Content
Hammer Candle ------------------------------------------------------------ 2
Strong Candle -------------------------------------------------------------- 3
Spinning top Candle ------------------------------------------------------ 4
Doji --------------------------------------------------------------------------- 5
Trend ------------------------------------------------------------------------- 5
Common Level ------------------------------------------------------------- 8
Gap Level ------------------------------------------------------------------- 12
Overlap Level -------------------------------------------------------------- 13
Engulfing Pattern ( Level ) ----------------------------------------------- 15
Piercing Line & Dark Cloud Cover ( Level ) --------------------------- 19
Inside Bar & Outside Bar ( Level )--------------------------------------- 22
Bullish Hammer Level ---------------------------------------------------- 25
Bearish Hammer Level --------------------------------------------------- 25
Spinning Top Level ------------------------------------------------------- 26
Morning Star & Evening Star Level ------------------------------------- 27
M and W Pattern Level --------------------------------------------------- 30
Head and Shoulder Level ----------------------------------------------- 31
All Chart Patterns --------------------------------------------------------- 32
Candle gap-up & gap-down trade -------------------------------------- 38
Bullish & Bearish Engulfing Trade -------------------------------------- 41
Piercing Line & Dark Cloud Cover trade ------------------------------ 45
Morning Star & Evening Star Trade ------------------------------------ 47
HH, LH, HL, LL Level Trade ---------------------------------------------- 55
Chart Pattern Trade ----------------------------------------------------- 60
Market Structure ---------------------------------------------------------- 64
Tail Less Candle Strategy ------------------------------------------------ 65
How to Find Buyer And Seller Positions ------------------------------ 67
Candlestick Reaction ------------------------------------------------------ 72
FFLL & FFLC ----------------------------------------------------------------- 91
5-Minute Candle Strategy/Single Candle Minor Level -------------- 97
Three Candle Rejection Pattern ----------------------------------------- 101
Trading Rules ---------------------------------------------------------------- 107
Compounding Rules -------------------------------------------------------- 112
Emotion In Trading ---------------------------------------------------------- 113
Day #1
* THERE ARE FOUR TYPES OF CANDLES IN THE MARKET
1. Hammer Candle
2. Strong Candle
3. Spinning Top Candle
4. Doji Candle
1. Hammer Candle
Important Levels
NOTE: - The opening and closing of any candle is a level
Type of Hammer Candle
2. Strong Candle
Compare
Last
Candle
50% Strong Level
Type Of Strong Candle
Marubozu Candle
50% Strong Level
NOTE: - 50% level of a strong candle is a strong level
Type Of Marubozu Candle
3. Spinning Top Candle
Important Strong Level
Type Of Spinning Top Candle
3. Doji Candle
Strong Level
Type of Doji Candle
Doji
Gravestone
Dragonfly
Four Price
NOTE: In any doji, the party making the wick can be strong if the
trend is towards the party making the wick.
* TREND
Uptrend
Downtrend
LL
NOTE: When a level breakout from the body of the
candle, then that level will be considered a breakout.
Day #2
1. Common Levels
2. Gap Level
3. Overlapping Levels
1. Common Levels
A. Horizontal Level
NOTE: There should be maximum touch points for the common level and there
should not be body break of any candle.
Common Level
B. Trendline Common Level
NOTE: Instead of a 45 to 90-degree trendline, the trendline between 0 to 45
degrees will respect any levels more.
Common Level
2. Gap Levels
Gap Level
NOTE: The gap level is only in the candle of the same color
NOTE: If there is a gap level in the market without any reason,
then that level will work less.
NOTE: The gap and Overlap level is a strong level.
CLICK HERE TO WATCH THE VIDEO OF THE GAP & OVERLAP LEVEL
2. Overlap Levels
Overlap Level
NOTE: The Overlap level is only in the candle of the same color
Day #3
1. Engulfing Pattern
2. Piercing Line & Dark Cloud Cover
3. OutSide Bar & Inside Bar
NOTE: If the market is in an uptrend and if the market is
coming by creating HL, then the first target of the market
will be to break HH similarly, after creating the market LH
in a downtrend, its first target will be to break the LL.
NOTE: For more accuracy, trade should always be done in impulsive
waves only.
NOTE: If a pattern is created on the top of the corrective wave and the
market is coming without retesting that pattern, then that corrective
wave can come only up to 50% of the impulsive wave or will reverse
before that. But if the market is coming after retesting the pattern,
then the market can reach the lower support and can also break the
support.
1. Engulfing Pattern
NOTE: This is a continuation pattern.
A. Bullish Engulfing
This level is only useful for retest.
Power Of Level
( 50% )
( 75% )
50% Strong Level
( 100% )
Market Support Level
B. Bearish Engulfing
Market Resistance Level
50% Strong Level ( 100% )
( 75% )
( 50% )
Power Of Level
NOTE: Although the 50% level is the strongest level, you
can ignore the other levels if you wish.
NOTE: Other Engulfing Type Candle.
Gap Engulfing
NOTE: Gap up and gap down should not be too much. and
candles should be healthy.
NOTE: If we consider the previous candle of the engulfing candle
as 100%, then the closing of the engulfing candle should be
between 101% to 149% of the previous candle, only then the
engulfing pattern will be valid.
NOTE: If the engulfing candle engulfs the body of the previous
candle then also this pattern will be engulfing pattern, it is not
necessary to engulf the wicks of the previous candle to be
engulfing pattern
NOTE: These engulfing patterns will not be valid
2. Piercing Line & Dark Cloud Cover
NOTE: This is a fake breakout pattern
A. Piercing Line
50% level of the red candle
50% level of the green candle ( Strong Level )
Market Support Level
NOTE: For this pattern to be valid, it is necessary that the
second candle closes above the level broken by the
previous candle and also above the 50% level of the
previous candle.
NOTE: The 50% level of the 2nd candle is the strongest
level in this pattern. And the 2nd candle can form from
51% to 100% of the previous candle
B. Dark Cloud Cover
Market Resistance Level
50% level of the Red candle ( Strong Level )
50% level of the Green candle
NOTE: For this pattern to be valid, it is necessary that the
second candle closes below the level broken by the
previous candle and also below the 50% level of the
previous candle.
NOTE: In Piercing Line and Dark Cloud Cover patterns, the
market does not require retest, the market goes without
retest.
NOTE: Other Piercing Line & Dark Cloud Cover.
Market Level
50% of previous candle
A. Piercing Line
B. Dark Cloud Cover
3. Inside Bar & OutSide Bar
A. Inside Bar
B. Outside Bar
Candle Level Zone
NOTE: By the way, this level zone is no trade zone because
the market reverses from anywhere in this zone.
Candle Level Zone
NOTE: We will consider Inside Bar & Outside Bar only when there
is momentum of at least three healthy candles after the
formation of this pattern, and in uptrend the closing of that
momentum should be below the low of the previous candle, and
in a downtrend, The closing of that momentum should be above
the high of the previous candle.
NOTE: Three Candle Rejection Pattern
Level
Day #4
Single Candlestick Level
1. Bullish Hammer Level
2. Bearish Hammer Level
3. Spinning Top Level
NOTE: The 5-minute trend will be important for 1-minute trade.
1. Bullish Hammer Level
C
Single Candlestick Important Retest Level
O
Double Candlestick Important Level
Hammer
50% Level
C
O
Inverted Hammer
2. Bearish Hammer Level
O
C
50% Level
Hammer
Double Candlestick Important Level
O
Single Candlestick Important Retest Level
C
Inverted Hammer
NOTE: Single candlestick levels work more in a sideways markets.
