Trading Price Action For Day Traders by Kiran Bala-V1.0

© 2021 LearnTradingWithKB. All right reserved.
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All rights reserved.
No portion of this book may be reproduced in any form without permission from the
publisher, except as permitted by Indian copyright law. For permissions contact: -
learntradingwithkb@gmail.com
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IMPORTANT NOTICE
Before we jump straight into it, I need to tell you
that this is not a magic “get rich quick” guide. The
Price actions is a fantastic tool, and the strategies I
am going to show you are the best-proven strategies
I know. BUT this alone won’t make you a great
trader. Just like getting a new Ferrari does not make
you a better driver. You need to practice and you
need hands-on experience. You must spend time
and energy learning to trade with yourself! Hands-
on experience cannot be learned from a book!
So, if you don’t mind that I won’t be giving you a
“magic pill” (as it doesn’t exist), let ‘s move on to the
first chapter!
Only Simple trading strategies work in the market.
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Disclaimer:
This book is meant to be informational and should not be used as trading advice. All traders
should gather information from multiple sources, and create their own trading systems. The
author makes no guarantees related to the claims contained herein. Please trade
responsibly.
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CONTENTS
Prerequisites ........................................................................................................................................... 9
1 Moving Averages........................................................................................................................... 11
1.1 What is a moving Average?................................................................................................... 11
1.2 What is a type of moving Average? ...................................................................................... 11
1.3 Which Moving Averages I Use To Check The Market Momentum ....................................... 11
1.4 Positive Crossover (Bullish Momentum confirmation) ......................................................... 12
1.5 Negative Crossover (Bearish Momentum confirmation) ...................................................... 13
1.6 What is the role of 20 EMA ................................................................................................... 13
2 What Is Camarilla Pivot Points ...................................................................................................... 17
2.1 Formulas ............................................................................................................................... 17
2.2 Standard Levels ..................................................................................................................... 17
2.3 How to use these levels ........................................................................................................ 18
2.4 What is Expanded/Advance Camarilla Levels ....................................................................... 19
2.5 How to Take Trades with Camarilla levels ............................................................................ 20
2.5.1 Price is between R3 and S3. .......................................................................................... 20
2.5.2 Price is between R3 and R4. .......................................................................................... 22
2.5.3 Price between S3 and S4 ............................................................................................... 24
2.5.4 Price is outside the R4 and S4 ....................................................................................... 25
2.6 What Is Camarilla Pivot Width Analysis ................................................................................ 28
2.7 What Is Two-Day Camarilla Relationships ............................................................................ 30
2.8 Two Important RELATIONSHIPS ............................................................................................ 31
Higher Value: - Current Day R3 And S3 Is Above Previous Day Consider As A Bullish Day............... 31
Lower Value: - Current day R3 and S3 is below previous day. It’s a bearish day. ........................ 32
2.9 Hidden Layers of Camarilla ................................................................................................... 33
3 How One can Identify the Important Levels ................................................................................. 35
3.1 Points To Consider Based On 5 Mins Graph Before Entering Into Any Indices Trade .......... 35
How To Take Long Trade:- ............................................................................................................ 38
When Not to Take Trade ............................................................................................................... 43
4 How to do positional Trading ........................................................................................................ 45
4.1 Setup Type-1 ......................................................................................................................... 45
4.2 Setup Type-2 ......................................................................................................................... 46
One Hour Crossover .......................................................................................................................... 46
One Hour Camarilla ........................................................................................................................... 47
4.2.1 How to select stocks for swing trading ......................................................................... 47
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5. ...................................................................................................................................................... 49
5 45-Min’s Trading Technique In Stocks .......................................................................................... 50
9. Price Action Reversal Trading With Fibo ....................................................................................... 53
a. How to Take trade with Fibonacci ............................................................................................ 53
i. How To Draw Swing .............................................................................................................. 53
b. How to Take trade with Fibonacci ............................................................................................ 54
i. Normal Opening .................................................................................................................... 54
ii. Gap Up and Gap Down Opening ........................................................................................... 55
iii. Trendy Market ...................................................................................................................... 58
iv. How To Trade In 2nd Swing .................................................................................................. 59
c. Risk Management ..................................................................................................................... 60
i. When Not to Take A Trade.................................................................................................... 60
ii. How To Reduce Your Losses ................................................................................................. 62
d. Advance Fibonacci .................................................................................................................... 65
i. What is Advance Fibo............................................................................................................ 65
ii. How to set your target .......................................................................................................... 66
iii. Important Points to remember............................................................................................. 67
10. Option Trading .......................................................................................................................... 69
a. What are Options? .................................................................................................................... 69
i. How to Use Call Options ....................................................................................................... 69
b. How to select write strike price? .............................................................................................. 71
c. What is hedging?....................................................................................................................... 72
Hedge option buying to sell option ............................................................................................... 72
Hedge option selling to buy option ............................................................................................... 72
Hedge Future with Buy Call/Put ..................................................................................................... 72
Future & Sell Call/Put ...................................................................................................................... 73
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PREREQUISITES
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PREREQUISITES
Platform Type Monthly

