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TRADI

NGI
N THEZONE

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- For
mat
ionoft
hecandl
es - GapTheor
y

CONTENTS
TABLEOF
- Whati
stheDemand&Suppl
y - Howt
omer
gemul
ti
plel
evel
s
-T
ypesoft
hez
one - Mar
ketT
raps
- St
rengt
hoft
hez
one&pat
ter
noft
hez
one - Suppor
tRes
ist
anceV/sDemand&Suppl
y
- ZoneMar
king - Conv
ent
ional
Pat
ter
nsV/sDemand&Suppl
y
-T
radeSet
up - Sect
ori
alAnal
ysi
s
-L
ogi
c+Pr
iceAct
ion(
behi
ndt
hecandl
e) - Conv
ent
ional
Indi
cat
ors
- Mar
ketPs
ychol
ogy - St
ocks
canni
ngwi
tht
opdownappr
oach
-T
rendAnal
ysi
s - St
opl
ossT
rai
l
ing
-T
radi
ngondier
entt
imef
rames - Put
ti
ngi
tal
ltoget
her(
Trans
for
mat
ionCompl
eted)
- Howt
olookonchar
tforov
eral
lbi
ggerpi
ctur
e
-T
radeScor
e
- Dier
entt
ypesofent
ry
- Cr
edi
bil
i
tyofz
one
- Ri
skManagement
- Movi
ngav
erage&t
hei
rcor
rel
ati
on
- Adv
anceT
rendAnal
ysi
s
-T
radi
ngagai
nstt
het
rend(
Alway
s2s
tepahead)
- Conv
ent
ional
theor
yofcandl
est
ickf
ormat
ion&
howt
ous
ethi
swi
thdemand&s
uppl
y
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FUNDAMENT
ALSOFCANDL
EFORMATI
ON

St
ruct
ureoft
heCandl
e

Upperwi
ck Upperwi
ck
Open Cl
ose

RedEx
cit
ing Body GreenExci
ti
ng Body
Candl
e Candle

Cl
ose Open
L
owerwi
ck
L
owerwi
ck

RedCandl
e:Candl
ecl
osesl
owerf
rom i
tsopeni
ngpr
ice.

Gr
eenCandl
e:Candl
ecl
oseshi
gherf
rom i
tsopeni
ngpr
ice.

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TYPESOFCANDL
ES

Ex
cit
ingCandl
eFor
mat
ion

GreenExci
ti
ng Green RedEx
cit
ing Red
Candle Ex
citi
ng/Expl
osi
ve Candl
e Exci
ti
ng/Expl
osi
ve
Candle Candle

1.CandleNo.1&3i nabovementioneddi agr


am hasmor ethan50%bodyofov er
allcandl
ewhichmakesi
t
GreenExciti
ngCandleandRedEx cit
ingCandlerespecti
vel
y.
2.CandleNo.2&4i nabovement i
oneddi agram hassames tr
uctur
eascandl
eNo. 1&3,butt
herei
sabig
dierencebet weenopeni
ngandcl osi
ngpricehence,i
tisknownasGreenExpl
os i
veCandleandRed
Expl
osive Candler
espect
ivel
y.
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Bas
eCandl
eFor
mat
ion

1 2 3 4

Bas
ecandl
e=Bodypar
t<50%ofRangeoft
hecandl
e

1
.Thi
sst
ruct
ureoccur
swhenBuy
ersar
emar
ginal
l
yhi
ghert
hanSel
l
ersi
.
e.80,
000Buy
ers/60,
000Sel
l
ers
.
2.
Thi
sst
ruct
ureoccur
swhenBuy
ersar
emar
ginal
l
yhi
ghert
hanSel
l
ersi
.
e.80,
000Buy
ers/7
2,000Sel
l
ers
.
3.
Thi
sst
ruct
ureoccur
swhenBuy
ersar
emar
ginal
l
ylowert
hanSel
l
ersi
.
e.60,
000Buy
ers/80,
000Sel
l
ers
.
4.
Thi
sst
ruct
urer
eflect
swhent
her
ear
emi
norchangesbet
weenopeni
ngandcl
osi
ngpr
ice
(
Noofbuy
ers~Noofs
ell
ers
).

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Candl
eFor
mat
ion

Bas
eCandl
e

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STRENGTHOFTHEZONE(
DEMANDZONE)

NORMALBUYI
NG STRONG BUYI
NG VERYSTRONG BUYI
NG

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STRENGTHOFTHEZONE(
SUPPL
YZONE)

NORMALSELLI
NG STRONG SELLI
NG VERYSTRONG SELLI
NG

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PATTERNSOFZONE

1
.DBR-DROPBASERAL
LY 2.RBR-RALL
YBASERAL
LY
(
REVERSALPATTERN) (
CONTI
NUOUSPATTERN)

D.
Z D.
Z

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RBD-RAL
LYBASEDROP DBD-DROPBASEDROP
(
REVERSALPATTERN) (
CONTI
NUOUSPATTERN)

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DemandZone(DZ)

Whil
emar ki
ngtheDemandZoneHighes
t Greenexci
ti
ngcandl
e
Bodyofallbas
eandL owes
tWickofal
l f
ormati
ontakespl
ace
basewil
lbeconsi
dered. af
terbasecandl
e

*Li
nemarkedatt
heHi
ghes
tBody
ofal
lbas
eiscal
l
edPr
oxi
malLi
ne. DemandZonear
ea
ofpendi
ngor
der
s
*Li
nemarkedatt
heL
owestWi ck
ofal
lbas
eiscal
l
edDis
tal
Line.

