WHEN A CANDLE OPENS BELOW LOWER BOLLINGER BAND AND

MANAGES TO CLOSE
ABOVE UPPER BOLLINGER BAND THEN ITS A STRONG CANDIDATE

FOR ADDITIONAL FILTER WE APPLY 21 DAYS EXPONENTIAL MOVING

AVERAGE

IF CANDLE ALSO CLOSSES ABOVE THIS 21DEMA AT SAMETIME THEN HAVE

YOUR EYES
IN ABOVE CHART WE NEED BIG BEARISH CANDLE AND INSIDE THIS WE NEED
3 GREEN HIGHER LOW & HIGHER HIGH CANDLES

3RD CANDLE IS THE SECRET

3RD CANDLE BODY MUST BE INSIDE 2ND CANDLE UPPER WICK AND UPPER
BODY

HERE BODY IS REFERRED AS DISTANCE BETWEEN OPEN & CLOSE OR CLOSE &
OPEN ,WE DON’T CONSIDER HIGH AND LOW TO CHECK THIS SETUP

HIGH AND LOW IS APPLIED ONLY FOR ENTRY

3RD CANDLE HIGH IS ENTRY AND PREVIOUS CANDLE ie 2ND CANDLE LOW IS
OUR STOPLOSS
IN A DOWNTREND LOOK FOR SUCH CANDLE WHERE ITS BODY IS
BETWEEN WICK AND UPPER BODY OF PREVIOUS CANDLE
SEE BELOW IS ASHOK LEYAND CHART

IT WAS IN A DOWNTREND AND SEE MARKED CANDLES

52 WEEK VALIDITY
IN A WEEK IF A STOCK HITS 52 WEEK HIGH MINIMUM 3 TIMES AND ON
FRIDAY IT MAKES 3RD ATTEMPT AND CLOSSES ABOVE PREVIOUS 2 ATTEMPTS
CLOSE THEN IT’S A VALID SIGNAL

FOR EXAMPLE

HAVELLS INDIA

CANDLES INSIDE BOX ARE FROM 23RD JULY TO 27TH JULY

HERE IMPORTANT IS NOT 52 WEEK HIGH

WE NEED TO SEE 52 WEEKS HIGHEST CLOSE

SEE CANDLE 1 CLOSE WAS 1ST HIGHEST 52 WEEK CLOSE

CANDLE 2 FAILED TO CLOSE ABOVE CANDLE 1 CLOSE

CANDLE 3 ATTEMPTED BUT FAILED TO CLOSE ABOVE 1ST HIGHEST 52 WEEK

CLOSE

CANDLE 4 MADE 2ND ATTEMPT AND SUCCEEDED TO CLOSE ABOVE 1ST CLOSE
SO CANDLE 4 WAS 2ND ATTEMPT

NOW WE NEED 3RD ATTEMPT CLOSE ie LAST DAY OF WEEK ORELSE THIS
PATTERN FAILS

LUCKY WE FOUND FRIDAY CLOSE ABOVE 2ND HIGHEST 52 WEEK CLOSE

SO 3RD CANDLE WAS FRIDAYS AND CLOSE IS 3RD SUCCESSFUL CLOSE

NOW WE TAKE ENTRY THE MOMENT FRIDAY HIGH CROSSES WITH FRIDAY
LOW AS STOPLOSS AND LOOK FOR 3 TO 5% RISE
HOW TO DETERMINE STRENGTH OF ANY STOCK
FOR THIS YOU NEED THE STOCK TO MAKE 3 CONSECUTIVE HIGHER CLOSES

NOW WE COMPARE LOWS TO GUAGE FUTURE MOVE WITH PERFECT

STOPLOSS

DIFFERENCE OF (DAY 3 LOW – DAY 2 LOW) MUST BE GREATER THAN

DIFFERENCE OF (DAY 2 LOW – DAY 1 LOW)

IF THIS IS TRUE THEN DIFFERENCE OF (DAY 4 LOW TO DAY 3 LOW) MUST BE

GREATER THAN DIFFERENCE OF (DAY 3 LOW TO DAY 2 LOW)

SEE BELOW CHART OF CIPLA

SO AS PER ABOVE THEORY WE BUY ON DAY 4 ie ON MONDAY ie 29th JULY

WITH STOPLOSS SPOT @ 634, IT CLOSED AT 636.20
INTRADAY TRADES AT 9.30AM
FOR THIS CHECK TOP 10 GAINERS OR LOOSERS IN www.nseindia.com

