Candilstick Book

The exact step by step system which I used to make well over
1 Crore in 5 years!
REDWOLF TRADING
SECRETS
My personal Trading System which I had kept a secret for over 5 years
revealed now!
REDWOLF TRADING
Table of Contents
LEGAL DISCLAIMER ................................................................................................................................ iii

PREFACE ................................................................................................................................................. iv
COPYRIGHT NOTICE ................................................................................................................................ v
Before we begin! Who am I? .................................................................................................................. 1
How this book is organized? ................................................................................................................... 3
Chapter 1: SGX | The Singapore Nifty ..................................................................................................... 4
When to watch SGX? .......................................................................................................................... 4
How to take levels from SGX? ............................................................................................................. 5
How to Apply? ..................................................................................................................................... 6
Where should I book profits? ............................................................................................................. 6
Are my profits assured? ...................................................................................................................... 7
Shall I add multiple lots? ..................................................................................................................... 7
How many hours I have to be in system? ........................................................................................... 7
Wrapping up ....................................................................................................................................... 8
SGX Home Work | MUST DO ............................................................................................................ 10
Chapter 2: Which is ‘real’ Technical Analysis? ...................................................................................... 11
Hammer ............................................................................................................................................ 11
Shooting Star ..................................................................................................................................... 13
Hanging man ..................................................................................................................................... 14
Inverted Hammer .............................................................................................................................. 15
Doji .................................................................................................................................................... 15
Dark Cloud Cover .............................................................................................................................. 16
Piercing pattern ................................................................................................................................ 17
Finding BO (breakouts) with SPINNING TOP! ................................................................................... 17
What Market Psychology says in this formation? ............................................................................ 18
Technical Analysis Home Work | MUST DO ..................................................................................... 20
Chapter 3: How to Trade on Stocks? .................................................................................................... 21
Making Money Trading or Selling Books? ......................................................................................... 22
The 1% trade? How to apply and exit? ............................................................................................. 24
The 1K trade? How to apply and exit? .............................................................................................. 25
Best TimeFrame to Enter/Exit ........................................................................................................... 25
Best Supporting tool? ....................................................................................................................... 25
Candles in Live ACTION ..................................................................................................................... 26
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Chart 1 - Wipro.............................................................................................................................. 26
Chart 2 – Reliance ......................................................................................................................... 27
Chart 3 – Ashok Leyland ................................................................................................................ 27
Chart 4 – Hind Unilvr ..................................................................................................................... 28
Chart 5 – NIFTY.............................................................................................................................. 28
Chart 6 – TCS ................................................................................................................................. 29
Chart 7 – DRREDDY ....................................................................................................................... 29
Chapter 4: Option Strategies ................................................................................................................ 30
Option strategy 1: Mode: Bearish market Reversal. ........................................................................ 30
Option Strategy 2: Mode: Bullish market Reversal........................................................................... 31
Option Strategy 3: ............................................................................................................................. 32
Option Strategy 4: ............................................................................................................................. 32
Option Strategy 5: ............................................................................................................................. 32
Appendix ............................................................................................................................................... 33
Trade Journal Worksheet .................................................................................................................. 33
Rs.1000 vs 10% Exit Formula ............................................................................................................ 33
RedWolf Trading Team Support........................................................................................................ 34
Additional RedWolf Resources ......................................................................................................... 34
A small favor from you! .................................................................................................................... 34
ii
LEGAL DISCLAIMER
THE RISK OF TRADING CAN BE SUBSTANTIAL AND EACH INVESTOR

AND/OR TRADER MUST CONSIDER WHETHER THIS IS A SUITABLE
INVESTMENT. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE
OF FUTURE RESULTS. IT SHOULD NOT BE ASSUMED THAT THE
METHODS, TECHNIQUES, OR INDICATORS PRESENTED IN THESE
PRODUCTS WILL BE PROFITABLE OR THAT THEY WILL NOT RESULT IN
LOSSES. PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF
FUTURE RESULTS. EXAMPLES PRESENTED ON THESE SITES ARE FOR
EDUCATIONAL PURPOSES ONLY. THESE SET-UPS ARE NOT
SOLICITATIONS OF ANY ORDER TO BUY OR SELL. THE AUTHORS, THE
PUBLISHER, AND ALL AFFILIATES ASSUME NO RESPONSIBILITY FOR
YOUR TRADING RESULTS. THERE IS A HIGH DEGREE OF RISK IN
TRADING.
iii
PREFACE
Dear Traders! With more than a decade of experience in Share Markets I can show
my expertise in the field by explaining you about the more advanced concepts and
complex theories like Elliott wave, GANN, Leading / Lagging indicators, Overlay or
lower indicators – you name whatever - and all that kind of stuff and write a book
covering at least a few hundred pages. That may show my genius of the subject.
But there are less chances that you will succeed with that kind of a material. My
intention is NOT just that.
I really want you to succeed and hence I honestly share with you in this book
some real working strategies that are simple yet efficient. Nothing fancy or funny
just to showcase my knowledge. Teaching somebody to succeed in Trading is
altogether a different game. I attribute all my success to these simple techniques
and strategies and I request you to religiously follow this to be successful.
The SGX technique I have shared here is a closely guarded secret which I have
kept for myself for over 5 years and decided to share with you for the first time
through this book. It is not just watching the High/Low of SGX, but a simple
working calculation that hits the target over and over again. If you practice this
one single strategy you will be immensely wealthy over time.
The chapter on Technical analysis eliminates all fancy gimmicks and focuses on
only what is required to succeed. I am sure you will enjoy this book. Hope to see
you as a professional trader soon in the future.
To your Trading Success,

