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LIN SUPERTREND AMIBROKER BUY SELL SIGNAL SYSTEM

Time Frame :-  Best in 10 minute Chart.
Thanks to Rajandran R 
www.marketcalls.in

Code :-

function GetSecondNum()
{
    Time = Now( 4 );
    Seconds = int( Time % 100 );
    Minutes = int( Time / 100 % 100 );
    Hours = int( Time / 10000 % 100 );
    SecondNum = int( Hours * 60 * 60 + Minutes * 60 + Seconds );
    return SecondNum;
}

function PopupWindowEx( popupID, bodytext, captiontext, timeout, left, top )
{
    displayText = bodytext + captiontext;
    if ( ( StaticVarGetText( "prevPopup" + popupID ) != displayText) OR ( StaticVarGet( "prevPopupTime" + popupID ) < GetSecondNum() ) )
    {
        StaticVarSetText( "prevPopup" + popupID, displayText);
        StaticVarSet( "prevPopupTime" + popupID, GetSecondNum() + timeout );
        PopupWindow( bodytext, Captiontext + popupID, timeout, Left, top );
        PlaySound("c:\\windows\\media\\ding.wav");
    }
}

_SECTION_BEGIN("Lin Supertrend");

SetBarsRequired(100000,0);


GraphXSpace = 15;

SetChartOptions(0,chartShowArrows|chartShowDates);

SetChartBkColor(ParamColor("bkcolor",ColorRGB(0,0, 0)));

GfxSetBkMode(0);

GfxSetOverlayMode(1);

SetBarFillColor(IIf(C>O,ParamColor("Candle UP Color", colorGreen),IIf(C<=O,ParamColor("Candle Down Color", colorRed),colorLightGrey)));

Plot(C,"\nPrice",IIf(C>O,ParamColor("Wick UP Color", colorDarkGreen),IIf(C<=O,ParamColor("Wick Down Color", colorDarkRed),colorLightGrey)),64,0,0,0,0);



//SetTradeDelays(1,1,1,1);

SetOption( "InitialEquity", 250000 );
SetOption( "MinShares", 1 );
SetOption( "MinPosValue", 1 );


SetPositionSize(75,spsShares);



sig = 0;
bars =0;
tar1 =0;
tar2 = 0;
tar3=0;


_N(Title = StrFormat("{{NAME}} - {{INTERVAL}} {{DATE}} Open %g, Hi %g, Lo %g, Close %g (%.1f%%) {{VALUES}}", O, H, L, C, SelectedValue( ROC( C, 1 ) ) ));



Factor=Param("Factor",3,1,3,1);

Pd=Param("ATR Periods",10,1,100,1);


Up = LinearReg((H+L)*0.5,Pd) + Factor*ATR(Pd);
Dn = LinearReg((H+L)*0.5,Pd) - Factor*ATR(Pd);

iATR=ATR(Pd);

TrendUp=TrendDown=Null;

trend[0]=1;

changeOfTrend=0;

flag=flagh=0;



for (i = 1; i <BarCount-1; i++) {

      TrendUp[i] = Null;

      TrendDown[i] = Null;

   

      trend[i]=1;

 

     

      if (Close[i]>Up[i-1]) {

         trend[i]=1;

         if (trend[i-1] == -1) changeOfTrend = 1;

       

      }

      else if (Close[i]<Dn[i-1]) {

         trend[i]=-1;

         if (trend[i-1] == 1) changeOfTrend = 1;

      }

      else if (trend[i-1]==1) {

         trend[i]=1;

         changeOfTrend = 0;      

      }

      else if (trend[i-1]==-1) {

         trend[i]=-1;

         changeOfTrend = 0;

      }



      if (trend[i]<0 && trend[i-1]>0) {

         flag=1;

      }

      else {

         flag=0;

      }

     

      if (trend[i]>0 && trend[i-1]<0) {

         flagh=1;

      }

      else {

         flagh=0;

      }

     

      if (trend[i]>0 && Dn[i]<Dn[i-1]){

         Dn[i]=Dn[i-1];

}

     

      if (trend[i]<0 && Up[i]>Up[i-1])

        { Up[i]=Up[i-1];

}

     

      if (flag==1)

       {  Up[i]=(H[i]+L[i])/2+(Factor*iATR[i]);;

        }

      if (flagh==1)

        { Dn[i]=(H[i]+L[i])/2-(Factor*iATR[i]);;

         }

      if (trend[i]==1) {

         TrendUp[i]=Dn[i];

         if (changeOfTrend == 1) {

            TrendUp[i-1] = TrendDown[i-1];

            changeOfTrend = 0;

         }

      }

      else if (trend[i]==-1) {

         TrendDown[i]=Up[i];

         if (changeOfTrend == 1) {

            TrendDown[i-1] = TrendUp[i-1];

            changeOfTrend = 0;

         }

      }

   }



Plot(TrendUp,"Trend",colorGreen);

Plot(TrendDown,"Down",colorRed);

Length =200;

Buy = trend==1 AND C>EMA(C,Length);
Sell=trend==-1 ;

Short=trend==-1  AND C<EMA(C,Length);
Cover=trend==1;

Buy=ExRem(Buy,Sell);
Sell=ExRem(Sell,Buy);

Short=ExRem(Short,Cover);
Cover=ExRem(Cover,Short);

