Transcript

Golden Rules

Always Remember before going Long or Short
JNSAR Rules
Whenever JNSAR triggers enter at CMP(Current Market Price) without thinking and keep -20pts
as SAR(Stop and Reverse) from entry point.
If it comes below that -20pts then again reverse the position and keep that current swing
high/low as SL(Stop Loss).
Suppose JNSAR is 4972, and it triggers(NS moves above/below JNSAR); that is market touches
from 4965 to 4972..then keep a SL of 4952 and go long at CMP. If mkt comes down and hits SL,
then go for short(Reverse your position -->SAR) at CMP with a SL of 4972.
EMA Rules
When prices move above Low Ema & Closes: Buy on dips to High ema+
When prices move above High Ema & Closes: Buy & Hold as upward momentum picks up.
When Prices move below High Ema & Closes: Sell on rises to Close Ema/ Low EmaWhen Prices move below Low Ema & Closes: Sell & Hold as downward momentum picks up.
Important:
Always have a combination trading system such as:
Week/ Day TA for positional.
Day/ Hour for Short term as well as Intraday.
After Day closed below DHEma, the week/ Day presents a sell on rise but without down
momentum as the closes have been above both WLEma & DLEma.
As for Day/ Hour combo, similar sentiments except that Day hasn't triggered a sell by closing
below its DEma yet.It could be today.
As the colours in the TT changes, you can feel the strength & weaknesses of different time
frame.
As long as the higher T/F is in sell mode, treat the greens in the lower T/F as a ST play only till
other "credible reversal patterns & divergences emerge".
A small Write Up on EMA
A buy in a lower time frame while the higher time frame is in BUY MODE would be a valid
signal. (If you get a price closing above Day Low Ema(DLEMA) while it is staying above Week
Low Ema, it is a valid & viable one., exceptions when a market is reversing with +ve

Most TA studies suggest overbought conditions but the corrections have been of “intraday” nature so far.. such as the current one. it is "Buy on Dips" for the short term until prices close above "Close Ema" signalling a "Hold".. Subsequently. The prices are then expected to close above "High Ema" indicating momentous moves ahead and you may plan your trades accordingly by adding more for the short term swift gains. While the market is comfortably below 5DEma/JNSAR. And after a two days of sideways move. market is coming only upto 5DEma so far. prices would close above the "Low Ema" of that time frame in the TT(depends on the hour/ day/ week TA). the prices will close below "High Ema" to suggest a "Loss of momentum" signalling a "Sell on Rises" and confirm it with a close below "Close Ema" for a hold and once closes below "Low Ema". etc. it has closed above DHEma & poised to take another move higher. EMA for Buy and Sell Trigger While the market is comfortably above 5DEma/JNSAR. it is very important to know that as long as the Week TA is in upmode(green). In a sideways market. it would attempt to move higher. Once the prices close above Low Ema. if market survives the LEma. one could choose good trade set ups and initiate trades at appropriate levels. The levels are arrived at using Pivot table and Tech. Fast Fall or Fast Rise Rules Lesser moving averages are crossing over the higher Moving averages====Fast Rise Higher moving averages are crossing over the lesser Moving averages====Fast Fall . it would attempt to move lower again and the downward momentum returns once it closes below LEma.. Subsequently.table and other considerations such as Fibonacci table. the downward momentum will accelerate.. the down (red) that appears in day TA will not give sharp falls except at the point of major reversal. if market is unable to close above HEma.table of different Time frame. Knowing the market strength/ weakness with the help of prices’ positioning in the Tech. the down (red) that appears in Hour TA will not give sharp falls except at the point of major reversal. read the same appropriately by respecting the higher T/F TA. the close below HEma generally takes the market towards LEma-20pts.divergences).investors have taken a pause as well as do part booking. Markets have occasionally closed above HEma but has gapped down next day. the close below HEma suggests weakening of upward momentum which means short term traders would move into sell on rises. the prices tend to oscillate between High & Low Emas. In a strongly trending market. Similarly when the TA tools indicate a overbought with negative divergences. You read your tools starting to give a buy from oversold region. Elliott wave study. While reading the TT during uptrend.investors return to re-enter into their fallen favourites. the close above LEma suggests weakening of downward momentum which means short term traders would move into buy into dips. And during downtrend. Similarly as long as the Day TA is in upmode(green). In normal conditions.

. o/i up > long build 2. o/i down > short unwind How to use advanced camarilla calculator Look at the opening price for the stock/futures/commodities/currency. then the open interest rises by 2 and become 3. then the open interest of the scrip will reduce by that quantity. Volume and Price movement. o/i down > long unwind 4. then open interest of that scrip rises by 1. Now. There are various scenarios that can occur Scenario 1 Open price is between H3 and L3 For Long Wait for the price to go below L3 and then when it moves back above L3. E's position is still open. This is because while A has squared off his position. then the open interest will remain unchanged. say E. price up. Increase in Price with increase in Open Interest is positive for the stock (Fresh Longs). buy. price down. no new contract is sold or written). if trader A buys 1 futures contract from trader B(who is the seller). and the counter party is a new entrant. How to Interpret Open Interest and How to Trade? Tracking Open Interest alone does not signify much information. Decrease in Price with increase in Open Interest is considered negative (Fresh Shorts) In case of option: 1. If another trader C say buys 2 futures contracts of the same scrip from trader D. Explore the co-relation power of Open Interest. But if A unwinds his position. price up. (As only hands are getting changed . o/i up > short build 3. How Open Interest is Calculated? For example. if trader A unwinds (covers) his/her position and the counter party is either B or D.Trending Rules Trend is identified by watching tops and bottoms which are visible on charts of bars A bottom will be there between two tops A top will be there between two bottoms Increase in bottoms indicates an uptrend Decrease in tops signals the downtrend Open Interest Rules What is Open Interest? Open interest is the total number of outstanding futures and options (F&O) contracts at any point in time. price down.

Stoploss will be when price moves below L4.L3 Scenario 3 Open price is between L3 and L4 For Long When price moves above L3. Target3. Target 1 . Target3. Target1 . Stoploss when price goes below H3. Target 2 . Target1 . Target 2 .H3 For Short Sell Wait for the price to go above H3 and then when the price moves back below H3. Target2 .H6 For Short Sell When the price goes below H3.L1.L2. Target1 . .H5. Target2 . sell. Target2 . Target3 . Target2 .L2. Target1 H1.L5. Stopless when prices moves above H4. buy.L3 Scenario 2 Open price is between H3 and H4 For Long When price moves above H4.H2. Stoploss when price moves below L4.H3 For Short Sell When the price goes below L4.L6 Scenario 4 Open price is outside the H4 and L4 Wait for the prices to come in range and trade accordingly. Stoploss will be when price moves above H4. sell. Stoploss when price moves above L3. buy. sell.H2.H1. Target 1 . Target3 .L1.