Marcus D Antony,
RedWolf Trading
antony.m@redwolftrading.in
iv
COPYRIGHT NOTICE
© 2016 Marcus D Antony, RedWolf Trading, All Rights Reserved.
WE HAVE PUT IN A LOT OF TIME AND EFFORTS BRINGING IN THIS

WONDERFUL BOOK FOR YOU. PLEASE DON’T PLAGIARIZE OR PIRATE
THE CONTENTS. THERE IS NO SUCCESS IN LIFE WITHOUT MORALITY.
NO PART OF THIS PUBLICATION MAY BE REPRODUCED, DISTRIBUTED,

OR TRANSMITTED IN ANY FORM OR BY ANY MEANS, INCLUDING
PHOTOCOPYING, RECORDING, OR OTHER ELECTRONIC OR
MECHANICAL METHODS, WITHOUT THE PRIOR WRITTEN PERMISSION
OF THE PUBLISHER, EXCEPT IN THE CASE OF BRIEF QUOTATIONS
EMBODIED IN CRITICAL REVIEWS AND CERTAIN OTHER
NONCOMMERCIAL USES PERMITTED BY COPYRIGHT LAW.
v
Before we begin! Who am I?
First of all, thanks a lot for your trust in me and making the purchase of this book.
I am Marcus D Antony, the person behind RedWolf Trading blog and the Facebook page
of the same name. To reciprocate the trust you had on me, I am going to reveal some
of my most successful strategies, I am personally using to profit and making my living
completely trading on the NSE Index & Stocks. I am 100% confident that if you follow
the system I am sharing here, you too will become a successful trader. My advanced
congratulations for that!
I started my trading career in 2006. Statistics show that even now in 2016, only
less than 0.1% of Indian population actively Invest/Trade in Share Markets. It is not a
wonder that way back in 2006, almost 10 years back the numbers are even lower.
During that time, there were very few Technical Analysts and Traders. They also
did not shown much interest to learn the real techniques to make their winning in the
markets. Further, those self-proclaimed analysts charged some were around 30-50K to
teach just the basics like identifying support and resistance lines and few such basics.
(You may not believe if I show you people charging a whopping 5 lakhs, - yes you read
that right! 500,000!! - just for a one day class). I really am skeptical even if those high
end classes molded any successful traders.
Later, few people showed interest to learn technical studies more than
fundamental studies to sustain in
this field. They used their learning to
teach others rather than earn money
for themselves! The point to be
noted is that more than 90% of the
so called Technical Analysts learned
technicals just to showcase
themselves as a person more
RedWolf Trading Secrets Introduction

1
informed about the markets than the average Tom, Dick & Harry. It is no wonder they
made their living taking classes or giving calls and not through trading.
Making the story even clear, consider the fact that every trading office has
almost 5 Technical Analysts, a very conservative figure which I hope you will agree with
me. These 5 analysts will analyze the same stock or index in 50 different ways! These 5
analysts will train 100 traders about their experience and what so ever they like to share
or teach. This would mean, with at least a 1000 broking offices in a state would bring 5
* 100 * 1000 = 500,000 trained people. Now let me share a valuable point over here.
Do you think at least a fraction of these people were making profits in the market? If
that is the case, can you imagine what will be the case? If each of these are making
Rs.1000 profit daily, just imaging the overall profit these individual traders can make.
They can just easily beat the FIIs and DIIs. But the sad fact is that that is not happening.
You too will agree with this I hope.
Now consider the two questions.
1) How to correct the above mistakes happening?
2) How to learn the real Technical Analysis?
If you thought of question no 1 then you have to change your attitude and if not,
you have less chance to overcome losses! There is no way you can rectify those kind of
mistakes. Cheaters keep on cheating people. Leave that thought aside. If you thought
question no 2, congratulations! You are on the right path. However always bear in mind
that the Market is always superior and you have to get be more disciplined to follow
what I teach here. Come let us get started.

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How this book is organized?
The first section of this book covers SGX Nifty and how you can effectively use it
to trade Nifty50 here in India. The strategy was a closely guarded secret until I reveal it
to my customers in this book. Just not looking
into the High/Low of SGX. You will be amazed
by the results when you apply my techniques
after understanding that. I have a proven track
record of my SGX system.
The next section covers the basics of
Technical Analysis, and the essential candles
you need to know to make stunning profits. From my experience, I can say with damn
confidence that you need not be a ‘candlestick guru’ with an ability to identify 100’s of
candle patterns to succeed in markets. Just understand these 6 important candles and
you will be ready to pump in money from the markets.
The last section takes you by hand in implementing the lessons you learn in the
previous chapter. I show you how to actually trade on stocks, clear with entry / exit
points and stop loss levels. These techniques can be used not only to stocks, but also
on Nifty, in addition to the SGX levels if you get an opportunity.
I am making a killing only following these simple strategies, (though I have other
advanced strategies to make positional trades, investment decisions, swing trading etc.)
and if you understand and implement these in your trading room, your success is
inevitable.
I will be happy if you follow my system and share me your success stories soon.
Please mail me your success stories to antony.m@redwolftrading.in

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Chapter 1: SGX | The Singapore Nifty
Today many traders are closely watching SGX Nifty (Singapore Index) and
following that to predict our Nifty movement. After our markets are closed, most of
them were watching SGX till next
day open of our Indian markets. I
really wonder why these people
spend so many hours watching
SGX. What they are trying to learn
by watching SGX for more than 15hrs? Will it give success to our day trading? Although
the Answer is YES!!!, what is the need to watch it all day?
The SGX is the main key point for our Index but watching it aftermarket hours
will not give you fruitful returns. Come, let us get clarified on few critical questions.
When to watch? How to take levels? How to Apply? Where to book profits? Are my
profits assured? Shall I add multiple lots? How many hours I have to be in system?
Finally the most important question…How much probability of success does this system
give?
When to watch SGX?
We should not keep on following the SGX the whole night until next day market
open. See we have a wonderful world to enjoy always be prepared for that and spend
less time in markets and more time for your family and happiness. A successful trader
doesn’t mean somebody sitting in front of the system all day and ignoring their personal
life and happiness. You may find it hard to believe what I am going to say, but it’s TRUE.
After 8 years of success using this strategy, for the first time I am going to reveal the
secrets here to you, the real traders. It is up to you to make use of it.
Now the time to watch SGX nifty is everyday sharp @ 9AM. Whether you are
eating, bathing or boarding into a bus or train or whatever STOP and watch SGX either
RedWolf Trading Secrets The SGX Trade