Long=Flip(Buy,Sell);
Shrt=Flip(Short,Cover);
Relax = NOT Long AND NOT Buy AND NOT shrt AND NOT Sell AND NOT Sell AND NOT Cover;

BarsSincebuy = BarsSince( Buy );
BarsSinceshort = BarsSince( Short );
LastSignal = IIf( BarsSincebuy < BarsSinceshort, 1, -1 );

BuyPrice=ValueWhen(Buy,C);
SellPrice=ValueWhen(Sell,C);
ShortPrice=ValueWhen(Short,C);
CoverPrice=ValueWhen(Cover,C);

Title = EncodeColor(colorWhite)+ "Super Trend AFL code from www.marketcalls.in" + " - " +  Name() + " - " + EncodeColor(colorRed)+ Interval(2) + EncodeColor(colorWhite) +

 "  - " + Date() +" - "+"\n" +EncodeColor(colorRed) +"Op-"+O+"  "+"Hi-"+H+"  "+"Lo-"+L+"  "+

"Cl-"+C+"  "+ "Vol= "+ WriteVal(V)+"\n"+

EncodeColor(colorLime)+

WriteIf (Buy , " GO LONG / Reverse Signal at "+C+"  ","")+

WriteIf (Sell , " EXIT LONG / Reverse Signal at "+C+"  ","")+"\n"+EncodeColor(colorYellow)+

WriteIf(Sell , "Total Profit/Loss for the Last Trade Rs."+(C-BuyPrice)+"","")+

WriteIf(Buy  , "Total Profit/Loss for the Last trade Rs."+(SellPrice-C)+"","");



PlotShapes(IIf(Buy, shapeSquare, shapeNone),colorGreen, 0, L, Offset=-40);
PlotShapes(IIf(Buy, shapeSquare, shapeNone),colorLime, 0,L, Offset=-50);                    
PlotShapes(IIf(Buy, shapeUpArrow, shapeNone),colorWhite, 0,L, Offset=-45);
PlotShapes(IIf(Short, shapeSquare, shapeNone),colorRed, 0, H, Offset=40);
PlotShapes(IIf(Short, shapeSquare, shapeNone),colorOrange, 0,H, Offset=50);                    
PlotShapes(IIf(Short, shapeDownArrow, shapeNone),colorWhite, 0,H, Offset=-45);

PlotShapes(IIf(Sell, shapeStar, shapeNone),colorGold, 0, L, Offset=-15);
PlotShapes(IIf(Cover, shapeStar, shapeNone),colorGold, 0,L, Offset=-15);

duration = 10000000;

LastClose= Ref(C,-1);  // if you like to add this popup will show you

if (Buy[BarCount-2]==True)  
{
PopupWindowEx( "ID:1", "Get Ready to BUY  \n"+Name() + "  "+ Interval(2)+" :  "+ " Last ="+LastClose  , "Buy Alert -", 1000, 100, 1 ) ;
}
if (Short[BarCount-2]==True)
{
PopupWindowEx( "ID:2", "Get Ready to SHORT  \n"+Name() + "  "+ Interval(2) + "  :  "+ " Last ="+LastClose , "Short   Alert ", 1000, 1, 150 ) ;
}





TrendSL=IIf(trend==1,TrendUp,TrendDown);

sig=0;


for(i=BarCount-1;i>1;i--)

{

if(Buy[i] == 1)

{

entry = C[i];

sig = 1;

sl = TrendSL[i];

tar1 = entry + (entry * .0050);

tar2 = entry + (entry * .0092);

tar3 = entry + (entry * .0179);



bars = i;

i = 0;

}

if(Short[i] == 1)

{

sig = -1;

entry = C[i];

sl = TrendSL[i];

tar1 = entry - (entry * .0050);

tar2 = entry - (entry * .0112);

tar3 = entry - (entry * .0212);





bars = i;

i = 0;

}

}

Offset = 20;

SellSL=ValueWhen(Short,Ref(TrendSL,-1),1);
BuySL=ValueWhen(Buy,Ref(TrendSL,-1),1);



Clr = IIf(sig ==1, colorLime, colorRed);

ssl = IIf(bars == BarCount-1, TrendSL[BarCount-1], Ref(TrendSL, -1));

sl = ssl[BarCount-1];





Plot(LineArray(bars-Offset, tar1, BarCount, tar1,1), "", Clr, styleLine|styleDots, Null, Null, Offset);

Plot(LineArray(bars-Offset, tar2, BarCount, tar2,1), "", Clr, styleLine|styleDots, Null, Null, Offset);

Plot(LineArray(bars-Offset, tar3, BarCount, tar3,1), "", Clr, styleLine|styleDots, Null, Null, Offset);






buyach1 = IIf((Buy OR Long AND NOT Relax AND NOT Cover AND NOT Short AND NOT Shrt), H > tar1, 0);
buyach2 = IIf((Buy OR Long AND NOT Relax AND NOT Cover AND NOT Short AND NOT Shrt), H > tar2, 0);
buyach3 = IIf((Buy OR Long AND NOT Relax AND NOT Cover AND NOT Short AND NOT Shrt), H > tar3, 0);

sellach1 = IIf((Short OR Shrt AND NOT Relax AND NOT Sell AND NOT Buy AND NOT Long), L < tar1, 0);
sellach2 = IIf((Short OR Shrt AND NOT Relax AND NOT Sell AND NOT Buy AND NOT Long), L < tar2, 0);
sellach3 = IIf((Short OR Shrt AND NOT Relax AND NOT Sell AND NOT Buy AND NOT Long), L < tar3, 0);