1. Spinning Top Level
C
O
C
Important Level
Important Level
O
O
C
O
C
Important Level
Important Level
Day #5
Multiple Candlestick Level
1. Morning Star & Evening Star Level
2. Inside bar & Outside bar Level
NOTE: The 5-minute trend will be important for 1-minute trade.
Power Of Level :HH, HL, LH, LL Level
Chart Pattern Level
Triple Candlestick Level
Level Power Increase
Double Candlestick Level
Single Candlestick Level
NOTE: gap up, gap down and overlap levels will be in between.
1. Morning Star & Evening Star Level
Morning Star
Level Importance
Level Importance
(3)
(1)
(2)
(1)
NOTE: The 50% level of the green candle is to be taken only when
this candle is an averagely stronger candle than the previous 10
candles, but if the green candle is weak then its 50% level is not
to be taken.
(2)
NOTE: When the market comes back
from above, it can take a reversal
from these levels.
NOTE: The wick side of the middle candle should not be above the
body of both candles, only then this pattern will be valid.
NOTE: If the middle candle in this pattern is green then the
accuracy of this pattern will increase slightly.
NOTE: When a strong candle appears in any pattern, the 50%
level of the strong candle will always be an important strong
level.
Evening Star
50% Level
1. Inside bar & Outside bar Level
Levels of this pattern are given on page 22.
NOTE: If two-three patterns are formed in the market
simultaneously, then there the market will mostly follow the
trend or else the market will turn sideways.
NOTE: Gap level and overlap level always work in the market,
even after going far away.
Green Candle 50% Level
Morning Star
NOTE: The green 50% level is more important than the gap level
in this above chart because the gap level is formed on the left
side of the green candle and the level of the green candle is a
newer level than the gap level.
NOTE: When immediately after the closing of a candle, another
candle starts forming on the opposite side, then the first candle
can be an Exhaustion candle.
NOTE: If a candle does not reach the target in the first 30 seconds
of opening, then the candle will try to touch the target for sure in
the next 30 seconds, but if the candle has touched the target in
the first 30 seconds, then the candle may form the opposite. If a
candle has not been able to achieve the target the first time,
then it will try to achieve that target next time.
NOTE: The market never completes " V and FFLL " against the
trend (full feel last leg -FFLL ).
NOTE: If there is a gap down after a strong candle, then that gap
down is done by the opposite party because the party of the
strong candle does not need to gap down because the party of
the strong candle is already very strong.
Day #6
Chart Pattern Level
1. M - Pattern & W - Pattern
2. Head and Shoulder & Inverted Head and Shoulder
1. M - Pattern & W - Pattern
NOTE: For the M and W pattern to be valid, it is necessary that
this pattern should consist of at least 5 or more candles.
M Pattern
Common Level
B
Neckline Common Level
A( 1 )
A( 2 )
Level Importance
NOTE: In the M pattern, when the market moves from top to
bottom, its target is to break the neckline (A) and when the
market moves from bottom to top, its target is to break the
neckline (B).
W Pattern
Level Importance
A( 2 )
Neckline Common Level
Common Level
A( 1 )
B
1. Head and Shoulder & Inverted Head and Shoulder
Head and Shoulder
Common Level
Body Neckline
Common Level Neckline
NOTE: In This pattern, when the market moves from top to
bottom, its target is to break the Wick Common Level neckline
and when the market moves from bottom to top, its target is to
break the Candle Body neckline. all same as the M pattern.
Inverted Head and Shoulder
Common Level Neckline
Body Neckline
Common Level
W
NOTE: HH, HL, LH, LL, and the neckline level of the chart pattern
are a reversal level, the rest are continuation levels. Because
whenever the market breakouts or skips these levels, a reversal
candle appears.
NOTE: Continuation happens whenever a candle without a tail
appears in the market. And if the trend is with you then the
accuracy increases
NOTE: A breakout of round number levels ( ex.775, 770, 700 ) can
result in a reversal in the market, but trading in round numbers
is a bit risky because there are breakouts of round number levels
many times in the market, so trade every time should not be
taken.
Day #8
Gap up and Gap down trade
1. Green candle gap down Trade
2. Green candle gap up Trade
3. Red candle gap up Trade
4. Red candle gap down Trade
1. Green candle gap down Trade
Entry Candle
(C)
Level
(B)
50% Of Green Candle
Wick Level
(A)
Entry is to be taken
below these levels
NOTE: It is necessary to reject the B candle from the level. It is
necessary that the wick touch of the B candle from the level.
NOTE: Candle B should not be a Doji candle.
NOTE: Candle C should not be the last candle of 5 minutes.
NOTE: If candle B is a strong candle, then entry is to be taken
below its 50% level or below the rejection point of the wick of the
previous candle. This means entry has to be taken below some
support level.
NOTE: The first momentum of candle-C should be below its
opening. If the first momentum of candle-C is above its opening,
then candle-C can touch the level and come down and form a red
candle.
NOTE: This setup can be risky on round numbers.
NOTE: If the market gap up, gap down without any reason, then
most of the time it reverses.
2. Green candle gap up Trade
(C)
Entry Candle
Level
(B)
Entry is to be taken
below these levels
(A)
Entry
NOTE: The gap-up level should not be a reversal level (HH, HL, LH,
LL, Chart pattern neckline). The candle can reverse when the
gapup level is the reversal level.
NOTE: It is not necessary for the B-candle to be rejected from the
level.
NOTE: Here sellers have gap-up and
gap-down because here buyers did
not need to gap-up and gap-down.
Here buyers did not need to gap up
and gap-down after level breakout
NOTE: If the opening of the gap-up
and gap-down candle is done at the
fixed level, then avoid the trade
because there will be market
indecision.
3. Red candle gap up Trade
Wick Level
50% Of Red Candle
Level
Entry Candle
3. Red candle gap down Trade
Level
Entry Candle
Day #9
Two Candlestick Level Trading
1. Bullish Engulfing Trade
2. Bearish Engulfing Trade
3. Piercing Line Trade
4. Dark Cloud Cover Trade
1. Bullish Engulfing Trade
Pattern #1
Trade Candle
(D)
Wick Level
50% Level
(C)
Trade Entry
Retest Level
50% Level
(A)
( B)
Level
NOTE: The entry candle ( D-candle ) should not be the last candle
of five minutes.
NOTE: The retracement candle (C-candle) should not be doji.
NOTE: Trade on the next candle (D-candle) only when the
Retracement candle has broken the high of the B-candle.
NOTE: While placing the trade, it is important to note that there
should not be any resistance level near the top, nor should the
previous candle touch that level.
NOTE: If the trend is up then you can trade on candle opening at
your own risk.
NOTE: If this pattern is formed in the middle of the impulsive
wave, then this pattern does not require retracement, the
market moves without retracement.
Pattern #2
Trade Candle
(E)
Wick Level
50% Level
(C)
Trade Entry
(D)
Retest Level
50% Level
(A)
( B)
Level
NOTE: D-candle should not be a doji candle
NOTE: The closing of the D-candle should be above the high of the
wick of the B and C candles.
Retest Level
(C)
50% Level
(A)
( B)
NOTE: If the retracement
candle (C-candle) closes above
the level of 50% of the
engulfing candle with rejection
instead of the retest level, then
the next candle may break the
level of 50%, so do not trade
here. Do not trade if the candle
closes between the retest level
and the 50% level of the
engulfing candle, retracement
candle should close above the
retest level
NOTE: If the D-candle fails to break the high of the previous
candles and its next candle is a tailless candle that breaks the
highs of all the previous candles, then we can take a little risk if
the trend is with us. ( in Pattern #2 )
NOTE: (Pattern #1) If the C-candle does not retest in the uptrend
and the C-candle is a tailless candle that breaks the highs of all
previous candles, we can enter a trade here.