IN LIVE MARKET SECTION YOU FIND THE SAME

NOW DO THIS AT OR AROUND 9.20AM

ONCE U SELECT TOP 10 GAINERS THEN YOU OPEN MARKET PULSE APP ON
YOUR ANDROID DEVICE

SEARCH FOR THE STOCK YOU SELECTED AND APPLY 5minutes TIMEFRAME

AT 9.32 AM BUY AT HIGHEST HIGH BREAKOUT OF THESE 3 CANDLES

5minute TIMEFRAME MEANS 5 INTO 3 CANDLES THIS IS NOTHING BUT 1ST

15MNTS CANDLE

LOOK FOR .75 TO 1% AS TARGET AND EXIT

ACCURACY PERSONALLY I HAVE FOUND 90% SO DON’T KNOW HOW LUCKY

OTHERS ARE FOR THE SAME

ON FRIDAY IN TELEGRAM MY 1ST MORNING MESSAGE WAS “ BUY ITC “

IT WAS TRADING AT 300.60 AND MADE HIGH OF 307

OUR TARGET WAS 303 TO 304

SAME GOES WITH TOP 10 LOOSERS

PRACTISE IS THE KEY

POSITONAL SETUP

THIS SETUP HAS GOOD ACCURACY AND CAN BE APPLIED ON DAILY

TIMEFRAME CHARTS

ONCE YOU GET USED TO THIS THEN YOU MAY GO FOR SMALLER TIMEFRAME

INDICATORS APPLIED

DIRECTIONAL MOVEMENT

4 EXPONENTIAL MOVING AVERAGES

3EMA / 6EMA / 9EMA / 21EMA

CONCEPT IS DAM SIMPLE

BUY SETUP

WHEN +DMI CROSSES –DMI

AND ON SAMEHAND

3EMA>6EMA>9EMA>21EMA THEN WE NEED A CANDLE CLOSE ABOVE ALL

THESE 4 EMA

BUY AT CROSS OF CANDLE HIGH

TARGETS ARE NEAREST SWING HIGHS OR CHECK WEEKLY CHARTS FOR

NEAREST SWING HIGHS OR APPLY THE PATTERN SHOWN TO STAY IN TRADE
THIS NEXT SETUP IS EXCEL BASED WITH NR4 BREAKOUT
HERE WE NEED 4 DAYS DATA OF OPEN, HIGH, LOW, CLOSE

IF NR4 COMES TRUE THEN TAKING SUCH TRADE GIVES MORE ACCURACY

THEN WE DO THIS

HIGH – OPEN & OPEN – LOW

NOW U GET 2 VALUES, SEE I HAVE HIGHLIGHTED IN YELLOW

NOW WE TAKE LEAST OF BOTH AND AVERAGE IT OUT

THIS AVERAGE IS THEN ADDED 4TH DAY HIGH AND DEDUCTED FROM 4TH DAY
LOW

NOW WE SHALL ALSO CHECK IF 4TH DAY RANGE IS SMALLEST ,FOR THIS WE
DO AS FOLLOWS

HIGH – LOW OF ALL 4 TRADING DAYS

COLOM RETURNS TO TRUE IF 4TH DAY RANGE IS SMALLEST

OR RETURNS TO FALSE IF 4TH DAY RANGE IS NOT TRUE

SOME SHORT TERM 1% EXIT STRATERGIES
IF OPEN = HIGH BELOW PREVIOUS CLOSE THEN SHORT AND EXIT FOR .75 TO
1% ,YOUR STOPLOSS IS 5 PAISA ABOVE HIGH ,PREFERED TO TAKE TRADE
AFTER 8 MINUTES OF MARKET OPEN

IF OPEN = HIGH ABOVE PREVIOUS CLOSE THEN SEE TO IT THAT O=H IS NOT
MORE THAN 1% FROM PREVIOUS CLOSE

YOUR 1ST TARGET IS PREVIOUS CLOSE AND THE MOMENT IT BREAKS

PREVIOUS CLOSE THEN STOCK CAN DRAG DOWN TO 2% ALSO

IF OPEN = HIGH IS A PERFECT ROUNDED NUMBER THEN SHORT WITH

STOPLOSS OF 5 PAISA ABOVE O=H ,SAY 530 IS HIGH AND OPEN IS ALSO 530
,SO 530 IS A ROUNDED NUMBER ,BUT IF IT WAS 530.10 & 530.10 THEN IT
DOESN’T COUNT UNDER ROUNDED NUMBER AS .10 IS A FRACTION

OPEN = HIGH WITH 52 WEEKS LOW

ON PREVIOUS DAY CHECK WHICH STOCKS HAVE MADE 52 WEEKS LOW

NOW NEXT DAY IF SUCH STOCKS HAS OPEN = HIGH THEN SHORT AND LOOK
FOR NEW 52 WEEKS LOW

THE SAME FUNDA GOES WITH OPEN = LOW ITS JUST VICEVERSA
3 CANDLES OR BARS TOUCHING UPPER BOLLINGER BAND FUNDA
LOOK FOR A STOCK WHICH IS IN UPTREND

NOW CHECK FOR 3 CANDLES WHICH ARE TOUCHING UPPER BOLLINGER

BAND

MARK HIGHEST HIGH AND LOWEST LOW OF THESE 3 CANDLES

SIMPLE STEP TO VERIFY IF PREVIOUS SWING TOP BREAKOUT IS
VALID
REMEMBER THAT THE BREAKOUT CANDLE AND SWING TOP MUST HAVE
MINIMUM 10 CANDLES INBETWEEN

SEE BELOW CHART ,SWING TOP IS CIRCLED AND CANDLE MARKED WITH
ARROW HAS CROSSED THIS SWING TOP

INBETWEEN WE HAVE MINIMUM 10 CANDLES

TARGET IS 50% FROM SWING HIGH TO BASE

= ( SWING HIGH – BASE ) / 2 + SWING HIGH

= (594.15 – 531)/2 + 594.15

= 31.57 + 594.15

= 625.72