// Message Board -----------------
GfxSelectFont( "Tahoma", 13, 100 );

GfxSetBkMode( 1 );

GfxSetTextColor
( colorWhite );

if ( SelectedValue( LastSignal ) == 1 )
    {
        GfxSelectSolidBrush( colorDarkGreen );
    }
    else
    {
        GfxSelectSolidBrush( colorRed );
        }


pxHeight = Status( "pxchartheight" ) ;

xx = Status( "pxchartwidth");

Left = 1100;

width = 310;

x = 5;

x2 = 290;

y = pxHeight;

GfxSelectPen
( colorLightBlue, 1); // border color

GfxRoundRect
( x, y - 155, x2, y , 7, 7 ) ;


GfxTextOut( ( "Marketcalls - Supertrend V4.0"),13,y-130);

GfxTextOut
( ("" + WriteIf(Buy, "Go Long At "+C+" - SL " +Ref(TrendSL,-1),"")), 13, y-105);

GfxTextOut
( ("" + WriteIf (Short, "Go Short At "+C+" - SL " +Ref(TrendSL,-1),"")), 13, y-105);


GfxTextOut
( ("" + WriteIf (Sell AND NOT Short, "Exit Long At "+C,"")), 13, y-115);

GfxTextOut
( ("" + WriteIf (Cover AND NOT Buy, "Exit Short At "+C,"")), 13, y-115);


GfxTextOut
( ("" + WriteIf (Long AND NOT Buy, "Long At "+(BuyPrice)+" - TSL " + Ref(TrendSL,-1)+ "","")), 13, y-105);

GfxTextOut
( ("" + WriteIf (shrt AND NOT Short, "Short At "+(ShortPrice)+" - TSL " + Ref(TrendSL,-1)+ "","")), 13, y-105);

GfxTextOut
( ("" + WriteIf (Relax, "No Trade Zone - Wait","")), 13, y-105);

GfxTextOut
( ("" + WriteIf (Long AND NOT Buy, "Current P/L: "+(C-BuyPrice)+" Points","")), 13, y-85);

GfxTextOut
( ("" + WriteIf (shrt AND NOT Short, "Current P/L: "+(ShortPrice-C)+" Points","")), 13, y-85);

GfxTextOut
( ("" + WriteIf (Long OR Buy OR Shrt OR Short, "Target 1: "+tar1,"")), 13, y-65);

GfxTextOut
( ("" + WriteIf (Long OR Buy OR Shrt OR Short, "Target 2: "+tar2,"")), 13, y-45);

GfxTextOut
( ("" + WriteIf (Long OR Buy OR Shrt OR Short, "Target 3: "+tar3,"")), 13, y-25);

GfxTextOut
( ("" + WriteIf (buyach1, "Target 1: "+tar1+" :: Achiecheved","")), 13, y-65);

GfxTextOut
( ("" + WriteIf (sellach1, "Target 1: "+tar1+" :: Achiecheved","")), 13, y-65);

GfxTextOut
( ("" + WriteIf (buyach2, "Target 2: "+tar2+" :: Achiecheved","")), 13, y-45);

GfxTextOut
( ("" + WriteIf (sellach2, "Target 2: "+tar2+" :: Achiecheved","")), 13, y-45);

GfxTextOut
( ("" + WriteIf (buyach3, "Target 3: "+tar3+" :: Achiecheved","")), 13, y-25);

GfxTextOut
( ("" + WriteIf (sellach3, "Target 3: "+tar3+" :: Achiecheved","")), 13, y-25);



Filter=Buy OR Short;
AddColumn( IIf( Buy, 66 , 83 ), "Signal", formatChar, colorDefault, IIf( Buy , colorGreen, colorRed ) );
AddColumn(Close,"Entry Price",1.4, colorDefault, IIf( Buy , colorGreen, colorRed ));
AddColumn(Ref(TrendSL,-1),"Stop Loss",1.4, colorDefault, IIf( Buy , colorGreen, colorRed ));
AddColumn(tar1,"Target 1",1.4, colorDefault, IIf( Buy , colorGreen, colorRed ));
AddColumn(tar2,"Target 2",1.4, colorDefault, IIf( Buy , colorGreen, colorRed ));
AddColumn(tar3,"Target 3",1.4, colorDefault, IIf( Buy , colorGreen, colorRed ));
AddColumn(Volume,"Volume",1.0, colorDefault, IIf ((Volume > 1.25 * EMA( Volume, 34 )),colorBlue,colorYellow));


// Calculate Equity Curve

eq = Equity( 1, 0 );

//////////////////////////////////////////////////
// Calculate the Last Five Trades Profit/Losses //
//////////////////////////////////////////////////

tradesback = 5;
Signum = Cum( Buy ) + Cum( Short );
Signumstart1 = LastValue( SigNum ) - ( tradesback - 1 );
Signumstart2 = LastValue( SigNum ) - ( tradesback - 2 );
Signumstart3 = LastValue( SigNum ) - ( tradesback - 3 );
Signumstart4 = LastValue( SigNum ) - ( tradesback - 4 );
Signumstart5 = LastValue( SigNum ) - ( tradesback - 5 );

bi = BarIndex();
bistart = ValueWhen( signum == signumstart1, bi );
bicond = bi >= bistart AND bi <= LastValue( bi );