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in your mobile app or going to www.sgx.com. If you miss this crucial time then you are
one step back from the chance of a profitable trade.
How to take levels from SGX?
Okay, now it’s 9.00 am! You have rolled your sleeves up, opened the SGX site as
well and ready to
go! Still you have
15 minutes to go
for our Indian
markets to open.
In these 15 minutes we are going to take levels for our trade on Nifty.
Step 1: www.sgx.com
Step 2: Click Market Information -> Delayed Prices -> Futures
Step 3: Click on IN in the next screen and in the table below you get the figures. Check
the current month data.
For example am taking current Nifty rate i.e. Nifty now trading @ 7400 levels
SGX nifty may open somewhere 30 points + or –. Whatever it is just forget all and note
down only the high & low of SGX. If the HIGH is 7406 then, you have to take a buy call
@ 7410. (Nothing but the HIGH value
7406 rounded to the next 10). If the low
is 7370 means you have to sell below
7360. (Nothing but the LOW value 7370
minus 10 as the LOW is already
rounded to 10).
Even if the high 7400.10 or
7409.90 you have to take buy call @
7410. Hope you understood. Else, read it again to completely understand this crucial
concept as the success lies in understanding it.

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This is the simplest way to take profitable Buy/Sell levels. It covers all your
Resistance, Supports, Pivot, Gann, Fibonacci levels under a single and simplest system.
How to Apply?
Once you have taken the BUY & SELL levels now you have to place orders right?
Okay let us see how to apply this. We had taken buy above 7850, then you have to place
buy call only @ 7850.10-7850.90 which means you will get your buy order triggered
only at 7851. Vice versa, for sell below 7820 you have to place sell call below 7819.90-
7919.10. You can either place buy or sell or even both according to your broker’s trading
limits as well as your margin. But I would suggest placing one order (either buy or sell)
to which Nifty is close. This may avoid your waiting and can also avoid your unused
margin exposure.
Where should I book profits?
Once your buy or sell order gets executes, don’t expect too much profit in one
trade. As far as derivatives are
concerned, exiting the trade is
more important as we have lot
of factors in the game like
premium, expiry which may play
against us. So, you have to book
your profits, that matters a lot.
Here with this system, we
recommend you to book 12
points where as 2 points will go for brokerage & other charges and you can make 10
points net profit. Personally, I follow a discipline to book profit @ 8 points itself because
my lot sizes are bigger and I am very happy with the returns. Remember, you can never
become a Crorepathi in one trade, rather you can become filthy wealthy if you

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consistently accumulate profits and increase your trading capital. The other reason I
exit by 8 points is that I have to move to office by 10.00 am and this was the only trade
for me for few years before doing full time options trading.
You can choose either 8 or 12 but the thing is you have to stick to it don’t expect
more than 12points. If you ignore my warning, then you may get trapped anytime. Once
your order gets executed you have to place cover order immediately, don’t try to cover
at market price. Enter the price at 12 points and exit the trade.
Are my profits assured?
Though you may have rarely losing days, I can assure you that you will be in
overall profit every week. With this system, you need not worry about any fundamental
or technical analysis. This is just a copy paste system, no need to analyze the charts,
watch TV news all day or anything that demands your time & efforts much. Hope you
will agree that the time you spend here is just 15 minutes, 9.00 – 9.15 to take buy/sell
levels, place your orders, sit back and relax. You will get assured profits. Just give a try!
Shall I add multiple lots?
Although initially we suggest you to trade with 1 lot and get the hang of the
system first and gain some confidence. In future, add lots slowly depending upon your
capital, confidence you gain with this system. Yes you can add as much as you can.
(Recall, that you are just pocketing 12 points, so safe). Meanwhile please test this
trading method until you get satisfied.
How many hours I have to be in system?
Not more than one hour!!! Yes really though our points are less and success
almost confirmed you need not sit before the system for a whole day. Just place your
order, market will give a breakout either buy or sell and immediately your order gets
closed soon. Better close your system and come on next day. Don’t waste time by sitting

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before the system and most importantly don’t waste money. Assume that you’re
trading with 5 lots of Nifty and targeting 8 points in a day then your daily profit will be
around Rs.3000/- per day with the capital amount of Rs.100,000/- You will be able to
easily close your month by getting nearly Rs.50,000/- for just working 2 hours per day.
Wrapping up
Great that now you have empowered yourself with a new working system which
90% of your fellow traders doesn’t even know exists. Don’t
underestimate the simplicity of the system. Most people
look for SGX High/Low, but they are now aware of the fact
that a breakout in either direction will give a minimum 12
points a day, sometimes both sides’ targets get achieved
resulting in 24 points in a single day.
On the other hand, if you want to show that your genius, intelligence then learn
all technical studies , fundamental studies and do whatever ever you want. But
remember all extraordinary people are always using simple methods they don’t use any
complex hi-fi strategy to win the game. For example, Warren Buffet is not a technical
analyst, not a fundamental analyst, not an educator or not even a trader. He was an
investor with his own style of investing in markets. Just investing on the good company
shares which are at 52 week low or new low. He never ever has done any extraordinary
thing or never learnt any kind supporting tools. True facts always shocks us.
Finally the most important question is how much probability of success does this
system give? And what is the stop loss?
I have a track of record keeping and my record shows that more than 96% of the
trades are success. That is if you have 20 trading days then you have a probability of
making profits in 18 days with this system. The other 2 days may fail due to reasons like
expiry movement, some big gap up/down, confusion in taking the levels etc. So if you

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are not 100% confident, or afraid some news will make some unexpected moves, then
better leave that day. No compulsion to trade all 20 days in a month.
Secrets behind SGX trade.

