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Intraday Trading-Formulas and Rules

Kumar A at 02:20 PM - Mar 13, 2016 ( ) Views: 6,379

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Intraday Trading is an alluring idea for traders to make quick money in stock markets. After all,who would not be interested in making some quick bucks in a matter of minutes or hours.That is the reason of its popularity in a section of traders.

Intraday trading or day trading, as the name is explanatory,is the process of taking long or short position in markets and squaring off (exiting)  that position before the close of the market on the same day.Intraday traders take the advantage of the movement in the price of the stock or the index during the trading session.Movement can be small or significant.Trade can be for minutes or hours.

Intraday traders have to take position in large quantities of a stock so that a small movement in the stock provides big gains.Consequently,the risk is also equally big in the event of adverse movement.

Taking position in  large quantity of a stock and squaring off the position immediately after the stock takes a small move in the favourable direction,is calledScalping.Scalpers take several trades during the day so that at the end of the day,the profits are significant.Online share trading has made Intraday Trading easy for day traders .

Now,what is the formula or technique for Intraday Trading?

Of course,there are some formulae which  are popular among the intraday traders like Pivot Point Formula or Fraction Theory.But intraday trading is not all about using formulas.When you are there in the middle,it is a totally different ball game altogether.

We shall explain here the above said formulas but the other things which are very important and need to be taken care of are –

  • Having a proper Mind-set and Psychology – Share Trading  for fun or hobby can be dangerous.Your approach should be very professional.You should be aware that you are risking your hard earned money and the risk starts the moment you enter the trade.Take trading as a business.
  • Control over the Emotions – Emotions like Greed and Fear are the biggest enemies of a trader.Markets don’t stand at a place.They keep on moving,up or down.So,don’t let the fear take you for ride if markets move in the opposite direction of what you were anticipating.You should be aware of your exit point in such case.On the other hand if trade starts turning profitable,exit the trade at your target price level.Stick to Stop loss and Targets to avoid Emotions in trading.
  • Having a Plan – Having a proper trading plan is an important part of trading in stock markets.You should be clear of the entry level,target level and stop loss of the particular stock which you are trading in.These levels are determined on the basis ofTechnical Analysis and the formulas.You need to stick to your plan to be a successful trader.Writing the plan on a paper is a good idea so that you stick to your Plan and don’t get swayed away by the market moves when you are in.Without any of these,it is going to be very tough.Intraday Trading Formula

Intraday Trading Formulae

Before going for Intraday Trading Formula,you should be aware of a real fact that more than 80% of the people loose money in trading.It means that no formula is perfect,otherwise that figure would had been other way around.

It is advisable to use these formulae after testing by paper trading or virtual trading to see which formula is best for you.Personally,I prefer Pivot Points as it gives best result when applied after identifying the trend in a stock.

Pivot Point Theory :- Taking previous day’s trading prices of a stock,we can calculate the support and resistance levels for that stock for the next day.Support and Resistance terms are self explanatory.A stock which is moving higher,may stop at resistance level and come back.Similarly,a stock moving lower,may stop at support level and reverse its move.After crossing first support or resistance level,stock is expected to move to next support or resistance level.

Coming to the Pivot Point Formula,we select a stock for Intraday Trading.For that stock,we need its previous day trading data- Intraday high price it touched ( H), intraday low price it touched ( L) and the previous day closing price ( C) for that stock.

         Add theses three values- H+L+C=X.

         Divide the total value by 3 :- X/3.

         Multiply it by 2 :- X/3*2=Y

This value Y is called the Pivot Point.Stock sustaining above Pivot Point is likely to move higher towards first resistance level and above that towards second resistance level.If stock continues to trade below the Pivot Point,it is likely to drift lower towards first support level and after that towards second support level.

Let’s calculate resistance and support levels.

First resistance level ( R1)  = It is the difference between the Pivot Point and the Intraday Low price.

         R1= Y-L

         R2=Y+( H-L)

First support level ( S1) = it is the difference between the Pivot Point and the Intraday High price.

