1

WELCOME
TO
PRAJWALTRADES01
(INTRO)
 2

My story
when I was young [ about 17 years old ] I was very dumb in my studies, I never found my textbooks interesting, hated
going to school, barely passed my examinations, never got more than 40percent in any subject except computer because
computer and technology were the only things which fascinated me.

during summer vacations we used to visit my grandmother's home for 2-3 weeks. I used to see my mama Ji doing
something on his laptop, there were numbers on the screen that I could not understand at that time but he used to sit in
front of his laptop all day. he was trading in commodity but I did not know that. for 2-3 years till I was 18-19 I kept
looking at my mama Ji like this but I still did not know what he was doing.

after this, I joined an online business in which I invested 50k and made 1 lakh rupees for the very first in my life. it was
a referral business in which you get a commission for joining other people and after one year that company ran away
and the extra 1lakh rupees that I had to withdraw yet were gone.
next summer when we again visited my grandmother's home, I finally asked my mama about what does he do with his
laptop. so he told that he does trading and he buys and sells shares. then I studies a little bit about it and opened an
account in Motilal Oswal. I had 10k which I put in my account and the very first share that I ever bought in my life was
reliance. At that time the margin was up to 40x means if I had 10k, I could buy up to 4 lakh worth of shares. so I bought
reliance and made a 5k loss within 2 minutes. I kept losing like this for the next 6 months, then I started analyzing charts
but still, I was in huge losses. after this, I left trading for a year. because I was interested in computers, I used to design
websites, fixing other's laptops or pc and petty things like these and I had collected some savings with me. again started
trading and again blew my account.
 3

then I thought I should learn about it first and then do it. I started learning about technical analysis, indicators,
trendlines, watched many YouTubers but nothing helped, still faced a lot of problems and losses because I was
looking for shortcuts and was not understanding how the market works, what is risk management and what is
trading psychology.

I realized that I lack a proper system, I did not have proper risk management, I did not know about price action,
support resistance, etc. I was just focusing on candlestick patterns.
then I killed my urge to make money fast and started focusing on the process. slowly I learned about price action
and other things which are important in trading, combined them, and finally turned profitable.
all this took me 3 years of hard work, stress, and lots of money.
 About the course
CONTENT
This course will teach you price action, technical analysis, and my 4 premium strategies that
I have formed after gaining experience in the market.

PRICE ACTION + 4 STRATEGIES

- WHAT IS PRICE ACTION 1- STRATEGY ( GOLD )
- CANDLESTICKS 2- STRATEGY ( BIG BAR)
- SUPPORT AND RESISTANCE 3- STRATEGY (DIAMOND)
4- STRATEGY ( VWAP )+ GAP THEROY
- TRENDLINES
- CHART PATTERNS - TRADING SETUP (HOW TO TRADE)
- INDICATORS - RISK MANAGEMENT / TRADING PSYCHOLOGY/ JOURNAL
 4

WHAT IS PRICE ACTION

B

A
Let's say if a chart wants to move from point A to point B,
it moves in a particular way, studying this movement of the chart is called PRICE ACTION
 To understand and
predict price action
we use some tools and
indicators
Candlesticks
Support & Resistance (Market structure)
Trendlines
Chart Patterns
Indicators
Strategies
 Candlesticks
Candlestick is a type of chart pattern
that tells you the movement of
a price in a particular time frame.

If a candlestick is of 5 minutes,
it means it shows the open , close , high
and low of that particular 5 minutes
There are 3 types of candlesticks.
Bullish
Bearish
Neutral
 BULLISH CANDLE
When the closing price of a candlestick is higher than the opening price,
it's a bullish candlestick
 BEARISH CANDLE
When the closing price of a candlestick is lower than the opening price,
it's a bearish candlestick
 NEUTRAL CANDLE
When the opening price of a candlestick is the same as the closing price,
it's a neutral candle, also known as a DOJI
TYPES OF CANDLESTICKS
PATTERN
1- HAMMER
2- HANGING MAN
3- INVERTED HAMMER
4- SHOOTING STAR
5- BULLISH ENGULFING
6- BEARISH ENGULFING
7- MORNING STAR
8 - EVENING STAR
 1- HAMMER Things to be considered before a hammer
1- The price must be in a downtrend before hammer forms

