Hilega Milega setup

1. RSI: RSI (9)

a. Period – 9
b. Overbought – 50
c. Oversold - 50
2. Weighted Moving average: WMA (21, RSI (9))
a. Period – 21
b. Field – RSI (9)
c. Type – weighted
3. Exponential Moving average: EMA (3, RSI (9))
a. Period – 3
b. Filed – RSI (9)
c. Type – Exponential

Another setup

1. Moving average: SMA 5

a. Period – 5
b. Field – close
c. Type – simple
2. VWAP
a. For intraday purpose only.
3. Bollinger Band
4. Central Pivot Range
5. Pivot Points

Prepared by Kr Abhijeet, Student of Nitish Kumar Singh, NKStockTalkTM

 When the price is moving slowly upwards and the moving average is moving upwards too
then the rise in the price is considered genuinely rising, i.e., the price has high probability of
staying there.

Normally, RSI above 70 is considered to be overbought but actually it indicates the building
up momentum and price might rise higher till RSI is near 88. Similarly, RSI below 30 means it
might fall more till RSI is near 18.

Market study is nothing more than the study of momentum created by Price, Volume and
sentiment which is called as trend. That’s why it is called as Trend is friend. Our job is to
identify the trend and convert it into business with calculated risk.

Risks are of three types

1. Known risk – you know it before entering and hence, you set a Risk: Reward ratio.
2. Unknown Risk – you work on somebody else tip/ TV research etc. your risk and reward
depend upon their assessment.
3. Plan Risk – the risks which is mathematically calculated with various backup plans. They
are typically hedgers.

Different strategies

1. When HM system is in buy [ RSI (9) > WMA (21, RSI (9))] and the gap between RSI and
WMA is big and increasing then apply SMA 5 and create long position when price closes
above it and maintain till RSI > 50. Book your profit when price closes below SMA 5 or
RSI < 50 or Momentum starts decreasing i.e., EMA (3, RSI (9)) < RSI (9). If above all the
are nearby the final SL is SMA 20 (middle line of the Bollinger Band)

Prepared by Kr Abhijeet, Student of Nitish Kumar Singh, NKStockTalkTM

 2. When WMA (21, RSI (9)) and RSI (9) are near 50 and price becomes flats i.e., within
Bollinger band also making it flat then in 80% of the time its accumulation going on and
20% - distribution.

3. If RSI (9) and WMA (21, RSI (9)) is flat on weekly chart and is formed above 50, it means
price won’t fall easily on LTF. Also, it means every dip is Buy. Buy either at VWAP for
intraday or near SMA 5 or even better at SMA 20 for Daily / weekly / 15 min / 75 min
chart.

4. Never short any stock which is bullish on HTF, i.e., RSI (9) > WMA (21, RSI (9)) and are
above 50. Worst would be shorting when they have increasing gap with WMA looking in
uptrend.

Prepared by Kr Abhijeet, Student of Nitish Kumar Singh, NKStockTalkTM

 5. If RSI is near 88 on monthly timeframe, then there are chances of correction as per ATR.
Distribution phase would start. But we should not be impatient just because RSI (9)
touched 88. We should wait till price closes below SMA 5 on monthly chart. Also, we
shall be vigilant till MA (3, RSI (9) and WMA (21, RSI (9)) gives negative crossover.

6. If price is flat and being formed in narrow Bollinger Band. Also, RSI (9) > WMA (21, RSI
(9)) above 50 then, after confirmation of the same on HTF create a long position keeping
SMA 5 as SL.

Prepared by Kr Abhijeet, Student of Nitish Kumar Singh, NKStockTalkTM

 7. While working on Intraday chart 10 min / 15 min as LTF get it confirmed on 75 min / 125
min as HTF.
8. When WMA (21, RSI (9)) is almost parallel with EMA (3, RSI (9)) and is maintaining its
distance with RSI (9) which is also above 50 then the price doesn’t fall easily until RSI (9)
starts making steep fall as compared to WMA (21, RSI (9)).

9. When EMA (3, RSI (9)) AND WMA (21, RSI (9)) makes positive crossover after moving
parallelly for some time then the price is about to rise. This theory is confirmed when
price keeps closing above SMA 5.

10. When price is closing above SMA 5 and RSI (9) is moving above WMA (21, RSI (9)) while
maintaining increasing gap, then hold long position till the gap starts to decrease and
book our profit as soon as price closes below SMA 20. Meanwhile big players might try
shaking the market and give close below SMA 5; don’t be bearish yet.