SellPL = IIf( Sell AND bicond, C-BuyPrice, 0 );
CovPL = IIf( Cover AND bicond, ShortPrice - C,0 );

cumPL = SellPL + CovPL;

//Plot (SellPL,"Sell",colorGreen,styleHistogram,maskhistogram);
///Plot (CovPL,"Cover", colorRed,styleHistogram,maskhistogram);

lsince = LowestSince(Sell OR Cover, cumPL, 0);
hsince = HighestSince(Sell OR Cover, CumPL, 0);


vs= IIf(lsince==0,hsince,lsince);


PL1 = ValueWhen( signum == signumstart1 , vs,1 );
PL2 = ValueWhen( signum == signumstart2 , vs,1 );
PL3 = ValueWhen( signum == signumstart3 , vs,1 );
PL4 = ValueWhen( signum == signumstart4 , vs,1 );
PL5 = ValueWhen( signum == signumstart5,  vs ,1 );

//////////////////////////////////////////////////
//   Plot the Last Five Trades Profit/Losses    //
//////////////////////////////////////////////////


Title = EncodeColor(colorWhite)+ "Backtest Results  from www.marketcalls.in" + " - " +  Name() + " - " + EncodeColor(colorRed)+ Interval(2) + EncodeColor(colorWhite) +

 "  - " + Date() +" - "+"\n" +EncodeColor(colorRed) +"Op-"+O+"  "+"Hi-"+H+"  "+"Lo-"+L+"  "+

"Cl-"+C+"  "+ "Vol= "+ WriteVal(V)+"\n"+ EncodeColor(colorYellow)+ "\n\n\nLast 5 Trade Results\n" +
"\nTrade1= " + PL1
+"\n"+ "Trade2= " + PL2
+"\n"+ "Trade3= " + PL3
+"\n"+ "Trade4= " + PL4
+"\n"+ "Trade5= " + PL5;


//Magfied Market Price

FS=Param("Font Size",30,11,100,1);

GfxSelectFont("Times New Roman", FS, 700, True );

GfxSetBkMode( colorWhite );

GfxSetTextColor( ParamColor("Color",colorGreen) );

Hor=Param("Horizontal Position",940,1,1200,1);

Ver=Param("Vertical Position",12,1,830,1);

GfxTextOut(""+C, Hor , Ver );

YC=TimeFrameGetPrice("C",inDaily,-1);

DD=Prec(C-YC,2);

xx=Prec((DD/YC)*100,2);

GfxSelectFont("Times New Roman", 11, 700, True );

GfxSetBkMode( colorBlack );

GfxSetTextColor(ParamColor("Color",colorYellow) );

GfxTextOut(""+DD+"  ("+xx+"%)", Hor , Ver+45 );


_SECTION_END();

_SECTION_BEGIN("EMA1");
P = ParamField("Price field",-1);
Periods = Param("Periods", 200, 2, 300, 1, 10 );
Plot( EMA( P, Periods ), _DEFAULT_NAME(), ParamColor( "Color", colorCycle ), ParamStyle("Style") );
_SECTION_END();

_SECTION_BEGIN("Time Left");

RequestTimedRefresh( 1 );

TimeFrame = Interval();

SecNumber = GetSecondNum();

Newperiod = SecNumber % TimeFrame == 0;

SecsLeft = SecNumber - int( SecNumber / TimeFrame ) * TimeFrame;

SecsToGo = TimeFrame - SecsLeft;



x=Param("xposn",50,0,1000,1);

y=Param("yposn",380,0,1000,1);



GfxSelectSolidBrush( ColorRGB( 230, 230, 230 ) );

GfxSelectPen( ColorRGB( 230, 230, 230 ), 2 );

if ( NewPeriod )

{

GfxSelectSolidBrush( colorYellow );

GfxSelectPen( colorYellow, 2 );

Say( "New period" );

}

//GfxRoundRect( x+45, y+40, x-3, y-2, 0, 0 );

//GfxSetBkMode(1);

GfxSelectFont( "Arial", 14, 700, False );

GfxSetTextColor( colorRed );

GfxTextOut( "Time Left :"+SecsToGo+"", x, y );

_SECTION_END();

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IDEA NSE CASH STOCK TECHNICAL ANALYSIS FOR EDUCATON PURPOSE

It's for education purpose. I can't give any call or trading advice because I an not register with NISM or nse.

Read more

Rules for profitable day and swing trading must follow

1. Trade in the direction of the trend. Buy at or near rising 20 period MA, sell at or near downward sloping 20 period MA.This will eliminate 70-80% of your losing trades.

2. Always cut your losses and let your profits run. Take small losses and large wins.

3. Trail stop loss. Don't let a profitable trade turn to a looser.

4. Trade as per plan. Don't trade unless you know where you should get in and where you should get out.

5. Always use protective stop to limit your losses.

6. Learn to be patient. Don't trade impulsively. Wait for the right opportunities and setup.

7. If the reason you entered the trade is no longer valid, get out.

8. Do your own homework. Keep ready long/short levels to enter trade. Make use of system to inform you when the target entry/exit price is there for the taking.