2- Lower shadow or wick should be 2x the body

3- A confirmation is required after the formation of the hammer

4- No upper shadow or a very small shadow is ok

5- Colour of the body does not matter, although a green body is

more powerful than a red one

An ideal hammer has a small body and the size of

the wick is at least twice the size of the body.
EX-1
EX-2
EX-3
EX-4
EX-5
EX-6
EX-7
EX-8
EX-9
EX-10
2- HANGING MAN
Things to be considered before hanging man
1 - The price must be in an uptrend before it forms

2 - Lower shadow or wick should be twice the body

3 - A confirmation is required after the formation of the hanging man

4 - No upper shadow or a very small shadow is ok

5 - Colour of the hanging man does not matter although a red colour is
more powerful than green

The hammer comes after a downtrend and the

hanging man comes after an uptrend
EX-1
EX-2
EX-3
EX-4
EX-5
EX-6
EX-7
EX-8
EX-9
EX-10
3 – INVERTED HAMMER
Things to be considered before the inverted hammer
1- The price must be in a downtrend before it forms

2 - upper shadow or wick should be twice the body

3 - A confirmation is required after the formation of the inverted hammer

4 - No lower shadow or a very small shadow is ok

5 - The colour of the hanging man does not matter although a green color
is more powerful than red

The inverted hammer is found near the bottom of a downtrend

EX-1
EX-2
EX-3
EX-4
EX-5
EX-6
EX-7
EX-8
EX-9
EX-10
4 – SHOOTING STAR
Things to be considered before the shooting star

1 - The price must be in an uptrend before it forms

2 - Upper shadow or wick should be 2x the body

3 - A confirmation is required after the formation of the shooting star

4 - No lower shadow or a very small shadow is ok

5 - The colour of the shooting star does not matter although a red
colour is more powerful than green

The shooting star looks the same as an inverted hammer, but it

is found near the uptrend
EX-1
EX-2
EX-3
EX-4
EX-5
EX-6
EX-7
EX-8
EX-9
EX-10
5 – BULLISH ENGULFING

The bullish engulfing pattern forms when a green

bar completely engulfs a red bar
Things to be considered in a bullish engulfing pattern
1- The price must be in a downtrend before it forms

2 - The green bar should be big and healthy

EX-1
EX-2
EX-3
EX-4
EX-5
EX-6
EX-7
EX-8
EX-9
EX-10
6 – BEARISH ENGULFING

The bearish engulfing pattern forms when a red bar

completely engulfs a green bar
Things to be considered in a bearish engulfing pattern
1 - The price must be in an uptrend before it forms

2 - The red bar should be big and healthy

EX-1
EX-2
EX-3
EX-4
EX-5
EX-6
EX-7
EX-8
EX-9
EX-10
7 – MORNING STAR
Morning start is a 3 candle pattern that forms at
the bottom of a downtrend
The first candle shows the last downside move

The second candle shows indecision [ kind of Doji ]

The third candle shows that the bulls have taken the control
EX-1
EX-2
EX-3
EX-4
EX-5
EX-6
EX-7
EX-8
EX-9
EX-10
8 – EVENING STAR
Evening start is a 3 candle pattern that forms at the top
of an uptrend

1 - The first candle shows the last upside move

2 - The second candle shows indecision [ kind of Doji ]

3 - The third candle shows that the bears have taken the control
EX-1
EX-2
EX-3
EX-4
EX-5
EX-6
EX-7
EX-8
EX-9
EX-10
MOST IMPORTANT CANDLESTICKS
1- BIG BAR 2 - WICK BAR CANDLE
CANDLE

These two candles work best

when found at the right location i.e
at RETEST, BREAKOUT, or
SUPPORT and RESISTANCE

A green wick bar also shows a high number of

A green big bar shows a high number of buyers and
buyers and a red wick bar shows a high number of
a red big bar shows a high number of sellers
sellers
these bars are bigger than average green and red
they don't have a body or a very little body is ok
bars
CLASS 2ND
SUPPORT AND RESISTANCE
{ MARKET STRUCTURE }

UPTREND SIDEWAYS DOWN TREND

LOOK FOR BUY LOOK FOR BREAKOUT LOOK FOR SELL

 UP-TREND
An uptrend is a type of market structure in which higher lows [HL] and
higher highs [HH] are formed
sometimes higher high do not form but unless the higher low has not broken,
it's still an uptrend

