PRICE ACTION TRADING MAKE WEALTH FROM INTRADAY

TRADING Learn new ways of trading and earning in this era

“ 5 SETUPS FOR INTRADAY TRADING WITH TRADE
MANAGEMENT, WHICH WILL COMPLETELY CHANGE YOUR
ATTITUDE ABOUT DAY TRADING.”
CONTENTS

1. PREFACE
2. TRADING PSYCHOLOGY
3. 5 SETUPS FOR INTRADAY TRADING
4. SCALPING
5. TRADE MANAGEMENT

PREFACE

Financial market offers an excellent opportunity to make money.the beauty

of this market is its freedom.this market provides freedom.it is a well known
fact that it is the best place to make money.but we watch or hear many news
related to those people who have lost their entire capital in this
market.then,why do most people end up losing money in the market? To find
the answer,I recalled my beginning time when I had started trading in this
equity market.and I found some simple and basic things.when we see other
traders big profits on social media.It fascinates novice traders a lot,ups and
down of market also looks very attractive.due to this behaviour of
market.Novice traders jump directly into the market without gaining any
fundamental or technical knowledge.and this behaviour of new traders
become disaster for them.for example,A doctor can not operate a surgery
without gaining proper knowledge,Same rule apply here also.But novice
traders ignore these simple and important things.

Due to lack of well conceived plan,they lack clarity and end up making
mistakes.and finally they say stock market is a place of gambling.But this is
not the truth of this market.

I felt that people should be independent enough and well prepared to decide
where to trade from their hard earned money in stock market.Here my
readers will get 5 best proven setups prepared by me which is also used by
me while Trading.

CONTENT
What are the benefits of trading- you would have heard that Trading is
simple but not easy.this statement is 100% true.To become a profitable trader
we need to learn all the basic parts of trading.this is true in all type of
trading.i.e swing Trading Day trading Scalping etc.

You will get these

Essential Tools for trading have given below.
* Candlestick chart
* Indicators(indicators are very important for trading)
* Moving averages
OPTIONS TO MAKE MONEY IN STOCK MARKET:
One can make money in stock market in following ways
1.Investment(Delivery Based Trade)
2.Intraday(day trading or speculation)
3.hedgin Funding
4.Margin Funding 5.Dividend Income We will learn here about day
trading/intraday only. I hope the readers of this ebook must have basic
knowledge of these technical words.

CHAPTER-1 TRADING PSYCHOLOGY:

(A) Always remember nothing works 100% in this market.this market works
on probability and trade Management.

(B) Define a maximum loss per day. -this rule is about to control you from
doing over trading.most of the novice traders over trade and due to this
behaviour they prove themselves a worst trader,after that they only regret.so
always fix a maximum loss for each single day.if you have achieved your
maximum loss for that particular day, shutdown your computer and go on a
walk or do something else which you love doing.

(C) Define a maximum loss per trade.

This rule is little bit different from rule no (B).Here a trader must follow a
standard risk reward ration of 1:2 per trade,for example-if you have intered
into a trade then your profit target must be 2times from your down side
target.if your down side is ₹1000 than your profit target must be
2*1000=₹2000.
(D) Always use STOP LOSS. -stop loss is the most important part of
trading.no one can become a profitable trader without using a proper stop
loss.always fix a stop loss point before entering into the trade.onec your stop
loss is hit exit from the trade without any hesitation.because accepting a
small stop loss is the part of trading.

(E) maintain a journal of your trades it will improve your trading.write down
all your mistakes which have been done by you in the trades.

(F) Your winning trade must be greater than your loosing trade.so always use
a high winning rate strategy in Trading.
(G) Loose only one bar. – according to the rules of trading.A trader should
loose only one bar or candlestick as shown in picture.

(H) Always keep in mind, loosing money in this market is very simple then
earning.so only your decipline can make you profitable.
So always flow the rules.

(I) Never put your emotion while tradeing.if stock is going down then only
short sell, never assume that it will go up so I should buy.only flow the
direction of stock not your emotion which comes in your mind.

(J)Trade as a robert because there is no emotions In a Robert.Emotonal

trading is hazardous for Your trading career.
(K) your trading capital must be sufficient because one can never make
money form a small capital in this market.