9. Be open to research.

10. Give time to your sytem to work. If your method of trading is working, don't keep changing it.

11. Remember the market is never too high or low to buy or sell.

12. Be disciplined. A trader has periods of profit or losses. Don't let the losses get to you psychologically.

13. No indicator that is a 100% right all the time. Use common sense along with your method of trading. If your indicators are telling you one thing but the market is obviously doing something else, listen to the market.

14. Remember the golden rule - The market is always right.

15. Never risk all in a trade/trades. Max. loss on open positions should never be more than 5% of capital. Close all loosing positions immediately if this loss level is reached.

16. Don't overstrech your capital. Trade markets you are sufficiently capitalized for.

17. Never trade with money you cannot afford to lose.

18. If you hit your target profit, take it, or atleast protect with trailing stop loss.

19. Don't revenge trade and try to make up for all your losses in one trade.

20. Don't blindly follow someone else's recommendations or tips.

21. If there are few consecutive days of losses or there are a row of loosing tades, take a break for a few days or weeks. Trade only when you are in the right psychological frame of mind.

22. Don't trade to many markets. It's better to be an expert in one market than a novice in many.

23. If there is a marging call, it means something went wrong with your trade, and exit the trade.

24. Don't take losses personally.

25. Most important, have a life besides trading. If you are not happy with life in general, you will not be in the right frame of mind to be trading.

Read more

STOPLOSS BIG Mystery and its three golden keys

Mystery of Stoploss
One of the great mysteries of trading is the dreadful stop. 

*what kind of stops should I use?

The philosophy outlined here regarding stops is very different than most others. when you learn how to use stoploss wisely, you discover that stops don’t have to hurt.

Stoploss orders are the medicine of trading. 

When your trade is sick, stops are there to heal it.
The big question is whether you like to take the medicine before you get sick
as a preventive measure or you wait till you really get sick,and then use the medicine. Natural choice seems to the part two.

There a few ways of using stops:

1. No Stop specialist 
What do you call a trader that doesn’t use stops? 
An investor. 
When a trader lets a trade go against him, he gets married to the stock, starts looking at fundamentals then becomes an investor. 

I have seen people, especially six years ago, buy a stock at 100 and still hold it today, even though it’s a penny stock today. 



2. Random stop or Gambling stop 

These happen when a trader knows how much money he wants to risk on a stock, his bet on the stock, and that is his stop. 
Buy ABC stock with a 500 stop, because that is all they can allocate for this trade. These PEOPLE think trading as gambling, they put their money on the table and forget about it.

The problem with this method is that it is not a method, there is no reasoning behind the placement of the stop.

3. Adding in stop 

Some traders keep adding in money into their position as it goes against them. This is also called Dollar Cost Averaging. 
When people begin trading they think that adding money to a position lowers your cost on it and, therefore, allows you to buy more shares at a lower price. Any Investor, who liked ABC at 60, surely will like it so much more at 50, right?

The reasoning behind this method is very dangerous. 

You buy 1000 shares at 60, buy another 1000 at 59, buy another 1000 at 58. Now, your average cost is 59, not 60 as you originally wanted. The stock only has to jump up a single for you to break even, not two.
BIG PROBLEM
Problem comes when the stock keeps FALLING and you are now stuck with 3000 shares on the wrong side of a breakout. 

People using this method wipe out their accounts. Traders will become investors. If not on the first 20 trades, then on the 21st that would wipe them out. 
It only takes one large loss to devastate an account and devastate the trader.

Stops are like medicine for your trading. 

The longer you take before you swallow the bitter pill, the worse your condition is going to be. 
Preventive medicine works so much better, it prevents small weaknesses from becoming serious diseases.

Trade this way if you agree it is better

Follow this method of stops =it is very simple, 

kNOW YOUR ENTRY REASON,
WRITE IT DOWN,
Always exit a trade 
when the reason for your entry no longer exists. 

Take Notice We said Exit, not stop. 

We do not take stops, we exit. 

At times it’s a negative exit, but it is still an exit, not a stop. 

A stop loss stops your loss, we are not interested in the trade becoming a loss.

 follows

ENTRY

If you have done your analysis right, you should be able to pinpoint an entry.

An entry is a trigger 

that starts a trend, 
starts a wave in a trend, 
starts a bounce, 
starts a fade or a break out.
--------------------------------------------------------------------------------------------------

BE accurate with your entry, AND your exit should be very simple.

If you entered a trend, you exit when you know that the reason for your entry no longer exists, when the stock refuses to start your trend. 

If you entered a breakout, you know the reason for your entry no longer exists when the stock returns back into your consolidation.

So how much is that? 
Your stop, or negative exit, (if you did your home work and pinpointed your entry,) is Noise + Spread. 

Noise is the normal fluctuation of the stock and spread is the difference between bid and ask.

Basically, if you add them together, it is the amount that the stock can pull back before you know that your entry is wrong.

For example, in day trading, most of our negative exits are less than 1 RUPEE Most of the stocks that we trade have less than A COUPLE OF RUPEES spread and noise. In Swing trading, most of our negative exits are less than 10 TO 20 RUPEES(TEN TIMES plus THAT OF DAYTRADING) for the same reason.