(C)
Retest Level
50% Level
(A)
NOTE: If there is a gap from the
retest level of the C-candle then
the next candle can retest. so
don't trade here
( B)
Wick Level
(C)
Gap Up
Retest Level
50% Level
(A)
NOTE: Gap up below the level, do
not trade here.
( B)
NOTE: Whenever Engulfing is in between two levels, do not trade
there. Because here the market can get stuck.
NOTE: Whenever a strong candle has a big wick, then that candle
is not to be considered a strong candle..
do not trade here
(D)
(C)
Retest Level
50% Level
(A)
( B)
NOTE: If the market does not meet the target in the direction of
the trend but completes the target in the opposite direction of
the trend, then there can be a trend change.
2. Bearish Engulfing Trade
Pattern #1
Level
(A)
Trade Entry
(B)
50% Level
Retest Level
(C)
50% Level
Wick Level
(D)
Trade candle
Pattern #2
Level
(A)
(B)
Trade Entry
50% Level
Retest Level
(C)
(D)
50% Level
Wick Level
(E)
Trade candle
3. Piercing Line Trade
Trade Candle
(C)
50% Level
(A)
( B)
Level
NOTE: In this, the accuracy of the trade in candle opening
remains up to 80%..
NOTE: Entry is to be taken below the level of 50% of B-candle only
when buyers' entry (rejection) is seen there. Because if this does
not happen, the C-candle can also become a big red candle.
NOTE: If the C-candle gap-up gapdown, then the rule of gap-up
gap-down will apply here.
NOTE: Generally retest is not required in this pattern but for
safety, you can take entry if you see a rejection of buyers below
the 50% level.
NOTE: There should not be any resistance level near the entry
candle.
NOTE: If a pattern forms in the middle of an impulsive wave, the
market can move from there without retesting the pattern.
3. Dark Cloud Cover Trade
Level
(A)
( B)
50% Level
(C)
Trade Candle
Day #10
Three Candlestick Level Trading
1. Morning Star Trade
2. Evening Star Trade
1. Morning Star Trade
Pattern #1
Trade Candle
Safety Entry
(E)
50% Level
(D)
Wick Level
Retest Level
50% Level
(A)
(C)
Wick Level
(B)
NOTE: The trade candle should not be the last candle of five
minutes.
NOTE: The continuation candle (D-candle) should not be a doji
candle and there should not be any strong level nearby.
NOTE: The market does not need to retest in the middle of an
impulsive wave.
NOTE: The closing of the D-candle should be above the high of the
wick of the C-candle.
NOTE: For more safety, you can take the trade below the 50%
level of the D-candle or below the high of the wick of the Ccandle.
NOTE: The accuracy of this pattern comes up to 90-95%. For more
accuracy, you can trade at the beginning of the impulsive wave.
Pattern #2
Trade Candle
Safety Entry
(F)
(D)
(E)
50% Level
Retest Level
50% Level
(A)
(C)
Wick Level
(B)
NOTE: ( Pattern #2 ) The E-candle should close above the high of
the D-candle. But it is even better if the E-candle closes above the
high of both the C and D candles.
NOTE: ( Pattern #2 ) The continuation candle ( E-candle ) should
not have a doji or spinning top.
NOTE: ( Pattern #2 ) For safety, the trade can be taken below the
50% level of the continuation candle ( E-candle ).
NOTE: Trading the one-minute charts with a five-minute market
target can give you some help with your trading setup.
NOTE: If the continuation candle is of tail less then the trade can
also be a sureshot
NOTE: If ever a tailless candle comes into the market which
fulfills or engulfs the previous candle, then whenever a tailless
candle comes in the subsequent momentum, the market mostly
does continuation. And if the trend is with it then it mostly
becomes a sureshot. It is necessary to have the head of the
tailless candle.
NOTE: If the
continuations.
tailless
candle
hits
the
target,
most
do
Pattern #3
Trade Candle
Safety Entry
(F)
(D)
(E)
50% Level
Retest Level
50% Level
(A)
Wick Level
(C)
(B)
NOTE: If you look at pattern #3, there are two patterns being
formed, Morning Star and Engulfing, so you can trade according
to both patterns.
Trade Candle
Safety Entry
(F)
(D)
(E)
50% Level
50% Level
(A)
(C)
(B)
Wick Level
GapUp
if there is a level
********************************************************
(D)
(E)
Retest Level
50% Level
(A)
(C)
(B)
GapDown
if there is a level
********************************************************
(D)
(E)
Retest Level
50% Level
(A)
(C)
(B)
NOTE: If there is no level below
the gap-up opening, then this
gapup is done by the sellers. But
if there is a level below the
gapup which has been skipped,
then it is done by the gapup
buyers.
NOTE: If there is no level above
the E-candle, then this gap-down
is done by the sellers. But if
there is a level above the Ecandle, then gap-down buyers
have done this to break that
level. Here trade entry for safety
can be taken below 50% of Ecandle
Trade Candle
(G)
(D)
(E)
(F)
Retest Level
50% Level
(A)
(C)
(B)
Two Retracement Candles
NOTE: Retracement can happen from two candles but not from
three candles.
Trade Candle
Trade Candle
Two Retracement Candles
This W will be considered to
be made up of four candles.
Market Target
this candle should
have been green.
This can also be an
exhaustion candle
(A)
Engulfing Key Level
Uptrend
Key Level
Common Level
Market Target
Trade Candle
(E)
(D)
(C)
(A)
(B)
Retest Level
50% Level
Wick Level
NOTE: A-candle has not even
broken the key level of engulfing
level and the target of the
market is also pending and the
market is also in an uptrend. So
you can take entry from the
opening in the next candle or
from below any level.
NOTE: If a candle in this pattern
breaks the key levels but does
not break the common level,
then this pattern will not be
considered failed. This pattern
will be considered failed only
when the common level of this
pattern is broken. If the
common level is not broken, the
market can move according to
the pattern.
NOTE: The D-candle is a weak
candle but this candle has
broken the high of both the A
and C candles, the market target
is also far away. So we can take
a trade on E-Candle here. If the
D-candle is a strong candle and
the high of the A-candle has not
been broken, we can still enter
the trade here, because the Dcandle is a strong candle.
NOTE: Do not trade here
because the D-candle has not
been able to break the high of
the A-candle and the D-candle is
also a weak candle. But if the Dcandle being a weak candle
breaks the high of the A-candle
then we can enter the trade
here.
Trade Candle Opening
Retest Level
(D)
50% Level
(C)
(A)
(B)
Wick Level
1. Evening Star Trade
Pattern #1
(B)
(A)
(C)
Wick Level
50% Level
Retest Level
(D)
Wick Level
50% Level
(E)
Trade Candle
Safety Entry
Pattern #2
(B)
(A)
(C)
Wick Level
50% Level
(D)
Retest Level
50% Level
(E)
(F)
Safety Entry
Trade Candle
Pattern #3
(B)
(A)
(C)
Wick Level
50% Level
Retest Level
(D)
50% Level
(E)
(F)
Safety Entry
Trade Candle
NOTE: When a candle does not have a head, the next candle is
likely to reverse. Even if it is a retracement candle of a strong
pattern. But if a candle has a big head and a small tail, then there
are more chances of continuation.
Day #10
Trend Level Trading
1. HH, LH Trade
2. HL, LL Trade
1. HH, LH Trade
Trade Candle
(D)
(A)
(B)
Wick Level
(C)
HH, LH Level
Safety Entry
Uptrend
NOTE: The continuation candle (C-candle) should close above the
high of the A and B candles.