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Suppl
yZonearea
ofpendi
ngor
ders
Whi
l
eMar
kingt
heSuppl
yZoneL
owes
t
Bodyofal
lbas
eandHi
ghes
tWi
ckofal
l
bas
ewi
l
lbecons
ider
ed.

Redexci
ti
ngcandle
for
mati
ontakespl
ace
*Li
neMarkedatt
heLowestBody
aft
erbasecandl
e ofal
lbas
eiscal
ledPr
oxi
malLine.

*Li
neMarkedatt
heHighestWick
ofal
lbas
eiscal
ledDi
stal
L i
ne.

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STEPSOFMARKI
NG ZONES

I
dent
ificat
ion&Mar
kingofDemandZone

1
.Mar
kahor
iz
ont
all
i
neatcur
rentmar
ketpr
ice.
2.
Lookl
eft&downf
oranexpl
osi
veupmov
e(gr
eenex
cit
ingcandl
e)
3.
Mar
kal
lthr
eecomponentoft
hez
one(l
egi
n,bas
eandl
egout)
.

Nowwehav
e2way
sofmar
king

Bodyt
oWi
ck Wi
ckt
oWi
ck

Pr
oxi
mal
Line Hi
ghes
tbodyofal
lbas
e Hi
ghes
twi
ckofal
lbas
e

Di
stal
Line L
owes
twi
ckofal
lbas
e L
owes
twi
ckofal
lbas
e

I
nit
ial
l
ywewi
l
lfocusonbodyt
owi
ckmar
king.
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I
dent
ificat
ion&Mar
kingofSuppl
yZone

1
.Mar
kahor
iz
ont
all
i
neatcur
rentmar
ketpr
ice.
2.
Lookl
eft&upf
oranexpl
osi
vedr
op(
redex
cit
ingcandl
e)
3.
Mar
kal
lthr
eecomponentoft
hez
one(l
egi
n,bas
eandl
egout)
.

Nowwehav
e2way
sofmar
king

Bodyt
oWi
ck Wi
ckt
oWi
ck

Pr
oxi
mal
Line L
owes
tbodyofal
lbas
e L
owes
twi
ckofal
lbas
e

Di
stal
Line Hi
ghes
twi
ckofal
lbas
e Hi
ghes
twi
ckofal
lbas
e

I
nit
ial
l
ywewi
l
lfocusonbodyt
owi
ckmar
king.

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I
mpor
tantpoi
nt:

-I
ndemandz
onel
egoutwi
l
lbegr
eenwhi
l
eins
uppl
yzonel
egoutwi
l
lber
ed.
-L
egi
nmaybeei
thergr
eenorr
eddependi
ngont
hepat
ter
n.
Lor
em I
psum
Boos
terpoi
nt:
Legoutshoul
dbeexpl
osi
ve,s
owecans
aywehav
emaxi
mum pendi
ngor
der
sin
ourzoneandourz
oneispowerf
ul.

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T
radeSet
up

Af
termar
kingdemandz
oneors
uppl
yzone,t
het
rades
etupneedst
obemar
kedas:

ENTRY

1.
Aftermar
ki heDemandZone,ent
ngt r
ypoi
ntshoul
dbemarkedjustabov
etheproxi
mall
ine.
2.Af
termar
kingtheSuppl
yZone,ent
rypoi
ntshoul
dbemark
edj ustbel
owthepr
oximall
i
ne.

STOPL
OSS
StopLossshouldbej
ustbel
owthedi
stal
li
neoft
hedemandz
oneandj
ustabov
ethedi
stal
li
ne
ofthesupplyzonewi
thsomeroom.

T
ARGET
:
Targets
houldbemark
ed,equi
val
entt
othedoubl
eoft
hedierencebet
weenEnt
rypoi
ntand
StopLoss(
2:1
)andmakesur
eourtr
adeset
upshoul
dpermi
tthi
s.

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T
argetPoi
ntRs
.135/-

Ent
ryl
i
neRs
.125/-

Rs
.5

St
opL
ossRs
.120/-

I
ntheaboveex
ampl e,Ent
ryismarkedatRs
.125/-St
opL ossi
s
mar
kedasRs.
120/-andt heTar
getismar
kedatRs .
135/-.

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EXCEPTI
ONALMARKI
NG OFTHEZONE

DemandZone (
Except
ional
mar
kingf
orRever
sal
Pat
ter
n)

Di
stal
li
ne-l
owes
twi
ckofl
egi
n

(D-B-R)NORMALMARKI
NG (D-B-R)EXCEPTI
ONALMARKI
NG L
EGI
N

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DBR-EXCEPTI
ONALMARKI
NG L
EGOUT

Di
stal
li
ne-l
owes
twi
ckofl
egout

ForCont
inuousPat
ter
n

Di
stal
li
ne-l
owes
twi
ckofl
egout

(R-B-R)NORMALMARKI
NG (R-B-R)EXCEPTI
ONALMARKI
NG L
EGOUT
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Suppl
yZone (
Except
ional
mar
kingf
orRever
sal
Pat
ter
n)

