Investment through

Aroon Indicator
@sanstocktrader

Email : san.reliance@gmail.com
Twitter : @sanstocktrader
 Aroon Indicator
• Developed by Tushar Chande
• Aroon Indicator formula
Aroon Up = [(# of periods)- (# of periods since highest high)] / (# of
periods) ] * 100
Aroon Down = [(# of periods)- (# of periods since Lowest Low)] / (# of
periods) ] * 100
• One of best Trend indicator for long time frame ( weekly )
• Oscillate between 0 to 100
• Movement above 70 indicate strong Trend and below 30 indicate weak
trend .
 Aroon Strategy
• Strategy to catch long term winning stocks using Aroon Indicator
• Chart time frame : Weekly
• Aroon Indicator setting : 25 weeks
• Bullish signal candle : When Aroon Up cross Aroon Down from below on
Weekly chart ,volume is higher compared to last weekly candle , Aroon up is
above 30
• Buy Entries:
1. Above high of Bullish signal candle ( If signal candle is up <=10 % )
2. 23.6 % to 38.6 %fibo level of Bullish signal candle (If signal candle is up
>=15% )
3. 38.6 % to 50% fibo level of Bullish signal candle ( If signal candle is up >=20
%)
• Stop loss:
1. 10% from entry level for large cap stocks
2. 15% from entry level for Mid cap stocks
3. 20% from entry level for Small cap stocks

• Stop loss shall be trailed once stock started moving upside

Target : No fixed target , Idea is to ride the Trend using trailing Stop loss
Exit : Below low of any weekly reversal candles like Bearish Engulfing ,
Bearish Dark Cloud Cover , Hanging Man and Bearish Evening Star
My own past trades
VWAP -Day Trader’s
best arsenal
@sanstocktrader
 VWAP best arsenal for Day Trader
• VWAP= Volume weighted average price
• Widely used by algo for placing big orders without affecting price to big
extend
• Price staying above VWAP indicate Buyers are aggressive
• Price staying below VWAP indicate Sellers are aggressive
• VWAP act as excellent support and resistance
 MY VWAP day Trading strategy
• Tool require for VWAP day trading strategy :
1. Last 4 days VWAP
Assign VWAP number VWAP1 , VWAP2 , VWAP3 & VWAP4
VWAP1 = Highest VWAP of last 4 days
VWAP2 = 2nd highest VWAP of last 4 days
VWAP3 = 2nd Lowest VWAP of last 4 days
VWAP4= Lowest VWAP of last 4 days
2. 15 Min candle stick chart
 VWAP chart set up

@sanstocktrader
VWAP1

VWAP2

VWAP3

VWAP4
 Identifying Trend for The Day
Strategy :
Opening price with respect to last 4 day VWAP will decide Trend for the day.
Bullish Trend :
Opening Price above highest VWAP ( VWAP 1) – Long Trade only
Opening Price between VWAP1 & VWAP2- Long Trade only
Bearish Trend :
Opening Price below lowest VWAP ( VWAP 4)- Short Trade only
Opening Price between VWAP3 & VWAP4 – Short Trade only
Neutral Trend :
Opening Price between VWAP2 & VWAP3 – No Trade zone
 Entry
Buy Entry :
• Buy above highest VWAP ( VWAP1 )
• Buy above 15 min bullish Candle high which take support at VWAP2
• Buy above high of 15 min bullish candle which open above highest
VWAP ( VWAP1)
Sell Entry :
• Sell below lowest VWAP ( VWAP4 )
• Sell below 15 min bearish Candle low which face resistance at
VWAP3
• Sell below of 15 min bearish candle which open below lowest VWAP
( VWAP4)
 Target & Stop Loss
• Fixed 1 % stop loss from entry level
• Being Intraday Trader , I can not effort to lose more than 1 % in single
Trade
• Fixed Target of 1.2 % from entry , where I book 50-60 % of quantity
and rest in range of 2-3 % depending upon market condition
• Max 4 Trades in Day
 Buy above highest VWAP ( VWAP1 )

@sanstocktrader
 Buy above 15 min bullish Candle high which
take support at VWAP2

@sanstocktrader
Buy above high of 15 min bullish candle which
open above highest VWAP ( VWAP1)

@sanstocktrader
 Sell below lowest VWAP ( VWAP4 )

@sanstocktrader
 Sell below 15 min bearish Candle low which
face resistance at VWAP3

@sanstocktrader
Sell below of 15 min bearish candle which open
below lowest VWAP ( VWAP4)

Sell Entry below first 15 bearish candle low

VWAP 2% Break out strategy by Ashish
( Founder of Keystocks software )
• Strategy :
• Scan stocks whose last 4 days VWAP is in 2 % of stock price . That means
highest and lowest VWAP of last 4 days are with 2 % of stock price
• Buy Entry : Above high of highest VWAP ( VWAP1 ) .
• Sell Entry : Below Low of Lowest VWAP ( VWAP4 )
• SL : 1.5 % From Entry
• Target : 2 % -3%
 2% VWAP break out Trade
@sanstocktrader
 2% VWAP break down Trade
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 VWAP of Trending day acts as best support and
resistance for future
@sanstocktrader
VWAP of Trending day acts as best support and
resistance for future
@sanstocktrader