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Contents
Must know concepts before strategies
Plotting important levels on the chart for Intraday
Discussion on Breakouts & False Breakouts
Stop-loss Management
Intraday Strategies & Other related topics
Gap-Fill & Gap Continuation Strategies [6 strategies]
CPR-based Strategies [2 strategies]
Institutional Zones-based Strategies [2 strategies]
Based on Moving Averages [2 strategies]
How to Ride the trends using MAs
When to avoid trading
Stock Selection Methods
Others
About Our Premium Discord Community
About Our Mentorships
Q&A Session
PLOTTING IMPORTANT LEVELS FOR
INTRADAY TRADING
WHAT ARE THOSE IMPORTANT LEVELS THAT YOU NEED TO PLOT ON YOUR CHART
5 min chart is ideal for day trading in Nifty, Bank Nifty & Stocks in Intraday
Support & Resistances [ Daily / HR ] - Mark important support & resistance levels, start from higher timeframes.
Mark supply/demand zones [ Daily / 1 HR ] - These levels are nothing but where there is significant price reversal that has happened
due to heavy selloff due to entry of aggressive sellers or a significant increase in price due to entry of aggressive buyers.
Mark Gaps [Daily] - This is also most important which is often ignored by traders. Gaps happen when there is a significant GAP ups /
GAP down happens due to post-market / pre-market orders, due to global news & because of movement in the US / European markets
/ due to changes in SGX nifty, etc.
Previous day High & Previous days Low [5 min] - It is most important to plot as it acts as powerful support/resistance
Current day high / low level [5 min] - These levels are important when the market is either volatile or rangebound, In trending market
we need not use these levels mostly.
CPR & Virgin CPR [5 min] - This leading indicator acts as leading support / resistance level.
Institutional Zones [5 min] - Most important intraday supply and demand levels
EMA & SMA - These are applied only in specific situations and they help to identify the trend of the market.
2 KEY FUNDAMENTAL RULES IN PRICE ACTION TRADING
"CPR is combination of 3 pivot points called as Top pivot line, Central Pivot line and Bottom Pivot line. We call this entire range as
Central Pivot Range. CPR forms in between daily S1 & R1
"CPR acts as a dual role. It acts as a
support zone and resistance zone. It helps
identify areas in which the buyers are
likely to support the market OR sellers
RESISTANCE 2 are likely to dominate the resistance"
CPR formula
RESISTANCE 1
CPL = (High + Low + Close)/3
BPL = (High + Low)/2
TPL = (Pivot - BPL) + Pivot
Top Pivot Line (TPL)
Central Pivot Line (CPL) CENTRAL PIVOT RANGE (CPR)
Bottom Pivot Line (BPL)
"Normal Pivots are available in many trading platform
SUPPORT 1 but CPR is not. It is unknown to many traders. You can
simply plot this onto your chart without any manual
calculation. We will let you know how to do that
towards the end. For now focus on the concept"
SUPPORT 2
TYPE OF CPR AND THEIR IMPORTANCE
There are broadly 3 types of CPR - (A) Wide CPR, (B) Virgin CPR & (C) Narrow CPR
W I D E C P R
Wide CPR generally means that the gap between each pivot line is more
and hence the candles can easily fit into the gaps as shown beside.
When the CPR is wide, it is a indication that the market stays sideways,
it may not be correct always but most of the time it holds true.
Same case when candles start above CPR and try to approach CPR
zone, it acts as strong support zone and won't let candles pass
through them easily.
1. W I D E C P R & Price opens below CPR
In this situation where the candles are below the CPR, the general understanding is it could have bearish momentum on that
particular day.
However in order to confirm the same we need to wait for any other indication, here once the price reaches to the CPR level,
you can see the CPR zone is acting as strong resistance zone.
Will you short now? NO because we indication doesn't mean a trade we need price action confirmation so let's go even
deeper.
2. W I D E C P R & Price opens above CPR
There could be situations like this where price opens just above the CPR and
tries to take support the CPR and then bounces back.
In this situation, the price is reacting to the CPR level and making wicks.
Also price is making higher highs indicating bullish momentum. So we can
take a long position once the price is reversed from the CPR and makes
higher high.
Here is a situation where price opened just above CPR and tries to take a
little support at CPR but fails to form a higher high after that and
eventually candles break the CPR zone and comes out of CPR with good
momentum.
There will be situations where candles are struck inside the CPR, It is a clear indication of No Trade Zone.
You should not take any entry when the price is within CPR because price will not show any clear direction and it can continue for long
period of time. Just avoid trading that instrument for that day.
Don't force yourself to take up trade even when there is no proper setup. We should always focus upon high probable trades.
When the price opens inside CPR, unless the candle comes out with a good momentum and forms higher highs or higher lows
indicating a clear direction we should avoid trading.
