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“Learn then Earn”

through KG Stock Vault

Mentor,

K. GOMATHI SHANKAR, M.Tech


CEO, KG STOCK VAULT,
Guest Speaker at Goodwill Commodities Pvt. Ltd,
LIBA Certified in Finance Management,
NCFM Certified Technical Analyst in Stock Market,
NISM Certified Research Analyst in Stock Market,
NISM Certified Equity Dealer,

K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
KG Stock Vault
Prime Mover,
Mr. K.Gomathi Shankar M.Tech (Biotechnology)

Contact,
Call and Whatsapp: +917418499974
E-mail: kg18shankar@gmail.com
Twitter: www.twitter.com/kg18shankar
Trading view: https://in.tradingview.com/u/KGShankar/

Benefits for the Students,


✓ 1 to 1 teaching to stay focused and comfortable.
✓ 30 days case study sessions as well as market watching.
✓ Lifetime support to clarify doubts.
✓ Students can Call and Whatsapp anytime regarding SM.
✓ New successful strategies will be updated.
✓ Career guidance and Business guidance in SM.
✓ Training Fee offers for students Friends and Relatives.

K. GOMATHI SHANKAR 2
Certified Research & Technical Analyst KG STOCK VAULT
My credits and gurus

IT JEGAN VIBHOR AMIT DESAI

ASHWANI GUJRAL PIVOT BOSS FRANK OCHOA OLIVER VELEZ

K. GOMATHI SHANKAR 3
Certified Research & Technical Analyst KG STOCK VAULT
What is scalping?
• Scalping is a trading style specializing in taking profits on
small price changes, generally soon after a trade has been
entered and has become profitable.
• It requires a trader to have a strict exit strategy, because one
large loss could eliminate the many small gains the trader
has worked to obtain.
• Constant attention is needed.
• Huge wealth creation is not possible.
• P&L restricted.
• Only disciplined trader will succeed (scalping success ratio
5% and failure ratio is 95%).

K. GOMATHI SHANKAR 4
Certified Research & Technical Analyst KG Stock Vault VAULT
KG STOCK
Why banknifty scalping?

• Banknifty is always a liquid instrument.


• Best volatile instrument available in indian stock market
which is suitable for scalping.
• You can make profit in any direction (up or down).
• Gives good return on our capital (even 100% returns).
• We can do many trades in a single day.
• Don’t want to study and research a lot.
• Zero overnight position risks.
• We can start with small capital.

K. GOMATHI SHANKAR 5
Certified Research & Technical Analyst KG Stock Vault VAULT
KG STOCK
Qualities of a successful scalper.

• Finding out the right trade setup.


• Perfect entry.
• Perfect risk : reward ratio.
• Perfect exit.
• Booking partial profits if necessary.
• Good money management.

K. GOMATHI SHANKAR 6
Certified Research & Technical Analyst KG Stock Vault VAULT
KG STOCK
Moving Average

K. GOMATHI SHANKAR 7
Certified Research & Technical Analyst KG STOCK VAULT
The Powerful 20 MA
(use only for intraday 5 mins chart)
20 Period Simple Moving Average (20ma) :
– The 20ma is so important to Intraday Traders that no chart is ever studied or viewed
without it. That’s because of its power and reliability.
– No chart is a chart unless it is accompanied by this important technical indicator.
– We use it on every time frame or chart we look at.

Here are the most important things to know about the 20ma and its proper
use:

a) Trade with the 20ma-


– Most of your trades should be in sync with the 20ma.
– If the 20ma is rising in a smooth fashion, your focus should almost always be long.
– Conversely, if the 20ma is declining in a smooth fashion, your focus should almost
always be short.
– If the 20ma is flat, your focus should be to avoid trading.

K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
b) Use as support & Resistance–
– If and when the 20ma is rising, it will serve as strong support.
– In that case, look for buy/long at or near 20ma.
– If the 20ma is declining, it will serve as strong overhead resistance.
– In that case, look for sell/short at or near 20ma.

c) Use as a median line–


– When a stock is consolidating in a sideways pattern, the 20ma will be flat
and usually positioned right in the middle of the sideways trend.
– If and when this is the case, it’s better to avoid the trade.

d) Use as a magnet–
– Stocks cannot remain extended too far above or below the 20ma.
– If and when stocks get too far, a violent snap back is expected.
– This is when the Intraday Trader can intelligently look to take advantage of a
counter trend move.