 Do NOT watch SGX trade overnight.
 Watching SGX at a particular time can decide the trend for entire day.
 Exiting in just 12 points strictly.

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SGX Home Work | MUST DO
Do cross check www.sgx.com data with www.nseindia.com website. Check High

/ Lows of SGX Nifty. And based on that, take Buy/SELL levels to trade in Nifty50. Also
check for yourself how many days the target achieved. If you have understood the
system right and do this exercise right, it will improve your real trading experience. Also
you will be amazed with the results. Do this as a home work for the next ten days
complete the boxes below with your own analysis?
S.No. Date SGX High , Low Nifty50 Buy Nifty50 Sell

1 1/Jan/2016
2
3
4
5
6
7
8
9
10

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Chapter 2: Which is ‘real’ Technical Analysis?
Reading few technical books by foreign authors and just preparing for one day
presentation is enough for making profits? Or referring some unknown books and
writing the same subject with few positive chart screen shots in your local language will
create awareness to the public? Does that create a master in market? Definitely NOT.
Please be aware and get familiarized of the below 7 money making candlestick
patterns which is more than enough to make continuous profits on a monthly basis.
Getting used to identifying these candles will take you steps ahead for your trading. I
used only these 7 candles for my trading and that rarely fails!
Hammer
Hammer Indicates bullishness and will be found at the bottom of the chart. Many
of the analysts can suggest buying even before the candle forms. It takes experience to
buy by seeing the still forming candle &
when it will become a hammer.
When a day opens with minus

or gap down do not short the market in a
hurry because you may not get exit in that
short. Always remember hammer will
form on the day when market opens in
minus and continues to trade in minus till
during the midsession. Market may hit
even new low but if it recovers after the midsession or at the closing, it will be a
hammer.
RedWolf Trading Secrets The Real Technical Analysis

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So practice to draw a candle pattern before the market closes. It helps you to
buy well before other analysts and traders. For this you don’t need live chart or anything
else. The only thing you should know is the Open, High, Low, and Close.
Things to follow to buy a stock
1) Hammer should be formed at the bottom of the chart no matter the period you
use 1, 3 or 6 months whatever.
2) It should be in green, blue or white which indicated bullishness. If the same
indicates in red, brown or black take minimum risk.
3) Check the volume at the bottom if there is less volume then also take minimum
risk i.e. 50%.
4) Keep the Low of the Hammer as stop loss in closing for your trade.
5) Tail should be minimum 1.5 times larger than the head.
Divide the day into three sessions as shown below:
Opening Session Mid-Session Closing Session

Minus Minus Recovery
Minus Recovery Consolidation/holds
Recovery

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Shooting Star
Shooting star is just opposite of the hammer. It is only found at top of the chart
(during an uptrend) and its indicative of selling in
the market. Why should you sell after this
confirmation? When a day opens in positive at
high don’t think it will break all previous high and
will remain bullish for next few days.
Seeing the market nearing its recent high

and opening positive and trading towards high, do
NOT be in hurry to buy. Wait for the closing session
to get the confirmation. Traders always think that if market breaks low they think that
it has no end it will again break the low and expecting a new low and so on. The same
thinking while market hitting new high they always expect a new high.
I don’t know why people are following the sentiment. (or the sentiment following
the people?)
Things to follow to sell the stock
1) Shooting star will be formed at the top of the chart

2) It should be in red, black or brown which indicates bearish, if it is in white, blue,
green then take 50% risk
3) Check the volume
4) Keep the high as stop loss in closing basis for your trade.
5) Tail should be minimum 1.5 times larger than the head.

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Divide the day into three sessions as shown below:
Opening Session Mid-Session Closing Session

Plus Plus Minus/Sell off
Plus Selloff Trades weak
Hanging man
Hammer and Hanging man are similar to view and carry the same pattern. How
to differentiate both? As we already said hammer will be found at the bottom of the
chart, and the same if found on the top, then it will be named as Hanging man.
If you are using 3 months chart or 6 months

chart draw a bottom line which covers a minimum of
100 points (as per Nifty) below the line you can find
Hammer and if the same pattern form above the
candle do not name it as hammer It is hanging man.
What does it mean? Usually it may form in

bullish market and gives you a trailing stop loss for
your trade.
For ex: You had bought Nifty after seeing the Hammer pattern and after 2 or 3 days a
Hanging man is forming on the bullish market. Already you may place a stop loss at
Hammer’s low now modify it into Hanging man’s low. Got it? Here the color is not
important only the pattern.