Some people day trade with a RUPEE stop or even two or three rupees. If you do your home work and can pinpoint your entry, how many 1 rupee negative exits can you take before you equal one point or two points? 
Imagine having 10-20 attempts for the price of one.
---------------------------------------
Three keys
There are three keys to success here:

1. Pinpoint your entry - You need to know exactly where to enter.
2. Know exactly where the reason for your entry no longer exists - Where on the chart does price have to go to invalidate your entry?
3. Re-entry - If the stock comes back and your setup is still valid, make sure that you re-enter.
Most of us pay less than 100 in commissions, which is a lot less than a devastating stop loss of multiple points.

If you have to pay 500 plus rupees for a trade that didn’t work, it is a business expense, not a stop loss. It protects you financially and psychologically. It allows you to re-enter the trade without any damages.

If you exit with an expense of 1000, it will do a lot less damage than several thousands or your whole account. 
How would you feel if you spent a few hundred bucks on a trade vs. lost several thousands on a gamble?

Traders need to get educated how to pinpoint their entries and know exactly when the trade is working or not, in order to keep stops down to business expenses, instead of serious losses.

The secret to longevity and prosperity in trading is
knowing why you are entering, 
pinpointing your entries and 
preservation of your capital.

Preservation of capital is always more important than capital appreciation.

Hope this helps your trading in some way.

Dedicated to maximizing your profits,

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HOW SELECT BEST STOCK FOR INTRADAY TRADING

We often find ourself in situations where the whole market is moving up or down in any particular day but the stocks which we have positions does't move and it moves sideways and choppy where sometimes our stops gets hit or we exit at the end of the day near cost to cost .

Novice traders find themselves in the above situation more than 80 percent of the time . They learn technical analysis , apply them in live market , try their luck with different indicators but nothing works . Of course it works sometimes but doesn't work consistently every time .

Sometimes you are trading a stock for couple of days and the stock is not moving anywhere and you lost your patience and moved on to another stock which is moving and as soon as you entered the stock it will hit your stoploss or it will start to move sideways and the previous stock where you lost your patience starts to move . This kind of things happen day after day .

So many times questions came in your mind that how professional day traders do day trading trading for a living ?

There are thousands and thousands of stocks listed on NSE and BSE and it is impossible to track and trade every single stock and which stock will move on which day nobody knows and if you play the news , sometimes news are good but stocks does't perform .

Now am going to show you a simple trick to find stock . For that you have to get rid of the habit of day trading every single day . There are around 22 trading days and sometimes I will trade every 22 days , sometimes I will trade on 12 to 15 days , sometimes I will trade on 7 trading days . Professional day traders don't trade every single day , they may watching the market but they don't pull the trigger . 

Stock Selection 

1 . First create a watch list of 12 to 15 stocks which falls in group A . As you
get experienced you can add more in the watch list

2 . Selection of stocks should be diversified . Meaning all the stocks should 
not be in the same sector .

3 . We will study the daily chart of all the stocks in my watch list each night 
and will see which stocks are in my criteria and going to trade them 
from the next day till the criteria does't hold .

4 . We will put a 50 and 5 Ema on the volume of the daily chart and going to 
scan on which stocks in my watch list the last 5 days average volume is 
greater than the 50 days average volume .

5 . We will pick 2 or 3 stocks from my watch list and going to trade them 
from the next day till the day day the 5 days average volume becomes 
than the 50 days average volume . Sometimes this criteria last for 2 to 
3 days and some times the criteria last for more than a month .

When there is average little volume in a stock on a daily chart most of the time the stock tends to move sideways and choppy on intraday basis and no indicator can make for you and when volume started to increase you can expect more movement on the intraday which you can catch by any trend following indicator .

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MORNING 30-MINUTES DAY TRADING INTRADAY STRATEGY

This strategy is based on understanding the moves in context of the Sentiments / Supply – Demand Factor or Moves of Big traders or Operators. 
If you track the Close price you will wonder the Open price of the trade day is not always the same as that of the previous days Close price. It is because the Operators according to the sentiments lay a trap in which small traders get trapped and run into losses. If we understand these Dynamics we can make profits 90 % times in normal markets in the first 3 to 30 minutes of trading. ( Remember you should close your positions in this time frame ) 
For this strategy it is compulsory to choose shares with very high volumes for example shares in nifty or for that matter other shares with volumes above 5 lac or 10 lac
Take the following figures and trade plan with you on the basis of calculations given below. We will call it Operators Strategy ( OS )

Difference (D) between HIGH & LOW of previous day i.e.: D = ( H – L ) 

Now OS = D / 3

BUY PRICE = ( Close – OS )

SELL PRICE = ( Close + OS )

For understanding the OS one should understand the following……..
STRONG SHARE or STRONG CLOSE (close price is higher than previous close) &
WEAK SHARE or WEAK CLOSE ( close price is lower than previous close )
Now on the basis of above calculations you are ready with the figures i.e.: BUY PRICE, CLOSE & SELL PRICE of STRONG SHARE & WEAK SHARE separately.

Now on trade day if STRONG share opens anywhere between Close & BUY PRICE you can BUY first & keep for sell @ SELL PRICE as your target. 
The Trap :- As the share opens at a price lower than Close one gets the feeling as if the share has become weak and sells it, thus falling in the trap.

