SANKAR SRINIVASAN

 Profitable Trading method for Forex and

Small cap shares in Intraday trading

 Written by Sankar Srinivasan

(National Stock Exchange of India’s Certified
Market Professional)

 Published by LeoPardBooks.com

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 © Sankar Srinivasan
All rights reserved
 
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 Use this theory for Forex Trading & Small Cap
shares in Intraday Trading

 No Technical Analysis knowledlge needed

 Simple mathematical calculations

 Take trading decisions by using Day High, Day

Low prices and Current Market Price
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 Easy to understand
 Anyone can use without expert knowledge
 Easy to find exact entry and exit areas
 You may expect near about 90% Accuracy

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LEONARDO FIBONACCI (1170-1250 AD)

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 Italian Mathematician, born in Pisa, Italy

 Considered as “the most talented

Mathematician of the Middle Ages”

 No Stock or Commodity markets in his time

(1170-1250 AD). But, his mathematical
predictions are working well, even today

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 Fibonacci introduced to Europe, the Hindu-
Arabic numeral system primarily through his
Composition in 1202 AD.

 He also introduced the sequence of numbers

(0,1,1,2,3,…………)

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 Fibonacci became a Guest of Emperor
Frederick II, who enjoyed mathematics and
science.

 In 1240, the Republic of Pisa honoured

Fibonacci, by granting him a salary.

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 0,1

 Add last 2 numbers, and write

 0,1,1,2,3,5,8,13,21,34,…………………….

 Then, first divide first number by second number,

and divide second number by first number

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 0,1,1,2,3,5,8,13,21,34,…………………….

 After some steps, you will get 0.618 and 1.618

as answers for all calculations

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 So, Fibonacci found that 0.618 and 1.618 is
important retracements (steps), in a
sequence of numbers.

 HOW IT WORKS IN STOCK MARKET???

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 HOW IT WORKS IN STOCK MARKET???

 SIMPLE – If you get High/Low price, assume

it is 100%. In this 100%, calculate 61.8% and
161.8% of price. You can find major price
change in these areas.

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 EXAMPLE

High Price – 8000

Low Price - 7950
Current Price - 7975

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 Now, we are going to take trading High – 8000
Low – 7950
Decisions, by using Fibonacci Current - 7975
Retracement

 Step 1 is ……….. High (Minus) Low

=8000 – 7950 = 50
= Add 61.8%, 100% and 161.8% of 50

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 Step 2 High – 8000
Low – 7950
Current – 7975
Find BUY area by following Calculations High-Low - 50

= Calculate 61.8% of 50
= 50 x 61.8% = 30.90

Add 30.90 with LOW Price

= 30.90 + 7950 = 7980.90

BUY AT 7980.90

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 Step 3 High – 8000
Low – 7950
Current – 7975
High-Low - 50
Find First Target by following Calculations
= Calculate 100% of 50
= 50 x 100% = 50
= Add 50 with Low. 7950+50 = 8000
Find Second Target
= Calculate 161.8% of 50
= 50 x 161.8% = 80.90
= Add 80.90 with Low. 7950+80.90 = 8030.90

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 Step 4 High – 8000
Low – 7950
Current – 7975
Find SELL area by following Calculations High-Low - 50

= Calculate 61.8% of 50
= 50 x 61.8% = 30.90

Less 30.90 from HIGH Price

= 8000 – 30.90 = 7969.10

SELL AT 7969.10

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 Step 5 High – 8000
Low – 7950
Current – 7975
Find First Target by following Calculations High-Low - 50

= Calculate 100% of 50
= 50 x 100% = 50
= Less 50 from HIGH. 8000-50 = 7950
Find Second Target
= Calculate 161.8% of 50
= 50 x 161.8% = 80.90
= Less 80.90 from HIGH. 8000-80.90 = 7919.10

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 Trading Decision is High – 8000
Low – 7950
Current – 7975
High-Low - 50
 BUY AT 7980.90
 FIRST TARGET 8000.00
 SECOND TARGET 8030.90
Either
OR
 SELL AT 7969.10 BUY or
 FIRST TARGET 7950.00
 SECOND TARGET 7919.10
SELL
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 If BUY price triggers, then BUY. Otherwise,
wait till price fall to SELL price. If SELL price
triggers, then short sell.

 For BUY, Low is Stop Loss

 For SELL, High is Stop Loss

 Required datas are Day High & Day Low

 Can use previous High & previous Low
 Use any time of Market
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 Don’t use this theory for Option trading

 Good theory for forex trading

 Use multiple times in a trading day

 Suggested for Intraday trading only

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 In my personal experience, it is giving
minimum profit for 6 to 8 trades out of 10

 Manual calculation is time consuming. So,

please kindly send scan copy or email copy of
bill of purchasing this work to
petra.srini@gmail.com

 I will send excel sheet calculator. You can use

to make immediate decision
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 If you have any doubts, please contact

Sankar Srinivasan
National Stock Exchange of India’s Certified Market Professional

Mobile: +91 90 4240 4390

Petra.srini@gmail.com
http://niftyglobal.blogspot.in
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