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Vayda Bazar Patterns http://www.definedge.

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Vayda Bazaar ni chavi is a Gujarati handwritten book by Mr Kanti Parekh (fondly known as Kanti kaka),
during early nineties. He was a disciple of Mahatma Gandhi as a freedom fighter at the age of 11. He
developed interest in trading markets and started maintaining hand-drawn charts. Over his long jounrey of
trading the markets, he discovered different price formations and named them as chavi which litterly mean
'key' in Gujarati. There are different bullish and bearish price patterns explained in detail in the book along
with stories of trading them.

This is an attempt to translate and explain his price formations in brief. Name of the patterns and other
terminologies which are in Gujarati are kept the same.

General rules & key terms:

Abhay (Vavo): Follow the stop


Alobh (Lano): Book at least half when reward is three times the risk taken
Avilamb (Khotbandho): Don't hesitate to book the loss
Apramad (Navo saudo): Don't hesitate in taking the trade again, even at higher price
Dhruv day: First day of a week (Usually Monday)
Dhruv: Open price of first day of week
Arundhati day: Last day of week (Normally Friday)
Arundhati: Closing price of last day of week

Basic rules:

Never Buy below Dhruv


Never Sell above Dhruv
The trade gests activated if price crosses 3 steps above or below the required price level. One step
is usually the spread of that scrip. (Spread during those days used to be huge. Looking at the charts
in the book, general rule can be formed that one step is 0.50% - 1% of the stock price).

Patterns

1) GANGOTRI & GANGOTRI A


Gangotri (Bullish pattern)

Price is trading below previous swing bottom


Closed lower during previous session
It makes new low during the opening, but recovers later

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Closes above previous session's open or close, whichever is higher

The formation is bullish and indicate strength in the prices unless bottom of the pattern gets broken.
Pattern is rarely seen on weekly or monthly charts but strong setup when it is found. Buy with stop placed
at 3 steps below the bottom of the pattern.

Gangotri A (Bearish pattern)

Price is trading above previous swing high


Closed higher during previous session
It makes new high during the opening, but falls again
Closes below previous session's open or close, whichever is lower

Though sideways is quite possible to follow, it's a strong reversal formation.

2) HABES & AARIYA


This pattern is applied on weekly charts only
Habes (Bullish pattern)

Previous week was bearish


Price recovers during current week and closes higher
Price manages to close above high price of previous week or closing price of earlier week,
whichever is higher

It is a strong formation and indicate strength unless bottom of the pattern gets broken. Gangotri and
Habes when applied together becomes high probability setup that indicate higher prices.

Aariya (Bearish pattern)

Previous week was bullish


Price closes lower in the current week
It manages to close below low price of previous week or closing price of earlier week, whichever is
lower

Pattern remains valid unless top of the pattern gets broken. Gangotri A and Aariya when applied together
form strong setup.

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3) UCHCHALAN & PACHHADAT

If previous bottom is broken but price manages to recover and exceed the previous closing price, bullish
uchchalan formation gets applied. It gets formed as soon as price exceeds previous closing price by 3
steps during the current session and remain valid unless bottom of the pattern gets broken.

Pachhadat is a bearish formation that gets applied when previous top is breached but supply brings the
price below previous close. It gets formed when price goes below previous closing price by 3 steps during
the current session and remain valid unless price breaches top of the pattern.

The formation is applied on Dainik (Daily), Saptahik (Weekly) and Monthly time frames.

Dainik pattern indicate short term reaction


Sapatahik pattern indicate medium term change in trend
Monthly pattern indicate Long term change in the trend

If it occurs on weekly chart, the first target is the closing price of the previous week. Habes and
Uchchalan when applied together, create strong case for longs. Aariya and Pachhadat indicate significant
fall in prices.

Swing Uchchalan

If price forms new swing bottom during the day, but recovers and manages to close above the previous
swing bottom, bullish swing uchchalan pattern gets applied. If the day when price formed previous bottom
was bearish, then price has to close above the closing price of that day.

If price marks new swing top during the day, but falls again and closes below the previous swing top, a
bearish swing uchchalan pattern gets applied. If the day when price formed the previous bottom was
bullish, then price has to close below the closing price of that day.

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Swing uchchalan and Habes / Aariya when seen together results in rapid price action.

