Things to Remember Before Enter in Stock

Market

1. Control your Emotion. Trade like a Robot.

Always follow your discipline and Money
Management.
2. Always use 30% Amount in Stock Market.
3. Enter in stock at Best Entry Time.
4. Always Book Profit.
5. Follow Strick Stop Loss.
6. Always Follow the Market Trend.
7. Forget All News, always trade on your Setup.
8. Do not follow any crowd decision.
9. Daily Practice your Strategy, learn new things
time to time.
 Introduction to Price Action

Terms Used
Long – buy
Short – Sell
Bulls – buyers
Bears – Sellers
Bullish – Market up (Uptrend)
Bearish – Market Down (Downtrend)
Risk to Reward Ratio: eg 1:3

Main Points of Price Action Strategy

- Price Action Represents Collective Human Behaviour
- Predict the Next Movement
- Helps to Reduce Noise and False Signals (No
Indicator like MACD etc)

 Smaller Timeframe Have too much noise and also

book loss many times.
 Larger Timeframe have reduce noise and give exact
entry and trend signal.
 Chart- Time is Very Important in Price Action.

Price Action is Applicable to Any Market like

commodity , Currency , Forex etc.
What is Price ?
- Depend upon supply and demand.
- If Demand More, --- Price Increase (Buyer Start
Buying) [ Support Level]
- If Oversupply - Price Falls(More Seller)
[ Resistance Level]

 Market Going Up Means - Demand

 Market Going Down Means - Supply

What is Price Action Strategy Includes?

- Support And Resistance Level
- Candlestick Chart Pattern
- Reversal Point

 Candlestick
Red Candle – Bearish Candlestick (Price open at high and
closed up to low)
Green candle – Bullish Candlestick ( Price open at lower
and closed up to high)
Bullish Candlestick

Bearish Candlestick
In Downtrend Situation – when you get signal that
downward trend is weak --- if happens at support level
---- wait for reversal candlestick. ---Your Entry point.
In Uptrend Situation – when you get signal that up
trend is weak --- if happens at resistance level ---- wait
for reversal candlestick. ---Your Entry point.
 Types of Trends

1. Uptrend – Price Moves Up

2. Downtrend – Price Moves Down
3. Sideway- Price Moves Sideway (Not Any Direction)

 Uptrend
- Price Make Higher High (HH) and Higher Low (HL)
 Downtrend
- Price make Lower High (LH) and Lower Low. (LL)

 In Live Market Situation Looks Like

 Sideway Trend
- Price Stuck between Resistance and Support. Not
move any direction.
 In Live Market Looks Like

Reversal And Continuation

- Reversal Means Trend Reverse.

- If Market Uptrend  Price hit resistance level 
Downtrend Start

Reversal Happens In This Situation..

- Resistance
- Support
- Fibonacci Levels
Continuation
- Means Main Trend
- Eg. If Uptrend - Price Slow DownStuck for
sometime - Again Fall
It means Minor Downtrend in a Major Uptrend Move.
Term Used in Market --- Swing

- If Swing Ends  Market Again Go to Uptrend.

 So, how to Execute Trade in which Time …What is our
Entry Point According to Trend…?

Solution: - Chart Pattern and Candlestick Identification.

See Later…
Swing
 Trade on Support And Resistance Level

Types of Support and Resistance Level

- Horizontal Support and Resistance Level
- Break Support (Resistance Level) and Break
Resistance Level (Support Level)
 - Not All Support and Resistance Level Work...
How to identify perfect support and Resistance level..
Solution:
Large Time Frame gives exact support and Resistance
level.
Time Frame- Daily, Weekly, Monthly.

1.
2.
 Price Channel

Trade on Downtrend Price Channel

Trade on Uptrend Price Channel

Trade on Sideway Price Channel

- Use Normal Support And Resistance Level
 Chart Pattern
 Triangle Chart Pattern
1. Symmetrical Triangle
- Continuation Pattern (Bullish or Bearish)
2. Ascending Triangle
3. Descending Triangle
Before Entering in Any Trade Candle Confirmation
is Compulsory…..