STILL UP TREND
(NO HIGHER LOW BREAK)
EX-1
EX-2
EX-3
EX-4
EX-5
EX-6
 DOWN-TREND
A downtrend is a type of market structure in which lower lows [LL] and
lower highs [LH] are formed
sometimes lower lows are not formed but as long as lower highs are forming,
it's still an uptrend.
STILL DOWN TREND
(NO LOWER HIGH BREAK
EX-1
EX-2
EX-3
EX-4
EX-5
EX-6
 SIDEWAYS
Sideways also called consolidation
is a type of market structure in which stock gets stuck within a price range.
[between supply zone and demand zone]
look for a breakout when stock is in consolidation
 HOW TREND CHANGES
The basic psychology behind a trend change is when either more buyers come
into play or more sellers come into play
HOW UPTREND CHANGE

When a stock fails to make a

new high and breaks the higher
low, this could be the
beginning of a downtrend
EX-1
EX-2
EX-3
EX-4
EX-5
EX-6
HOW DOWNTREND CHANGE
When a stock fails to make a
new lower low and breaks the
lower high, this could be the
beginning of an uptrend
EX-1
EX-2
EX-3
EX-4
EX-5
 SUPPORT AND RESISTANCE
When a stock gets rejected or faces difficulty going through a
certain price level, that's called support or resistance

SUPPORT
Support is a price level where
demand is more than the
supply, which means there are
more buyers than sellers that
leads the price to the upside
RESISTANCE
Resistance is a price level
where supply is more than the
demand, which means there are
more sellers than buyers that
leads the price to the downside
EX-1
EX-2
EX-3
EX-4
EX-5
EX-6
HOW SUPPORT BECOMES RESISTANCE
VICE – VERSA
EX-1
EX-2
EX-3
EX-4
EX-5
EX-6
TRENDLINES/HOW TO TRADE THEM
TWO TYPES OF
TRENDLINE
BULLISH TRENDLINE BEARISH
TRENDLINE
A TRENDLINE NEED AT LEAST 3
PROPER TOUCHES TO BE CONSIDERED
AS A TRENDLINE
EX-1
EX-2
EX-3
EX-4
EX-5
EX-6
EX-7
EX-8
EX-9
EX-
10
EX-11
EX-
12
CLASS 3RD
 CHART PATTERNS
Structures that are created by the movement of price are called chart patterns.
These structures are created as a result of the change in the psychology of buyers and sellers

There are 3 types of chart patterns

1- Reversal Patterns

2 – Continuation Patterns

3 – Bilateral Patterns
 1- Reversal
are those patterns that reverse(change) a trend.
Patterns
These patterns are created because when a stock
reaches a particular point the pressure of either seller
or buyers increases.
DOUBLE TOP AND BOTTOM
HOW TO TRADE THEM
EX-1
EX-2
EX-3
EX-4
EX-5
EX-6
 HOW TO TRADE
DOUBLE BOTTOM AND TOP
EX-1
EX-2
EX-3
EX-4
EX-5
EX-6
EX-7
EX-8
EX-9
EX-
10
HEAD AND SHOULDER
HOW TO TRADE THEM
EX-1
EX-2
EX-3
EX-4
EX-5
 HOW TO TRADE
HEAD AND SHOULDER
EX-1
EX-2
EX-3
EX-4
EX-5
EX-6
EX-7
EX-8
EX-9
EX-
10
FALLING AND RISING WEDGE
HOW TO TRADE THEM
EX-1
EX-2
EX-3
EX-4
EX-5
 HOW TO TRADE
RISING AND FALLING
WEDGE
EX-1
EX-2
EX-3
EX-4
EX-5
EX-6
EX-7
EX-8
EX-9
EX-
10
 2 - Continuation
are those patterns that continue a trend.
Patterns
These patterns show an opportunity to ride the trend.
It is like a stop that an ongoing trend takes and fills
sellers or buyers to continue its movement.
BULLISH / BEARISH FLAG
HOW TO TRADE THEM
Continuation
EX-1
EX-2
EX-3
EX-4
EX-5
HOW TO TRADE
FLAG PATTERN
Continuation
EX-1
EX-2
EX-3
EX-4
EX-5
EX-6
EX-7
EX-8
EX-9
EX-
10
RISING/FALLING WEDGE
HOW TO TRADE THEM
Continuation
EX-1
EX-2
EX-3
EX-4
EX-5
 HOW TO TRADE
RISING / FALLING
WEDGE
Continuation
EX-1
EX-2
EX-3
EX-4
EX-5
EX-6
EX-7
EX-8
EX-9
EX-
10
 3 – Bilateral patterns
are those patterns that can continue as well as reverse a trend.
These patterns are a little tricky because they show confusion
among buyers and sellers. We must use technical analysis and
market structure to trade these patterns.
ASCENDING / DESCENDING/
SYMMERTRICAL
TRIANGLES
HOW TO TRADE THEM
EX-1
EX-2
EX-3
EX-4
EX-5
HOW TO TRADE
ASCENDING
DESCENDING
TRIANGLE
EX-1
EX-2
EX-3
EX-4
EX-5
EX-6
EX-7
EX-8
EX-9
EX-
10
CLASS 4th
 INDICATO
An indicator is a mathematical calculation that can be used to