NOTE: The continuation candle should be healthy. And there
should not be any trendline and level on the upward side.
Continuation candles should not be doji and hammer.
Continuation candle rules will remain the same everywhere.
NOTE: Usually, one candle should be left after the HH, HL, LH, and
LL level is broken. Because from here the market can reverse. But
if the market is coming from behind with a lot of momentum
then the market will first continue from there and then reverse
after that.
(D)
Trade Candle
(C)
Wick High
(B)
(A)
HH, LH Level
Safety Entry
NOTE: Don't trade here because
the B-candle is a headless candle
and it is also a weak candle. But if
there is a head of B-candle then
you can trade here and if another
green candle comes after the
hammer candle (B-candle) then
you can take a trade on the next
candle. By the way, when a
hammer candle comes on top, it
becomes a hanging main candle.
Trade Candle
(C)
(B)
HH, LH Level
(A)
NOTE: The continuation candle (
B-candle ) should close above the
high of the A-candle
Safety Entry
NOTE: The continuation candle should not be gap-up gap-down.
Gap Up
Opening
HH, LH Level
NOTE: This gap-up buyer has
done, but due to the reversal
level, there is a high possibility of
the formation of a red candle, so
do not trade here.
Gap Down
Opening
HH, LH Level
NOTE: Here this gap-down has
been done by the buyers and
there is a high possibility of this
gap-down
candle
becoming
green. You can take trade here.
Gap Up Opening
NOTE: do not trade here
HH, LH Level
Trade Candle
NOTE: You can trade here.
HH, LH Level
Gap Down Opening
If there is a level
*********************************************************
HH, LH Level
Gap Down Opening
NOTE: If there is no level on the
upside then do not trade here.
But if there is a level on the
upside, even if that level is a
round number, you can take the
trade here. But take entry
according to the gap-up gap-down
trade rule.
Trade Candle
Trade Candle
HH, LH Level
HH, LH Level
Gap Up Opening
Trade Candle
New HH Level
HH Level
Uptrend
Trade Candle
NOTE: There are two-morning
star patterns made here. There is
no need for a retracement here,
the market will go on without
retracement. And here the
pattern of two red and two green
candles is also formed.
2. HL, LL Trade
nd
tre
wn
Do
HL LL Level
Safety Entry
(A)
(B)
(C)
(D)
Trade Candle
Wick Level
nd
tre
wn
Do
HL LL Level
Safety Entry
(A)
(B)
Wick Level
Trade Candle
(C)
NOTE: If you want to take an up trade and are using the safety
margin, the candle should come down first. If first go up and then
come down and you have clicked for up then there will be 90%
chance of loss.
NOTE: If you want to be successful in trading then get mastery on
any one setup don't try to trade on every setup,
Day #11
Chart Pattern Trading
1. M Trade
2. W Trade
1. M Trade
NOTE: Chart patterns are generally used for long term trading.
NOTE: There are three types of chart patterns – Reversal,
Continuation, and Neutral.
M Pattern
Common Level
Neckline Level
Trade Candle
NOTE: When the market moves from top to bottom in the M
pattern, the neckline of the lowest wick will be the target of the
market. The common level will also be an important level.
M Neckline Level
Trade Candle
NOTE: Continuation candles should not be a hammer, doji etc.
NOTE: When this M pattern is formed, some or the other pattern
will be formed on its right top. If the market goes down without
retesting this pattern, then it is less likely to reach the neckline,
and the market may reverse from the middle itself. To break the
neckline, it is necessary that the market retests that pattern.
M Body Neckline
M Wick Neckline
Trade Candle
NOTE: If the market is going without retesting the neckline, then
the market can reverse from anywhere.
M Neckline
NOTE: Do not trade here because
the market has become indecision.
NOTE: The trading rules for all patterns are the same as for the M
pattern.
NOTE: You can take a trade on candle opening in M ​pattern but if
you take it with safety margin then it will be better.
NOTE: There should always be a break of the previous candle's
low (in M pattern) by a continuation candle. This rule will be
applicable in every setup
NOTE: The levels keep on shifting in the market, so the levels
should keep on changing according to the movement of the
market.
NOTE: If the market retests the second HL break, then the
downtrend is fully confirmed. Sometimes after retesting the first
HL break, the market makes it back to HH, so after the second HL
break, the market is more likely to go into a confirmed
downtrend.
NOTE: This will be the neckline
in this head and shoulder
M Neckline Level
Trade Candle
NOTE: This pattern is neutral.
Because the sellers have kept
their positions in the uptrend.
Common Level
Gap Down
NOTE: This M pattern will still be
valid.
NOTE: Take the first 2-3 trades of the day with the minimum
amount on your preferred setup. If that trade becomes lose, then
be a little cautious on that day. Because your favorite setup has
lost 2-3 consecutive trades, then other setups may lose more.
2. W Trade
Trade Candle
Neckline Level
Common Level
Day #12
Market Structure
NOTE: Here the market has not made a new high and has broken
the previous low, which means that the structure of the market
has changed here. And the market is not yet in the mood to make
new highs.
character change breakout
CLICK HERE TO
STRUCTURE
WATCH
THE
VIDEO
OF
THE
MARKET
NOTE: D, E, and F levels are weak levels, so avoid trading here, the
market can easily go down by breaking these levels.
NOTE: Market structure is used for long-term trading.
NOTE: Whenever the market comes to the demand zone, it will
try to go up.
NOTE: In internal price action, when the market will break the Chigh from the demand zone, then from there the market will go
to break the HH.
NOTE: There is no need to retest the market after breaking the Chigh as the market is still in an uptrend. After breaking the Chigh, the market may suddenly go up
NOTE: Trading on the one-minute chart by observing the market
structure, levels, and targets on the five-minute chart can
increase your accuracy. For example, you can see the target of
the five-minute running candle.
Demand Zone Example
NOTE: When the market is unable to establish a new HH and
breaks its previous low (D-Low), it means that the structure of
the market has changed. And the market is not in the mood to
install a new HH. Now the market can go up to HL. If the
structure changes after coming to HL, then we can take trades
from there.
NOTE: If the market will not be able to break HH, then the
structure of the market will start changing from there.
Tail Less Candle Strategy
Trade Candle
(3)
Tail Less Candle
(2)
(1)
Uptrend
Safety Entry
NOTE: Do not trade against the trend in a tailless candle
NOTE: The tailless candle should be the second candle and we
have to trade on the third candle. For example, if a red candle is
followed by a green tailless candle in an uptrend, do not trade
there, but if the second green tailless candle comes, then you can
trade on the next third candle. If a tailless candle is the only
candle in its party, then the next candle can be reversed, so
whenever a tailless candle comes, the previous candle of that
tailless candle should also belong to that tailless candle's party.
NOTE: Tailless candles must have a head. Do not trade tailless
candles without a head.
NOTE: There should not be any level near the tailless candle.
NOTE: You can take a trade in the opening but it will be better if
you enter below 50% of the previous candle.
NOTE: Continuation happens whenever a candle without a tail
appears in the market. And if the trend is with you then the
accuracy increases
NOTE: If ever a tailless candle comes into the market which
fulfills or engulfs the previous candle, then whenever a tailless
candle comes in the subsequent momentum, the market mostly
does continuation. And if the trend is with it then it mostly
becomes a sureshot. It is necessary to have the head of the
tailless candle.
NOTE: If the tailless candle hits the target, most do continuations
NOTE: Do not enter the trade when the tailless candle breaks the
reversal level
NOTE: If a strong candle is the only candle in its party, its 50%
level is the weak level. But if there is a strong candle in any
momentum then 50% of it will be a strong level.