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Inverted Hammer
Inverted Hammer is just opposite to Shooting Star and represents a stop in

selling market. Reverse the step as what you use
to find Hanging man. From the top draw a line
which covers 100 points (as per Nifty). Below the
line you can find this pattern and whenever you
find this just modify you stop loss to Inverted
Hammer’s high.
Usually it will be formed on bearish

market. Market sustaining below its high it will be bearish and once if breaks Inverted
hammer’s high then a break out will be seen.
Doji
One of the most powerful candles. It can be used in single candle as well as
double candle to find out the direction. In our term Doji should be converted into
another formation to find out the next
move.
Doji had lot of view and called as

Long-Legged Doji, Dragon fly Doji,
Gravestone Doji. In our view we convert
it into spinning top hammer as well as
shooting star.
The formations are as shown here, this

symbol should be converted into another then we have to get the result. The first one
is common formation hence it also named as the same. The 2nd pattern shown in the
image is named as Long Legged Doji should be converted into spinning top and should

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follow the same what we did with that candle. And the 3rd Gravestone Doji should be
converted into Shooting Star & Inverted Hammer by where it is formed. Then we have
to follow the same what we did already in both the candles. Dragon fly Doji can be
found anywhere in the chart whenever it found just convert it into Hammer or Hanging
man then apply the same rules.
And here am closing the single pattern candles study and move to double candle
patterns. Still there are more than 300 single candle patterns and I had selected only
the best which repeatedly form on charts also gives you exact signals. And am very sure
following only these candles in a right way can not only protect you money but also
appreciate it.
Already we had given some rules to how to work on candles also I had given
some common rules at end just follow the rules then you can make wonders in market.
Remember candles are common it will never cheat the traders. We fool ourselves by
looking into shortcuts.
Dark Cloud Cover
Dark Cloud Cover is a bearish candlestick

reversal pattern, similar to the Bearish Engulfing
Pattern. There are two components of a Dark Cloud
Cover formation:
A Dark Cloud Cover Pattern occurs when a

bearish candle on Day 2 closes below the middle of
Day 1's candle.
In addition, price gaps up on Day 2 only to fill

the gap and close significantly into the gains made by Day 1's bullish candlestick.

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The rejection of the gap up is a bearish sign in and of itself, but the retracement
into the gains of the previous day's gains adds even more bearish sentiment. Bulls are
unable to hold prices higher; demand is unable to keep up with the building supply.
Piercing pattern
The Piercing Pattern is a bullish candlestick reversal pattern; similar to the Bullish
Engulfing Pattern. A Piercing Pattern occurs when a bullish
candle on Day 2 closes above the middle of Day 1's bearish
candle.
Moreover, price gaps down on Day 2 only for the

gap to be filled and closes significantly into the losses made
previously in Day 1's bearish candlestick. The rejection of
the gap up by the bulls is a major bullish sign, and the fact
that bulls were able to press further up into the losses of
the previous day adds even more bullish sentiment. Bulls
were successful in holding prices higher, absorbing excess
supply and increasing the level of demand.
Finding BO (breakouts) with SPINNING TOP!
How to find a right stock which is ready to give a breakout by using simple
methods. Many are following single candle formation study, few follow double candles
and triple candle formations.
We have seen some important candles like HAMMER, SHOOTING STAR,

HANGING MAN and INVERTED HAMMER hope you all are now aware of the basic
formulas to entry and exit using those candles. See each and every candle gives you a

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proper way by forming in a particular place. Now take a look at all these 4 candles and
imagine how it will look if all those 4 are put together?
If you closely watch this SPINNING TOP candle you can get/see all those 4 candles
in this. It indicates the big fight between the bulls and the bears & they show an equal
power in the market. Once this candle forms in any time frame which you are using,
wait till the candles closes then initiate buy when high breaks and sell when low breaks.
If you are following my RedWolf Trading Facebook page, you will agree how often my
breakout calls succeed. They rarely fail, and even in that case with a small SL. For
booking profits you can use 1% formula to book profits. (which I will discussed in the
next section) In first and second week if you found this candle trade in Futures and in
third and fourth week if you found this candle trade in Options for a good results.
This is a strategy which I am deploying to give you successful calls in my

Facebook. Don’t underestimate the simplicity of this method. Every time you spot a
SPINNING TOP, you are ready to pocket a decent money.
What Market Psychology says in this formation?
See if one learns these candle formations, they will not go for any alternates like
lower indicators, overlay indicators, leading indicators, lagging indicators whatever

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anybody says. Yes, if the market psychology was clearly visible here then why should I
choose more and more supporting tools? Absolutely no need.
Hammer pattern shows that a big volume had been sell off during market hours
and cheating us that market was weak and that time probably most of the indicators
will show sell signals if market closes in minus that means I agree that majority had
carried shorts so the next day will be minus or even gap down, but if the market
recovers at the closing time if market recovers from the low and closes near or above
open price that would mean 80% of days short had been covered and the next day will
be plus or even a huge gap up because in every hammer low no individuals will buy.
Why? Because an individual cannot create a candle so from now stop believing
that market will move according to your wish and it had not been designed for you. You
are just a trespasser you never own the property but you can enjoy.
Like this I don’t want to explain each and every candle if you know how the
candle forms then you can easily predict the market than others do. Remember one
important thing here. All other indicators will give late signals and that is proven. So
stop following oscillators and divergence. Instead follow CANDLESTICKS!

19
19
Technical Analysis Home Work | MUST DO
Take your favorite charting application and try to identify the discussed candles
in the scripts of your preference. Also write down whether they are bullish / bearish,
the exit points, SL level etc.
This will give you a hands on experience identifying these money making candles
during your real trades. For your reference, at the end of the next section, we have
given screenshots identifying candles in few scripts.
S.No. Script Candle Bullish/Bearish Entry Exit SL

