• FOR TAKING A TRADE IN TOMORROW FIRST WE HAVE TO ANALYSE
TODAY AND YESTERDAY BEHAVIOUR OF STOCKS. • HEREBY I REFER TODAY AS DAY1 • YESTERDAY AS DAY2. • WE HAVE TO DO THIS ANALYSIS IN DAILY TIMEFRAME CHARTS. PRE CONDITIONS OF STRATEGY
• DAY1 SHOULD BE A FLAT DAY.
• DAY1 % CAHNGE SHOULD BE IN BETWEEN -1% TO +1% • THAT IS -1%,-0.9%,-0.85%.................+0.9%,1%. • IN BETWEEN THE ABOVE % CHANGES. • DAY1 AND DAY2 SHOULD HAVE SIMILAR HIGHS OR SIMILAR LOWS THAT IS NEARBY HIGHS/LOWS. • THAT IS THE DIFFRENCE BETWEEN HIGHS/LOWS OF THAT 2 DAYS SHOULD NOT BE MORE THAN 1% CHANGE MORE IN DETAILED EXPLANATION
• THE % CHANGE MEANS IF A STOCK IS TRADING AT 500 PRICE.
• THEN THE DIIFRENCE OF DAY1 AND DAY2 SHOULD NOT BE MORE THAN 5 POINTS. • IF DAY1 LOW IS 505 AND DAYB2 LOW IS 502 THEN THIS CONDITION IS VALID. • SINCE 505-502=3 WHICH IS LESS THAN 1%(5 POINTS) • IF DAY1 HIGH IS 507 AND DAY 2 HIGH IS 501 THEN THIS IS NOT VALID. • SINCE THE DIFFRENCE IS 6 POINTS(507-501) WHICH IS MORE THAN 1%(5 POINTS) • BUT FOR STOCKS PRICE MORE THAN 2000 THE DIFFRENCE OF LOWSOR HIGHS CANT BE MORE THAN MAXIMUM 5-6 POINTS. EXAMPE CHARTS