VIRGIN CPR
There will be may trading days where candles will be far away from the CPR and it wont come near CPR for the entire day. In
that kind of situations the CPR for that day becomes a Virgin CPR and this virgin CPR zone is extended to the coming days as
it will act as a good support or resistance zone when price reaches that level.
Narrow CPR generally means that the gap between each pivot line is
very less and hence the candles cannot easily fit into the gaps as
shown. Single candle may be bigger than the total range
Same case when candles start above CPR and try to approach CPR
zone, it may not act as strong support zone and candles might pass
through them easily.
You can see the tomorrow CPR after today's market close and these levels
won't change after the market opens and remains same the entire day.
The best part of CPR is unlike other lagging indicators this will remain same
in any time frame as these are fixed levels and not dynamic ranges.
HOW TO ADD INSTITUTIONAL ZONES AND
TAKE UP TRADES USING THEM
Sometimes price might not reach anywhere close to the those levels which most of the times indicates
sideways market.
Works in almost all instruments like Indices, Stocks & Commodities, Forex, Crypto etc.
Importance of these levels while trading
Topic Acts as Trend Changer
We observed that often price reacts violently when it reaches institutional zones and it throwback the candles far, Once the
trend change is confirmed by momentum candles, using intraday strategies one can take the trade position. This trend change
pattern often gives high-risk reward trades. However one must not immediately enter the trades on seeing price reaction from
those levels. We always need to wait for price action confirmation like the formation of higher highs and higher lows in long
opportunity and the formation of lower highs, lower lows in short opportunity.
Importance of these levels while trading
Topic Can confirm the trend Continuation
Like any other support/resistance zone, once it faces some minor price rejection but the price is able to break through the
institutional zone with a good momentum candle, then it confirms the trend continuation existing before the breakout of the
zone. After breakout, one should wait for candles to touch dynamic resistance (8 / 20 EMA) and after that, if we get a
confirmation candle then we can take the trade.
See the example below
There will be days where the price won't touch any of the institutional zones. We can ignore these levels in those scenarios.
This is an inddication of sideways market.
EMA & SMA HACKS
Secret of 8, 20 EMAs & 50 SMA
Price action traders do not generally use lagging indicators for trading decisions. However sometimes
these lagging indicators will be helpful few ways.
Long top wick candles indicate a selling pressure, and those candles must be avoided when looking for long
opportunities. Long bottom wick candles indicate buying pressure and has to be avoided for short opportunities.
THE BREAKOUT CANDLE
Long top wick candles indicate a selling pressure, and those candles must be avoided when looking for long
opportunities. Long bottom wick candles indicate buying pressure and has to be avoided for short opportunities.
THE BREAKOUT CANDLE
Has to be a momemtum candle breakout
Keeping stop loss is a subjective thing that depends on the trader to trader and trade
to trade but few common things that can be followed to have a best stoploss
1. In a long trade, your stop loss must be secured by one or more support levels. Support can be
anything, be it CPR, Support zone, Demand Zone, Moving averages, Institutional zones etc.
2. In a short trade, your stop loss must be secured by one or more resistance levels. Resistance
can be anything, be it CPR, Resistance zone, Supply Zone, Moving averages, Institutional
zones etc.
3. Take into account Swing Highs & Lows also into account when placing the stoploss
Targets / Trailing Stoploss
Keeping targets & Trailing stop loss is also a subjective thing. It varies from trader to
trader & trade to trade. Some hacks are
Stoploss can be trailed using moving averages in trending markets. 8/20 ema or any other.
In a sideways market one can exit when the target hits. They can also close 50% at the set
target then trail the remaining quantity.
Can be trailed from one higher low to another higher low in case of long trades & one lower
high to another lower high in case of short trades.
12 INTRADAY STRATEGIES
5 MIN TIMEFRAME
long entry patterns Intraday
strategy 1
based on gap up / gap down
Gap up bullish
Here the price gaps up and makes a pullback and breaks days high. Entry after candle close
above days high and consolidation.
Yesterday's close
Here the price will do a gap down opening and makes a pullback and breaks yesterday's
close. Entry after candle close above yesterday's close and consolidation.
Yesterday's close
Here the price gaps up and makes a bearish candle and makes a reversal before breaking
yesterday close and breaks days high. Entry after candle close above days high and
consolidation.
Bullish Base Violation - Example
Points to consider
1. This can sometimes look like Gap Up Bearish, However for it to become Gapup Bearish the pullback should be clear, If
now we need to see if it can become Bullish base violation.
2. If the price got reversed at any important key level then its more probable.
Yesterday's close
Here the price gaps down and makes a pullback and breaks days low. Entry after candle close
below days low and consolidation.
