Trading Policies of "Levels" and "Trading Strategy"
How to use and trade according to "Levels" and "Trading Strategy" which are updated daily in the left of this Blog
For Levels:-
How to use Simple "Avg" Point Calculator
1. "Avg" is an important value here.
2. Look at the price of stock/underlying at 09:15-09:45 AM(half hour after market opens)
3. For Resistance(R) and support(S) values are given
4. Keep a target of 0.75% or 1%. Put Stoploss of 0.5%.
5. There are various scenarios which can occur between 09:15-09:45 AM:-
1. The price is below the "Avg" but above S1.
In this scenario, you should buy the stock/underlying above "Avg" (If price reaches above "Avg") and sell below S1(if the prcies goes below S1).
2. The price is above "Avg" but below R1.
In this scenario, you should buy the stock/underlying above R1 (if the price reaches above R1) and sell below "Avg"(if the price goes below "Avg").
3. The price is very near to "Avg" (+/- 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 "Avg"(if the price reaches below "Avg"). the important here is not to sell below R1. You must sell below "Avg".
5. The price is between S1 and S2.
In this scenario, you should buy the stock/underlying above "Avg" (if the price reaches above "Avg") and sell below S2(if the price reaches below S2). The important here is not to buy above S1, buy only above "Avg".
6. The price is between S2 and S3.
Same rule applies as rule 5. Buy above "Avg" sell below S3.
7. The price is between R2 and R3.
Same rule applies as rule 4. Buy above R3 sell below "Avg".
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For Trading Strategy:-
Look at the opening price for the stock/futures/commodities/currency.There are various scenarios that can occur:-
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Scenario 1
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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, buy. Stoploss will be when price moves below L4. Target1 - H1, Target2 - H2, Target3 - H3
For Short Sell
Wait for the price to go above H3 and then when the price moves back below H3, sell. Stoploss will be when price moves above H4. Target1 - L1, Target2 - L2, Target3- L3
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Scenario 2
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Open price is between H3 and H4
For Long
When price moves above H4, buy. Stoploss when price goes below H3. Target 1 - H5, Target 2 - H6
For Short Sell
When the price goes below H3, sell. Stopless when prices moves above H4. Target1 - L1, Target2 - L2, Target3- L3
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Scenario 3
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Open price is between L3 and L4
For Long
When price moves above L3, buy. Stoploss when price moves below L4. Target1 - H1, Target2 - H2, Target3 - H3
For Short Sell
When the price goes below L4, sell. Stoploss when price moves above L3. Target 1 - L5, Target 2 - L6
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Scenario 4
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Open price is outside the H4 and L4
Wait for the prices to come in range and trade accordingly.