TradeView* Pro 1100 (14.95 $)
(https://in.tradingview.com)
ChartLink** Premium Free
(https://chartink.com)
StockDeveloper* Paid 500

(https://stocksdeveloper.in)
Total 2380
*Required only for Algo trading.
** Mandatory for stock selection.

Algo is being supporting on below 8 trading platforms: -
• 5Paisa
• AliceBlue
• Angel
• Finvasia
• Fyers
• IIFL
• Upstrox
• Zerodha
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MOVING AVERAGE:
HEART BEAT OF MARKET
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1 MOVING AVERAGES
1.1 WHAT IS A MOVING AVERAGE?

A moving average will be the average price for a trading instrument over a set time frame. They help
smooth out the price action and focus on where the current price is trending in relation to an average
price, over the trader’s time frame.
1.2 WHAT IS A TYPE OF MOVING AVERAGE?
A simple moving average (SMA) is an indicator that shows a line on a chart based on the calculation of
the average price of a trading instrument over a set number of time periods. A 5-day simple moving
average is the average price over a 5-day period.
If something ended the last five days at $100, $101, $99, $98, and $102, the five-day moving average
would be $100. $100+$101+$99+$98+$102= $500/5= $100. This shows the average value was $100
over the 5-day period.
An Exponential moving average (EMA) gives greater weight to recent prices, to make it more reactive
and faster to adjust to price action. An EMA changes faster to account for recent price action and gives
traders faster entry and exit signals than a simple moving average.
1.3 WHICH MOVING AVERAGES I USE TO CHECK THE MARKET MOMENTUM
5 Day EMA (Momentum) - The 5-day EMA is a great way to use a trailing stop for a winning trade on
breakouts over the 50-day SMA or the 200-day SMA. This works in strongly trending markets that
breakout after a long price consolidation period, and trend over a key long-term moving average. After
a downtrend into oversold territory, a strong reversal back over the 5-day EMA can be a momentum
long reversal signal as it closes back over a key long-term moving average. In downtrends, the 5-day
EMA can act as end of day resistance. The 5-day EMA is a great way to trail a stop on a winning trade
after taking a short position on a stock that loses its key 200 day moving average and starts a downtrend
on heavy distribution.
20 Day EMA (Pullback Support)- The 20 EMA acts like a “bounce line' for candlesticks. So, what this
means is this: in a downtrend, price will head down but at some point, in time, you will see price rise
up and head up to test the 20 ema line and if the downtrend is strong, you will see that that 20 ema line
will keep pushing back price down.
200 EMA (Bull/Bear last stand) - The 200 EMA is a long-term indicator, which means it will help you
identify and trade with the long-term trend. The basic trend principle to remember is to buy low and
sell high. Also, if you are able to spot major market movements, 200 EMA will help you execute
positions based on large swings. 200 EMA is a very popular indicator that is used to determine the main
underlying trend. This indicator allows a trader to determine the trend irrespective of any corrective
move in the price action.
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200 DEMA (Bull/Bear last stand) - Double exponential moving averages (DEMA) are an improvement
over Exponential Moving Average (EMA) because they allocate more weight to recent data points. The
reduced lag results in a more responsive moving average, which helps short-term traders spot trend
reversals quickly. We can observe that the DEMA is closest to the price points and with the least
deviations. Since the DEMA line mimics the stock prices most closely, it is, therefore, most sensitive to
the stock volatility. Changes in volatility are good indicators for a trend reversal, and hence, stock
trades.
200 TMA (Bull/Bear last stand) - The triple exponential moving average (TEMA) is important for traders
and analysts because it is useful as a trend indicator in otherwise choppy markets. It reduces the effects
of relatively large price fluctuations and helps to filter out volatility. The TEMA reacts to price changes
quicker than a traditional MA or EMA will. This is because some of the lag has been taken out in the
calculation. A TEMA can be used in the same ways as other types of moving averages. Mainly, the
direction TEMA is angled indicates the short-term (averaged) price direction. When the line is sloping
up, that means the price is moving up. When it is angled down, the price is moving down. There is still
a small amount of lag in the indicator, so when price changes quickly the indicator may not change its
angle immediately. Also, the larger the lookback period, the slower the TEMA will be in changing its
angle when price changes direction.
1.4 POSITIVE CROSSOVER (BULLISH MOMENTUM CONFIRMATION)