Yesterday's close
Here the price gaps up and reverses to break days low. Entry after candle close below
yesterday close and consolidation.
Yesterday's close
Here the price gaps up with a bullish candle but could not sustain the momentum and violates
that in the next few candles and breaks yesterday close and days open. Entry after candle
close below yesterday's low and today's open.
When there is much gap b/w open price and previous day close and if we observe the base violation break bearish candle close
below days opening then also we can try to apply this base violation strategy by entering after the candle close below days
opening candle and SL above days high.
Points to consider
1. After the opening bullish candle, if there is any resistance above it and this patterns forms then it's highly probable.
2. Can give good move if there is no immediate support just below the opening candle
When the 3 moving averages are in sideways or overlapping with each other
When to better avoid taking any tardes
In Volatile Situations - When the Day high and Day Low Range is
not broken for longtime.
STOCK SELECTION METHODS
based on instituional zones break
Only for I nt r ad ay - d uring l i ve mark e t
Check the sectors Indices which are showing bullish movement / bearish movement.
You can apply the Intraday Strategies to findout
Pick the Indices which are up / down by 0.8 to 1% or more
Select stocks from the best performing sectors and apply the intraday strategies
Will share the Indices and Sector watchlists
based on Long Build Up etc
Only for I nt r ad ay - d uring l i ve mark e t
Long build up
It means people are taking long positions assuming the price will go up. This is made by the increase in Futures
OI and increase in Futures Price
short build up
It means people are taking short positions assuming the price will go down. This is made by the increase in
Futures OI and fall in Futures Price
https://trendlyne.com/futures-options/futures/long-build-up/
Active Stocks based on Futures
Only for I nt r ad ay - d uring l i ve mark e t
https://trendlyne.com/futures-options/dashboard/futures/
Active Stocks based on Options
Only for I nt r ad ay - d uring l i ve mark e t
https://trendlyne.com/futures-options/dashboard/options/
SCALPING TECHNIQUES
openi ng 1 mi nute candle strategy
points to consider
You can apply this strategy only if the 1st two one minute candle range has been broken by either the 3rd /
4th / 5th one minute candle.
Opening candle (1st) should not close inside CPR
Entry candle body should be more than the wick
SL will be below or above the entry candle ( having a little buffer is suggested)
Target is 1:1
Not to take a trade when there is support or resistance very near to the entry candle where 1:1 is not
possible.
Apply this only in Nifty / Bank Nifty
Very careful about Risk Management
Max 1 trade possibility per day
Do note that it's risky and beginners can completely avoid it.
It needs superfast execution and calculation.
This opportunity is not so frequent
bank Nifty - 1 min tf bank Nifty - 1 min tf
Nifty - 1 min tf Nifty - 1 min tf
You can apply this when the 1 min candle touches either institutional support or resistance zone for the
first time in a day and either of the next 2 candles has to engulf the candle which touched the zone.
Look for Bearish engulfing when price touch inst. resistance zone and bullish engulfing candle when
price touch inst. support zone.
It will be sufficient if it engulfs the body of the candle
Entry candle should not touch CPR
The candle which touches the zone should not break the zone.
Risk Reward is 1:1
Need to be quick & focused in identifying and executing the executing the orders, beginners can avoid
Very careful about Risk Management
Can be applied in F&O stocks, Nifty & BN
Bajaj finance - 1 min tf hdfc bank - 1 min tf
sbin - 1 min tf Asian paints - 1 min tf
Spot Chart
Keeping Stoploss in Options - For scalping and Intraday:
Open up the respective PE chart and replicate the stop loss strategy that you have followed in Spot chart.
Stoploss
STRIKE SELECTION &
OI DATA ANALYSIS ON EXPIRY DAY
You can always prefer ATM strikes for Intraday options trading.
You can also choose 1 leg ITM when going long to counter the Vega effect
Option chain data
Finding Support & Resistance based on Open Interest - mainly on expiry days
High open interest in the OTM call option is considered as a Resistance level.
Because there is a huge stake involved by call option sellers, it means that particular level breaks the
option sellers will lose money, so they try to keep the price below the resistance for most of the time.
High open interest in the OTM put option is considered as a Support level.
Because there is a huge stake involved by sell put option sellers, it means, that particular level breaks the
put option sellers will lose money, so they try to keep the price above the support for most of the time.
INDEX COMPARISIONS
Bank Nifty
Nifty
BASIC RISK MANAGEMENT DISCUSSION
About our
mentorships
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q&A Session
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The material doesn’t guarantee or represent that members acting upon any
suggestion mentioned in this material will result in a guaranteed profit.
DISCLAIMER Trading the financial market has a large potential risk, you must be aware
of the risks and be willing to accept them in order to invest or trade.
Mindfluential Trading