1
2
3

20
20
Chapter 3: How to Trade on Stocks?
If you are in the trading game for quite a while, you very well know that stocks
have high volatility and liquidity which gives us a chance to make more money. But more
important is making an entry at right place. If you misjudge that, your entire margin will
be wiped off.
Many people were
using sophisticated tools
like trend analyzing
indicators, automated buy
sell signals and a lot more to
predict stocks. I am using an
easy way to analysis stock movements with some basic indicators and with a minimum
stop loss. As far as stocks are concerned, placing or identifying stop loss is more
important than fixing target.
For this you have to follow 1hr time frame chart in any charting software. I am
using MT4 and I found that very user friendly and also with timely updates. In this 1hr
chart you don’t need to add any costly custom indicators. Simply load the chart in 1
hour time frame.
I have seen people using more than 4 or 5 indicators or supporting tool -
whatever you may call - like Bollinger bands, RSI, Stochastic etc. But many of them were
not aware that everything is just a reflection of candlesticks. If you can read candles
then you will not use any other indicators, either default or custom. Moreover, your
trading terminal looks very clean with no chance for diversion.
If you have any confusion identifying Hammer, Shooting Star etc., just draw a
mid-line in your 1 hour chart i.e. exactly at 50% (High – Low divided by 2). Whatever
comes above the mid line is Hanging Man & Shooting Star and whatever comes below
the mid line is Hammer & Inverted Hammer. After a few hours market may touch any
high or low after which the mid line will slightly change but that won’t be a problem.
RedWolf Trading Secrets How to Trade on Stocks

21
21
Hard to believe? Yes, but it will give you more than 90% success ratio.
No tools, No indicators, No tension just watch 1 hour for entry and 15 minutes for
exit!!! AS SIMPLE AS THAT!
Making Money Trading or Selling Books?
There are 1000’s of books written on Trading by 100’s of authors. Almost more
than 10,000 books has been published to explain and teach about technicals, trading,
investing etc. My question is how many of these authors
actually trade? The answer is ‘very rare!’ I am sure that
nearly 80% of these type of books are just copy paste of
existing strategy already discussed in previous books. They
just try to make money by selling books. Common sense tells
us that if somebody can make great profits with some
strategy, why they need to sell books? In real no one is ready to sell their strategy which
is giving them success.
Even in this book, I am not going to share my complete strategies which I am
using, but only a few of my successful systems to my fellow traders. I have a blog, a
Facebook page and people often literally beg for some success formula to share with
them. They had a sad past and I really wanted to help them succeed which is the reason
I am revealing few of my highly successful strategies here.
By following exactly my stock trading strategy, you can earn minimum 5000/-
daily with the capital of Rs.100,000/- Do you think this is not enough? Or not possible?
Whatever you think let me share my experience with you. If you follow exactly what I
share here, I can assure that you will be a successful trader who can design a luxury life
on their own. Because the secrets am going to disclose will be very interesting and very
simple too. I had been successful from 2008 and that still continuous. I have given few
screen shots for your reference. Don't think that these are some selected positive

22
screen shots. They happen over and over again. If you are skeptical, we can go for a live
trading for 5 days where I can teach you step by step. (See Appendix)
Many people were used to viewing charts only the complex way. With multiple
indicators on their charting screen, like few lower indicators and few overlay indicators
and confusing with time frame as these indicators will give different trades in all
different time frames. After applying all these indicators, you have to wait for all the
indicators to come on same level or a particular point to apply a buy or sell order.
Frankly speaking is it possible to watch all this while trading?
I am no exception. Even I had followed this kind of a complex system with all
indicators while trading and noted everything exactly but unfortunately I missed the
trade finally. After I managed to learn how to cover all these aspects into trading and
placed buy / sell orders. But the real problem arises after that only. I had followed 4
indicators to place my buy / sell order and after I placed a buy order one of the indicator
indicates to sell and another indicator contradicts itself in a different time frame.
Pathetic situation for me! Really I was confused, got nervous and there is nothing to do
about it other than to pray for the market to go in my direction.
Now 2 indicators showing buy and 2 indicators showing sell, I am holding longs I
started praying that market should go up. Finally my stupid stop loss has hit and I
modified the SL not exiting there and stayed believing that definitely market will
bounce. (I have 2 indicators in my favor.) And I had started to collect positive news
which will support market to raise. Much of the news was supporting me at that time
of trading. I blindly believed those (just because I had a long position), if anybody shares
their views against my positions then I will stop talking to them, I have lost money and
also few good friend. I had created a bad environment around me.
After closing that position in a hefty loss I had continued the same style of trading
for few months. Every time I will remove one indicator and add some other. But nothing
worked and then finally I came to know that Technical Analysis is true but the way we
are learning and applying is 100% wrong. I know a lot of analysts still were teaching the

23
wrong way. We should not follow those by their past performance. If you are tricked by
their past performance reports (often faked), your future is at stake!
Okay, based on the candles learning in the previous chapter, I hope you can
confidently make your entry points. But what about the exit? I have a lot of times seen
my profits go back to losses. I will later worry why I did not book the profit when I saw
plus in MTM. Because I really did not know the exit point where to lock my profits. Later
I found out 2 systems of exit which has an astounding success rate. I have detailed those
2 methods for you below.
The 1% trade? How to apply and exit?
This is quite simple. Just follow the 2 examples below.

Example 1: Calculate 1% on stock value, for example if the stock price you entered is
812, then your exit will be (812 * 1/100) = 8.12 over your entry point. So if you are long
812 + 8.12 =820.12 will be your garget. If you are short 812 – 8.12 = 803.88 will be your
target. If you had followed my candle study chapter correctly to enter a trade, this kind
of exit never fails. 99% of the time you get your profits locked!
Tip: Just multiply your entry price with 0.01 and add/subtract that result to your entry
to get the exit points.
Example 2:
If stock trading at 77 and you get a sell signal at 76.5 apply the same rule 76.5*1/100 =
0.765. So 76.5 - 0.765 = 75.7 will be you target. It is as simple as that.
Stop loss for both the examples will be calculated on candle, don’t place stop loss by
using this 1% formula. I got a customer saying that he is simply using 2% stop loss from
where he does a sell / buy. I had asked him about that and he says he can’t tolerate
more losses, so simply keeping 2% stop loss. But incidentally I realized that there is a
science behind that. After watching multiple times, the candle stick patterns’ stop loss
surprisingly these candles also giving the same 2%. It was amazing to me when I found
this. Yes many PMS advisors too advice their customers to keep 2% stop loss for their

