Location Analysis:-

Location tells you how high or how low price is trading on the curve (we are in wholesale are or retail
area).

Steps in identifying Location on price chart:-

1. Mark nearest FRESH supply and demand zones. Marking should be always body to wick for
location
2. Select retracement tool and divide this price chart(area between SZ and DZ) in to 3 equal parts
a. Add 0/33.3/66.6/100 in retracement settings -> select retracement tool from the tools menu
on the chart -> click on the proximal line of the supply and hold the mouse click and drag it
till proximal line of the demand and release mouse button.

Rules:---

1. If price is trading low on the curve ---- action—ignore the trend of the stock & go long (buy ) on
execution time frame.
2. If price is trading high on the curve ---- action---- ignore the trend of the stock & go short (short
sell) on execution time frame.
3. If price is trading in the equilibrium ------ action---- follow the trend (to check the trend go to
trending time frame).

Note :--- if there is no supply but fresh demand ----- assume that prices are trading in equilibrium and
go with trend.

if there is no Demand but fresh Supply ----- assume that prices are trading in equilibrium and go with
trend.
Trend Analysis
Trend analysis helps us to decide where to buy and where to sell. However, trends will helps us to
decide whether to be buyer in a demand or to be seller at the supply.

You should be buyer at demand when stock is in uptrend.

You should be seller at supply when stock is in downtrend.

Note :- buying at a demand when stock is in down trend & selling in a supply when stock is in uptrend
can be extremely dangerous.

Trend should be always your friend.

Steps to identify Trend:-

1. Add 50 sma on the price chart.

2. Start from the current candle and look left until 7th candle.
3. Draw vertical line on the 7th candle.
4. The point where vertical line is getting intersects to the 50 sma, draw a horizontal line.
5. Just imagine a with 12/3/6 o’clock.

Rules:-

If moving average is in between 12 & 3 and color is GREEN the trend is going to be Up…

If moving average is in between 3 & 6 and color is RED the trend is going to be down…

If moving average coinciding with 3 and color is mixed red\green the trend is going to be Sideways…

Market watch 1 after 3.30 go to 60 min and check the trend

Marketwatch 2 after 3.30 mark location for daily income trade