         S1= Y-H

         S2= Y-(H-L).

Fraction Theory :-  This theory is also based on previous day price movements of a stock.

Add up high (H),low(L) and closing (C) price of previous day of the stock and multiply it by 0.67 (ratio of 2:3 as in pivot theory and it is constant)

         (H+L+C)* 0.67=Y

         Resistance (R1)= Y-L

         Support (S1)= Y-H

     Possible Buy (P.B.)= Y-C

Above possible buy (P.B.),buy the stock for resistance levels.

2652 Theory of intraday Trading :- 2652 Theory is based on previous day and present day High and Low prices of a stock.This theory has its own disadvantage that it makes you trade for gain of 0.5% while keeping your stop loss 1% lower.Your risk is double of your profit and using such strategy in day trading doesn’t make sense where probability of going wrong remains high.

You should also use technical analysis based on short-term charts for stock to know the trend and other indicators of technical analysis.Buy stock which show uptrend while look to short which are down trending.

The Intraday Chart with 15 Minute interval remains best for effective Intraday trade,though you may use any interval like 1 Minute,5 Minute or 10 Minute.Prefer to usetrend lines on Intraday Charts to take buy or sell call on your trade.5 Minute Bar Chart can be a good method to use trend lines for Intraday Trading.

Trading Rules for Intraday Trading to keep your Risk to the Minimum

1. Use surplus money – Trading should be done only with the spare money,the money you don’t need and can afford to loose.Trading,although very profitable,is associated with substantial risk.

2. Do proper research – Before taking trade,proper research should be done about the stock or the index ,using charts based technical analysis.It helps in determining important levels of the stock,strength and trend of the stock.

3. Use of Stop loss – This is very important part of any kind of trading.Most of the traders don’t use it,knowingly or unknowingly and end up taking huge losses.Stop loss helps cutting short the losses and keeping emotions out of trading thereby protecting capital.Remember,capital protection is more important than earning profits.Profit earning opportunities keep on arising in the markets which you can use if keep your capital protected.

4. Don’t overtrade – Overtrading is suicidal.More trades become difficult to manage.So trade only that quantity you are comfortable with.Keep number of trades limited to 2-3.If one trade gave you sufficient profit,better close the system and do some other work or relax.Choose your trades on the basis of Risk Reward Ratio.

5. Be disciplined – This is the major quality of the successful traders.Avoiding overtrading,not fighting against the trend and cutting short losses and keeping fear and greed emotions out of the trading are some important steps.

6. Follow the Trend – To have a higher success rate in Intraday Trading,always remember ‘Trend is your Friend’.So,always follow the trend and trade in that direction only.In up trending markets,select stocks which are strong on charts and have long positions.In down trending markets,select the weaker stocks and short them.Never trade against the trend.The advantage of trading with the trend is that even if you take a wrong call,you will not suffer big losses.

7. Liquidity – Always try to trade in highly liquid shares.Liquidity is the volume of shares traded.In liquid stocks,it is easy to enter and exit the trade and you enter or exit the trade near the last traded price.

8. Profit taking – Exit Strategy is really important.Take your profits and get out of the market when your target are achieved.Letting the profits run beyond targets leads to greed which is dangerous for trading.You never know when the market will turn around and throw you in losses after eating all the profit.

Cutting losses is also important part of successful trading.Exit your position if market is not going the way you anticipated.Don’t be stubborn and let the market do what it wants to do.



From: kumar A at 07:31 PM - Mar 13, 2016( )


There is a mistake in R2 formula.. I have updated the original author







From: kumar A at 08:10 PM - Mar 13, 2016( )