RS
improve our trading decisions.
All indicators are laggings means they represent data based on
what has happened in the past.
IMPORTANT INDICATORS
1 – RSI (Relative Strength Index)
2 – EMA (Exponential Moving Average)
3 - fibonacci retracement
4 - Pivots
5-VWAP (volume weighted average price)
6 - Stochastic
1 – RSI (Relative Strength Index)
Relative strength index(RSI) is a momentum indicator that
measures the size of recent price changes to evaluate the
overbought or oversold conditions of a stock
“We use default setting of RSI”
THREE CONDITIONS OF RSI -

1- OVER BOUGHT
2 - OVER SOLD
3 – DIVERGENCE
OVER BOUGHT (ABOVE – 70)

OVER SOLD (BELOW – 30)

OVER BOUGHT (ABOVE – 70)

OVER SOLD (BELOW – 30)

 RSI
DIVERGENCE
An RSI divergences indicator shows when price action
are no longer showing the same momentum
and RSI

BULLISH DIVERGENCE BEARISH DIVERGENCE

When RSI stops making When RSI stops making
higher highs during an lower lows during a
uptrend downtrend
EX-1
EX-2
EX-3
EX-4
EX-5
EX-6
EX-7
EX-8
EX-9
EX-
10
EX-11
 2 – EMA (Exponential Moving Average)
Moving average is a simple technical analysis tool that is used to
identify the trend direction of a stock or to know its support or
resistance.
EMA ( EXPONENTIAL MOVING AVERAGE)
is a type of moving average that gives more importance to recent prices in an
attempt to make it more responsive to new information
IMPORTANT EMA’S WE
1- 50 EMA (ENTRY EXIT)
USE (COLOR-RED)
2 - 200 EMA (TREND) (COLOR-BLACK)
3 - 13 EMA (ENTRY EXIT +TRAILING) COLOR-YELLOW
YOU HAVE TO ANALYSE WHICH EMA IS BEGING RESPECTED ON
WHICH TIME FRAME
 3 – Fibonacci Retracement
Fibonacci retracements are horizontal lines that indicate where support and resistance are likely to occur.
It tells us about the potential retracement a stock can have before making new highs or new lows.
The most important retracements levels are 38.2% , 50% , 61.8%
 4 – VWAP
(volume weighted average price)

5 – Stochastic
 6 – PIVOT LEVEL
pivot levels
are calculated by taking the open, close, high, and low of previous trading days to know the
potential support and resistance of the current trading day.
we use these levels to know our entry and exit.

PIVOT SETTING
TYPE- FIBONACCI
PIVOT TIME FRAME – DAILY
CLASS 5TH
MOST IMPORTANT CANDLESTICKS
1- BIG BAR 2 - WICK BAR CANDLE
CANDLE

These two candles work best

when found at the right location i.e
at RETEST, BREAKOUT, or
SUPPORT and RESISTANCE

A green wick bar also shows a high number of

A green big bar shows a high number of buyers and
buyers and a red wick bar shows a high number of
a red big bar shows a high number of sellers
sellers
these bars are bigger than average green and red
they don't have a body or a very little body is ok
bars
 HOW TO ANALYSE A
CHART WITH PRICE
ACTION AND
TECHNICAL ANALYSIS
1 – HOW TO ANALYSE STOCKS FOR TOMORROW

2 – HOW TO ANALYSE DURING LIVE MARKET

3 - AFTER MARKET ANALYSIS

HOW TO ANALYSE STOCKS FOR TOMORROWV
1- MARKET STRUCTURE
(UPTREND-DOWNTREND-SIDWAYS)

2- SUPPORT AND RESISTANCE

(BIGGER TIME FRAME- 30MIN TO 1HR)

3- TRENDLINE
4 - CANDLESTICKS
5- CHART PATTERN
6- FIBONACCI RETRACEMENT
7- RSI DIVERGENCE
8- MOVING AVERAGES
 3 WAYS TO FIND A TRADE