Di
stal
li
ne-hi
ghes
twi
ckofl
egout

(R-B-D)NORMALMARKI
NG (R-B-D)EXCEPTI
ONALMARKI
NG L
EGOUT

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(R-B-D)EXCEPTI
ONALMARKI
NG L
EGI
N

Di
stal
li
ne-hi
ghes
twi
ckofl
egi
n

ForCont
inuousPat
ter
n

Di
stal
li
ne-hi
ghes
twi
ckofl
egout

(D-B-D)NORMALMARKI
NG (D-B-D)EXCEPTI
ONALMARKI
NG L
EGOUT
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CANDL
EBREAKDOWNANDMARKETPSYCHOL
OGY

Str
ongZonewit
hles
s Zonei
snotstr
ongbecauseof
than3basecandl
es mul
ti
plebasecandl
es

Not
e:Azonewi
thmi
nimum bas
ecandl
ess
houl
dbecons
ider
ed.
Ifwear
e
consi
deri
ngmulti
plebas
ecandl
esz
one,mak
esur
ewes
houl
dhav
eav
ery
st
ronglegoutcandl
e.

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L
OGI
C+PRI
CEACTI
ON(
BEHI
NDTHECANDL
E)

Pr
iceOr
igi
nandCl
osi
ngConcept
s

Pr
iceOr
igi
n

I
fpri
cehit
I
fpricehitt
he thezone
z
onewi th wit
hmor e
normalsell
i
ng sell
i
ng
press
ure. pressur
e.

Ent
ry

or
igi
noft
hedemand or
igi
noft
hedemand

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Cl
osi
ngConcept
s

legoutcandl
eshoul
d
beclosedabovel
egin

legoutcandl
eshoul
d
beclosedbel
owlegi
n

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wor
ksl
i
keex
cit
ingcandl
e
Anotherf
ormati
onof
exci
ti
ngcandle bas
ecandl
ewi
thgap

Si
gni
ficantgap+Bas
ecandl
e=Ex
cit
ingcandl
e

S.
Z
I
fpr
icehi
tthez
onewith
nor
mal s
ell
i
ngpres
sur
e

I
fpr
icehi
tthez
onewith
hi
ghsel
li
ngpres
sur
e

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Di
str
ibut
ionofBuyi
ng

Cl
osi
ngabov
eSel
l
ingPr
ess
ure

or
igi
nofmov
e

or
igi
nofmov
e

Cl
osi
ngbel
owBuyi
ngPr
ess
ure

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Anal
yzi
ngT
rends

1
.Zoneshel
pust
odeci
dewhet
hert
obeabuy
eroras
ell
er.
Howev
er,t
rendwi
l
lhel
pus
t
odeci
dewhet
hert
ogol
ongi
nthedemandors
hor
tint
hes
uppl
y.
*Yous
houl
dbet
hebuyeratdemandifs
tocki
sinupt
rend.
*Yous
houl
dbet
hesel
l
eratsuppl
yifs
tocki ndownt
si r
end.

1
2 1
50SMA
Bet
ween1
2-3=T
rendup

5 2
6
4 3
7
Hor
izont
alL
ine 9 3

Cl
oset
o3=T
rends
ideway
s

6
Ver
ti
cal
Line Bet
ween3-6=T
renddown
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Howt
olookatt
heT
rend

1
.Add50SMAony
ourpr
icechar
t.
2.
Star
ti
ngf
rom t
hecur
rentcandl
ecal
cul
ate7candl
esback
war
ds.
3.
Drawv
ert
ical
li
neont
hes
event
hcandl
e.
4.
Thepoi
ntwher
eyourv
ert
ical
li
nei
sint
ers
ect
ingt
he50s
ma,dr
awahor
iz
ont
all
i
ne.
5.
Jus
timagi
neacl
ockwi
th1
2-3-6

TheRul
eis

1
.Ify
ourmovi
ngav
eragei
str
adi
ngbet
ween1
2-3andcol
oroft
hemovi
ngav
eragei
sgr
eent
hent
r sup.
endi
2.
Ify
ourmovi
ngav
eragei
str
adi
ngbet
ween3-6andcol
oroft
hemovi
ngav
eragei
sredt
hent
r sdown.
endi
3.
Ify
ourmovi
ngav
eragei
str
adi
ngcl
oset
o3andcol
oroft
hemovi
ngav
eragei
sredorgr
eent
hent
rendi
s
s
ideway
s.

Caut
ion:

Buyi
ngatdemandwhent
hes
tocki
sindownt
rendands
ell
i
ngats
uppl
ywhent
hes
tocki
sin
upt
rendcanbeext
remel
ydanger
ous
.
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TRADI
NG ONDI
FFERENTTI
MEFRAMES

Hi
ghert
imef
rame(
HTF) I
nter
medi
atet
imef
rame(
ITF) L
owert
imef
rame(
LTF)
(l
ocat
iont
imef
rame) (
tr
endi
ngt
imef
rame) (
execut
iont
imef
rame)

7
5mi
n 1
5mi
n 5mi
n/3mi
n

Dai
l
ychar
t 7
5mi
n 1
5mi
n/1
0mi
n

Weekl
ychar
t Dai
l
ychar
t 1
25mi
n/7
5mi
n

Mont
hlyChar
t Weekl
ychar
t Dai
l
ychar
t

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Cur
veAnal
ysi
s

*I
tisal
soknownaslocat
ionanal
ysi
s.
*Whatisl
ocati
on???
*L
ocat
iongi
vesy
ouani
deaabouthowhi
ghorhowl
owy
ouar
eont
hepr
icecur
ve.

