Basics to advanced

Price Action
Master Class

Multibaggers Point
General Strategies used by
investors/traders
· Based on tips/news

· Based on world markets

· Newspaper/news channels

· Social media, etc

Did you make regular money from it?

 What is Price Action?
➔ Price action refers to the study of the movement of an
asset's price on a chart, typically in the context of
financial markets such as stocks, forex, cryptocurrencies,
or commodities.
➔ Price action analysis involves analyzing historical price
patterns, candlestick formations, and volume to make
trading decisions without relying on traditional
indicators.
 Things we are going to learn
➔ Reading and interpreting candlestick charts.

➔ Identifying key support and resistance levels.

➔ Recognizing chart patterns, such as head and shoulders, double tops/bottoms,

and triangles.

➔ Understanding price action signals and patterns.

➔ Implementing risk management techniques.

➔ Developing trading plans and strategies

➔ The goal of a price action course is to help traders make informed decisions
based on actual price movements and to reduce reliance on lagging indicators.
The Perfect Strategy!

➔ What to Buy?

➔ What Price? (Entry)

➔ Target? (Exit)

➔ Stop-loss?

➔ Time Frame?

➔ How much quantity to buy?

Types of analysis
● Fundamental Analysis
● Technical Analysis
● Techno-Funda Analysis In this example, we’re
leading off with
something unexpected.
While the audience is
trying to come up with a
number, we’ll surprise
them with the next slide.
What is Technical Analysis?
● Technical analysis is a study of predicting future price
movement of any instrument based on the earlier price
movement.
● It is a study of prices with charts being
primary tool.
● It deals with the Demand & supply
of shares in the market at a time.
What is Technical Analysis?
● Technical analysis is not at all complicated.
● Technical analysis not connected anywhere with
Fundamental analysis ratios,
balance sheets, etc.
 What is Dow Theory?
Mr. Charles Dow is known as the
father of the modern-day technical
analysis.

This theory is based on the many

editorials he had written between the
years of 1900-1902.

The Dow Theory attempts to identify

the primary trend a market is in
Charles Dow 1851-1902
Journalist, Co-Founder of Wall
Street, Dow Jones & Co., DJIA
.
Type of Charts
● Line
● Bar
● Volume
● Candlestick
○ Open
○ High
○ Low
○ Close
Assumption
● Price moves in a trend (Up Trend, Down Trend, Sideways)
● Volume confirms the trend.
● A trend remains intact until it gives
a reversal signal.
Uptrend
Downtrend
Sideways
Trendlines
● Horizontal line
● Resistance line
● Support line
Horizontal Line
● It can be a resistance line or support line or both
● It’s tends to change its role
● Horizontal line divides chart into a good or bad area.
● Longer the Horizontal line higher the target.
Horizontal Line
Resistance Line
● Start from the left side top & end to the right side bottom
● More touch points = More Strong Resistance
● Join minimum 2 points
● Price must be stay at/below that line
Resistance Line
Support Line
● Start from the left side bottom & end to the right side top
● Join minimum 2 points
● More touch points = More Strong Support
● Price must be stay at/above that line
Support Line
Role of the Volume
● The trend is here to stay intact.
● Volume cluster below the price formation a good sign.
Volume below
Support Line
Volume below Price Pattern
Moving Averages
● Indicator showing an average price
● As the stock moves, moving average also moves
● Time period for which an average is calculated is important.
(50, 200)
● Most commonly used moving averages Simple, EMA, WMA
● Moving averages provides support & resistance to price.
● Crossover also helps in Breakout/Breakdown
● Moving averages also helps identifying Target, Stop-loss.
Dynamic support
& resistance through
Moving Average
Candlestick Patterns
● Bullish
● Bearish
● Neutral Patterns
Other Indicators

We are not going to

use it.
Price Patterns
● Head & Shoulders
● Cup & Handle
● Triangle
● Multi Top/Bottom
● Rounding Top/Bottom
● Wedge
● Flag
● Channel
3 Major Price Patterns
● Head & Shoulders
● Rounding Bottom
● Multip Top/Bottom (Horizontal Line)
Trading
Psychology
➔ Stop-loss

➔ Risk Management

➔ Position Sizing
Stop-loss
● Below Support line or above Resistance line
● Initial stop-loss should not be more than 15%
● For Traders
○ Buyers - Low of recent/previous candle
○ Sellers - High of recent/previous candle
● Professional Traders Stop-loss
○ 4%
Dynamic Stop-loss & Target
● Important psychological/round numbers
ie. 50, 100, 150 (Every 50 rupees)
● Moving average touchpoints
● Multiple Support lines for stop-loss
Risk:Reward Ratio
● Risk Reward ratio minimum 1:3
○ 5% Stop-loss = 15% Reward minimum required
Reward = 3 Risk = 1 Trading Capital = 10,000

Success Ratio Profit Loss Overall Portfolio

20% 6,000 8,000 -2,000

40% 12,000 6,000 6,000

60% 18,000 4,000 14,000

80% 24,000 2,000 22,000

Position Sizing
● Maximum 30 stocks
to buy for
the perfect portfolio
● Maximum 3%
to allocate for any stock
How to find stocks?
● https://chartink.com/screener/breakout-stocks-2133
How to find Multibagger Breakout stocks?
● https://chartink.com/screener/multibagger-pattern-7
Checklist
● Screener
● Trend Checking
● Drawing Resistance & Support Lines
● Identifying Price Pattern
● Candlestick & Volume
● Entry price, stop-loss, target (R:R), time
● Trailing, Tracking
A few important things!
● This strategy is only for educational purposes.
● Nobody / no strategy can assure you guaranteed returns in the market. This strategy
is not a Holy grail.
● This strategy is whole and complete, you don’t need to alter a bit of this, but still if you
want then you can change the target & stop-loss calculation, etc. part. Don’t add
more indicators to this, it will confuse you more.
● Strictly use it for a swing trading if you are a beginner.
● Don’t chase price if scrip moved very fast.
● Make a journal of your all trades derived from this strategy.
● All are requested to do paper trade with this strategy before applying it in the live
market for a few weeks.
● We are not responsible for any loss which may arise from this strategy/idea.
Practicals
Thank you &
Good luck!