Prepared by Kr Abhijeet, Student of Nitish Kumar Singh, NKStockTalkTM

 11. If WMA (21, RSI (9)) is up trending and maintaining the gap with RSI (9) price shall keep
rising till they both starts moving parallelly. This is the sign of a healthy market.
Afterwards, price will start moving in a range. As soon as RSI (9) goes below 50 be
cautious in such situation and try to get out. Meanwhile, keep an eye on BB Trap, Killer
Wave, Bollinger Band, VWAP, AVWAP.

12. It’s been observed that when RSI (9) is moving below WMA (21, RSI (9)) parallelly and
both are below 50 then price is usually moving in lower Bollinger band. In this situation,
price retaliates after touching middle line of Bollinger band (SMA 20). We treat SMA 20
as our Dynamic resistance and try to create short position and book profit near previous
support line if any or when price touches the lower band of Bollinger Band.

Prepared by Kr Abhijeet, Student of Nitish Kumar Singh, NKStockTalkTM

 13. We use Bollinger band, VWAP, AVWAP etc as our dynamic support and resistance where
as we use Previous Support/resistance, central Pivot point, Pivot points etc as our static
support and resistance.

14. In range bound market when price closes above VWAP then we wait for other signals to
be fully convinced to be bullish. We should constantly keep verifying our conviction. If I
am right then I should be right from all the angle, if I am wrong, I shall be wrong from all
the angle too.

15. Sometimes we observe that price is closing below SMA 5 and has started touching lower
line of Bollinger band. Also, WMA (21, RSI (9)) < RSI (9) with increasing gap and
noticeable 3 step pattern (new close lower than previous close for 3 consecutive candle)
– this all indicates towards formation of Band blast pattern but still we need to be
caution about any previous strong resistance nearby. Similarly, we reverse all the
condition in case we are looking for long.
Some of the strong resistance / support could be open-high candle and support could be
open-low. We can give priority to it if we have to choose among VWAP, SMA 5, SMA 20
and open-high or open-low.

Prepared by Kr Abhijeet, Student of Nitish Kumar Singh, NKStockTalkTM

 16. If a candle is formed with open=low which has closed above SMA 5, AVWAP and RSI (9) >
WMA (21, RSI (9)) it is advised to create long position. SL shall be kept as Open = low
price or till EMA (3, RSI (9)) < RSI (9).
But, if the above spoken candle has formed in the lower band of Bollinger Band with the
above-mentioned condition, then, beware the price may revert from SMA 20 and if it
doesn’t do so then keep riding. The stock will move towards upper line of the Bollinger
Band.

17. Like we studied our text books in school and colleges and used reference books to
understand the subject better so, we might use other chart viz, rainbow, kagi, heiknashi
charts etc to understand the price movement in a better way.

18. Occasionally, as per the Hilega Milega setup the price moves in a fashion looking like it’s
about to form BB Blast but it starts declining to close within SMA 5. That’s the clear
signal of formation of killer wave. As soon as we see it, we shout short our position.
Majorly this killer wave / BB Trap forms on or near expiry day.

Prepared by Kr Abhijeet, Student of Nitish Kumar Singh, NKStockTalkTM

 19. If on Hly chart WMA (21, RSI (9)) < RSI (9) then on 10 min chart we should only try to find
the short trades. also, on 10 min both WMA (21, RSI (9)) and RSI (9) shall be below 50. If
RSI (9) is down trending – best.
In order for price to move up it needs to sustain above SMA 5/ VWAP.

20. Ud Jaa trades when we notice 3 step patterns forming above VWAP. Also, price keep
touching upper line of Bollinger Band on 10 min chart. In addition to this if previously
price has been moving in a very narrow range for at least 40-50 min minimum over
VWAP and Hilenga Milega system is also in support – then such trades are bound to
exhibit explosive rally. The explosiveness of the rally depends upon the length of the
range bound movement of the stock. If price keeps moving in close proximity with the
VWAP then there are chances of Upper circuits too. It is advised to make position
around 12:45 PM and keeping Strict SL on VWAP.
Conversely, if every setup is reversed the same trade would become gir ja trade.

Prepared by Kr Abhijeet, Student of Nitish Kumar Singh, NKStockTalkTM