24
traders. So if you calculate the candles opposite end to keep stop loss maximum it will
come around 2%! Interesting? A person who loves mathematics will love this. Don’t
only be calculative on your brokerage/tax etc., but also on your SL / Target levels.
The 1K trade? How to apply and exit?
The 1K exit is pocketing Rs.1000 on every trades you enter. This may happen almost
instantly if you have made a right entry. Just finding right entries in 5 stocks would mean
an easy 5000 without much waiting. To make things easier, please refer the Appendix
section on how to get exit levels based on the excel workbook you received as a
companion to this eBook. If you input the entry point, Excel will automatically calculate
the exit point for you based on 1000 rupees target. Please feel free to make use of the
worksheet which comes in handy to calculate the exit point.
Best Timeframe to Enter/Exit
I would suggest you enter on 1 hour time frame and exit based on 15 minutes. You just
follow the previous candle stick chapter to make your entry in 1 hour chart. Use any
one of the 2 exit rules I have outlaid above. Alternatively, if you need to exit based on
candles itself, you can use the 15 min timeframe candles to exit. Suppose you enter a
long trade based on a 1 hour Hammer, you can exit on a next shooting star in 15
minutes.
Best Supporting tool?
Even after me strongly suggesting you only candlesticks, you will ask for supporting
tools/indicators. But unfortunately there is no such thing. Or at least I don’t use any.
Many people keep confusing their charting software with other complex indicators, a
TV on their wall watching for any stock news. According to me everything is only
diversion and nothing else. Just trust in your candlestick analysis and that alone.

25
Candles in Live ACTION
Below are few of the examples of actual stock charts where the discussed candles have
given a great breakout. Imagine the profits you could have minted if you exactly
followed what I shared for you here. That’s real big money. I have highlighted the
candles discussed in circles in the below figures.
Chart 1 - Wipro

26
Chart 2 – Reliance
Chart 3 – Ashok Leyland

27
Chart 4 – Hind Unilvr
Chart 5 – NIFTY

28
Chart 6 – TCS
Chart 7 – DRREDDY

29
Chapter 4: Option Strategies
Options is altogether a different game and if you play it wrong it may hit you hard.
However, Option strategies if executed systematically doesn’t need Technical analysis
itself. Although knowing TA may help in bad times, the below discussed strategies works
out well even if you don’t know what a candle is. Such is the power of these strategies.
Option strategy 1: Mode: Bearish market Reversal.
Entry time: last Thursday 9:30 (Expiry Day)
Buy Nifty 5 lots at base price

Sell 3 lots of base CE (In the Money)
Sell 1 lot of base +100 CE (At of the Money)
Sell 1 lot of base +200 CE (Out of the money)
When and how to apply?
RSI should be below 20 and day candle should close as a hammer, if closes like Doji or spinning top or
Inverted hammer wait till the high breaks then take position.
FAQ
Q: If on that particular day market was not in reversal position what I should do?
A: Simple ignore the strategies.
RedWolf Trading Secrets Options Strategies

30
30
Q: If yes should I wait for a close above or should I take position once high breaks.
A: Take position once high breaks don’t wait for a close.
Q: Base Price means?
A: If Nifty trades at 7549 then base price is 7500, if traders at 7551 then base price are 7600.
Q: Should I sell current month options or Next month?
A: You can choose you own but before that check option IV in www.nseindia.com if current month IV is
more than 17 then sell current , if next month is more than 20 then sell next month of your choice. But
remember more premium will give more profits.
Option Strategy 2: Mode: Bullish market Reversal.
Entry time: Last Thursday 9:30
Sell Nifty 5 lots at base price

Sell Nifty 3 lots at base PE (In the Money)
Sell Nifty 1 lot of base +100 PE (At the money)
Sell Nifty 1 lot of base +100 PE (Out of the money)
When and how to apply?
RSI should be above 80 and day candle should close as a shooting star, if closes like Doji or spinning top
or hanging man wait till the low breaks then take position.
FAQ
Q: If on that particular day market was not in reversal position what I should do.
A: Simple ignore the strategies.
Q: If yes should I wait for a close above or should I take position once high breaks.
A: Take position once low breaks don’t wait for a close.
Q: Base Price means?
A: If Nifty trades at 7549 then base price is 7500, if traders at 7551 then base price are 7600.
Q: Should I sell current month options or Next month?
A: You can choose you own but before that check option IV in www.nseindia.com if current month IV is
more than 17 then sell current , if next month is more than 20 then sell next month of your choice. But
remember more premium will give more profits.

31
Option Strategy 3:
Entry time: Last Thursday at market opening 9.30 am (premium -1300)
Sell Nifty Base price CE

Sell Nifty Base price PE
Sell Nifty base price +100 CE
Sell Nifty base price +200 CE
Sell Nifty base price -100 PE
Sell Nifty base price -200 PE
In this strategy there are two important things you should check before taking position. One is that IV
should be above 17 in all options and the total collected premium should come more than 1300.
Option Strategy 4:
Sell Nifty Future at base price

Buy Nifty base price CE option
Things to follow: RSI below 70. Simple no need to check any other.
Option Strategy 5:
Buy Nifty at base price

Buy Nifty base price PE option (in the money or at the money)
Things to follow: RSI below 30. Simple no need to check any other.

