Intraday Trading System Simplified Technical Analysis

4/10/2013 02:27:00 am TA Simplified 5 comments

In this course, I am introducin a intrada! tradin s!stem "hich is primaril! #ased on
$A%& indicator used in con'unction "ith ($As and Stochastics) This s!stem is
intended for scalpin, "hich means * ta+in small and ,uic+ profits) There are certain
strict rules to #e follo"ed to enter a trade) -ollo"in the s!stem reliiousl! can
sinificantl! impro.e the success ratio of intrada! trades)
Trading Strategy
Tradin s!stem trier is an $A%& #ullish or #earish crosso.er) Stochastics and $o.in
a.eraes are used in com#ination "ith the $A%& sinal to enter the trade)
1) /u! "hen $A%& i.es a #ullish crosso.er)
2) Sell "hen $A%& i.es a #earish crosso.er)
01(AS( 23T( T4AT T4( A/35( S6ST($ IS 7(2(8I%, T4( 891(S /(13:
:I11 $A;( IT A S0(%I-I% S6ST($) I- 639 A8( -3113:I27 T4IS S6ST($,
01(AS( -3113: A11 T4( 891(S -38 /96 / S(11 ST8I%T16)
General Rules - Applicable for both Buy and Sell
1) 5 min and 20 min ($A, $A%& and Slo" Stochastics are the indicators used)
2) Stoc+ should #e sho"in a trend) This "ill #e e.ident from the slope of the
($As) If ($As are hori<ontal, then no trade is possi#le)
3) Dual Time Frame onfirmation! 15/30 min chart is in the direction of the trade)
4) &o not #u! near resistance or sell near support) 8esistances and Support le.els
are = pi.ot points, da!s hih/ lo", pre.ious s"in hihs, lo"s etc)
5) This is a scalpin s!stem, so profits should #e #oo+ed .er! ,uic+l! unless there is
a hihl! #ullish or #earish trend )
>) To i.e an indication of scalpin points assumin the trades are done in -?3 in
2S()
1) 1ot si<e 1000 * ta+e profits "hen the stoc+ mo.es #! 1 point)
2) 1ot si<e 250 * ta+e profits "hen the stoc+ mo.es #! 3=4 points)
3) 1ot si<e 125 * ta+e profits "hen the stoc+ mo.es #! 4=5 points)
7) :hich stoc+s to trade
Trade onl! on hihl! li,uid pi.otal stoc+s @1?T, 8eliance, S/I, I%I%I /an+, AAis /an+,
Tata Steel, &1-, 4ero $otors, /a'a' Auto, $aruti, Infos!s, T%S, 327% etcB
"hen to Buy
1) 20 min ($A is slopin up"ards)
2) $A%& i.es a #ullish cross o.er)
3) 5 ($A should #e a#o.e 20 ($A line)
4) 5 min candle should close a#o.e the 20 ($A line)
5) Stochastics should not #e in o.er#ouht condition)
>) If Stochastics is in #u! mode alread!, enter the trade)
7) If Stochastics is not in #u! mode, "ait for the stochastics to i.e a #u! sinal and
enter the trade)
C) If Stochastics is o.er#ouht, a fresh #u! sinal can #e used to enter if the $A%&
is still positi.e)
"here to #eep stoploss
0re.ious S"in lo" is the stop loss) 0re.ious s"in lo" is the lo" made in the 'ust
pre.ious up mo.e) 0lease see eAamples to understand stoploss points)
"hen to boo# profits
As indicated #efore, this is a scalpin s!stem) /oo+ profits immediatel! on seein profits
and eAit immediatel! "hen the stoploss is hit)
/oo+ full profits , "hen one of the #elo" conditions occur
1) $A%& i.es a #earish crosso.er and 5 min candle closes #elo" 20 ($A
2) Stochastics is o.er#ouhtD E; crosses #elo" E& and mo.es #elo" the
o.er#ouht line and 5 min candle closes #elo" 20 ($A)
"hen to Sell
1) 20 min ($A is slopin do"n"ards)
2) $A%& i.es a #earish cross o.er)
3) 5 ($A should #e #elo" 20 ($A line)
4) 5 min candle should close #elo" the 20 ($A line)
5) Stochastics should not #e in o.ersold condition)
>) If Stochastics is in sell mode alread!, enter the trade)
7) If Stochastics is not in sell mode, "ait for the stochastics to i.e a sell sinal and
enter the trade)
C) If Stochastics is o.ersold, a fresh sell sinal can #e used to enter if the $A%& is
still positi.e)
"here to #eep stoploss
0re.ious S"in hih is the stop loss) 0re.ious s"in hih is the hih made in the 'ust
pre.ious do"n mo.e) 0lease see eAamples to understand stoploss points)
"hen to boo# profits
As indicated #efore this is a scalpin s!stem) /oo+ profits immediatel! on seein profits
and eAit immediatel! "hen the stoploss is hit)
/oo+ full profits , "hen one of the #elo" conditions occur
1) $A%& i.es a #ullish crosso.er and 5 min candle closes a#o.e 20 ($A
2) Stochastics is o.ersoldD E; crosses a#o.e E& and mo.es a#o.e the o.ersold line
and 5 min candle closes a#o.e 20($A)
$igh %robability Trade Setups
1) A #rief period of consolidation occurs 'ust #efore the trade entr!)
2) /u! sinal occurs a#o.e a +e! support/resistance le.el)
3) Sell sinal occurs #elo" a +e! resistance / support le.el)
4) Trade is in the direction of hiher time frame charts @15 min /30 minB)
5) 3.erall mar+et is mo.in in the direction of the trade)
2ote: -or the purpose of simplicit!, 8SI is not included as an indicator) There are other
uses of 8SI "hich "ill #e co.ered in separate lessons)
Intraday Trading System Simplified Technical Analysis! &'amples
()ifty stoc#s *+ April,
-. A'is Ban# Intraday Trade
/. $ero 0otors Intraday Trade
1. 2)G Intraday Trade
3. D4F Intraday Trade
+. DR. Reddy Intraday Trade
5. ipla Intraday Trade
6. Reliance apital Intraday Trade