Caut
ion:

1
.Ify
ouar
ebuyi
ngonas
trongdai
l
ydemandbuty
ouar
enearweekl
ysuppl
y,Chancesar
e
v
eryhi
ght
haty
ourt
radewi
l
lgets
topl
oss
.
2.
Ify
ouar
esel
l
ingons
trong1
5mi
nsuppl
y,buty
ouar
eneart
odai
l
ydemand,chancesar
e
v
eryhi
ght
haty
ourt
radewi
l
lgets
topl
oss
.

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St
epsi
nIdent
if
yingl
ocat
iononapr
icechar
t

1
.Mar
knear
estf
res
hsuppl
yzone&near
estf
res
hdemandz
one.
2.
Divi
det
hisar
eabet
weens
uppl
yanddemandi
nto3equal
par
tsbyus
ingr
etr
acement
t
ool
,st
arti
tfr
om pr
oxi
mal
li
neofas
uppl
ytopr
oxi
mal
li
neofademand.

PROXI
MALL
INE

VERYHI
GHONTHECURVE
S.
Z
HI
GHONTHECURVE

Ret
racement Equi
li
bri
um
T
ool
L
OW ONTHECURVE

VERYL
OW ONTHECURVE D.
Z
PROXI
MALL
INE

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RUL
ES
1
.IfCMP(Curr
entmarketpr
ice)i
str
adinghi
ghont
hecur
veorv
eryhi
ghont
hecur
ve.
Act
ion-SELL(atex
ecuti
ont i
meframe)
2.
IfCMP(Cur
rentmar
ketpri
ce)i
str
adingl
owont
hecur
veorv
eryl
owont
hecur
ve.
Acti
on-BUY(atexecuti
onti
meframe)
3.
IfCMP(Cur
rentmar
ketpri
ce)i
str
adingi
nanequil
i
brium ar
ea.
Acti
on-wil
lgototr
endingti
meframeandcheckthetrendandwi
l
lpl
ant
radeaccor
dingt
othet
rend.

AtI
nter
medi
ateTi
meFr
ame
T
rendup-BUY
T
renddown-SEL
L
T
rendsi s-I
deway GNORE

Not
e:
1.
Iftherei
snofr
eshs
upplybutfr
eshdemand-Assumet
hatstocki
s
tr
adingint
heequi
li
bri
um andtr
adewitht
het
rend.
2.I
ftherei
snofr
eshdemandbutf r
eshs
uppl
y-Assumethats
tocki
s
tr
adingint
heequi
li
bri
um andtr
adewitht
het
rend.
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a. I
flev
eli
sfr
esh 3 Not
e:
b. I
flev
eli
stes
tedonce 1
.5
*I
ftr
ades
7wil
ltak
cor
ei
eent
s
r
y
c. I
flev
eli
stes
tedt
wice 0 t
ype1
.

*I
ftrades
5-6wil
lt
cor
ake
ei
s

a. I
fpr
icel
eav
est
hel
evel
wit
hagap 2 ent
ryt
ype2/3.

b. I
fpr
icel
eav
est
hel
evel
wit
h2ex
cit
ingcandl
e 2 *Notr
ades
bebel
houl
ow5.
d

c. I
fpr
icel
eav
est
hel
evel
wit
honl
yoneex
cit
ingcandl
eandnogap 1

a. I
fwehav
e1-3bas
ecandl
esi
nthebas
e 2

b. I
fwehav
e4-5bas
ecandl
esi
nthebas
e 1

c. I
fwehav
emor
ethan5bas
ecandl
esi
nthebas
e 0
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DI
FFERENTTYPESOFENTRY&CREDI
BIL
ITY

Ent
ryT
ypes

Ent
ryt
ype1
. Ent
ryt
ype2.

Scor
e7
Set&Forgett
rade

T
radeScor
e6

Nextcandl
es houl
d
Wil
lkeepentryj
ust openinthesamez one
ENRTYL
INE aboveproxi
malli
ne
ENRTYL
INE
Waitti
l
lcandl
e
cl
osesi
nthisz
one

1ST
Candl
eshoul
dbeClos
edwit
hinthezone
and2ND Candl
eshoul
dOpenwi
thinthezone.

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Ent
r ype3.(
yT Confir
mat
ion Ent
ry)

1ST
Candleshouldbecl
osedwithi
nthezoneand
2ND Candleshouldl
eav
et hez
oneont heupsi
de.

ENRTYL
INE

Cr
edi
bil
i
ty

Cas
e1.

I
fanyzoneisareacti
onofprevi
ous
z
onethenitisNon-Authent
ic

(Non-T
radeabl
e)

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Cas
e2.

Authent
icZone(Fres
h)
wil
lbuyfrom her
e

ButTr
adeabl
ebecaus
e
ofgoodcl
osi
ng

Cas
e3. Cas
e4.