Type: - Intraday (Valid for same day)
Time Frame: - 5 Min
Candle Type: - Normal
Moving Averages: - 5 EMA and 200 EMA
When the 5 EMA crosses above the 200 EMA and the Green confirmation candle (Decision candle)
closes above the 5 EMA and following candle breaks its high of decision candle one can consider as a
positive moment for the market.
Momentum Change: Opposite Crossover Or any candle closes below the 200 EMA and next candle
closes its low.
Figure 1: (Based on Positive Crossover)
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1.5 NEGATIVE CROSSOVER (BEARISH MOMENTUM CONFIRMATION)

When the 5 EMA crosses below the 200 EMA and the red confirmation candle (Decision candle) closes
below the 5 EMA and following candle breaks the one can consider as a Negative moment for the
market.
Momentum Change: Opposite Crossover Or any candle closes above the 200 EMA and next candle
closes its High.
Figure 2: (Based on Negative Crossover)
1.6 WHAT IS THE ROLE OF 20 EMA

The 20 EMA is supporting moving average. If the 20 EMA moving toward 5 EMA and also give crossover
in the same direction then it’s a double confirmation for strong momentum. If EMA 20 gives test fails
on 200 EMA, one can consider as a momentum fail.
Figure 3: (Based on 20 EMA Crossover)
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CASE STUDY:
Figure 4:
Above opportunity is based on 21st May
Where the positive crossover confirmed at 9:25 and once the 20 EMA crossed 200 EMA at 09:40 so
bullish momentum is stronger. First signal momentum changes at 12:45 as the price closed below 20
EMA but still no short until price closes below 200 EMA. At 13:30 again long signal till 3:25.
Figure 5:
Above opportunity is based on 8th June -2021
where the Negative crossover confirmed at 9:15 and once the 20 EMA crossed 200 EMA at 09:30 so
bearish momentum is stronger. First signal momentum changes at 13:05 as the price closed below 20
EMA but still no Long until price closes above 200 EMA.
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Figure 6:
Above opportunity is based on 9th June - 2021
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CAMARILLA
PIVOTS POINTS
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2 WHAT IS CAMARILLA PIVOT POINTS

Camarilla pivot point’s formula is refined form of existing classic pivot point formula.
Camarilla equations take previous day's high, low and close as input and generates 8 levels of intraday
support and resistance based on pivot points. There are 4 levels above pivot point and 4 levels
below pivot points.
2.1 FORMULAS
The formulas for each resistance and support level are:
• R4 = Close + (High – Low) * 1.1/2

• R3 = Close + (High – Low) * 1.1/4
• R2 = Close + (High – Low) * 1.1/6
• R1 = Close + (High – Low) * 1.1/12
• S1 = Close – (High – Low) * 1.1/12
• S2 = Close – (High – Low) * 1.1/6
• S3 = Close – (High – Low) * 1.1/4
• S4 = Close – (High – Low) * 1.1/2
2.2 STANDARD LEVELS
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2.3 HOW TO USE THESE LEVELS
• R1, R2, S1 and S2

The first and second layers of the indicator (R1, R2, S1 and S2) are typically ignored and you can
remove these. But I will share in the last that when we can use these levels.
• S3 and R3
The most important levels are the third layer of support and resistance (S3 and R3). Once the
market reaches these levels, you typically see a reversal back toward the mean. Therefore, you
are typically looking to sell the market at R3 resistance and buy the market when price tests S3
support.
• S4 and R4
The fourth layer of support and resistance (S4 and R4) is very important. This layer is seen as
the last line of support or resistance and is watched very closely for a breakout or reversal.
Traditionally, traders of this system will watch the fourth layer of the indicator for a breakout.
Therefore, R4 resistance is usually colour green to denote a bullish breakout, while S4 is colour
red to represent a bearish breakout.
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2.4 WHAT IS EXPANDED/ADVANCE CAMARILLA LEVELS
The fifth layer (S5 and R5) of the equation generally serves as a target should a breakout through S4
or R4 occur.
R5 = (High/low) >< Close
R6 = (High/Low) * Close.
S5 = Close - (R5-Close)
S6 = Close – (R6 – Close)
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2.5 HOW TO TAKE TRADES WITH CAMARILLA LEVELS