(L) we need 5 things to bring in our personality to become a trader. (1)

passion (2) patience (3) consistency (4) discipline (5) confidence

(M) Loosing money in trading is the part of the game.But loosing amount
must be smaller than your winning amount.So always accept your stop loss.
(N) A trade taken at the best location can be The most profitable trade.so a
trader Should always enter a trade at proper Location. (O) FOMO(Fear of
missing out)is a big Problem for novice traders.which happens while taking
trade.a trader must control his emotions while entering into a trade.So take
your trade at right price at right location.
(P) if trade is in your favour trail your stop loss to earn big profits.
(Q) Do not exit from the trade untill you get your target.Never fear if your
trade is going in your direction.Let it go till your profit target.Do not exit the
trade taking a small profit.
® Never convert your winning trade into a Loosing trade.

(S)Trading hours have been divided into Three parts in market 9:15 to
11:15,11:15 to 1:15 And 1:15 to 3:15.Best time to take trade Is between 9:15
to 11:15 because this Time one can notice momentum in Stocks.Between
11:15 to 1:15 market Moves sideways so I

do not prefer to Trade during this hours.Again between 1:15 to 3:15 is the
best time to take Trades.

(T) Never trade on the basis of tips and News which you get through phone
call And tv news channel.

(Q) Never trade in this market as a gambler. Trading is a serious business so

be Disciplined and follow only rules not Emotions.

(V) market is irrational so one can never be 100% right in this market.A
good setup and a proper trade Management make a profitable trader. (w)
Trading is 70% psychology,20% trade Management and only 10% setup.

(X) Self confidence is very necessary in this Business.trust on your setups

and knowledge. If a trader is trading in confusions,his trading

Experiences is going to be very bad.so always be Confident about your

strategy,setups etc.
(Y) Quickly exit from your loosing trades but trail Your stop loss and let
your winner run.

(Z)Trend is always based on your time frame.if Someone is taking a trade

for two months or More,for him daily or weekly trend matters more. But if
someone is taking a trade for intraday than

For him 30min or hourly trend is best to Analyse.so always see trends of the
market or Stocks according to your own time frame.
CHAPTER-2 THE BEST PROVEN STRATEGIES OR SETUPS FOR
THIS MARKET TO MAKE MONEY.
SETUP NO:1 Trade With 20MA and 200MA(Moving Average).
Requirements of 4 are as:To complete this setup. (1) 20ma(Blue lines) (2)
200ma(Red lines) AND (3) Candlestick Chart.(one can use platform of
Tradingview for charting purpose) (4) LOCATION OR THE Best Place to
take entry in trade
RULE NO 1: First plot 20Ma and 200Ma on Candlestick chart.

2: choose 5min time frame for day Trading.

3:Now,we have to find the location Of 20ma 200ma and price. If 20ma
200ma and price are in narrow range or very close to each others as shown
in below given chart.

Then,

Then,

If price is above 20ma and 200ma.one has to go long on 1st 5min candle
breakout.stop loss will Be below 1st 5min candle.as shown On below chart.
Case 2- if price is below 20 ma and 200ma. One has to go short on 1st 5min
Candle Breakout.stop loss will be Above 1st 5min candle.

NOTE:- This setup will not work in sideways market,so do not be panic.it
will work effectively in trending market.
Now our down side will be only one candle that is 1st 5min and our profit
target will be more than 2 or more candles or one can manage their trade
according to his trade management rules which I will discuss ahead.

NOTE:-If gap between price and 20ma is big or sufficient then price will
reverse and return towards the 20ma.and same thing happens when price and
20ma is far away from 200ma price return towards 200ma.

IN SHORT we can say 200ma is the owner of the pet, which is price and
20ma is the lace which is attached to pet(price).so whenever pet/price go
away from 20ma,owner(200ma) pull the pet(price). As shown below on
chart
SETUP NO:2

TRADE INTRADAY ACCORDING TO DAILY CANDLE Prepare one day

before for next day Trading. REQUIRED TOOLS:

(1) Plot Daily chart (2)Plot 5ma,20ma and 200ma.

USES: Go on daily time frame and find the closing price of that day
candlestick. RULE No 1:- if closing of candle in daily time frame is far from
5ma.and if stock open gap up next day then 90% chances are that a red daily
candle will form.as shown below on chart.