30 Trading Truths

In no particular order of importance

    1. It's all about risk management … never risk what you can't comfortably lose.
    2. Never fall in love with a stock.
    3. To be succesfull in trading; study, understand and practice. The rest is easier.
    4. Always start by assuming your analysis is WRONG and that people much smarter and with more recent information are already positioned opposite you.
    5. Never take on a position larger than your comfort zone. (Don't overtrade)
    6. Patience. never chase a stock.
    7. Before entering the trade very think carefully what will make you wrong, write it down clearly and put it infront of you where you trade, and when your wrong get out happy you've followed your trading discipline.
    8. Buy strength, sell weakness. Most traders are essentially counter-trend; most traders lose.
    9. No one ever went broke taking a profit!
    10. Once you find a good one, hang on unless of course they do you wrong.
    11. Never add to a losing position! (Unless scaling in was part of the plan).
    12. Whenever you think you've found the key to the lock, they'll change the lock.
    13. Do not overtrade.
    14. Trade price not perception.
    15. Know the difference between stocks that you want to stay married to and those that are just a fling.
    16. The only sure way to make a small fortune is to start with a large one.
    17. and to paraphrase Will Rogers: Buy only stocks that will go up. Don't buy the ones that don't go up. "THIS is GAMBLING."
    18. Cut your losses quickly and you may have a chance.
    19. An indicator works until it doesn't.
    20. "MR. MARKET" IS ACTUALLY "MRS. MARKET" ONLY WOMEN CAN THINK, AND ACT THE WAY THE MARKET DOES. THAT IS WHY -ON AVERAGE -WOMEN ARE BETTER TRADERS THAN MEN, THEY UNDERSTAND WHAT THEY DEALING WITH!
    21. I will be charged a transaction fee.
    22. A healthy dose of 'Common-sense' mixed with a little 'Patience'…increases the chances for trading success in the long-run…Let the trading set-ups come to you(i.e..master the art of patience)…Don't let yourself be dragged in to chasing set-ups(i.e…show impatience)
    23. If it's that obvious , it's obviously wrong" … Joe Granville
    24. When you have that King-Kong feeling stop trading for a while.
    25. In this business only the sky is the limit. Our personality is the gravity.
    26. "I never benefited much from a move if I did not get in at somewhere near the beginning of that move. And the reason is that I missed the backlog of profit which is very necessary to provide the courage and patience to sit through a move until the end comes."
    27. Jesse Livermore/ How to Trade in Stocks
    28. never plunge, in or out, of the market. Move in deliberately slow adjusting steps over time.
    29. How do you know if you are overtrading and/or overleverged?
    30. Simple! You feel "rushed" or compelled to plunge.
    31. Spend MUCH more time picking stocks (or trade setups) than timing the overall market. Depending SOLELY on the latter as a way to earn return is doomed to failure and for most a quick ticket into the poor house
    32. Don't make any presumptions when entering into a new trade that you are going to be an investor or trader on it. It will tell you the answer depending on how it pans out later. Just don't let a loser run. Objective is to get into a winning position and then stick with it as long as possible. Cutting a winner prematurely is more deadly and costly than hanging onto a loser for too long.
    33. Ever Present Temptations to ALWAYS Resist:
    34. <
      • Trading a Forecast
      • Trading a move BEFORE it happens… don't jump the gun
      • Trying to pick a top in an uptrending stock and vice versa
      • Asking or wondering "why?" to explain things
      • Being influenced by the external news/events. They are totally meaningless to market
      • Betting the farm
      • Being myopic or closed minded in your selections or beliefs
      • Trying to make alot in a least amt of time
      • Trying too hard, watching too closely
      • Assuming the "majority" is wrong
      • Trading on tips or "themes"
      • …and
      • Betting too much on any sinlge trade Not diversifying enough (over time, stock and sectors)


From: kumar A at 08:11 PM - Mar 13, 2016( )


WD Gann's 28 Trading Rules

 

