SUMMER INTERNSHIP PROGRESS REPORT

4th WEEK

Name of the student Shashvat Yadav

PRN No 20021241103
Topics of the week Fiboniche Level
Bollinger Bands
Moving Average (discussed these basic methods of
modern techniques to apply it in actual trading.)
Name of the Company where Growth Arrow
Summer Internship is being
conducted
Name of Faculty Guide Dr. Haribabu Singu

Progress of Planned Work (Student should explain the progress of planned work)

Progress of work during 3rd week Date: 16th June 2021 to 24th June 2021

Abstract of 3rd week :-

 Taught the most commonly used modern methods as Fiboniche Level,Bollinger
Bands,Moving Average
 Strategy followed under Given as Fiboniche Level,Bollinger bands, Moving
Average
 Given task to apply it on paper trading or actual trading to deeply understand the
concept.

Learning & outcome :-

 Get a better understanding on these modern methods of technical analysis.
 Tried it in actual trading to grasp it inherently.
 Fiboniche ratio

There is a unique ratio that can be used to describe the proportions of everything from
nature's smallest building blocks, such as atoms, to the most advanced patterns in the
universe, but the financial markets also seem to conform to this "golden ratio." Here, we take
a look at some technical analysis tools that have been developed to take advantage of the
pattern.

There are many Fiboniche ratio such as 1, 1, 2, 3, 5, 8, …. 144, On that basis we can identify
support & resistance in the market. From Retressment level we will going to identify How
muchmarket will going to retress & extension level is for Profit making.

Notice the following:

233 = 144 + 89
144 = 89 + 55
89 = 55 +34

Needless to say, the series extends to infinity. There are few interesting properties of the
Fibonacci series.

Divide any number in the series by the previous number; the ratio is always approximately
1.618.

For example:
610/377 = 1.618
377/233 = 1.618
233/144 = 1.618

The ratio of 1.618 is considered as the Golden Ratio, also referred to as the Phi. Fibonacci
numbers have their connection to nature.

Strategy for Fiboniche Level

 Fibonacci retracement levels are 23.6%, 38.2%, 61.8%, and 78.6%.When we draw the
Fibo retracement level there are different levels from 0%-100%. We have to draw from Low
swing to High swing or High swing to Low swing. Use Daily, Monthly & Weekly time
frame. 50% acts as major support & resistance in the market. If it breaks 50% take a call to
Buy or sell.
 Bollinger Bands

Bollinger Bands are a type of statistical chart characterizing the prices and volatility over

time of a financial instrument or commodity, using a formulaic method propounded by John
Bollinger in the 1980s. . It is used to measure the volatility in market. Whenever band opens
there is more volatility.

Three lines in Bollinger bands

Upper Line- Resistance

Middle Line- Support/ Resistance

Lower Line- Support

Once it breaks the middle band from upper side or lower side take the call to Buy or Sell.

Strategy for Bollinger Bands

 When candle touches Upper Bollinger Bands & nearly 10% of the candle outside the
line. Untill & Unless candle leaves band you can be on Buy side. If candle leaves the
band be out of Market.
 When candle touches Lower Bollinger Bands until it leaves the band be in direction.
 If candle leaves upper band completely go for sell & If candle leaves lower band
completely go for buy because after leaving band it comes inside.

Moving Average
The moving average (MA) is a straightforward technical analysis tool that smooths out price
data by calculating an average price that is constantly updated. It is used to anticipate support
& resistance in market.

1. Simple Moving Average

Formulae for calculating Moving average is closing price of candles divide by No of Candles.
In Day time frame not to use less than 50. 50 days Moving Average price is acts as Support
or Resistance in Market. It helps us in long term trading gives us broader view.

Strategy for Moving average: 50, 100, 200 days Moving average, If breakout happen from all
three lines this is a very strong signal. We have to take a call to Buy or sell.

2. Exponential Moving Average: It gives signal about recent trend changing acts fast
than SMA. We have to use EMA for selling side it gives early Signal. Because selling
is slow & Buying is fast.
The day it breaks Average price this is a signal buying wave has ended go for sell.
Intraday Strategy
Two moving Average used for 15 min time frame 10, 20 Days.
  If Intersection happens take a trade & avoid trading in sideways & gap between two
moving Average.
 When 10 days Moving Average cross 20 days go for Buy & 20 days Moving
Average cross over 10 days go for sell.

These were the basic concepts which i came forward in week 4 th and tried to impliment the
same in live trading to get the exact idea how its actually works in live trading.