels. The intraday volume, OPEN, HIGH, LOW, CLOSE & previous CLOSE
prices are very important & one should track these prices daily. Previous data of 3 to
5 days is what is to be mainta ined or tracked. And the intraday data prior to the
trading day is important.
We can calculate the support & resistance levels for the next trading day with the
help of above prices. The basic formula to calculate the various support(S1,S2,S3) &
resistance ( R1,R2,R3 ) levels is as follows :-
R3 = H + 2 * ( B – L )
R2 = B + ( H – L ) or B + ( R1 – S1 )
R1 = ( B * 2 ) – L
BASE = B = ( H + L + C ) / 3
S1 = ( B * 2 ) - H
S2 = B – ( H – L ) or B – ( R1 – S1 )
S3 = L – { 2 * ( H – B ) }
Mostly traders’ worldwide use above formula of Support & Resistance both for
intraday trading as well as Delivery based trading. The general intraday
interpretation of these levels (also called as PIVOT POINTS ) is if the Share price(or
market) is above the BASE one should take a Long ( i.e. Buy ) position with target of
exiting (Selling) at R1, R2, R3 levels. Similarly if the Share price (or market ) is
below the BASE one should take a Short ( i.e. Sell ) position with the target of
exiting ( Buying ) at S1, S2, S3 levels.
YOU have to understand one more important aspect of these levels. As the price
moves from one level to other the immediate lower level becomes support &
immediate upper level becomes resistance. Suppose the price is above R1 than R1
becomes immediate support & R2 becomes immediate resistance of the price
movement.
Before understanding the different Strategies, we will take a look at the results of a
very long term study of more than 10 yrs.
Now just apply your mind to interpret the findings of above study to help you decide
ENTRY & EXIT points for your BUY or SELL positions.
THIS FORMS THE BASIS OF YOUR UNDERSTANDING THE MARKET & INTERPRETTING
IT BETTER & ALSO GRASPING MY DIFFERENT STRATEGIES.
POWER OF 3 :-
As a trader always remember 3 is a very important number.
3 sec., 3 min., 3 hrs, 3 days, 3 months , 30 % etc. and so on.
We can categorize or divide our strategies as per different time frames & situations
for better understanding.
Take the following figures and trade plan with you on the basis of calculations given
below. We will call it Brokers Strategy ( BS )
Now BS = D / 3
Now on trade day if STRONG share opens anywhere between Pr. Close & BUY PRICE
you can BUY first & keep for sell @ SELL PRICE as your target.
The Trap :- As the broker opens the share at a price lower than Pr. Close one gets
the feeling as if the share has become weak and sells it, thus falling in the trap.
On trade day if WEAK share opens at or above SELL PRICE you can SELL first & buy
later @ BUY PRICE as your target.
The Trap :- As the broker opens the share at a higher price than the Pr. Close one
gets the feeling that the share has become strong and buys it thus falling in the trap.
This strategy requires you to be very fast in taking decisions and accordingly positions.
Furthermore One should compulsorily come out or close the position in the mentioned
time frame. Life is not that easy and if you find that your position was wrong
immediately square it ( close it)
Note :- The BUY PRICE as per above calculation is approximately S1
& The SELL PRICE as per above calculation is approximately R1
We can categorize or divide our strategies as per different time frames & situations
for better understanding.
Take the following figures and trade plan with you on the basis of calculations
given below. We will call it Brokers Strategy ( BS )
Now BS = D / 3
Now on trade day if STRONG share opens anywhere between Pr. Close & BUY
PRICE you can BUY first & keep for sell @ SELL PRICE as your target.
The Trap :- As the broker opens the share at a price lower than Pr. Close one gets
the feeling as if the share has become weak and sells it, thus falling in the trap.
On trade day if WEAK share opens at or above SELL PRICE you can SELL first &
buy later @ BUY PRICE as your target.
The Trap :- As the broker opens the share at a higher price than the Pr. Close one
gets the feeling that the share has become strong and buys it thus falling in the
trap.
Note: For this strategy Preferably take shares with high volumes & less
volatility(not operator driven stocks). This strategy will not work in GAP
OPENINGS. This strategy requires you to be very fast in taking decisions and
accordingly positions. Furthermore One should compulsorily come out or close the
position in the mentioned time frame. Life is not that easy and if you find that your
position was wrong immediately square it ( close it)
REMEMBER TO CLOSE POSITION WITHIN THE TIME-FRAME MENTIONED
FEEDBACKS WELCOME
It is all very interesting. I didnot know there are technicques that can be used for
intra-day. The only tecnique I know is to follow my nose. But still here there are
traps in your traps as you mention. I think I will try out real time without money
( only on paper). Once I gain confidence I can get in with money.
It is indeed kind of you to come out and teach. Many people donot want to expose
their strategy. They should understand that they will continue to roll in money while
teaching others who will be ever grateful to them for reducing their losses or making
some money.
Awaiting eagerly for the remaining strategies, slowly please one at a time.
Thanks a million.
VPS