  • Never risk more than 10% of your trading capital in a single trade.
  • Always use stop-loss orders.
  • Never overtrade.
  • Never let a profit run into a loss.
  • Don 't enter a trade if you are unsure of the trend. Never buck the trend.
  • When in doubt, get out, and don't get in when in doubt.
  • Only trade active markets.
  • Distribute your risk equally among different markets.
  • Never limit your orders. Trade at the market.
  • Don't close trades without a good reason.
  • Extra monies from successful trades should be placed in a separate account.
  • Never trade to scalp a profit.
  • Never average a loss.
  • Never get out of the market because you have lost patience or get in because you are anxious from waiting.
  • Avoid taking small profits and large losses.
  • Never cancel a stop loss after you have placed the trade.
  • Avoid getting in and out of the market too often.
  • Be willing to make money from both sides of the market.
  • Never buy or sell just because the price is low or high.
  • Pyramiding should be accomplished once it has crossed resistance levels and broken zones of distribution.
  • Pyramid issues that have a strong trend.
  • Never hedge a losing position.
  • Never change your position without a good reason.
  • Avoid trading after long periods of success or failure.
  • Don't try to guess tops or bottoms.
  • Don't follow a blind man's advice.
  • Reduce trading after the first loss; never increase.
  • Avoid getting in wrong and out wrong; or getting in right and out wrong. This is making a double mistake.

 



From: kumar A at 07:09 PM - Mar 19, 2016( )


Camarilla pivot point formula is the refined form of existing classic pivot point formula.  The Camarilla method was developed by Nick Stott who was a very successful bond trader. What makes it better is the use of Fibonacci numbers in calculation of levels.  Below is the quote of famous trader Nick Stott

Everyone asks me that. When I first started trading, I thought (as a lot of people do!) that the markets were controlled by a secret ‘insiders club’ of powerful organizations who manipulated prices for their own benefit. I remember that at the time I was smugly sure that this was so, and was excited to be joining (as I then thought!) this secret ‘cabal’. Of course, as I learned more about the markets, I realized that this was nonsense, and that the markets are far too big to be effectively controlled, even by gigantic financial corporations. However, it still looked to me as though there was a pattern in what was supposed to be the ‘random walk’, a pattern that matched very closely what I imagined a ‘secret society’ would try to implement in order to maximize their revenues. The obvious conclusion, of course is that if you have enough participants, statistically they start to behave in broadly predictable ‘over-ways’, and this leads to the patterning that the equation is so good at predicting. The word ‘Camarilla’ is based on the Latin word for room (camera), and it means basically a small clique of ‘advisers’ who try to manipulate the person in power for their own ends. Frankly, it was just a joke, and I am always surprised at how seriously everyone took it.

Camarilla equations are used to calculate intraday support and resistance levels using the previous days volatility spread. Camarilla equations take previous day’s high, low and close as input and generates 8 levels of intraday support and resistance based on pivot points. There are 4 levels above pivot point and 4 levels below pivot points. The most important levels are L3 L4 and H3 H4.  H3 and L3 are the levels to go against the trend with stop loss around H4 or L4 . While L4 and H4 are considered as breakout levels when these levels are breached its time to trade with the trend.

camarilla pivot points calculation equation

How to calculate Camarilla Pivot points

To calculate Camarilla Pivot points all you need is previous trading day’s high low and close value.  Below are the equations for calculation various levels.

C = Previous day close

H = Previous day high

L = Previous day low

H4 = [0.55*(H-L)] + C

H3 = [0.275*(H-L)] + C

H2 = [0.183*(H-L)] + C

H1 = [0.0916*(H-L)] + C

L1 = C – [0.0916*(H-L)]

L2 = C – [0.183*(H-L)]

L3 = C – [0.275*(H-L)]

L4 = C – [0.55*(H-L)]

How to use Camarilla Pivot Points in Trading ?

Trading is done on the basis of open price on the next day. Since the market is very volatile in the first 15- 30 minutes of trade and operator action is high, we prefer using weighted average price or the price after 30 minutes as open price.  Depending on the open price there can be different scenarios.

Case 1: Open price is between H3 and L3

Buy when the price move back above L3 after going below L3. Target will be H1, H2, H3 levels. Stop loss can be placed at L4 level

Wait for the price to go above H3 and then when it move back below H3 again sell or go short. Target will be L1,L2 L3 levels and stop loss above H4

Case 2: Open price is between H3 and H4

Buy when the price move back above H3 again after going below H3. Target will be 0.5%, 1% and 1.5% . Stop loss can be placed at H3

Wait for the price to go above L3 and then when it move back below L3 again sell or go short. Target will be L1,L2 L3 levels and stop loss above H4. Target L1, L2 and L3

Case 3: Open price is between L3 and L4

Wait for the price to go above L3 and then when it moves back above L3 again go long. Target will be H1,H2 H3 levels and stop loss  below L4.

