Golden Rules

Always Remember before going Long or Short

JNSAR Rules
Whenever JNSAR triggers enter at CMP(Current Market Price) without thinking and keep -20pts
as SAR(Stop and Reverse) from entry point.
If it comes below that -20pts then again reverse the position and keep that current swing
high/low as SL(Stop Loss).
Suppose JNSAR is 4972, and it triggers(NS moves above/below JNSAR); that is market touches
from 4965 to 4972..then keep a SL of 4952 and go long at CMP. If mkt comes down and hits SL,
then go for short(Reverse your position -->SAR) at CMP with a SL of 4972.
EMA Rules
When prices move above Low Ema & Closes: Buy on dips to High ema+
When prices move above High Ema & Closes: Buy & Hold as upward momentum picks up.
When Prices move below High Ema & Closes: Sell on rises to Close Ema/ Low EmaWhen Prices move below Low Ema & Closes: Sell & Hold as downward momentum picks up.
Important:
Always have a combination trading system such as:
Week/ Day TA for positional.
Day/ Hour for Short term as well as Intraday.
After Day closed below DHEma, the week/ Day presents a sell on rise but without down
momentum as the closes have been above both WLEma & DLEma.
As for Day/ Hour combo, similar sentiments except that Day hasn't triggered a sell by closing
below its DEma yet.It could be today.
As the colours in the TT changes, you can feel the strength & weaknesses of different time
frame.
As long as the higher T/F is in sell mode, treat the greens in the lower T/F as a ST play only till
other "credible reversal patterns & divergences emerge".
A small Write Up on EMA
A buy in a lower time frame while the higher time frame is in BUY MODE would be a valid
signal. (If you get a price closing above Day Low Ema(DLEMA) while it is staying above Week
Low Ema, it is a valid & viable one., exceptions when a market is reversing with +ve

divergences). You read your tools starting to give a buy from oversold region, prices would close
above the "Low Ema" of that time frame in the TT(depends on the hour/ day/ week TA).
Once the prices close above Low Ema, it is "Buy on Dips" for the short term until prices close
above "Close Ema" signalling a "Hold". The prices are then expected to close above "High Ema"
indicating momentous moves ahead and you may plan your trades accordingly by adding more
for the short term swift gains.
In a sideways market, the prices tend to oscillate between High & Low Emas.
Similarly when the TA tools indicate a overbought with negative divergences, the prices will
close below "High Ema" to suggest a "Loss of momentum" signalling a "Sell on Rises" and
confirm it with a close below "Close Ema" for a hold and once closes below "Low Ema", the
downward momentum will accelerate.
EMA for Buy and Sell Trigger
While the market is comfortably above 5DEma/JNSAR, the close below HEma suggests weakening of
upward momentum which means short term traders would move into sell on rises...investors have
taken a pause as well as do part booking.
Subsequently, if market survives the LEma, it would attempt to move higher. In a strongly trending
market, such as the current one, market is coming only upto 5DEma so far. And after a two days of
sideways move, it has closed above DHEma & poised to take another move higher. In normal
conditions, the close below HEma generally takes the market towards LEma-20pts.
Markets have occasionally closed above HEma but has gapped down next day. Most TA studies suggest
overbought conditions but the corrections have been of intraday nature so far.
While the market is comfortably below 5DEma/JNSAR, the close above LEma suggests weakening of
downward momentum which means short term traders would move into buy into dips...investors return
to re-enter into their fallen favourites.
Subsequently, if market is unable to close above HEma, it would attempt to move lower again and the
downward momentum returns once it closes below LEma.
Knowing the market strength/ weakness with the help of prices positioning in the Tech.table of
different Time frame, one could choose good trade set ups and initiate trades at appropriate levels.
The levels are arrived at using Pivot table and Tech.table and other considerations such as Fibonacci
table, Elliott wave study, etc.
While reading the TT during uptrend, it is very important to know that as long as the Week TA is in
upmode(green), the down (red) that appears in day TA will not give sharp falls except at the point of
major reversal. Similarly as long as the Day TA is in upmode(green), the down (red) that appears in
Hour TA will not give sharp falls except at the point of major reversal. And during downtrend, read the
same appropriately by respecting the higher T/F TA.

Fast Fall or Fast Rise Rules

Lesser moving averages are crossing over the higher Moving averages====Fast Rise
Higher moving averages are crossing over the lesser Moving averages====Fast Fall

Trending Rules
Trend is identified by watching tops and bottoms which are visible on charts of bars
A bottom will be there between two tops
A top will be there between two bottoms
Increase in bottoms indicates an uptrend
Decrease in tops signals the downtrend
Open Interest Rules
What is Open Interest?
Open interest is the total number of outstanding futures and options (F&O) contracts at any point
in time.
How Open Interest is Calculated?
For example, if trader A buys 1 futures contract from trader B(who is the seller), then open
interest of that scrip rises by 1.
If another trader C say buys 2 futures contracts of the same scrip from trader D, then the open
interest rises by 2 and become 3.
Now, if trader A unwinds (covers) his/her position and the counter party is either B or D, then the
open interest of the scrip will reduce by that quantity. But if A unwinds his position, and the
counter party is a new entrant, say E, then the open interest will remain unchanged. This is
because while A has squared off his position, E's position is still open. (As only hands are getting
changed , no new contract is sold or written).
How to Interpret Open Interest and How to Trade?
Tracking Open Interest alone does not signify much information, Explore the co-relation power
of Open Interest, Volume and Price movement. Increase in Price with increase in Open Interest is
positive for the stock (Fresh Longs). Decrease in Price with increase in Open Interest is
considered negative (Fresh Shorts)
In case of option:
1. price up, o/i up > long build
2. price down, o/i up > short build
3. price up, o/i down > long unwind
4. price down, o/i down > short unwind
How to use advanced camarilla calculator
Look at the opening price for the stock/futures/commodities/currency.
There are various scenarios that can occur
Scenario 1
Open price is between H3 and L3
For Long Wait for the price to go below L3 and then when it moves back above L3, buy.

Stoploss will be when price moves below L4. Target1 - H1, Target2 - H2, Target3 - H3
For Short Sell Wait for the price to go above H3 and then when the price moves back below
H3, sell. Stoploss will be when price moves above H4. Target1 - L1, Target2 - L2, Target3- L3
Scenario 2
Open price is between H3 and H4
For Long When price moves above H4, buy. Stoploss when price goes below H3. Target 1 - H5,
Target 2 - H6
For Short Sell
When the price goes below H3, sell. Stopless when prices moves above H4. Target1 - L1,
Target2 - L2, Target3- L3
Scenario 3
Open price is between L3 and L4
For Long When price moves above L3, buy. Stoploss when price moves below L4. Target1 H1, Target2 - H2, Target3 - H3
For Short Sell
When the price goes below L4, sell. Stoploss when price moves above L3. Target 1 - L5, Target
2 - L6
Scenario 4
Open price is outside the H4 and L4
Wait for the prices to come in range and trade accordingly.