NOTE: Avoid taking trades on the first and last candle of five
minutes in the tailless candle strategy
NOTE: While taking a trade on the tailless candle, it is important
to keep in mind that the wick of a tailless candle has not been
rejected by any strong level.
Day #13
How to Find Buyer And Seller Position
NOTE: When the market breaks the positions of buyers and
sellers, it usually reverses from there.
NOTE: The accuracy of this setup is 70 to 75%.
NOTE: Sellers and buyers positions are generally used to avoid
trades. This means that whenever the market breaks the
positions of buyers or sellers, avoid continuation there as there
can be a candle reverse. But many people trade with filters on
this setup. So if you want to trade on this setup, you can do so by
taking the help of other filters.
Seller Position
Reversal Candle
Buyer Position
(2)
(1)
Buyer Position
NOTE: There must be 2 to 3
candles after the candles of
buyers and sellers positions,
only then those levels will be
considered as positions of
strong buyers or sellers. The
candles of buyers and sellers
should not be single candles.
Sellers Position
Momentum
NOTE: The last wick of any
momentum
would
be
the
positions of sellers and buyers.
NOTE: The level of buyers position in uptrend and sellers position
in downtrend will be stronger.
NOTE: Once the positions of buyers or sellers have been broken,
irrespective of whether there has been a reversal or not, then
those positions have no value.
NOTE: If by stopping any strong momentum, the opposite party
has created sellers or buyers position, then this position will be
the strongest position.
NOTE: If after the weakness of any momentum, the opposing
party comes and creates positions of sellers or buyers, then that
position level will be weak. Because the opposition party did not
have to work hard to come. So if the market breaks such a
position level then there is less possibility of reversal, the market
can exit from there even without giving reversal.
Weak Sellers Position
Strong Sellers Position
Momentum Weakness
Strong Momentum
NOTE: Positions of buyers and sellers have to be seen in the
direction of the trend, opposite to the trend the accuracy will be
less.
NOTE: Avoid reversing strong momentum
NOTE: If there is a strong level near the breakout candle, which
shows the possibility of reverse, then you can reverse from there.
NOTE: When the market breaks a level for the third time, the
chances of a reversal will be high from there. Because it will be a
strong level for the positions of buyers or sellers. Or when the
market breaks the common level with two touches, then the
market is more likely to reverse from there.
NOTE: In chart (1), the buyers are going up by creating their
pressure, from here the buyers have to work hard to go up, so
when the buyers position created by this momentum is broken, a
reversal candle will appear there.
Big Red Candles
Reversal Candle
Weak Red Candles
Big Green Candles
Strong Buyer Position
Weak Buyer Position
Weak Green Candles
(1)
(2)
NOTE: The strength of the buyers and sellers positions is
determined by the market momentum. If there is a lot of
momentum after a buyers or sellers position, then that position
will be a strong position.
NOTE: HH, HL, LH, and LL is a strong buyers and sellers position
levels.
NOTE: If a pattern is formed on any HH, HL, LH, LL and the
market is going to break any of these levels, then the market can
react on the key levels of the pattern. Therefore, if a pattern is
formed at any level, then one should be careful with the key
levels of the pattern.
Day #14
Candlestick Reaction
1. Bullish Hammer
2. Inverted Bearish Hammer
3. Inverted Bullish Hammer
4. Bearish Hammer
5. Strong Candle
6. Spinning Top
7. Doji
1. Bullish Hammer
Up
Most of the
reaction has
happened in
the wick
NOTE: If there is no level above then the next candle is most
likely to be green.
Down
Exhaustion has
happened
Down
Level Create
Most of the
reaction has
happened in
the body
Indecision
Touching this level
the market can go up
NOTE: If the reaction of a candle is more inside the wick, then the
probability of continuation of the next candle is high. But if the
reaction of a candle is more inside the body then the next candle
is more likely to reverse
NOTE: If there is no level around the candle then the next candle
will come according to the reaction
Continuation can happen if there is buyers dominance
Down
Indecision
NOTE: This is all reaction without level. But if there is a level
around, then trade according to the level
Gap Up Opening
Up
Down
Level Create
Touching this level
the market can go up
2. Inverted Bearish Hammer
Most of the
reaction has
happened in
the wick
Down
Touching this level the
market can go Down
Up
Indecision
Touching this level the
market can go Down
Up
Up
Indecision
Indecision
The continuation can happen if there is sellers dominance
Up
Exhaustion has
happened
3. Inverted Bullish Hammer
Most of the
reaction has
happened in
the wick
Up
this is a tailless candle
Here the entry of buyers is
necessary in the last time.
NOTE: But if the sellers have made the last entry here, then be a
little cautious. But if there is an uptrend, then even if the last
entry was made by the sellers, the next candle will be most likely
to go up.
Touching this level the
market can go Up
Down
Indecision
Touching this level the
market can go Up
Down
Indecision
Touching this level the
market can go Up
Indecision
Down
4. Bearish Hammer
this is a tailless candle
Here the entry of sellers is
necessary in the last time.
Down
Most of the
reaction has
happened in
the wick
Touching this level the
market can go Down
Indecision
Up
If there is a trend, it is
more likely to go with the
trend
NOTE: If most of the reaction of a candle is in the body, then the
next candle can be a reversal, so one should be a little cautious
while doing continuation there. But if most of the reaction of a
candle is in the wick, then the probability of continuation of the
next candle is high.
5. Strong Candle
Up
Buyers' dominance is visible in
this candle, so the probability of
continuation of this candle will
be more than 90%.
Touching this level the
market can go Up
Indecision
Down
Exhaustion has also happened
in this candle and the reaction
has also created a level, so the
next candle can also reverse.
Up
Gap-Up Opening
Gap-up also occurs due to
buyers dominance, in such
a situation the next
candle is made green.
Exhaustion has
happened
Down
Down
Exhaustion has
happened
Down
Exhaustion has
happened
Down
Exhaustion has
happened
Up
NOTE: If the reaction is happening for a long time at any place in
the candle, then a level is formed there.
Up
Down
Exhaustion has
happened
It can also do the continuation
Down
It can also do the continuation
Down
Down
6. Spinning Top
NOTE: Closing is important in a Spinning Top candle
C
Down
O
C
Up
Here closing buyers have done
O
O
C
O
C
Here closing sellers have done
Here closing sellers have done
Down
Up
Here closing buyers have done
NOTE: In the spinning top candle, whether more reaction has
happened in the body or in the wick, it does not matter, the only
thing that matters is who has done the closing. The party which
closes, the next candle is more likely to be formed by the same
party.
NOTE: There should not be any level around the spinning top
candle otherwise the next candle can reverse by touching that
level.
NOTE: All these candlestick reaction predictions are given for the
situation without level. Prediction candle can also be opposite if
there is a level around, so it is very important to pay attention to
the levels while trading on candle reaction.
7. Doji
NORMAL PREDICTION
Down
Neutral
Up
Neutral
Down
Up
NOTE: Never trade on Doji. Because usually doji is always
neutral. The place where the doji is formed in the market is
important. According to the place where doji comes in the
market, it is more likely to react.
Up
exhaustion
NOTE: Whenever a candle exhausts, there should not be a head
of that candle. When the head of the exhaustion candle is there,
the chances of the next candle reversing are less.
Dow
n
Level
Up
Level
this is the real breakout candle
70%
Level
30%
NOTE: If 70% of the body of the candle that breakouts a level is
above the level, then it is a real breakout. And if the next candle
reverse also comes, then it will definitely respect the breakout
level and the reverse candle will most likely close above the
breakout level. And apart from this, you can also detect real and
fake breakouts from candle reactions.