NOTE:-if distance between daily candle and 200ma is big then this rule will
work very well.
So,we have to find short opportunity next day on 5 min time frame to take
trade.
Same rule will be used to go long also.
Stop loss is must according to risk reward ratio of 1:2.
SETUP NO 3:-FAB 4 RULE

(1) 20 MA (2) 200MA (3) previous closing price (4) Late day price range

Now we have to arrange these four points under a rectangle.and when price
will break the rectangle we have to enter into the trade.stop loss will be
below the previous candle .same rule will be applied in buying as well as in
short selling.as shown below for both buying and selling.ONE can also take
trade after 1st 5min candle Breakout.
SETUP NO 4:-TRADE WITH PIVOT POINTS

OR CPR.

This is an indicator used in only day trading by big players, institutions,

professionals etc. it’s very easy to understand as well as it’s accuracy is very
high.this indicator is available in Tradingview which is one of the best
Trading platforms all over the world.and it’s free of cost.

WHY SHOULD WE USE PIVOT?

(*),Pivots-purely derived

(*) This is a leading indicator.SoThe benefit of using this indicator is getting

data before market opens.we get all the lines of this indicator as shown
below on chart.
Picture
(*) The pivot line of this indicator does not change with different time
frames.Lines will be fixed at same place whether we use 5min time frame or
15min time frame.
(*)With the help of this indicator traders get support and resistance lines
also.which work in Trading. (*)This indicator also indicates trending market
as well as sideways market.
HOW TO USE PIVOT POINTS

As shown in the above given chart Purple middle line is the pivot line which
act as a strong support in uptrend market.and act as a strong resistance in
downtrend market.

*Green lines represent supports.

*Red linese are representing resistance.and
*Black lines are showing previous day high and low which also act as a
strong support and resistance.
RULE 1:- when market open above the pivot line and take support at
pivot.then it is Assumed that price will go upward.as shown in the chart.

Here,we have to go long.using proper stop loss.

MORE EXAMPLES ARE GIVEN BELOW TO GO LONG OR SHORT IN
NARROW RANGE CPR.
RULE 2:- When market open below the pivot line and face resistance at
pivot line.then it is assumed the price will go down.as shown in the chart
below.
Here,we have to short the stock using proper stop loss.
NOTE:-THERE ARE TWO TYPE OF CPR.
(A) NARROW RANGE CPR:- IT represents Strong trend.trend may be in
both the directions upward or downward.this is good sign to take trades.
As shown below.

(B) WIDE RANGE CPR:-IT Represents sideways trend.so stock may be

sideways that day.so one should avoid sideways market because we do not
get good risk reward in sideways market. As shown below.

SETUP -5
PRICE ACTION:-price action is to know the behaviour of the price.

A price action trader takes his all trades at a certain level at certain price
according to the behaviour of price.he forcasts direction of price.if stock
gives a Breakout at resistance level.A price action trader will buy the stock
and if stock give reversal sign at resistance level he will short the stock.same
happens at support level.if price give Breakout in downward direction at
support level.A price action trader short his position.and if price shows
reversal at support level he will buy because stock has taken support at
support level.as shown below on chart.
NOTE: support is not a line, it’s an area between two points.

When support is broken then same support becomes resistance,and

When resistance is broken, resistance becomes support.
*RULES TO DRAW SUPPORT AND RESISTANCE:
*Take a 5min or 15 min(timeframe)
Candlestick chart.
*Draw horizontal lines at high and low of
The previous day.these two levels are very
Important for a day trader.

*Draw horizontal lines at swings level as Shown Below on chart.

And see price behaviour of stock when it comes near these levels.and take
your decision according to price action.

NOTE:-Price action is not a holy grail.so do not be in misconceptions.

One Can use some indicators for more Confirmation.there are some candles
Which give confirmation to take trade.
THERE ARE SOME BULLISH AND BEARISH CANDLESTICKS ARE
GIVEN BELOW.

NOTE:-IF WE SEE BULL ELEPHANT BAR AT SUPPORT,WE GO

LONG. AND IF WE SEE BEAR ELWPHANT BAR AT TOP OR
RESISTANCE WE SHORT.
When price touch support or resistance levels

We have to be very careful.now we have to notice price action(price

behaviour) if price reverse from the support level we will short with
confirmation candle.and if price reverse from resistance level we will go
long with confirmation candle.
.

There are few candles which is used to know the confirmation of the trend
and reversal.
SUPPORT means:-it is a level where buyers Are active.(support is the Best
level to go long).

RESISTANCE means:-it is a level where Sellers are active.