For eg. …

If I see symmetrical Triangle pattern form in daily

Chart - I know breakout will happen- go to 1 hrs
chart and wait for which direction break out happen
either upward / downward-- Enter your Trade…
 - Avoid this type of Long Candle
- Price Anytime to Retest Again

In this type of long candle better to wait for retest the

trend line.
Where to Place Stop Loss??

Practice Work 1.

- Draw Symmetric Triangle Pattern in Any 5 Stock

And Send to me …
 Ascending Triangle

- Bullish Pattern
Stop Loss – Same as Symmetrical Triangle

Target –
1:2:3 times the distance.

 Descending Triangle Pattern

- Bearish Pattern
Practice Work 2
Find 5 Ascending and Descending Triangle Pattern.

Head And Shoulders Chart Pattern.

Coming Soon…
 Head And Shoulder Chart Pattern

- Bearish Chart Pattern

- Found in Uptrend, give signal end of the uptrend.
 How to trade:-

How to Set Target:-

 Inverse Head And Shoulder Pattern

- Bullish Pattern
- Opposite of Head and Shoulder Pattern
Practice Work 3:
Find 5 Head and Shoulder Pattern and 5 Inverted Head
and Shoulder Pattern
Mention Entry, Stop Loss, Target Point.
 Double Bottom Chart Pattern

 Bullish Reversal Chart Pattern

 Starting of Uptrend
 How to Trade
- Trade the breakout of the neckline
- Wait to enter the on retest of broken neckline.
- Buy on bottom 2

Profit Booking / Target

- If buy at bottom 2 , profit booking at neckline.
- After Breakout you buy, set profit distance between
neckline and bottom 2
 Double Top Chart Pattern

- Bearish Reversal Chart Pattern

- Starting of Downtrend
 How to Trade:
- After Breakout
- Sell on Peak 2 (when u get confirmation)
- Wait for retest the broken neckline.
Target :- Same as Previous.

Triple Bottom

- Bullish Reversal Pattern

How to Trade:-
- After Breakout of neckline.
- Wait for retest the neckline
- Enter in 3rd bottom

Target : Same as Previous

 Triple Top
- Bearish Chart Pattern

How to Trade and Profit Booking is Same as Previous.

Practice Work 4:
- Find 5 patterns of double top and double bottom.
- Find 1 patterns of triple top and triple bottom.
 Candle Stick Pattern

Where I used this candlestick pattern ???

Ans: - Support / Resistance

Doji Candlestick

4 Types of Doji Candlestick

- Doji - Either Bullish / Bearish Signal
- Gravestone Doji  Bearish Reversal Signal (found in
uptrend/ Resistance level)
- Dragonfly Doji  Bullish Reversal Signal (found in
downtrend/Support level)
- Long- legged Doji  Bullish/Bearish Signal
 Engulfing Candlestick Pattern

Bullish Engulfing :- Found in Support level / downtrend

Bearish Engulfing:- Found in Resistance level/ uptrend
 Harami Candlestick Pattern

Bullish Harami – Found in Support / Downtrend

Bearish Harami – Found in Resistance/ Uptrend
Practice Work 5
1. Find 3 doji pattern, bullish / bearish enfulging and
harami pattern.

Dark Cloud Cover CandleStick Pattern

- Bearish Reversal Candlestick

- Found in Uptrend / Resistance level
 Piercing Line Candlestick Pattern

- Opposite of Dark Cloud Cover

- found in downtrend/ support
- bullish reversal candlestick
 Shooting Star Candlestick Pattern

- found in uptrend/ resistance level

- bearish reversal candlestick
- Also called as bearish hammer/bearish pin bar.
 Hammer Candlestick Pattern

- Opposite of Shooting Star

- Found in downtrend/support level.
- Bullish reversal candlestick pattern
Practice Work 6

- Find 3 (charts) down cloud cover, piercing pattern,

hammer and shooting star.
 Hanging Man Candlestick Pattern

- Similar Like Hammer

- It found in Uptrend/ Resistance Level.
- Bearish Signal
Railway Track Candlestick Pattern
Spinning Top
Practice Work 7

- Find 3 Hanging Man, Spinning Top, Railway Track

Pattern in Chart.