Wait for the price to go below L4 and then when it moves below L4 go short. stop loss above L3. Target 0.5%, 1% and 1.5%

Case 4: Open price is above H4

Buying can be risky at this level. Wait for the price to go below H3. As soon as the price moves below H3 go short. stop loss above (H4+H3)/2. Target L1 , L2 and L3

Case 5: Open price is below L4

Selling could be risky at this level as price has opened with big gap down. Wait for the price to go above L3. When the price moves above L3 buy with stop loss of (L4+L3)/2. Target H1, H2 and H3

These are the five cases based on open price on which you have to take trading decision. It gives good results by combining camarilla with other technical indicators like RSI and MACD you can further improve the accuracy. You can easily create Camarilla pivot calculator in excel. I have embedded a Camarilla Pivot point calculating excel sheet. You can refer it to create your own  https://docs.google.com/spreadsheets/d/1rdN_DAtU7PoU7Yeqx9UBeY4RIuM_O8xNgO8-QB-9vPg/edit?usp=sharing

Source: Bramesh Article



From: kumar A at 11:00 AM - Mar 20, 2016( )




From: kumar A at 11:05 AM - Mar 20, 2016( )


Opening Range Breakout (ORB) is a commonly used trading system by professional and amateur traders alike and has the potential to deliver high accuracy if done with optimal usage of indicators, strict rules and good assessment of overall market mood. This system is applicable only for intraday trading. 

ORB trading has several variations practiced by traders all over the globe. Some traders trade on a significant breakout from opening range, while others trade immediately on opening range breakout. Time window for the trades also varies from 30 minutes to 3 hours. 

Over a period of time observing and trading Indian markets, I have devised with the below system suiting our markets. Below method is both a scalping and a trending system combined into one, hence it is possible to take the advantage of quick moves and trending markets with multiple lots of trades.

Trading Strategy

Quite Simple and straightforward. Rules in the next section needs to be adhered to increase the success rates dramatically.
Any stock creates a range in the first 30 minutes of trading in a day. This is calling Opening Range. The highs and lows of this timeframe is taken as support and resistance. 

1. Buy when the stock moves above the Opening Range high.
2. Sell when the stock moves below the Opening Range low. 

PLEASE NOTE THAT THE ABOVE SYSTEM IS GENERIC, THE RULES BELOW WILL MAKE IT A SPECIFIC SYSTEM. IF YOU ARE FOLLOWING THIS SYSTEM, PLEASE FOLLOW ALL THE RULES FOR BUY / SELL STRICTLY.

General Rules – Applicable for both Buy and Sell:

Opening range is defined by the high and low made in the first 30 minutes.

5 min chart with 5 EMA and 20 EMA used for making trading decisions.

Entry should be made only on close of the 5 min candle outside the opening range.

20 EMA is one of the key technical indicators used in this system for trend trading. Stop loss is always kept at 20 EMA for riding the profits.

Volume confirmation – Breakout candle should show increase in volume.

Optional confirmation- One of the two indicators - MACD or Stochastics should be favorable for the trade. (We have four indicators in Simplified Technical Analysis - Moving Averages, RSI, MACD, Stochastics. The idea here is at least two indicators should confirm the trade.). 

This is purely optional condition to enter trade.

  • Respect support and resistance levels. Do not buy just below a resistance or sell just above a support.
  • Always trade with 2 lots and book 50% as soon as you see few points profit. Second lot will be used for taking advantage of days trend.


Rules for Buy

  • Stock should be trading above the 20 EMA line before the breakout.
  • Buy when the 5 minutes candle closes above the opening range.
  • 5 EMA line should be above the opening range at the time of breakout.