4) KICK & DIVE

Kick (Bullish pattern)

Trend is down and price has made new swing low during previous session that remained bearish
Price opens near the bottom of previous session
But closes above the closing price of the previous session

Dive (Bearish pattern)

Trend is up and previous session is bullish when price has made new swing high
Price opens near the top of the previous session
But closes below the closing price of previous session

5) KUDKO & BHUSKO

Kudko (Bullish pattern)

Price made new swing low during previous session in the downtrend
It opens above the highest price of previous session and closes higher

Bhusko (Bearish pattern)

Price made new swing high during previous session in the uptrend

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It opens below the lowest price of previous session and closes lower

The formation is quite rare but strong. It indicates change of the trend and strength in the bottom (Kudko)
or top (Bhusko) that has been formed. Kudko and Habes or Bhusko and Aariya when applied together
become high probability setup.

6) KALASH

In the uptrend, after marking new swing high during the day, if price forms low below previous session low
but fails to close below closing price of that session, bullish Kalash has been applied. It is a bullish
continuation pattern that indicates weakness in the low that was marked during the day.

In the downtrend, after marking swing low during the day, if price marks high above previous session high
but fails to close above closing price of that session, bearish Kalash has been applied. It is a bearish
continuation pattern that indicates weakness in the high that was marked during the current session.

7) BHARADO

Bullish Bharado

Trend is down and previous session is bearish


Bottom of the current session is above the bottom price of previous session
Low price of the current session is near or above closing price of previous session

The pattern gets applied when price moves 3 steps above the opening price of the day

Bearish Bharado

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Trend is up and previous session is bullish


Current session high is below the high price of previous session
High price of the current session is near or below the previous session's closing price

The pattern gets applied when price moves 3 steps below the opening price of the day

8) GULANT
If price makes new swing bottom in downtrend and closes at low price of the day, the Bullish Gulant
formation is applied. Price shouldn't have gapped down to qualify for this formation. Buy with the stop
placed at 3 steps below the bottom price.

If price makes new swing high in the uptrend and closes at high price of the day, the Bearish Gulant
formation is applied. Price shouldn't have gapped up to qualify for this pattern and stop for bearish trades
should be kept at 3 steps above the high price.

9) XD & XR

The top and bottom share price of any company on the day when it declares bonus or right issue, becomes
important reference points for the future.

10) GARBH

This pattern is applied to the fresh listings. Price when goes 3 steps above the listing day open price, it
makes the stock Garbh bullish. And when it goes 3 steps below the open, the stock becomes Garbh
bearish.

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11) DHRUV

Every Dhruv comes with an opportunity to trade.


If price trades 3 steps above Dhruv in uptrend, buy with stop placed at low price of the day. If Dhruv is
above Arundhati of last week, buy at opening price with stop placed at 3 steps below Arundhati.

If price trades 3 steps below Dhruv in downtrend, short with stop placed at high price of the day. If Dhruv
is below Arundhati of last week, short at opening price with stop placed at 3 steps above Arundhati.

12) TEJI TEER & MANDI TEER

Teji Teer (Bullish pattern)

If current session's low price is above previous session's high price and the session remain bullish, Teji
Teer pattern has been applied. Below is the formula to derive target when Teji teer is applied:

Teji Teer Bottom + ((Swing bottom + Tejii Teer Bottom) x 1.5) = Teji Teer Target

The size of gap should be added to top price of Teji teer to arrive at breakout price. The close above the
breakout price activates the target. If the session turns out to be bearish after forming the gap, Teji teer
pattern gets invalidated.

Mandi Teer

If current session high price remain below previous session's low price and the session remain bearish, the
Mandi Teer has been applied. Below is the calculation of target price:

Mandi Teer Top - ((Swing Top - Mandi Teer Top) x 1.5) = Mandi Teer Target

The size of gap should be deducted from bottom price of Mandi teer to arrive at breakout price. The close
below the breakout price activates the target. If price closes higher after forming the gap, Mandi teer
formation gets failed.

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The activation within 3 days leads to quick move with higher probability of target being achieved.

13) DIGMUDH

If price doesn't cross previous session high and don't even go below its bottom during the current session,
it is called as Digmudh session. Breakouts after 2-3 Digmudhs indicate strong thrust.