K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
IMPORTANCE OF 50 SMA IN
RELATIONSHIP WITH 20
SMA

K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
UPTRENDING MOVING AVERAGE
20 ABOVE 50

K. GOMATHI SHANKAR 21
Certified Research & Technical Analyst KG STOCK VAULT
UPTRENDING MOVING AVERAGE
20 ABOVE 50

K. GOMATHI SHANKAR 22
Certified Research & Technical Analyst KG STOCK VAULT
DOWNTRENDING MOVING AVERAGE
50 ABOVE 20

K. GOMATHI SHANKAR 23
Certified Research & Technical Analyst KG STOCK VAULT
DOWNTRENDING MOVING AVERAGE
50 ABOVE 20

K. GOMATHI SHANKAR 24
Certified Research & Technical Analyst KG STOCK VAULT
SIDEWAYS MOVING AVERAGE
20 and 50 flat & twisted

K. GOMATHI SHANKAR 25
Certified Research & Technical Analyst KG STOCK VAULT
SIDEWAYS MOVING AVERAGE
20 and 50 flat & twisted

K. GOMATHI SHANKAR 26
Certified Research & Technical Analyst KG STOCK VAULT
The Mighty 200 MA
(use only for intraday 5 mins chart)
200 Period Simple Moving Average (200ma) –
• The 200ma is so universally watched, in all time frames, that for all practical purposes,
• it has become a self-fulfilling prophesy.
• So rarely do stocks fail to obey the 200ma.
• It’s power, force, and reliability are so great, We use the 200ma on all time frames.

Here are a few things that you must keep in mind regarding this mighty moving average:

a) Flatness is king: -
• While the 20ma is most powerful when it is rising and declining (trending), the 200ma is
most powerful when it is flat(trend-less).

K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
b) Use as support–
• Whenever a stock declines to a flat 200ma, it will almost always experience some form of
rebound.
• If the rare cases in which it does not rebound, the stock is almost certain to at least stop for a
while.

c) Use as resistance –
• Whenever a stock rallies to a flat, overhead 200ma, it will almost always experience some
form of resistance back down.
• If the rare cases in which it does not experience a reversal back down, the stock is almost
certain to at least stop for a while.

d) Use as a magnet–
• If a stock and its 20ma get too far above or below the 200ma, a major reversal is likely to
happen.
• This is when the Intraday Trader can look to take advantage of a counter trend move.
• In other words, it’s this scenario that allows for intelligently going against the prevailing
trend.

K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
Pivot Points (Standard)
(use only for intraday 5 mins chart)
What is a Pivot Point?

• A pivot point is a technical analysis indicator, or calculations, used to determine the overall
trend of the market over different time frames.

• The pivot point itself is simply the average of the high, low and closing prices from the
previous trading day.

• On the subsequent day, trading above the pivot point is thought to indicate
ongoing bullish sentiment, while trading below the pivot point indicates bearish sentiment.

• The pivot point is the basis for the indicator, but it also includes other support and resistance
levels that are projected based on the pivot point calculation.

• All these levels help traders see where the price could experience support or resistance.
Similarly, if the price moves through these levels it lets the trader know the price is trending
in that direction.
K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
Pivot Points Formula:

Pivot : (Prev H + Prev L + Prev C)/3


R1 : (2 * Pivot) – Low
R2 : Pivot + (High – Low)
R3 : R1 + (High – Low)
S1 : (2 * Pivot) – High
S2 : Pivot - (High – Low)
S3 : S1 - (High – Low)

K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
Important candle identifications
(only for intraday 5 mins)

K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
FAKE BULL
(Tweezer Top)
In a bull rally, fake bull appears when a good sized bull bar is
followed by a equal sized bear bar indicating a bearish trend.

The location of fake bull appearance is very important.

The fake bull should usually appear at important price levels like
20 sma, 200 sma, pivot points, pivot points support/resistance.

K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
FAKE BEAR
(Tweezer Bottom)
In a bear rally, fake bear appears when a good sized bear bar is
followed by a equal sized bull bar indicating a bullish trend.

The location of fake bear appearance is very important.

The fake bear should usually appear at important price levels like
20 sma, 200 sma, pivot points, pivot points support/resistance.

K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
BIG BULL TAKE OUT
Big bull take out is nothing but a sideways or range bound channel is
broken upside by a single big bull candle.

It happens when there is no clear trend in the market and only sideways
market occurs.

K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
BIG BEAR TAKE OUT
Big bear take out is nothing but a sideways or range bound channel is
broken downside by a single big bear candle.

It happens when there is no clear trend in the market and only sideways
market occurs.

K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
BULL RETRACEMENT
A bull retracement is identified when a single bull candle or a series of bull
candles is retraced back by bear candles at particular levels of fibonacci
retracement (38.2%, 50%, 61.8%).

Connect the high & low of single bull candle or a series of bull candles using
fibonacci retracement.

We can expect a good bullish rally after the retracement is completed.

Retracement is also called as pull back or bow & arrow concept

K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
BEAR RETRACEMENT
A bear retracement is identified when a single bear candle or a series of bear
candles is retraced up by bull candles at particular levels of fibonacci
retracement (38.2%, 50%, 61.8%).

Connect the high & low of single bear candle or a series of bear candles using
fibonacci retracement.

We can expect a good bearish rally after the retracement is completed.

Retracement is also called as pull back or bow & arrow concept

K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT
THANK YOU

K. GOMATHI SHANKAR
Certified Research & Technical Analyst KG STOCK VAULT

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