Level
Down
NOTE: Do level trading where you do not understand the candle
reaction at all.
Main Level
Minor Level
(B)
(A)
The reaction of the
B-candle
at
the
minor level can be
like this.
Target Level
50% Level
Trade Entry Point
Candle reaction in
first 30 seconds
Target Level
NOTE: Reversal should never be done without a level, because if
there is no level, the exhaustion candle can also do continuation.
That's why always trade should be taken at the level and should
be strong level, the minor level cannot reverse the momentum
Down
Trade Entry Point
Level
This is an exhaustion candle
but the level is a bit far from
the candle closing.
NOTE: If in any momentum a candle closes inside the wick of the
previous candle, then continuation should be avoided there.
NOTE: If the reaction of the candle is according to the trend then
the next candle will continue.
NOTE: Out of reaction and level, the level is to be given more
importance.
NOTE: If you are not able to understand where the market will go
in the 1-minute chart, then you can understand where the
market can go by looking at the 5-minute chart.
NOTE: The market will complete the target of the opposite trend
only when the market is going towards the opposite target by
retesting a pattern.
NOTE: The common level will act as an average level and HH, HL,
LH and LL levels will act as sellers and buyers positions.
NOTE: If the market is coming from behind in strong momentum
and after that, an exhaustion-type candle comes with strong
pressure, then that candle can be a real pressure of the market
instead of an exhaustion candle. And if the market is coming
from behind an exhaustion-type candle with momentum
weakness, then that candle can be an exhaustion candle.
NOTE: If a green candle is forming in the 5-minute chart, then the
chances of winning the Up trade in the one-minute chart are
high. But if the opposite candle is being formed in the 5-minute
chart, then you can wait a bit.
Day #15
Market Target
1. FFLL ( Full fill last leg )
2. FFLC ( Full fill last candle )
1. FFLL ( Full fill last leg )
NOTE: FFLL is always complete with the trend, not the opposite
of the trend.
NOTE: Most of the time whenever the market completes the FFLL
a reversal candle occurs.
NOTE: The market always completes the target of the impulsive
wave.
HH
Next FFLL Target
FFLL Target
Here the target of the market
will be to reach the high of
the wick of the last opposite
candle.
NOTE:
Whenever the market completes FFLL, there is a
possibility of consolidation.
NOTE: FFLL can be completed only if the corrective wave is
coming after retesting a pattern, otherwise it will reverse up to
50% of the impulsive wave.
NOTE: Whenever a target is completed, the strength of the
market goes out there. And there can be a reversal so one should
wait there. But there can be continuation if there is dominance.
Domination has happened or not, it will be known by the candle
reaction
NOTE: When the market is going to complete FFLL, there should
not be any strong level in between, otherwise the market may
reverse from there.
NOTE: You can take long trade in FFLL for safety. For example,
you can take a trade of 2-3-5 minutes in a 1-minute chart.
2. FFLC ( Full fill last candle )
NOTE: FFLC concept is used in stuck areas.
NOTE: As long as the candles are full-fill each other, the market
will remain in the sideways zone and when it stops full-fill, the
continuation will begin.
NOTE: If the market is not dominating then usually the market
moves to the FFLC zone after the FFLL is complete. When the
candle starts to full fill each other after the FFLL is complete, it
means that the stuck area has started.
NOTE: It doesn't matter whether a candle's wick is full fill or not.
But the body of the candle should be full fill whether it full fills
with the wick or with the body.
NOTE: By the way FFLC is not very important, you can focus more
on FFLL only.
full filled with wick
full filled with body
NOTE: If a candle has not been able to full fill the previous candle
completely, then the next candle can come to full fill.
Candles that full fill each other
The full Fill zone has
been broken as soon as
this candle is formed,
now the market will
continue
NOTE: Usually, if three consecutive candles come of the same
color, then the market breaks the FFLC zone and exits and
continues.
NOTE: FFLC area is always formed near the level.
NOTE: Retest is not necessary for breaking the FFLC zone. Usually
when the FFLC zone breaks, the market does continuation
In FFLL there should not be a head-to-head
match of any candle, otherwise, the next
candle may reverse.
FFLL Target
Trade Candle
Confirmation Candle
NOTE: When the market is starting to move into an impulsive
wave, then the FFLC area can be formed there. These two candles
have completely filled the previous candle, so will wait for a
confirmation candle and then trade.
NOTE: Here the confirmation candle should not be hammer, doji,
or spinning top candle.
NOTE: Doji is also a strong level.
NOTE: If a candle closes inside the wick of the previous candle,
then the next candle may reverse. Be careful.
Resistance Level
single candle levels
Support level
Single red candle closing target
NOTE: Support is important in an uptrend and resistance is
important in a downtrend.
50%
Opening level
Wick level
NOTE: This level will be important for
the closing of the red candle and the
50% level of the strong candle will also
be an important level.
NOTE: The buyers will not let the
sellers go below the opening but if the
sellers go below the opening of the
buyers then the buyers will not let the
sellers go below the low of the wick.
Buyers will try to close sellers above
the low of the wick
Common Level
Right Level
Wrong Level
Right Level
NOTE: If you have 2-3 consecutive losing trades, then just observe
the chart for 10-15 minutes and understand the movement of the
market and then take the trade on the tailless candle on the
confirmation setup. Because a tailless candle is a sureshot in
itself and if another setup is also found with it, then its accuracy
will increase further.
Day #16
5-Minute Candle Strategy/Single Candle Target/
Single Candle Closing Target/Market Minor Target
NOTE: The high and low of a 5-minute candle are also a target of
the market.
NOTE: Any candle always closes near the body or wick of the left
side candles.
Next red candle closing possibility
50%
The target of the next candle will be
to break the low of the wick of this
candle.
These are all 5-minute candles.
NOTE: Who entered the last of
this candle is important, and if
there is a level in the rejection
area, the next candle may
reverse. If the candle reaction
is of reverse and there is also
a level then the next candle
may reverse.
Trade Candle
(C)
(B)
(A)
NOTE: To trade on C-candle it is
necessary that B-candle should
close above the high of the Acandle's wick only then we have
to trade. Because for the market
to go up and to sustain it, it is
necessary that the B-candle
closes above the high of the Acandle. If the B-candle closes
inside the wick of the A-candle,
the next candle is likely to
reverse.
NOTE: The high and low of the last 5 minutes candle is an
important level.
NOTE: Whichever candle breakouts the high and low of the
previous 5-minute candle on the 1-minute chart, the next candle
does 99% continuation.
Trade Candle
5-minute candle high
5-minute candle Low
NOTE: There should not be any nearby levels after the breakout
candle.
NOTE: Always trade with the trend.
NOTE: The candle that breaks the high and low of the 5-minute
candle should not be too large.
NOTE: Every candle has its own work, if any candle is not able to
do its work then the opposition party will come.
NOTE: You can also consider the closing and opening of the 5minute candle as an important level, but the high and low will
always be the most important levels.
NOTE: Whenever the market breaks the high or low of the 5minute candle, then whichever is the next target of the market in
the 1-minute chart, the probability of the market going to that
target is up to 90%. If there is no strong level in the middle then
the market will not reverse from the middle.
NOTE: This "5-minute candle breakout" strategy is suitable for
trendy markets and does not work for sideways markets.
NOTE: The trade candle should not be the last candle of 5
minutes.
NOTE: Usually most of the candles close near the wick level of
the left side candles or their 50% level. It hardly happens on the
body.
NOTE: If the market has come down from a high by making a big
and strong candle, then when the market again goes near the
level of that high, then there is a possibility of a reversal candle
at that level.
NOTE: The 5-minute candle should not be a doji candle. This
means do not trade at the level of a 5-minute doji candle.