On trade day if WEAK share opens at or above SELL PRICE you can SELL first & buy later @ BUY PRICE as your target.
The Trap :- As the share opens at a higher price than the Close one gets the feeling that the share has become strong and buys it thus falling in the trap.

This strategy requires you to be very fast in taking decisions and accordingly positions. Furthermore One should compulsorily come out or close the position in the mentioned time frame or as soon as target is achieved. Life is not that easy and if you find that your position was wrong immediately square it ( close it)Avoid putting Stop Loss, instead put orders immediately for covering 


* Some more morning strategies :……………….

A ) SHORT SELL :- ( sell first & buy later )

OPEN & HIGH IS SAME….
Sell just below HIGH price if it is not breaking the high price for 3 minutes.
Example : If O-H is 110 sell @ 109 with a SL ( stop loss ) just above HIGH.
Best results are observed if :-
a) Market is Bearish ( weak ) 
b) O-H rate is near or above SELL PRICE i.e.: ( Close + OS ) 
c) Weak share but O-H rate is @ or near SELL PRICE
d) If share price is not crossing above previous day’s HIGH

B ) BUYING :- ( buy first & sell later ) 

1. OPEN & LOW IS SAME…….. Buy just above LOW price if it is not breaking the low price for 3 minutes. Example : If O-L is 100 buy @ 101 with SL ( stop loss ) just below LOW.
Best results are observed if :-
a) Market is Bullish ( strong )
b) Close is Strong ( i.e.: it is a strong share )
c) O-L is near or below Close
d) O-L rate is @ or near BUY price 


2. STRONG SHARE :- ( i.e.: strong close ) 

BUY if :-…………..
a) OPEN is @ BUY price.
b) OPEN is same as pr. Close.
c) OPEN & LOW is same, as discussed above.
d) OPEN is just above pr. Close but far below SELL price.

3) BUY if Share crosses above its intraday High price.

Best results if market is bullish. Keep the target of getting out @ SELL price, if it is showing strength & volume is more than pr. Day.


Note : 

AVERAGING: Never average in loosing position. Average only in winning positions.
TRAILING STOP-LOSS: - The SL of profit following your winning position is called trailing SL.
Losses : are part of intraday trading , success of 70% plus is what one should work for & refine your strategy.Hard Fact : In The game of intraday trading if you are consistently achieving 1% profit of your total intraday volume you are achieving wonders. 
Greed & Fear are enemies of intraday traders.

NOTE:-  WE ARE NOT RESPONSIBLE FOR ANY LOSS FROM THIS STRATEGY PLEASE BACK TEST THIS BEFORE USE.

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SIMPLE EMA DAY TRADING STRATEGY

This is combination of 55 and 89 EMA in 5 minute chart.

When to Buy -   when 55 EMA cross and goes above 89 EMA and next candle close above previous candle then buy with 1% stop loss and Target 1% or more as per your confidence.

When to Sell  - Just reverse of Buy when 55 EMA cross and goes down below 89 EMA and next candle close below previous candle then sell with 1% stop loss and Target  1% or more as per your confidence.


NOTE:-   Please beck test this strategy before use. We are not responsible for any loss.

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Not Successful In Day Trading Then It's For You

Day trading is all about momentum and nothing else.  You need some way to identify stocks with momentum.  Though a knowledge of technicals surely helps, it is not completely fool proof.  You should always rely on combination of technicals and not on a single one.  You need to devise your own methodology and test it by paper trading before entering the real market.  If you are a intra-day stock futures trader keep the following as base and then supplement with further value-additions:

1) Stock selection for trading intra day futures:

   a) Do not trade during the first half an hour of the opening.

   b) By 10.00 am you will definitely have a fair idea about the general trend or atleast the market sentiment.  This is a function of prev day DJIA performance, current day's Asian markets performance, etc.

  c) If general sentiments appear to be positive, look for stocks with momentum that can be gone long.  Similarly if sentiments appear to be negative, look for stocks with momentum that can be gone short.

   d) Now comes the crucial aspect of identifying stocks with momentum (bullish and bearish).  At 9.50am to 10am, go to  the market watch section of exchange's website  and find out stocks which have the following characteristics :

i) Open price is the lowest price / near lowest of the day so far. (indicates bullish trend with momentum)

ii) Open price is the highest price / near highest of the day so far. (indicates bearish trend with momentum)

The above can be easily automated in excel by downloading the excel link from the exchange's website. If the general sentiments appear to be positive, focus of item i) else focus on item ii).  If the general market trend is directionless and range bound focus on a combination of i) and ii).  Few more parameters can also be supplemented to i) and ii) to confirm the momentum.

e) Last but not the least is discipline.   Have a strict SL depending upon your risk appetite.  If you are in profit do not hesitate to book it as greediness is the biggest enemy of a trader.  If you are in loss, SL will take care of your exit.   Do not overtrade.