Aut
hent
icZone

Non-
Aut
hent
icZone

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her
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RI
SKMANAGEMENT

1% -Beginner
s
Qt
y=Ri
skpert
rade
Ent
ry-St
opl
oss
1
.50% -Inter
mediat
e
2% -ProT r
ader

5T
rgt 5SL 6T
rgt 4SL 7T
rgt 3SL
1
% 1
0K 5K 1
2K 4K 1
4K 3K
2:
1 RISK
5KNET/PNL 8KNET/PNL 1
1KNET/PNL
10TRADES 5T
rgt 6T
rgt
5SL 4SL 7T
rgt 3SL
PERMONTH
2%
2:
1 RI
SK 20K 1
0K 24K 8K 28K 6K
1
0KNET/PNL 1
6KNET/PNL 22KNET/PNL

5T
rgt 5SL 6T
rgt 4SL 7T
rgt 3SL
1
%
3:
1 RISK 1
5k 5K 1
8k 4K 21k 3K
1
0KNET/PNL 1
4KNET/PNL 1
8KNET/PNL

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Movi
ngaver
ageandt
hei
rcor
rel
ati
on

1
.Si
mpl
eMovi
ngAv
erage
2.
Exponent
ial
Movi
ngAv
erage

1
25
(S.
M.A)-PRI
CEHAVEEQUALWEI
GHT
AGE
1
20
1
00+1
00+1
00+1
00+1
00=500/5=1
00
1
15
+1
05=505/5=101 SI
MPL EMOVI
NG
1
10 AVERAGE
+1
10=515/5=1
03
1
05 1
06
+1
15=530/5=106
1
00 1
03 +1
10=540/5=108
1
01
+1
15=545/5=109

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Appl
i
cat
ionofExponent
ial
Movi
ngAv
erage

Gol
denCr
ossover:
Ifl
owermovi
ngaver
agecutshighermovingav
er heups
ageont ide
t
heni
tiscal
l
edasagoldencrosssover
.

Deat
hCr
ossover:I
flowermovingav
eragecut
shi
ghermovi
ngav
eragei
nthedowns
ide
t
henitiscal
l
edasadeathcros
ssover
.

I
mpor
tantPoi
nts

1
.Movi
ngav
eragewor
ksper
fect
lyonl
yint
rendi
ngmar
ket
.
2.
Wewi
l
llookf
ort
hes
etupasus
ual
,wear
eonl
ygoi
ngt
ous
e(EMA)asanaddedt
rades
cor
e.
3.
Ifmovi
ngav
eraget
radi
ngt
hrought
hez
one(
20EMAor50EMA)t
hanwecangi
veaddi
ti
onal
trades
cor
e(1
).

*Movi
ngAv
erageshoul
dbeappli
edonExecuti
onTimeFr
ameonl
y.
*Gol
denCr
ossoveri
sfort
hedemandZone(Bul
li
sh)
.
*Deat
hCr
ossov
eri
sfort
hes
uppl
yzone(
Bear
is
h).

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her
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com
ADVANCETRENDANAL
YSI
S

Upt
rend
*2suppl
yzonesbr
eached
*Tr
endup

*1demandzonebr
eached
*Tr
endsi
deways

*1supplyzone
breached
*Tr
ends i
deway s
Downt
rend

*2demandzonesbr
eached
*Tr
enddown

a.I
fonedemandz
onei
sbr
eachedt
hent
rendwi
l
lbes
ideway
sandi
ftwodemandz
ones
ar
ebr
eachedt
rendwi
l
lbedown.
b.I
fones
uppl
yzonei
sbr
eachedt
hent
rendwi
l
lbes
ideway
sandi
ftwos
uppl
yzonesar
e
br
eachedt
rendwi
l
lbeup.
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CONFI
RMATI
ONENTRY
*Howt
otr
adeonasingl
eti
mef r
ame?
*Howt
otr
adeagai
nstthet
rend?

Cas
e1.

Ondai
l
yti
mef
ramet
ocheckconfir
mat
ion

Dail
y
SupplyZone
I
fanypr
icewi
ths
ell
i
ngpr
ess
ureappr
oachi
ng
bigt
imefr
amethenwewil
lwai
tfordemandz
one
t
obreachones
upplyz
oneondail
ytimefr
ame.

Buywhenpri
cecomes
agai
ninthi
sDZ
HI
GHERTI
MEFRAMEDEMANDZONE

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her
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Cas
e2.

Dai
lysuppl
yzone
br
eached

HI
GHERTIMEFRAME Wecanal
soconsi
der
DEMANDZONE t
hisar
eat
ogolong
D.
Z

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her
finance.
com
*I
fpr
icecomewi
thoutf
ormi
ngas
uppl
yzone?

Cas
e3.

Dai
lysuppl
yzone
br
eached
Foras
afers
idewecancombi
ne
DZ1&DZ2ondail
ytimefr
ame
togol
ong

DZ1

DZ2
HI
GHERTI
MEFRAMEDEMANDZONE

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her
finance.
com
CANDL
ESTI
CKSPATTERNS

Bul
l
ishHar
ami
:Si
gni
fiesupmov
e Bear
ishHar
ami
:Si
gni
fiesdownmov
e

Range
Range

a.
Fir
stcandl
es houl
dber
edands
econdcandl
e a.
Fir
stcandl
eshoul
dbegreenands
econd
shouldbegreen. candleshoul
dbered.
b.
Secondcandle’
sbodys houl
dbewit
hint
her
ange b.
Secondcandl
e’
sbodyshoul
dbewit
hint
her
ange
offir
s tcandl
e’
sbodyandwi cks
houl
dbewit
hin offirs
tcandl
e’
sbodyandwicks
houl
dbewit
hint
he
therangeofthewick. rangeoft
hewick.