NOTE: The high and low of the 5-minute doji candle are also
small targets of the market, after breaking the high or low of the
5-minute doji, the market can continue in 1 minute, but it will be
better for you that you always follow the 5-minute Trade only on
healthy candles.
5-minute candle high
Trade Candle
5-minute candle Low
NOTE: The high and low of any candle is always a target for the
next candle, whether the candle is of 1 minute time or 5 minutes.
Trade Candle
5-minute candle high
Gap Down opening
1 Minute Candles
Market Target
Trade Candle
5-minute candle high
1 Minute Candles
Market Target
Trade Candle
5-minute candle high Target
1 Minute Candles
5 Minute Candles
5-minute candle Low target ( body )
NOTE: Do not trade against the trend.
Market Target
Trade Candle
5-minute candle high
1 Minute Candles
5-minute candle Low
NOTE: In this setup, the market will do a continuation most of
the time.
Three Candle Rejection Pattern
Common Level
Safe Entry Point
Trade Candle
NOTE: In this, you can take trade in opening also. The accuracy of
this pattern comes up to 90%.
Common Level
Trade Candle
NOTE: All three rejection candles should be of the same color in
this pattern.
Common Level
Do not trade here, the
pattern has now failed.
NOTE: This pattern wins even when the trend is the opposite.
NOTE: When a pattern is formed at the end of the corrective
wave and the market retests that pattern and starts moving
towards HH or LL, then the impulsive wave starts from there. And
sometimes the market may move without retesting the pattern
because the market is trendy at that time.
NOTE: Sometimes due to the pressure of buyers or sellers also
gap level is formed where you are not even able to find any
skipped level around.
NOTE: This is not a piercing line pattern.
Here there is market indecision because
according to 2 Minutes, the doji candle is
formed here.
NOTE: On the day the market is bad, on that day the trade
candle mostly becomes a doji candle, so in such a situation safety
margin entry is important.
Trade Candle
NOTE: The morning star pattern works very well if the middle
candle in the morning star pattern is a doji or a hammer.
Trade Candle
NOTE: When the market reverses from above and comes back to
the key levels of the Morning Star, the buyers will try to keep the
market above the key levels of the Morning Star.
NOTE: A reversal candle usually comes after the break of the
neckline of the chart pattern, but if there is momentum from
behind, the market may continue without giving a reversal.
Neckline
LL
NOTE: Here the target of the
market was to break the LL but
the market could not break the
LL and the market has reversed
from the LL itself, so now the
new target of the market is to
reach the Neckline.
Neckline
Piercing Line Pattern
NOTE: Don't go for Up here because there is pressure
(momentum) of sellers behind. And buyers have created a
piercing line pattern by breaking the neckline, so now sellers will
come back and sellers can make a red candle here, so wait for a
confirmation candle here.
Red Candle Opening ( High )
(C)
M Neckline
(A)
(D)
(B)
(E)
Trade Candle
NOTE: Here we should not take a down trade on C-candle because
C-candle should have been a confirmation candle for us which
breaks the low of the A-candle but it did not happen and the
reason for D-candle becoming red is that C-candle, failed to close
above the high of the A-candle, so sellers made a D-candle, which
has become a confirmation candle, so we will trade the E-candle.
M Neckline
NOTE: 1st buyers position has
been broken by the sellers, now
next buyers position is far away
so can trade here.
1st Buyers Position
2nd Buyers Position
Trade Candle
NOTE: The high and low of a 5-minute candle are always a market
target. They come in the small target of the market.
NOTE: In such a situation, the
trade should be taken with
some caution. In such a
situation, the trade candle will
become a weak candle or a doji
candle. This can lead to the
next candle being a big candle.
M Neckline
Wick Low
Trade Candle
(A)
Pattern
Retest Level
(B)
(C)
(D)
(E)
NOTE: Do not trade on E-candle
here
because
C-candle
(Retracement
candle)
has
closed above the retest level of
Engulfing. Here C-candle has
not retested properly so do not
trade on E-candle here.
NOTE: Usually the market gets stuck there when the market does
not continue for 2-3 candles after completing the FFLL. After
completing FFLL the market needs continuation as soon as
possible but if it does not happen then the market will get stuck
there.
Trading Rules
NOTE: You cannot be successful in trading until you follow the
rules and discipline in trading.
Rules
( 1 ) Always trade with the trend.
NOTE: Trade to complete the target or trade to start the target.
( 2 ) Do not make any trade of more than 2%. The first trade
should always be less than 2%.
( 3 ) Always trade on that setup that you have mastered. And
until you recover all your losses and make a full profit, always
trade on your mastered setup.
NOTE: In case of loss in any trade, do not take the next trade
without knowing the reason for the loss.
NOTE: Till the time you do not come in daily or all-time profit, it is
always necessary to do it with trading discipline.
( 4 ) Always trade on your 4-5 favorite charts. Trade on your
favorite charts which you understand more easily, like - USDINR,
USDBRL, etc.
NOTE: If you have 100$ on the first day and you have lost 10$,
then on the second day you have to trade with the amount up to
2% of the 90$, which means always trade with the amount up to
2% of the total funds of the trading account.
NOTE: Stop trading if you have 3 consecutive losses on your
favorite setup.
NOTE: If you want, you can keep a profit target according to the
session. If you keep four sessions a day and keep a target of 5% in
each session. So your daily profit will be 20%.
NOTE: Trade after waiting for some time in case of loss of any
trade.
( 5 ) Fix trades per day or for each session. Like per day or per
session only 5 trades have to be done.
NOTE: If you keep a profit target of 10%, then you can keep a
stop-loss target of up to 20%.
NOTE: If you keep a daily profit target of 10%, then don't try to
achieve the full 10%. Stop trading whenever the target is
achieved by 7-8-9%.
(A)
(B)
5 Minute Candles
NOTE: Do not trade on the breakout
of the A-candle (5-minute candle) on
the one-minute chart because the
breakout 5-minute candle should
match the color of the previous
candle. And here the 5-minute red
candle is being breakout by the 5minute green candle. Therefore,
whenever you enter a trade on a
breakout of a 5-minute candle, the 5minute breakout candle should also
match the color of the previous
candle.
NOTE: In the 5-minute strategy, you should trade by looking at
the target of the 5-minute chart, which will slightly increase the
accuracy of your setup.
NOTE: If you want to do compounding, always do it on your
favorite setup and go with the trend.
NOTE: Never trade with the expectation that all your trades will
win. Always assume that 3 out of 10 trades will be your losses.
Due to this even if you lose 1-2 trades, you will not get emotions.
NOTE: In a 5-minute strategy, the 5-minute chart should also be
trending. The 5-minute chart should not be sideways.
NOTE: If the reference is on the left side of the market, then the
round number is not to be given any importance.
NOTE: Trading in a 5-minute strategy Avoid trading on the 4th
and 5th-minute candles. In this strategy, you have only 5-minute
1st, 2nd, and 3rd-minute candles to trade.
Trade Candle
5-minute candle high
( This is a sureshot because the
previous candle is a tailless candle
and there is also a tailless candle
head. )
5-minute candle
NOTE: When the breakout candle is a tailless candle and there is
also a head of that candle, the next candle will be 99% Sureshot
and the trend must be UP and the previous 5-minute candle must
also be green.
NOTE: The breakout candle in the 5-minute strategy should not
be too large. The breakout candle should be a normal candle.
NOTE: Don't trade in the tailless candle after 3rd candle means
trade only if 1st and 2nd candle comes tailless in any momentum
don't trade on 4th candle when 3rd candle comes tailless.
Do not trade on this candle.