(Resistance is the best level to go Short). Note:- one can draw support and
resistance Level using any time frame. For intraday traders,Best timeframe
to draw support and resistance is 5min,15min,1hour or on daily timeframe.

I will show to draw support and resistance on both 5min as well as on daily
time frame.but if we draw on daily time frame we will have to go again on
5min or 15min time frame to take the trades for intraday.so I prefer to go on
5min or 15min timeframe to draw support and resistance level.
NOTE:-Some traders draw trendline as a Support and resistance.But I prefer
to use horizontal lines as support and Resistance.

CHAPTER-3 SCALPING
• Scalp Trading: How To Earn Profit From Small Deals

New traders are often confused which trading style to pursue. If you too
have the same dilemma, you have come to the right place. It is imperative to
pick a trading style that best suits your personality before you start
navigating the stock market. Without a technique, you will get confused and
may end up with huge losses. Your adopted style must depend on your
financial goal, risk tolerance, time that you can invest daily to follow the
market, and several other similar factors. So, you must learn about the
different trading techniques to make an informed choice. In this article, we
will discuss the scalping trading style, which is about making numerous
small deals during the day to earn a profit. So, keep reading.

Who Are Scalpers?

If you have heard about scalp trading, you are probably wondering who
scalpers are and how they must be earning from their deals. Well, scalping is
a trading style that is employed to earn from small price changes to make
profits that add up. Scalpers trade frequently and in small successions. A
scalp trader needs to have a strict exit policy because one large loss could
eliminate all the small profits he has made in the other deals. Scalp trading,
therefore, needs discipline, decisiveness, and stamina. With these qualities
and the right tools, you can become a successful scalp trader.
Scalp traders often enjoy the thrill that this trading style offers. But to strike
successful deals, you will need the experience to execute the various
technical trading techniques to identify profit opportunities in the market.

How Does Scalping Work?

Having answered the question of who scalpers are, we have arrived at the
next question: what is scalp trading?

Scalping trading is a short-term trading technique that involves buying and

selling underlying multiple times during the day to earn profit from the price
difference. It involves buying an asset at a lower price and selling high. The
key is to find highly liquid assets that promise frequent price changes during
the day. You can’t scalp if the asset isn’t liquid. Liquidity also ensures that
you get the best price when entering or exiting the market.

Scalpers believe it is easier to make small deals and less risky from the
market volatility perspective. They make small profits before the opportunity
evaporates. Scalp trading lies on the other side of the spectrum, where
traders hold onto their position overnight, sometimes even for weeks and
months waiting for a bigger profit size to emerge. Scalpers believe in
creating multiple profit opportunities within a small span than waiting for a
bigger one.

Scalpers work on the market on three principles

Lower exposure limits risks: A brief exposure in the market also minimises
the chances of running into an adverse condition.

Small moves are easier to obtain: For a bigger profit, the stock price has to
move significantly, which also require higher imbalance in supply and
demand. Compared to that, smaller price moves are more comfortable to
catch.
Small moves happen frequently: Even when a market is apparently quiet,
there are smaller moves in an asset price that scalpers target to exploit.
While other trading styles like position trading, depends on fundamental and
technical analysis to identify trades, scalp traders primarily focus on
technical trading techniques.

Technical analysis involves studying historical price movements of the asset

along with following the current trends; achieving it, scalp traders use
various tools and charts. Equipped with historical price, scalpers observe
patterns and predict future price movements as they plan a deal.

Scalp traders use trading charts and timeframes that are the shortest of all the
trading styles. A day trader might use a five-minutes trading chart to make
five deals a day. But a scalp trader will use timeframes as short as five-
seconds to make 10 to 100 trades during the day. To achieve this high speed
of trading, scalp traders use several trading techniques.

SETUP:SETUP FOR SCALPING

SCALP WITH SUPER TREND:-I usually scalp with help of supertrend

indicator because it works very well in trending market.
Using this indicator I get trades with good risk reward ratio.
REQUIREMENTS:(1) 1 min time frame candlestick

Chart. (2) supertrend indicator (3) one can use 20ma and 200ma.

To know the trend. (4) use Bollinger band to avoid false entry
Signal in sideways market.