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Bul
l
ishEngul
fing:Si
gni
fiesupmov
e Bear
ishEngul
fing:Si
gni
fiesdownmov
e

Encompas
ses
Encompas
ses

a.
Fir
stcandl
es houl
dber
edands
econdcandl
e a.
Fir
stcandl
eshoul
dbegreenands
econd
shouldbegreen. candleshoul
dbered.
b.
Fir
stcandl
e’
sbodyshoul
dbewit
hinther
angeof b.
Fir
stcandl
e’
sbodys houl
dbewit
hinther
angeof
secondcandl
e’
sbodyandwickshoul
dbewit
hint
he secondcandl
e’sbodyandwickshoul
dbewit
hin
rangeofthewi
ck. therangeofthewick.

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her
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Mor
ningSt
ar:
Signi
fiesupmov
e Eveni
ngSt
ar:Si
gni
fiesdownmov
e

Hal
f
Hal
f

Greencandles houl
dcloseabovehalfofthebody Redcandl
eshoul
dclos
ebel
owhal
foft
hebody
oftheredcandl e. oft
hegreencandl
e.
Foras af
ersidewewi l
lconsi
derthi
s,onl
ywhengr een Forasaf
ersidewewil
lcons
idert
his
,onl
ywhenred
candleclos
esabov ethecompleterangeofredcandle candl
eclos
esbelowthecomplet
erangeofgr
een
sowecans ay,wehaveas tr
ongDBRs truct
ure. candl
esowecans aywehav eastr
ongRBDstr
uctur
e.

Hammer:
Bul
l
ishPat
ter
n(Ri
si
ngSt
ar)

Cl
ose Hi
gh
Si
gni
fiesupmov
e
Open
Pr
ior
it
y
RedHammer
L
ow Gr
eenHammer
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her
finance.
com
I
nver
tedHammer:
Bear
ishPat
ter
n(Shoot
ingSt
ar)

Hi
gh

RedI
nver
tedHammer Gr
eenI
nver
tedHammer

Open Pr
ior
it
y
Si
gni
fiesdownmov
e
Cl
ose
L
ow

Shoot
ingSt
ar:AHammerattheendofdowntrendorani
nver
tedhammeratt
heendofanupt
rend.

1
. 2.
S.
Z

DownT
rend UPT
rend

D.
Z
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GAPTHEORY
Real
Gaps:Themarkettrul
ycl
osedandl
ateront
rul
yre-openedpr
ovi
dingadier
encei
npr
ice(
prevday
cl
ose andnextday
sopen)
.
Commodi
tymar
ketar
epr
onet
orol
l
overgaps
.

Fak
eGaps:
Gener
all
yoccur
sasar
esul
tofmat
hemat
ical
cal
cul
ati
on.
Thes
egapsoccur
sonl
yingl
obal
mar
ketanddonotoccuri
nIndi
anMar
ket
s.

I
nsi
degap:I
fagapoccur
swi
thi
nther
angeoft
hepr
evi
ouscandl
e,i
tiscal
l
edasanI
nsi
deGap

Hi
gh

Cl
ose
Nextcandl
eopenswit
hint
he
r
angeofprevi
ouscandl
e

Open
L
ow

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com
Out
sideGap:I
fagapoccur
sout
sidet
her
angeoft
hepr
evi
ouscandl
e,i
tiscal
l
edasanOut
sideGap

Hi
gh

Cl
ose
Nextcandl
eopensouts
idet
he
r
angeofprevi
ouscandl
e

Open
L
ow

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Novi
ceGap:Agapi
nthes
amedi
rect
ionoft
het
rendi
scal
l
edasaNovi
ceGAP
.

1
. 2.

Samedi
rect
ion Novi
ceGap

Samedi
rect
ion

Novi
ceGap

I
NBOTHCASEDI
RECTI
ONI
SSAME

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Pr
oGap:Agapi
ntheoppos
itedi
rect
ionoft
het
rendi
scal
l
edasaPRO GAP
.

1
. 2.
Pr
oGap

Pr
oGap
i
nopp.
dir
ect
ion

BOTHAREI
NOPPOSI
TEDI
RECTI
ON

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Appl
i
cat
ionofGaps(Novi
ce&Pr
oGap)

APP1
.Anovi
cegapi
ntot
hez
onemak
est
hatpar
ti
cul
art
radeahi
ghpr
obabl
i
tyt
rade.

ANovi
cegapi
ntot
hez
one

Demandz
one Hi
ghpr
obai
l
ityt
rade

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APP2.Anovi
cegapi
ntot
heapr
ogapmak
est
hatpar
ti
cul
art
radeahi
ghpr
obabl
i
tyt
rade.

Novi
ce gap

Pr
ogap

Demandz
one Hi
ghpr
obai
l
ityt
rade

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APP3.Apr
ogapf
rom t
hez
onemak
est
hatpar
ti
cul
art
radeahi
ghpr
obabl
i
tyt
rade.

Apr
ogapf
rom t
hez
one

Demandz
one Hi
ghpr
obai
l
ityt
rade

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ANOTHERI
MPORT
ANTGAP

Si
gni
ficantGap:Agapthatoccursbeyondtherangeofprevi
ouscandl
eiscal
l
edass
igni
ficantgap.