1- STOCK AT RETEST LEVEL (ZONE) (ENTRY)

2 – FIRST TIME BREAKOUT (ENTRY)
3 - TRNEDLINE SUPPORT (ENTRY)
1 - STOCK AT RETEST LEVEL (ZONE) (ENTRY)
2 - FIRST TIME BREAKOUT (ENTRY)
3 - TRNEDLINE SUPPORT (ENTRY)
HOW TO ANALYSE DURING LIVE MARKET
 1- CANDLESTICKS
( at breakout , important support resistance levels {power bar /wick bar/reversal candle})
2 – EMA (13,50,200)
(on different time frames , 5 min , 15min , 30min)

3 – Pivot Points
(helps to set target)
p to r2 /s2 r1 to r3 S1 to s3

4 – Structure on smaller time frames

Like 2/5min
AFTER MARKET ANALYSIS
 THINGS TO DO AFTER MARKET

CHECK YOUR ORDERS

OPPORTUNITIES MISSED
ANALYSE YOUR WATCHLIST STOCKS
WHAT DID I DO WRONG(MISTAKES)
CLASS 6TH
RISK MANAGEMENT
TRADING PSYCHOLOGY
JOURNAL
TRADING PSYCHOLOGY
TREND PUSHES
A normal trend has 3-5 pushes before it
changes.
It means if a stock is in an uptrend,
Before it stops making new highs it would
have gone through 3-5 pushes
 This retracement covered more then
50% of the previous move , this indicates
That seller are increasing
There might not be a new high

This uptrend had already

Shown 4 pushes
TRADING PSYCHOLOGY

Fear
Greed
Hope
 RISK
Lets MANAGEMENT
say you have 1 lakh capital
Per day risk - 2% (2000rs)
Per day reward – 3-4% (3000-4000rs)
You take 2 trade per day
So now risk will be
1000 each
 TRAILING STOPLOSS
+
RISK MANAGEMENT

WE USE MOVING AVERAGE (EMA – 13 / 50 / 200 )

MARKET STRUCTURE ON SMALLER TIME FRAME (2MIN TO 5MINS)

REVERSAL CANDLE ON 15MIN TIME FRAME

FIB RETRACEMENT
 KEY POINTS
I WILL TRADE ONLY WHEN I GET WHAT I WANT

I WILL ALWAYS FOLLOW A PROCESS AND NOT RUN

BEHIND PROFITS

I WILL ONLY FOLLOW CHARTS

DO NOT HOPE FOR PRICE TO MOVE IN YOUR FAVOR

ONLY TAKE TRADE AFTER CANDLE CLOSING

IF YOU BROKE YOUR RULE , JUST CLOSE THE TRADE

ALWAYS TAKE NOTES FROM MARKET

CAPITAL PRESERVATION IS KEY

JOURNAL WRITING
CLASS 7TH
STRATEGY ( GOLD )
WE
NEED
1- 50 EMA
2- 200 EMA
TIME FRAME - 15MIN/5MIN
+ PRICE ACTION
 15MIN 5MIN
50EMA 50EMA

200EMA

200EMA
STRATEGY ( big bar )
WE
1-NEED
50 EMA
2- 200 EMA
3- BIG BAR CANDLE
4- TIME FRAME – 15 MINS
15 MINS CHART
EX-1
EX-2
EX-3
EX-4
EX-5
EX-6
EX-7
EX-8
EX-9
EX-
10
CLASS 8TH
STRATEGY ( VWAP )

GAP THEROY

Diamond pattern
 GAP THEROY
how gaps are formed

A gap is formed when the closing price of the

previous day is different from the opening price
of the next day.
they form due to low liquidity or high liquidity,
any news that increases buyers or sellers, the
company's earning, or any other thing.
 3 scenarios of gap up/down
1 - after GAP UP - stock move up side

2 – after GAP UP - stock consolidates

3 – after GAP UP - stock move downside

 2 situation to trade a gap up
- Consolidation
- Downside
2 situation to trade a gap down
- Consolidation
- upside
 GAP – Consolidation
/DOWNMOVE/UPMOVE
(EX)
 STRATEGY ( VWAP )

We use
Stochastics + vwap
Stochastics – is a momentum indicator that use support and resistance to know over bought and over
sold trading conditions ,these are represented in a range of 0 to 100

Vwap – ( volume weighted average price ) is the average price of the stock weighted by the total trading
volumes .
It is used to calculate the average price of a stock over a period of time
Diamond Patterns