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Type of analysis in stock market - Fundamental analysis, technical analysis

     Stock analysis is a technique to measure the pulse of the stock and determine the right price to enter and exit stock with handsome return. There are two major yet very contrasting approach to do same. They are :

1. Fundamental analysis :-  Fundamental analysis is a study base on company financial past results including sales, profit, operation, general economic forecast, expected demand, profit margin, sales forecast, debs, competition, management and many other parameters. Based on these studies, analyst tries to find right value (intrinsic value) of the stock. A buy or investment decision is taken and when stock is trading below right value and a sell decision is taken when the stock is much above it's far value.
2. Technical analysis :-  Technical analysis on the other hand do not believe in the finding intrinsic value of the stock. They rather study equity's price and volume movement to predict the future direction of the stock price. Technical analysis in a very simple definition is, study of chars to determine patterns and use them to trade when such patterns has very high probability of a stock movement in a certain direction.

Both these analysis uses very different ways to analyze stocks and have been quite effective in producing good results. Both these approach may not always give buy/sell signal at the same time and may even give strong and opposite signal on same stock. One study may indicate strong buy where as other may give strong sell. Beginners may get confused and are strongly advice to study both but follow one, as mixing then could produce undesired results.

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Most five reasons to keep things simple when you trade in share market

     Keep things simple will put you on the road to profitable trading. By maintaining simplicity you can refine your trading. You will improve your odds of success if you stick to the following rules :

1. Your methods will be clear :- When your friends ask you how you pick stocks, you should be able to tell then in just a few sentences, without any convoluted statements like, "I buy it when it looks good."
2. You will have fewer expenses :- Instead of wasting money to buy overpriced trading systems, software, or other people's opinions, you will have more money to trade. You should be able to get almost all information you need for free.
3. You will have fewer decisions to make :- Instead of being indifferent about twenty or thirty stocks that someone else suggested to you, you will realize which stocks are ready to be bought and which ones are not.
4. It's less work :- This one should be self -explanatory in world where time is money.
5. You have less to learn :- This on goes along with number four. Less to learn means less time wasted and more opportunity to make money. It also means there's less to forget and fewer mistakes to make - always a plus.

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Most important stock market trading rules

• Learn to function in unchartered, less predictive and uncertain environment.
• Think without any bias of your trading position.
• Keep your emotions under check and maintain objectivity.
• Get rid of hop and fear.
• Learn from past mistakes and Success, analyze your moves and respond quickly at critical events.
• Trading requires your responsiveness is in high alert.
• In trading you are competing with more wise and resourceful pool of peoples. Always trade along with them not against them.
• Know your personality before choosing your type of trading style.
• If you don't change your attitude towards market, you will get the same results what you are getting now.
• Study well about the markets, don't stop studying else you will lag behind others.
• Shy away from others opinions about your position or market movement.
• Never exit or enter the market just because you have lost patience or anxious from waiting.
• Avoid over trading.
• Smart money is always behind the trend.
• Every loss is markets new lesson to improve your knowledge of market action.
• The most difficult task is not entry, just sitting tight in an open position.
• Price and Price action is the only factor that reflects the market sentiment.
• Don't allow winning trade to turn into a loser.
• The real difference between winners and losers is discipline exercised in avoiding mistakes.
• Trade only when you have a good reason to trade.
• Made a loss? Forget it quick. Made a profit, forget it quicker. Don't let ego and greed Fog clear thinking and paralyze you.
• There is no 100% perfect trade entry or exit method.
• Market will not move the way we expect, we have to join hands with the way market moves.
• Stay calm and think clearly when trading big positions.
• don't try to beat the market, it will always humble you.
• Trade within your limits. Slow and steady goes a long way.
• Capital preservation and capital appreciation is like two sides of a coin.
• Work hard and smart. It's the only way solution available for your trading success.
• Few good trades are better than many loosing trades.
• Trade when you find opportunities. Don't be greedy!
• Do not add a losing position.
• Do not waste your energy on trying to pick tops or bottoms.
• Risk Reward makes your account healthy irrespective how good your trade entries and exits.
• If everybody is bullish, be nervous!
• There is only on side to the market that is right side neither bull side nor bear side.
• FIIS, BANKS, Big Financial Houses and Mutual funds makes money capitalizing the fact that Novice retail traders will continue in the future to make the mistakes that they have made in the past.
• If a bull market takes 5 days to go to a level, a bear market only takes a day.
• The market's reaction to new information is vital than the piece of news itself.
• don't diversify too much, few is enough to become successful trader.
• Highs and lows are turning points of any market. Keenly watch that level.
• Price is everything. Indicators are derivatives of price. So follow price for opportunities to trade, not the indicators.
• "If you get in on XYZ tip; get out on XYZ tip. If you are riding another person's idea, ride it all the way.
• The market is an expensive place to find out who you are.
• Prognosis doesn't work in human behavior operated market. Always be ready to react the situation.
• When the stock moves against your open position, don't pray - just close the position.
• Always trade with the market flow and smart money.
• Constantly evaluate your open positions.
• Volume and open interest is equivalent to a technician as price.
• Prices are real for "Now", it doesn't Reflect real value of the concerned stock.
• If the market breaks Monthly or weekly high it's a buy. If the market breaks Monthly or weekly low it's a sell.
• Trading Break. A trading break may give you a fresh look in your thought process and will reduce your mistakes.
• The trading rules which are working for you have to be followed religiously.
• Don't add a position in a stock which had run up more in the recent times.
• Cut losses small let run your profits big. Many traders finding this simple task toughest to do in real time.

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