Wi
ndowGap:Aprogapcanal
sobeawi
ndowgap.

Wi
ndowgap

Ent
ry wes
houl
dkeepourent
ryaggr
ess
ive

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L
OTL-(LEVELONTOPOFTHELEVEL/
LEVELOVERTHEL
EVEL)

Cas
e1.

RBRpat
ter
n

Keepenr
tyl
i
neher
e-I
deal
tot
rade

Mer
ge2demandz
ones +
DBRpat
ter
n
Fr
eshz
one St
opl
oss

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com
Cas
e2.

Keepenr
tyl
i
neher
e-I
deal
tot
rade
RBRpat
ter
n

Mer
ge2demandz
ones +
RBRpat
ter
n
St
opl
oss

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her
finance.
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Cas
e3.

RBRpat
ter
n

Dier
entz
one

DBRpat
ter
n

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finance.
com
TRAPL
EVEL
S

Bul
lTr
ap-Thesearesupplyzoneswhereconventional&technicaltraderswill
mak
enovi
cebuyi
ngmi
stak
e.

Pr
icer
eact
ingf
rom t
hes
uppl
yzone

SZ

Suppl
yzone Novi
ceBuyi
ng
Res
ist
ance Mist
ake

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BearT
rap-Thesearedemandzonewhereconventional&technicaltraderswill
mak
enovi
ces
ell
i
ngmi
stak
e.

Suppor
t Novi
ces
ell
i
ngmi
stak
e

DZ

Demandz
one Pr
icer
eact
ingf
rom t
hedemandz
one

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SECTORI
ALANAL
YSI
S

Sect
orAnal
ysi
s

Wei
ght
age Howt
ous
eSect
or

Howt
ous
esect
orf
ori
nves
tment Howt
ous
esect
orf
ort
radi
ng

Wei
ght
age- I
fhi
ghl
ywei
ght
ages
tock
sofanypar
ti
cul
ars
ect
orar
emaki
ngadayhi
ght
hent
hat
par
ti
cul
ars
ect
ormaygoup,wher
easi
fhi
ghl
ywei
ght
ages
tock
sofanypar
ti
cul
ars
ect
or
ar
egoi
ngdownt
hent
hatpar
ti
cul
ars
ect
ormayal
sogodown.
Ther
eisadi
rectr
elat
ions
hipbet
weenhi
ghl
ywei
ght
ages
tock
sands
ect
oroft
hat
par
ti
cul
ars
tock
s.
ForEx
ampl
e:i
fHI
NDCOPPERors
omemet
als
tock
sar
egoi
ngdownt
henent
ir
eni
ft
ymet
al
maygodownandvi
ce-v
ers
a.

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SECTORROT
ATI
ON
Ni
ft
yMet
al

Ni
ft
yPhar
ma Ni
ft
yFMCG

Ni
ft
yAut
o
Ni
ft
yReal
i
ty

Ni
ft
yFi
nser
vice

Sectorr
otati
oni
sveryi
mportanttounder
standt
heconceptofs
ectorsuppor
t.
Al
lthesector
sofni
ft
yfaceshighandlow.
Theykeeptr
avel
li
ng,i
foneishight
henot
heri
slow.
Dierentsect
orsr
otat
earoundeachot her
.Thecycl
ekeepsonmovi
ngar
ound,i
fNif
tyMetali
shighat
pr
esentthenmaybeinfutur
eNiftyMetalmayhavealow.I
nthesamewayi
fNif
tyFi
nser
vicei
slowat
pr
esent,t
henmaybei nnearfut
ureNif
tyFins
ervi
cemayhaveahigh.
Wewi l
lnotgoopposi
te/agai
nstthes
ector.
rat
herwealwaysneedsect
ori
nours
uppor
t/f
avor
.
Hence,Sect
orsuppor
tisoneofthemostimpor
tantel
ementwhil
etr
ading.

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HowSect
orandaSt
ocks
uppor
teachot
her
?

NI
FTYCorrectioncamefrom 9114.02-6873.33
al
mos
t-25%

29Feb201
6NIFTYcame
i
ntheDemandZone

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SBI
N

29Feb2016SBI
Ncame
intheDemandZone

WhenNi f
tyon29Feb2016camedowni nthedemandzone,s
imi
l
arl
ySBINal
socamedowninthedemand
zone,whi
chmeansifNI
FTYgoesup,thenSBINal
sogoesupasit
sal
readyi
nthedemandzone.
Thisi
showSectorandStocks
upporteachother
.

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HOW TO DO SECTORANAL
YSI
S?

.
Fi
rs
tly
,prepareas epar
atemarketwatchwit
hal l
thesectorsofNi
fty.
.
St
artfr heT
om t op-Downappr ochofthepart
icul
arsector.
From yearl
ytodai
l
y.
.
Af
tertheselect
ionofst
ock,i
fstocki
sinazoneands ectorofthatparti
cul
ars
tocki
sal
so
appr
ochi
ngt
owar
dsi
tsz
onet
hent
hechancesofr
eact
ionoft
hatpar
ti
cul
ars
tocki
ncr
eas
es.
.
Sect
orandSt
ocks
uppor
teachot
heri
nthemov
ement
.

