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Saturday, 1 July 2017

Intraday with Candle Stick Patterns; How to Derive Intraday Levels: Part - 1


Hello all,

  This was the most requested section by many in group or in personal message, whenever i post the results. But members used to ask only on those days when there are more Target hits  😂

So here I want to explain on basic idea on Intraday with Candle Stick Patterns and how to Derive the intraday levels.

In part 1, i would like to share one of my favorite pattern "Shooting Star" and we will explore more patterns in remaining parts.




Here above shown the picture of Shooting star pattern. Points to remember for a Shooting star pattern to work great for intraday, but of course nothing is 100% but the the probability being success is high.

1. As shown the above picture the upper shadow (wick) of the candle should be at-least double the body, that means close-open <= 2 x open-high, considering the red shooting star..

2. The shooting start should be taken from Day charts

3. The shooting star should considered only when the trend is upper side i.e., bullish or at-least before bar should be bullish bar only, we can ignore the shooting stars formed when the stock is bearish or side ways.

Lets look sample charts when to Consider or Ignore.


In the above image, we can consider image 1 which is in uptrend and can ignore image 2 and 3 which is in sideways or Downtrend.

So we take Image 1 and draw a line at low of Shooting star and change the time frame to 15 Min

Points to remember for deriving the levels:

1. Sell below the low of the day candle.

2. Stop loss should be 3rd High of the candle in 15 Min chart

3. Entry should be based on the 5 Min chart (As per the link at the end of the post)

4. Qty should be considered as per our money management (As per the link at the end of the post)

5. Target should be equal to = Sell level - (Stop loss - Sell Level)

6. Try to book partial profit when 1/2 of Target reached initially and revise SL to sell level.

7. Very important never ever forget to close position because the consequences will be heavy

Lets see the below chart for the easy understanding of levels


So identify a Shooting star in day charts and derive levels and trade intraday with confidence.

Before heading to Intraday, I request to read the below two posts: All the best 😇😊

2 comments:




  1. "1. Sell below the low of the day candle." - here day candle means the shooting star candle or day low?

    "2. Stop loss should be 3rd High of the candle in 15 Min chart"- here 3rd high of the whole day?
    Can you please explain these two points with example chart(with prices mentioned in the chart)

    Also is this strategy applicable for current day(Then which time is best for that) or just to identify the data for next day aafter closing of current day?

    ReplyDelete

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