(E)
(D)
Tradable Candle
(C)
(A)
(B)
NOTE: When the B-candle engulfs the A-candle and the B-candle
becomes a tailless candle. Only then the trade is to be taken on Ccandle.
No Tradable Candle
Trade Candle
NOTE: Always trade with the trend on tailless candles.
Market Target
Trade Candle
Tailless Candle
NOTE: Generally, in case of a gap-up, or gap-down in Strong
Momentum, only the same party comes because sometimes gapup, and gap-down also happen due to the pressure of the market
(Buyers and Sellers).
5-Minute Candle High
Entry Point
1-Minute Candle
5-Minute Candle High
Do not trade this candle
Three Candle Rejection Pattern
Entry Point
Common Level
Trade Candle
NOTE: This pattern may also have to do 1step martingale in OTC.
Common Level
Market Target
Trade Candle
NOTE: If the market creates an SNR
on a smaller timeframe and the
pending target of the market is
further away, you can enter a
continuation
trade
when
the
market breaks the SNR. But the
accuracy of this setup is less (70%)
this setup is not that special.
Compounding Rules
NOTE: Compounding should always be done with extra profit
only. After doing 5-step compounding properly for 5 consecutive
times in the demo, you can do 3-step compounding in a real
account.
NOTE: This means on the day you win 25 consecutive trades, you
can do 3-step compounding in a real account.
NOTE: Compounding trade is always to be done with Sureshot
and trend.
NOTE: Do not trade on the 1st and last 5-minute candles for
compounding.
NOTE: Do compounding with the amount of extra profit in such a
way that you get 4 chances for compounding.
NOTE: Patience is most important for success in
trading.
Reasons for emotions while trading
NOTE: take a trade that is too large.
NOTE: Don't know why the loss is happening.
NOTE: You have taken a trade even when you do not know about
the market. lack of patience.
NOTE: There is already some pressure to make a profit, that is,
there is pressure to make a fixed profit daily or per month. Or
there is pressure to recover the losses already done.
NOTE: On breaking your trading rules.
Ways to Avoid Emotion in Trading
NOTE: Whatever loss or profit has happened earlier, forget it.
That is, whatever has happened before in life, consider it as over
and start completely new in the market.
NOTE: The daily profit target is to be kept at 10% and
compounding should always be done with extra profit.
NOTE: Never take a trade bigger than your capacity.
NOTE: Always be patient while taking a trade, do not take a trade
just for the sake of taking a trade, no matter how much time it
takes, do not trade until a proper setup is found.
NOTE: Never break your trading rules.
Tailless Candle
Downtrend
If you want to trade, take it here
50% Level
(C)
(A) (B)
Tradeble Candle
Piercing Line level
( LL Level ) Market Main Target
NOTE: Here the market has completed the key level (minor level)
target of the piercing line pattern and has also completed the
hammer low target (minor level). That's why buyers have come in
the next candle despite the tailless candle and downtrend.
NOTE: The tailless candle has not broken the level of the piercing
line. So if we take a trade on the next candle (B-candle) of the
tailless candle, there is a possibility of reversal from the level of
the piercing line of the B-candle. Therefore, if there is a reversal
level nearby, do not trade there.
NOTE: Here B-candle has not been able to close above 50% of the
A-candle, so you can take a down trade on the next candle (Ccandle).
Level
Gap-Down Opening by sellers
Wick Level
50% Level
(C)
(B
)
(A
)
Uptrend
NOTE: Here buyers have not felt any level in C-candle. This means
the C-candle level has not been touched. That's why the buyers
have not yet felt any level here. That's why the buyers here have
not felt the need to do a gap-down, so this gap-down has been
done by the sellers. But the sellers have not been able to gapdown below the wick level and 50% of the previous candle (Ccandle). Buyers have stopped sellers from gapping below the wick
level and 50% level of C-candle so green candle can also be
formed here. Sellers have done this gap-down, so sellers will try
to make a red candle here, but due to the uptrend and
dominance of buyers, a green candle can also be formed here.
Downtrend
Strong Level and 50% Level
(A
)
(B
)
Do not trade here
NOTE: Don't trade down here because B-candle has not touched
the level means B-candle has not felt the level. By the time the Bcandle touches the level, the time of the B-candle was over, so
now the buyers can come in the next candle to touch the level,
but if the B-candle was rejected by touching the level, we would
have Down trade could be taken on the next candle of the Bcandle.
Downtrend
Safe Entry
Strong Level and 50% Level
(A
)
(B
)
(C)
Trade Candle
NOTE: If a continuation candle is headless and a healthy candle in
a bullish pattern or setup, you can enter trades below 50% of the
headless candle or below its opening.
(B
)
Trade Candle
Entry Point
(A
)
Retest Level
50% Level
Body Level
NOTE: By the way, if you want, you can also take trade on Acandle.
NOTE: The target of the market is always to breakout the strong
level or to close till that level. Therefore, rejection trade should
always be taken at the nearest other level instead of the target
level.
Wick High Level
Hammer 50% Level
Trade Entry Level
Common Level
NOTE: If you have to trade on rejection, then you should not
trade at the level which is the target of breaking the market but
should trade at the level ahead of it.
NOTE: The first target of the market is to break the common
level, then after that the HH, HL, LH, and LL levels have to be
broken, so the entry of the rejection trade should be taken at
another level close to the common level.
NOTE: Never trade on single candle analysis. This means never
trade by analyzing only one candle.
NOTE: One should take a break from trading on the day when
there are 3-4 consecutive trade losses. And on the day when your
setup is working well, you can do aggressive trading with extra
profits. Due to this, you will avoid big losses on the day the
market is bad and on the day the market is going well, you will be
able to make a big profit.
NOTE: If you do not learn from your mistakes in trading, then in
the future you will never be able to make a profit in trading.
NOTE: Target can also be completed with the market wick.
Trade Candle
Common Level
Market Pattern
Uptrend
(2)
(1)
Level
HL
NOTE: In an uptrend, level ( 1 ) is more important than level ( 2 )
before HL. Because level (1) is the key level of the pattern.
Trade Candle
Wick Level
Entry Point
HH Level
NOTE: Here you can take a trade with some caution. But the
entry candle should fall below the 50% level of the previous
candle in the first 30 seconds. Because the trade candle can also
reverse from the high of the wick of the previous candle, it is
necessary to have the head of the continuation candle.
Downtrend
Evening Star
do not trade up here
Gap-Up Opening
common level of the market
Gap-Down Opening
Morning Star
NOTE: Here usually the buyers did not need to gap-up because
the buyers had already broken the common level with the gapdown candle. But if the gap-up is above the key level of the
evening star, then we can consider an up trade here. But the gapup is below the key level of the evening star and there is also a
downtrend, so a red candle can also be formed here and the
trend is down anyway, so we do not go for the up.
Sellers Position
Trade Candle
Common Level
Common Level
Uptrend
NOTE: reasons to trade here
( 1 ) is an uptrend. ( 2 ) The previous candle has formed an
engulfing pattern. (3) Sellers position is also far away. With this
type of thinking, you can take a trade here.
NOTE: The next candle may reverse if there is a breakout of
sellers' positions.
NOTE: After the buyers position breakout, if the reversal candle
closes inside the buyers position, then buyers can come again.
Buyers Position
NOTE: Buyers can come in this
candle because after the breakout of
the buyers position, the buyers have
closed the next candle above the
buyers position. So it means that the
buyers have been able to cover their
positions. That's why buyers can
come again in the next candle to
save their positions. And the sellers
will again have to exert more power
to break the buyers position.
NOTE: But if the buyers are not able to close the reversal candle
above the buyers position then the next candle is likely to be red.