Boos
terPoi
nt:

I
fanys
ingl
etimef
rameofsect
orcoi
nci
dingwit
hstock-wecangive2addi
ti
onal
scor
estothetrade.
I
fwegetentr
yinboths
tockandit
sres
pecti
vesectoronmul
ti
plet
imefr
ames-wegive2addit
ionalscor
est
othet
rade.

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I
NDI
CATOR

St
ochas
ticsI
ndi
cat
or:Ar
ea20s
tandf
orOv
erSol
dAr
ea.
Ar
ea80s
tandf
orOv
erBoughtAr
ea.

OverBoughtAr
ea:
IfGr
eenl
i
necr
ossRedl
i
nei
nthedowns
ide,t
hent
hecondi
ti
on
sknownasoverbought
i .

OverSol
dAr
ea: I
fGr
eenl
i
necr
ossRedl
i
neont
heups
ide,t
hent
he
condi
ti sknownasovers
oni old.

Thi
sIndi
cat
orwor
kst
hebes
twhenus
edwi
thdemandands
uppl
y.

ForEx
ampl
e:I
fpr
icer
eacht
oanydemandz
oneandatt
hes
amet
imes
tochas
tic
i
ndicat
esover
sol
dcondi
ti
on,thenwecansayt
hatthepr
icewi
l
lgoup,
al
sowewi l
lgi
veanext
ra1tr
ades cor
etot
hezone.

Si
mil
arl
y,ifpri
cer
eachest oanysupplyzoneandatthes ametime
st
ochas
ticindi
cat
esoversoldcondit
ion,t
henwecans aythatthepri
cewi
l
l
godown,alsowewil
lgiv
eanext r
a1t r
adescor
etothez one.

www.
get
toget
her
finance.
com
Ov
erBoughtar
ea

Ov
erSol
dar
ea Ov
erSol
dar
ea

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get
toget
her
finance.
com
Rel
ati
veSt
rengt
hIndex(
RSI
):OverBought=70.
00
Mi
ddl
e=50.
00
Ov
erSol
d=30.
00

Pos
iti
veDi
ver
gence:Whenweseethatthepri
cei
smaki
ngL
owerL
ows
,andaccor
dingt
otheI
ndi
cat
or,
pr
icei
sfor
mingHi
gherHi
ghs.Thi
siscal
l
edposi
ti
vedi
ver
gencewhi
chi
ndi
cat
est
hatt
he
pr
icehasdecr
eas
edalotandnowi twi
l
lgoup.

Pos
iti
veDi
ver
gence
Candl
es

L
owerL
ow

L
owerL
ow

Hi
gherHi
ghs
I
ndi
cat
or

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get
toget
her
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com
Negat
iveDi
ver
gence:Whenweseethatthepri
cei
smaki
ngHi
gherHi
ghs,
andaccor
dingt
otheI
ndi
cat
or,
pri
ce
i
sfor
minglowerLows.Thi
siscal
ledposi
ti
vedi
ver
gencewhi
chi
ndi
cat
est
hatt
hepr
ice
hasi
ncr
easedalotandnowitwi
ll
godown.

Hi
gherHi
gh

Candl
es Hi
gherHi
gh
Negat
iveDi
ver
gence

I
ndi
cat
or

L
owerL
ows

Not
e:Al
thought
heI
ndi
cat
ormaywor
ksomet
imeswi
thoutDemand/Suppl
ybuti
fDemand/Suppl
yist
her
e,
t
heni
twor
kst
hebes
t.

www.
get
toget
her
finance.
com
STOPL
OSSTRAI
LING
Wedos t
oplos
str
ail
ingwhenthepri
ceisatal
lti
mehighandf
ormi
ngnewdemandzones
.
Wes hi
ftourst
opl
ossdowntot hedi
stal
li
neofnewl
yfor
meddemandzoneandwewil
ldo
t
hisunti
llt
hezonetouchest
hes t
opl
oss.

TRAI
LINGSTOPLOSS

TRAI
LINGSTOPLOSS

TRAI
LINGSTOPLOSS
ENTRY

STOPLOSS

www.
get
toget
her
finance.
com
GTF-I
SO 21
001
:201
8St
ockMar
ketI
nst
it
ute(
Equi
ty,
Fut
ure&Opt
ions-T
echni
cal
Clas
ses
)

Choos i
ngs t
ockmar k
etasafir stsourceofincomei saworri
some
decisi
on. Theneedt oo erstocktradingeducationtopeoplecame
outasadaunt i
ngexperi
enceoflos i
ngmoneyi nt hest
ockmar k
et.
I
nv es
tingandt r
adingint
heSt ockmar keti
snotacupoft eafor
everyone. So,weatGetT ogetherFinanceareher etobreakataboo
andbr idget hatgapbetweeny ours haremarketknowledgeand
successfulearni
ngs.

Wear epassionateabouts wingt r


adingtechniques,chartreadi
ng
techniques,ands hortter
mt r
adi ngtechniquesthatattr
actpower f
ul
earningsinthes tockmar k
et.Theinsti
tuteo erso ine/onlinest
ock
mar k
etclas s
esinJai purands haremar k
etcoursestoas si
stindi
vi
dual
s
stepforwardwi thapos it
iveatti
tudeinthefinancepl atform.

www.
get
toget
her
finance.
com
ht
tps
://t
.me/s
tocki
deao ci
al

/ www.
i
nst
agr
am.
com/get
toget
her
finance

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toget
her
finance.
com

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