Where to keep Stoploss

Initial Stoploss – Low of the Opening Range.
Trailing Stoploss - As the stock moves in your direction and you are in profits, book 50% , trail the stoploss at 20 EMA. A close of 5 min candle below 20 EMA confirms exit.

When to book full profits

When the 5 min candle closes below the 20 EMA in the case of longs.

Rules for Sell

  • Stock should be trading below the 20 EMA line before the breakdown.
  • Sell when the 5 minute candle closes below the opening range.
  • 5 EMA line should be below the opening range at the time of breakout


Where to keep Stoploss
Initial Stoploss – High of the Opening Range.
Trailing Stoploss - As the stock moves in your direction and you are in profits, book 50% , trail the stoploss at 20 EMA. A close of 5 min candle above 20 EMA confirms exit.

When to book full profits

When the 5 min candle closes above the 20 EMA.
High Probability Trade Setups

Below additional conditions will give high probability of success:

  • The Opening Range breakout is above previous day’s high for buy.
  • The Opening Range breakout is below previous day’s low for sell.
  • Trade is in the direction of higher time frame charts (15 min /30 min).
  • Overall Market is moving in the direction of the trade.
  • Opening range breakout happens after brief period of consolidation.


Important Additional Points

  • If the opening range is too wide, better do not trade ORB, since the SLs will be very far in our system. You can use other trading systems in such a case.
  • Avoid Opening Range Breakout trades in case of a heavy news flow day. ( Like Inflation, Manufacturing, Policy decisions etc.). Use other trading systems once the market settles down after the news.


Opening Range Breakout Trading Example

 

 



From: kumar A at 11:19 AM - Mar 20, 2016( )


Financial Expert, Robert Kiyosaki. Investment is Not RISKY, lack of KNOWLEDGE is".

There are some BASIC most important RULES that you will have to follow
to get SUCCESS in Intraday Trading.
- Do not trade in the First 1 Hour (between 9:15 am to 10:30 am)
- Best Time to make positions is between 12:30pm to 1:30 pm
- Whenever you initiate a trade, have clear plan. What is the target, what is stop loss.
- If you cannot keep stop loss, then stop trading
- If you cannot book profits, stop trading
- Markets are volatile, do not wait for all targets to be achieved.
- If you are able to make profits and price give reversal, book profits and exit
- If trade is not working in your favour, exit immediately. Don't wait for stop loss to trigger
- When we are wrong, we need to EXIT immediately
- When your targets are HIT, exit immediately. It might REVERSE
- Only in TRENDING market, you can expect all your targets to be HIT
- In sideway market, keep your positions LOW, better don't trade
- Do not trade in Options as positional call during sideway markets
- Index Trading should be avoided in sideway market / when market is trading in narrow range
- Before you start trading, you should have all reference points which influence the price variation.
Open, High, Low, Close, Weekly Open, Weekly High, Weekly Low, Weekly Close,
Fibonacci retracement levels, Pivot Points, Support, Resistance, 52-week low, 52-week high etc.
- Whenever you trade, ensure the Risk:Reward ratio is atleast 1:2.
i.e., If you are making positions, if the loss (or point at which trend may change) is 1 rupee
for 2 rupees profits, then only you should initiate trade.
- When you are making positions for intraday and you are loosing money, do not carry positions
for next day, your loss can increase.



From: kumar A at 11:44 AM - Mar 20, 2016( )


Please find the corrected calculations for Pivot Point Trading

 

Let’s calculate resistance and support levels.

First resistance level ( R1)  = It is the difference between the {Pivot Point X 2} or Y and the Intraday Low price.

         R1= Y-L

         R2=P+( H-L)

First support level ( S1) = it is the difference between Y and the Intraday High price.

         S1= Y-H

         S2= P-(H-L).