Rule 1: settings of supertrend will be it’s default settings.we do not have to

change the setting of this indicator.
*One has to buy when supertrend give buy signal and one has to sell when
supertrend gives sell signal. * We have to use stop loss below the supertrend
lines.and we have to trail the stop loss as the line moves of the supertrend.as
shown Below on chart.
NOTE:-Trade till 12:30 pm if you scalp.because we get momentum in first
part of Trading hourse.

RULE 2:
We can use Bollinger band to avoid false entry signal.
IF Bollinger band is acting like a horizontal line. And candle forms outside
of the band.and Supertrend is also giving buying or selling signal

Then we do not have to take the trade.because probability to get a successful

trade in these type of situation are very low. As shown below on chart.
NOTE:-If price goes out from the band we should avoid or wait to take any
trade.

TRADE MANAGEMENT

I have heard saying many novice traders that they do not have the best setup
so they are not profitable in the business of trading.so they think to buy
online courses to get a 100 percent accurate strategy which will make them a
profitable trader.there is nothing wrong in buying courses.But if a new trader
think that a strategy will make him successful in trading.then I do not think
he will become a profitable trader.i am saying these words on the basis of
my own experience.what ever I have written in this ebook are based on my
own experience in day trading.

I have already said in the first chapter of this ebook that trading is 70 percent
or even more,Trade Management 20 percent and only 10 percent setup or
strategy.so I will suggest you to focus on your emotions which comes in
mind when we take a trade.here I am saying to control the emotions of
hope.when we go wrong we do not accept a small stop loss we start
assuming or hopping that price will take a turn in my direction and my loss
going trade will change into a profitable trade.but it does not happen most of
the time and we make a big loss then we regret and blame the market.people
say this market is a place of gambling.but they do not know that they do not
have knowledge of this market.this is an example of poor trade
management.so I will discuss about trade Management below.many novice
traders take a trade and set the stop loss

And they think that they do not have to do anything more accept waiting and
watching.But trade Management start just after taking a trade.i will discuss
how it works.

Here, Trade management palys an important role to make a trade profitable.

We will take two examples to learn in detail about this topic.

(1) Let’s assume that there is a company:-Titan (whose current share price is
₹1500).
Mr.thomas decides to buy 2000 shares of titan at ₹1500 according to his
technical analysis.he use a stop loss of 5 points.which will be at ₹1495.
Mr Thomas follow risk reward of 1:2.
Now,his down side is 5*2000=₹10000/-when his stop loss is hit.
His profit will be 10*₹2000=₹20,000/- when he is right.
Assume,if Thomas takes 10 trades in a week and He is wrong 5 times and
right 5 times then his loosing and winning ami will be:
(A) 5(sl)*2000*5(times)=50k(Fifty thousand)= lost. (B)
10(PT)*2000*5=1LAKH=Profit.
Net profit=1lakh -50k=50k. (I have not added brokerage and taxes in this)
NOTE:- IF he is right 7 times than profit will be

7*2000*10= ₹1,40,000-30k= 1,10,000 net Profit in a week.)

(2) Let’s assume that there is a company titan Whose current share price is
₹1000. If Thomas buy 500 shares of titan at ₹1000 using a Stop loss of 5
points which will be at ₹995.
Now,assume Thomas goes wrong 4 times and right 6 times out of 10. Then,
5*4*₹500=₹10,000(loosing amount).

= When Thomas is right.he decides he will Book 60% of his total position at
a profit of 5 Points.which will be 300 shares. So,(300*5= booked profit).

Now he will trail his stop loss at break even.if share price gives more 10
points.then he will book remaining postion of 200 shares.which will be
(200*5+10(points)=₹3,000 profit amount)
SO,Total profit=₹1500+₹3000=₹4500/-.

Note:- if share price reverse after giving a profit of 5 points after all we will
be in profit of ₹1500.because we have already booked And trailed the stop
loss at break even.

This systematic way of trading is called trade Management by me.in this

way we reduce our risk side almost 80 to 90 percent.
IMPORTANT POINTS.

Let’s assume,we do not trail o ur stop loss at break even after booking a
profit of 5 points and our stop loss is still at a risk of 5 points.and if price
reverse and hit our stop loss then we will loose only 200(shares)*5=₹1000. It
means,still we are in profit of ₹500. Because our booked proft was
5*300(share)=₹1500.

5*300(share)=₹1500. 1000=₹500 remaining net profit.

THANK YOU SO MUCH FROM THE DEPTH OF MY HEART BEST OF
LUCK