32
Appendix
Trade Journal Worksheet
You would have received an excel workbook entitled ‘Trade-Journal.xlsx’ with

the purchase of this eBook. This is an excellent means of tracking your trades. Please
remember that all successful traders have a good record keeping habit. So I strongly
recommend you keep a journal log of all your trades. You just need to enter the columns
A through E and the rest will be automatically calculated by the system.
Tip: You can use one sheet for each month, so that the performance report on
the right side of the sheet clearly demonstrates your trade performance.
Rs.1000 vs 10% Exit Formula
In the same workbook you will have a second sheet where you can get exit levels
of stocks I discussed in ‘How to Trade on Stocks’ section. As you can recall, we have 2
types of exits, one the Rs.1000 exit and the other 10% exit. This excel sheet will help
you to get the exit levels accurately. All you need to do is to enter your Entry price and
you will get to know the exit points of both the systems.
Tip: You need to enter values only in the yellow highlighted places. Other data
will be automatically calculated for you. And this applies to both the sheets.
RedWolf Trading Secrets Appendix

33
33
RedWolf Trading Team Support
If you have any difficulties understanding the concepts I have laid out here, or
have any doubts to be clarified, you can always get in touch with me via my whatsapp
number or via my Facebook page https://web.facebook.com/redwolftrading
Though I will try to help you as soon as possible, you should understand that I
am also an active trader and will be busy during market hours. However, I will help you
with all your doubts during off market hours. Alternatively you can also mail me to
antony.m@redwolftrading.in
Additional RedWolf Resources
In addition to the eBook what you have purchased, I am providing Skype coaching
for those interested in learning 1 – 1 with me where you can get even more advanced
stuff and also a chance to get all your doubts clarified directly from me. I have Wolf
Futures (Rs.2000*), Special Wolf Options (Rs.1000*), and a 1 Month with RedWolf
(Rs.5000) session where I will be live with you for 5 days showing you how to trade.
These all coaching sessions are running separately. If you are interested, you can
watch my Facebook when I open the coaching sessions. I do not do it often, but conduct
classes once in a while depending upon my free time and other commitments.
Those who are lazy to follow the system I shared here in this book, or those who
do not have time to learn due to their nature of jobs or other reasons, can get RedWolf
calls subscribed. Our highly successful calls have a great proven record of monthly
minimum 20% returns to sometimes a whopping 100% in a single month.
* Subject to change. Conditions Apply.
A small favor from you!
I have tried my best to share you some of my secrets which you can use to earn great
money consistently from markets. I am confident that if you follow my system with
discipline, not only your trades will be more successful, you will also gain confidence
and someday make your complete living with your trading income.
Before closing, I would like to ask you a small favor. If you really liked the book, please
send me your honest review to my mail id antony.m@redwolftrading.in I would be
more than happy to receive your feedback. Good news is that, I will offer you my Skype
coaching totally FREE for those selected feedbacks that I like the most.
I wish you all success in Trading and my best wishes for a successful trading career.
RedWolf Trading Secrets Appendix

34

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LEGAL DISCLAIMER ................................................................................................................................ iii

THE RISK OF TRADING CAN BE SUBSTANTIAL AND EACH INVESTOR

To your Trading Success,

© 2016 Marcus D Antony, RedWolf Trading, All Rights Reserved.

WE HAVE PUT IN A LOT OF TIME AND EFFORTS BRINGING IN THIS

NO PART OF THIS PUBLICATION MAY BE REPRODUCED, DISTRIBUTED,

RedWolf Trading Secrets Introduction

RedWolf Trading Secrets Introduction

RedWolf Trading Secrets Introduction

When to watch SGX?

RedWolf Trading Secrets The SGX Trade

How to take levels from SGX?

RedWolf Trading Secrets The SGX Trade

Where should I book profits?

RedWolf Trading Secrets The SGX Trade

Are my profits assured?

Shall I add multiple lots?

How many hours I have to be in system?

RedWolf Trading Secrets The SGX Trade

RedWolf Trading Secrets The SGX Trade

Secrets behind SGX trade.

RedWolf Trading Secrets The SGX Trade

Do cross check www.sgx.com data with www.nseindia.com website. Check High

S.No. Date SGX High , Low Nifty50 Buy Nifty50 Sell

RedWolf Trading Secrets The SGX Trade

When a day opens with minus

RedWolf Trading Secrets The Real Technical Analysis

Things to follow to buy a stock

Divide the day into three sessions as shown below:

Opening Session Mid-Session Closing Session

RedWolf Trading Secrets The Real Technical Analysis

Seeing the market nearing its recent high

Things to follow to sell the stock

1) Shooting star will be formed at the top of the chart

RedWolf Trading Secrets The Real Technical Analysis

Opening Session Mid-Session Closing Session

If you are using 3 months chart or 6 months

What does it mean? Usually it may form in

RedWolf Trading Secrets The Real Technical Analysis

Inverted Hammer is just opposite to Shooting Star and represents a stop in

Usually it will be formed on bearish

Doji had lot of view and called as

The formations are as shown here, this

RedWolf Trading Secrets The Real Technical Analysis

Dark Cloud Cover

Dark Cloud Cover is a bearish candlestick

A Dark Cloud Cover Pattern occurs when a

In addition, price gaps up on Day 2 only to fill

RedWolf Trading Secrets The Real Technical Analysis

Moreover, price gaps down on Day 2 only for the

Finding BO (breakouts) with SPINNING TOP!

We have seen some important candles like HAMMER, SHOOTING STAR,

RedWolf Trading Secrets The Real Technical Analysis

This is a strategy which I am deploying to give you successful calls in my

What Market Psychology says in this formation?

RedWolf Trading Secrets The Real Technical Analysis

RedWolf Trading Secrets The Real Technical Analysis

S.No. Script Candle Bullish/Bearish Entry Exit SL

RedWolf Trading Secrets The Real Technical Analysis

RedWolf Trading Secrets How to Trade on Stocks

Making Money Trading or Selling Books?

RedWolf Trading Secrets How to Trade on Stocks

RedWolf Trading Secrets How to Trade on Stocks