From: kumar A at 01:15 PM - Mar 20, 2016( )


Some more rules:
A. If the gap up or gap down opening happens at 0.618% or 1.272% Fibonacci retracement levels of the previous days high low range then it is a trading day and the current trend will remain continue for the day and confidently do the day trade.
B. If the flat opening followed with resistance or support at 0.382 % retracement of the previous days high or low then maximum possibility the trend will give a ‘U’ turn. In this case wait for 50% retracement level of the previous days to break to decide upon a trade.
C. If the current price is above or below the 90 degree resistance or support Gann line drawn from the low or high of the previous day then it is a good day to initiate day trade in the current direction of the trend.
D. If current price is above or below the 30 degree support or resistance Gann line drawn from the previous days high and low then wait for the break out above 90 degree to initiate intraday trade.
E. If the technical intraday chart give the view of a pennant, rectangle then do not day trade on this day.
F. If the last intraday five minuet candle length is less than 50 % as compared with the last recorded 15 minuet candle line length then don’t do the day trade till 5 minuet candle has not broken the last 15 minuet candles high or low.


(1 to 8 out of 8) - Latest Replies on Top | First | << Previous | Next >> | Last |
Julius Jr at 10:16 AM - Jun 17, 2016 ( )

Good One...

Kumar A at 11:45 AM - Mar 20, 2016 ( )

 

Please find the corrected calculations for Pivot Point Trading

 

Let’s calculate resistance and support levels.

First resistance level ( R1)  = It is the difference between the {Pivot Point X 2} or Y and the Intraday Low price.

         R1= Y-L

         R2=P+( H-L)

First support level ( S1) = it is the difference between Y and the Intraday High price.

         S1= Y-H

         S2= P-(H-L).

Anu Vishwa at 06:00 PM - Mar 13, 2016 ( )

Ambarish ji,

Thankx...but i have doubt ...Formula given by...Kumarji

Ambarish Hindocha at 04:29 PM - Mar 13, 2016 ( )

How to use Simple Pivot Point Calculator 1. Pivot is an important value here.
2. Look at the price of stock/underlying at 10:25-10:30 am. (half hour after market opens)
3. For Resistance and support values, you can choose normal values or fibonacci values. Both give good results. It depends upon you which suits you.
4. Keep a target of 0.75% or 1%. Put Stoploss of 0.5%.
5. There are various scenarios which can occur at 10:25-10:30 am.
     1. The price is below the Pivot but above S1.
         In this scenario, you should buy the stock/underlying above Pivot (If price reaches above Pivot) and sell below S1(if the prcies goes below S1).
     2. The price is above Pivot but below R1.
         In this scenario, you should buy the stock/underlying above R1 (if the price reaches above R1) and sell below Pivot(if the price goes below Pivot).
     3. The price is very near to pivot (+/- 0.02%)
         In this scenario, you should buy the stock/underlying above R1 (if the price reaches above R1) and sell below S1(if the price reaches below S1).
     4. The price is between R1 and R2.
         In this scenario, you should buy the stock/underlying above R2 (if the price reaches above R2) and sell below Pivot(if the price reaches below Pivot). the important here is not to sell below R1. You must sell below Pivot.
     5. The price is between S1 and S2.
         In this scenario, you should buy the stock/underlying above Pivot (if the price reaches above Pivot) and sell below S2(if the price reaches below S2). The important here is not to buy above S1, buy only above pivot.
     6. The price is between S2 and S3.
         Same rule applies as rule 5. Buy above pivot sell below S3.
     7. The price is between R2 and R3.
         Same rule applies as rule 4. Buy above R3 sell below Pivot.

(http://www.pivottrading.50webs.com/pivot/pivot/simplePivot.html)

OR

 

As per chart,If price is above VWMA & pivot,then buy it.Stop loss as  you comfortable.First do paper trade to know the actual swing result.

Ambarish Hindocha at 04:25 PM - Mar 13, 2016 ( )

@Anu ji,

Use Pivot directly on chart or use pivot calculator

http://www.pivottrading.50webs.com/pivot/pivot/simplePivot.html

Jay SaiRam.

Anu Vishwa at 04:08 PM - Mar 13, 2016 ( )

Pivot....plz explain with example....

Kumar A at 03:41 PM - Mar 13, 2016 ( )

I am not the owner of this article Sir.  This is only a copy paste work. 

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