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Basics To Advanced Price Action Course

The document discusses price action analysis, which involves analyzing historical price patterns, candlestick formations, and volume to make trading decisions without relying on indicators. It covers various technical analysis concepts like support and resistance levels, chart patterns, trendlines, moving averages, and candlestick patterns that are important for price action trading.

Uploaded by

Amit Kumar Kandi
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4K views

Basics To Advanced Price Action Course

The document discusses price action analysis, which involves analyzing historical price patterns, candlestick formations, and volume to make trading decisions without relying on indicators. It covers various technical analysis concepts like support and resistance levels, chart patterns, trendlines, moving averages, and candlestick patterns that are important for price action trading.

Uploaded by

Amit Kumar Kandi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Basics to advanced

Price Action
Master Class

Multibaggers Point
General Strategies used by
investors/traders
· Based on tips/news

· Based on world markets

· Newspaper/news channels

· Social media, etc

Did you make regular money from it?


What is Price Action?
➔ Price action refers to the study of the movement of an
asset's price on a chart, typically in the context of
financial markets such as stocks, forex, cryptocurrencies,
or commodities.
➔ Price action analysis involves analyzing historical price
patterns, candlestick formations, and volume to make
trading decisions without relying on traditional
indicators.
Things we are going to learn
➔ Reading and interpreting candlestick charts.

➔ Identifying key support and resistance levels.

➔ Recognizing chart patterns, such as head and shoulders, double tops/bottoms,


and triangles.

➔ Understanding price action signals and patterns.

➔ Implementing risk management techniques.

➔ Developing trading plans and strategies

➔ The goal of a price action course is to help traders make informed decisions
based on actual price movements and to reduce reliance on lagging indicators.
The Perfect Strategy!

➔ What to Buy?

➔ What Price? (Entry)

➔ Target? (Exit)

➔ Stop-loss?

➔ Time Frame?

➔ How much quantity to buy?


Types of analysis
● Fundamental Analysis
● Technical Analysis
● Techno-Funda Analysis In this example, we’re
leading off with
something unexpected.
While the audience is
trying to come up with a
number, we’ll surprise
them with the next slide.
What is Technical Analysis?
● Technical analysis is a study of predicting future price
movement of any instrument based on the earlier price
movement.
● It is a study of prices with charts being
primary tool.
● It deals with the Demand & supply
of shares in the market at a time.
What is Technical Analysis?
● Technical analysis is not at all complicated.
● Technical analysis not connected anywhere with
Fundamental analysis ratios,
balance sheets, etc.
What is Dow Theory?
Mr. Charles Dow is known as the
father of the modern-day technical
analysis.

This theory is based on the many


editorials he had written between the
years of 1900-1902.

The Dow Theory attempts to identify


the primary trend a market is in
Charles Dow 1851-1902
Journalist, Co-Founder of Wall
Street, Dow Jones & Co., DJIA
.
Type of Charts
● Line
● Bar
● Volume
● Candlestick
○ Open
○ High
○ Low
○ Close
Assumption
● Price moves in a trend (Up Trend, Down Trend, Sideways)
● Volume confirms the trend.
● A trend remains intact until it gives
a reversal signal.
Uptrend
Downtrend
Sideways
Trendlines
● Horizontal line
● Resistance line
● Support line
Horizontal Line
● It can be a resistance line or support line or both
● It’s tends to change its role
● Horizontal line divides chart into a good or bad area.
● Longer the Horizontal line higher the target.
Horizontal Line
Resistance Line
● Start from the left side top & end to the right side bottom
● More touch points = More Strong Resistance
● Join minimum 2 points
● Price must be stay at/below that line
Resistance Line
Support Line
● Start from the left side bottom & end to the right side top
● Join minimum 2 points
● More touch points = More Strong Support
● Price must be stay at/above that line
Support Line
Role of the Volume
● The trend is here to stay intact.
● Volume cluster below the price formation a good sign.
Volume below
Support Line
Volume below Price Pattern
Moving Averages
● Indicator showing an average price
● As the stock moves, moving average also moves
● Time period for which an average is calculated is important.
(50, 200)
● Most commonly used moving averages Simple, EMA, WMA
● Moving averages provides support & resistance to price.
● Crossover also helps in Breakout/Breakdown
● Moving averages also helps identifying Target, Stop-loss.
Dynamic support
& resistance through
Moving Average
Candlestick Patterns
● Bullish
● Bearish
● Neutral Patterns
Other Indicators

We are not going to


use it.
Price Patterns
● Head & Shoulders
● Cup & Handle
● Triangle
● Multi Top/Bottom
● Rounding Top/Bottom
● Wedge
● Flag
● Channel
3 Major Price Patterns
● Head & Shoulders
● Rounding Bottom
● Multip Top/Bottom (Horizontal Line)
Trading
Psychology
➔ Stop-loss

➔ Risk Management

➔ Position Sizing
Stop-loss
● Below Support line or above Resistance line
● Initial stop-loss should not be more than 15%
● For Traders
○ Buyers - Low of recent/previous candle
○ Sellers - High of recent/previous candle
● Professional Traders Stop-loss
○ 4%
Dynamic Stop-loss & Target
● Important psychological/round numbers
ie. 50, 100, 150 (Every 50 rupees)
● Moving average touchpoints
● Multiple Support lines for stop-loss
Risk:Reward Ratio
● Risk Reward ratio minimum 1:3
○ 5% Stop-loss = 15% Reward minimum required
Reward = 3 Risk = 1 Trading Capital = 10,000

Success Ratio Profit Loss Overall Portfolio

20% 6,000 8,000 -2,000

40% 12,000 6,000 6,000

60% 18,000 4,000 14,000

80% 24,000 2,000 22,000


Position Sizing
● Maximum 30 stocks
to buy for
the perfect portfolio
● Maximum 3%
to allocate for any stock
How to find stocks?
● https://chartink.com/screener/breakout-stocks-2133
How to find Multibagger Breakout stocks?
● https://chartink.com/screener/multibagger-pattern-7
Checklist
● Screener
● Trend Checking
● Drawing Resistance & Support Lines
● Identifying Price Pattern
● Candlestick & Volume
● Entry price, stop-loss, target (R:R), time
● Trailing, Tracking
A few important things!
● This strategy is only for educational purposes.
● Nobody / no strategy can assure you guaranteed returns in the market. This strategy
is not a Holy grail.
● This strategy is whole and complete, you don’t need to alter a bit of this, but still if you
want then you can change the target & stop-loss calculation, etc. part. Don’t add
more indicators to this, it will confuse you more.
● Strictly use it for a swing trading if you are a beginner.
● Don’t chase price if scrip moved very fast.
● Make a journal of your all trades derived from this strategy.
● All are requested to do paper trade with this strategy before applying it in the live
market for a few weeks.
● We are not responsible for any loss which may arise from this strategy/idea.
Practicals
Thank you &
Good luck!

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