14) PALANTHI

If low price of current bullish session happens to be at closing price of previous session, Bullish Bottom
Palanthi formation is applied. If high price of current bearish session happens to be at closing price of
previous session, Bearish Top Palanthi formation is applied.

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It is a strong reversal formation and indicate change of trend.

15) VISAMO

Whenever you get a move in favour, which is equal to the difference between swing top and swing
bottom, profit should be booked. This is called Visamo. It is experienced that the habit of taking Visamo
prove profitable over a period of time

16) Purna viram?

Below are the criteria for Bullish pattern

Trend is down and price makes new swing low during the previous session
Opening price of current session is above the swing low and forms the bullish day
But close happens to be below closing price of the previous session

Below are the criteria for Bearish pattern

Trend is up and price makes new swing high during the previous session
Opening price of current session is below the swing high and forms the bearish day
But close happens to be above closing price of the previous session

Question mark in the name of the pattern indicates confusion. There are signs of reversal but formation is
relatively weak. Confirmation from some other pattern is required.

17) GANONI & GOFAN

If price doesn't breach the bottom of the previous session that was uchchalan, the Bullish Ganoni pattern
is applied. Similarly, if price doesn't breach the top of the previous session that was pachhadat, Bearish
Gofan pattern is applied.

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It is a follow through formation to Uchchalan or Pachhadat reversal patterns.

18) VIJALI AND ZABKARO

After marking new swing bottom, if price forms Mandi teer that immediately gets followed by Teji teer,
Bullish Zabkaro pattern gets applied. Price can lead to test the previous swing high provided Teji teer
doesn't get failed within next 4 sessions.

Similarly, if after marking new swing top, price witnesses Teji teer that immediately gets followed by
Mandi teer, it is known as Bearish Vijali pattern. Price can test the previous swing bottom provided
Mandi teer doesn't get failed within next 4 sessions.

19) AAGE BADHO & PACHHA FARO

If Mandi gap is filled on same or next day and session becomes 'very' bullish, it becomes a bullish
continuation pattern Aage badho. Very bullish is defined as, price closing above 70% of the entire session
range.

Same way, if Teji gap is filled on same or next day and session becomes 'very' bearish, it becomes bearish
continuation pattern Pachha faro. Very bearish is defined as, price closing below 70% of the entire session
range.

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20) TOOFAN AND AANDHI

Bullish Toofan pattern gets applied when price goes above previous multiple swing tops and session
remains bullish. Similarly, if previous multiple swing bottoms are broken and price remain bearish, then
Bearish Aandhi gets applied.

They are swing breakout formations but author must have seriously observed their importance and
usefulness to give them such aggressive names.

21) VAVO AND LANO

In downtrend, when price opens below recent bottom but recovers eventually and session turns out to be
bullish, the Bullish Vavo pattern is applied. Same way when price open above recent high in the uptrend,
but sessions turns out to be bearish, the Bearish Lano pattern gets applied.

He writes, "Vavo e ketlu motu kanasalu thay chhe e avata divaso ma khabar padse".

22) CHOTALI AND POTALI

This formation was meant for very short term and intraday traders. After breaking the swing bottom when
price moves back above the bottom of the day by 3 steps then bullish chotali pattern gets applied. Buy
with stop placed at bottom of the day. Vice versa for bearish Potali.

Given the availability of intraday software, data and dynamics of the market today, this formation have
lost the relevance. Uchchalan, Pachhadat or other formation on lower time frame charts are more
applicable for short term trading.

In brief

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All patterns are applicable on all time frames but not all of them may be equally relevant today. Though
they are quite similar to candlestick formations, the rules of trading them along with swing high - lows
makes it an effective swing trading strategy.
It is a mind blowing work considering the fact that Technical analysis was not so popular in India during
the same time. If one knows Gujarati, the original work is a must read and strongly recommended to
understand the formations in detail, and to know about a beautiful journey of a veteran trader. There are
many things similar to what we know from candlestick and swing trading formations as well, but his
experiences and consistent observation demonstrated by many hand-drawn charts and the story of trades
that he narrates makes it a great read.

In TradePoint, scanners and back-testing of all these formations are available. We have also developed
different filters on these formations and tested them on various time frames.

Written by Prashant Shah


Prashant.shah@definedge.com

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