2.5.1 Price is between R3 and S3.
Scenario-1: R3 Reversal
If price reversal from R3 and following candle breaks the low of previous candle, one can consider as
selling opportunity for the target of S3 and stop loss high of last swing.
Figure: 1 (Based on R3 Reversal)
Scenario- 2: R3 Test Fail Reversal
If price reverse from test fails on R3 and following candle breaks the low of previous candle, one can
consider as selling opportunity for the target of S3 and stop loss 50% of R3 and R4.
Figure 2: (Based on R3 test reversal)
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Scenario -3: S3 Reversal
If price reversal from S3 and following candle breaks the high of previous candle, one can consider as
buying opportunity for the target of R3 and stop loss low of last swing.
Figure 3: (Based on S3 Reversal)
Scenario -4: S3 Test Fail Reversal
If price reverse from test fails on S3 and following candle breaks the high of previous candle, one can
consider as buying opportunity for the target of R3 and stop loss 50% of S3 and S4.
Figure 4: (Based on S3 Test Reversal)
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No Trade zones
R3 Breakout
S3 Breakdown
2.5.2 Price is between R3 and R4.

Scenario -1: R3 Breakdown
If price breakdown from R3 and following candle breaks low of previous candle, one can consider as
Figure 5: (Based on R3 Breakdown)
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Scenario -2: R4 Breakout
If price breakout from R4 and following candle breaks high of previous candle, one can consider as
Figure 6: (Based on R4 Breakout)
No Trade zones
R3 Reversal
R4 Reversal
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2.5.3 Price between S3 and S4

Scenario -1: S3 Breakout
If price breakout from S3 and following candle breaks high of previous candle, one can consider as
Figure 7: (Based on Se Breakout)
Scenario -2: S4 Breakdown
If price breakdown from S4 and following candle breaks low of previous candle, one can consider as
Figure 8: (Based on S4 Breakdown)
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No Trade zones
S3 Reversal
S4 Reversal
2.5.4 Price is outside the R4 and S4

Scenario -1: R4 Reversal
If price reversal from R4 and following candle breaks the high of previous candle, one can consider as
Figure 9: (Based on R4 Reversal)
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Scenario -2: R4 Test Fail Reversal
If price reverse from test fails on R4 and following candle breaks the high of previous candle, one can
consider as buying opportunity for the target of R5 and stop loss 50% of R3 and R4.
Figure 10: (Based on R4 Test Reversal)
Scenario -3: S4 Reversal
If price reversal from S4 and following candle breaks the low of previous candle, one can consider as
Figure 11: (Based on S4 Reversal)
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Scenario -4: S4 Test Reversal
If price reverse from test fails on S4 and following candle breaks the low of previous candle, one can
consider as selling opportunity for the target of S5 and stop loss 50% of S3 and S4.
Figure 12: (Based on S4 test Reversal)
Scenario -5: R5 Breakout
If price breakout from R5 and following candle breaks high of previous candle, one can consider as
Scenario -5: S5 Breakdown
If price breakdown from S5 and following candle breaks low of previous candle, one can consider as
selling opportunity for the target of S6 and stop loss low of last swing.
No Trade zones
R4 Breakdown
S4 Breakout
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2.6 WHAT IS CAMARILLA PIVOT WIDTH ANALYSIS
This analysis allows you to prepare for certain types of trading scenarios and utilize specific exit
methodologies depending on the width of the pivots. Pivot width plays an important role in your ability
to anticipate market behaviour. Abnormally wide pivot width usually leads to trading range activity,
while an abnormally tight, or narrow, pivot width typically yields breakout and trending behaviour.
Scenario -1
If the gap between the R3 and S3 is wide, one can consider as a rang bound day or side way day.
Note: Gap is wide. Try to avoid these stocks.
Figure 13: (Based on wide Width)
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Scenario -2
If the gap between the R3 and S3 is narrow, one can consider as trendy day or break out day.
Figure 14: (Based on Narrow Width)
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2.7 WHAT IS TWO-DAY CAMARILLA RELATIONSHIPS
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2.8 TWO IMPORTANT RELATIONSHIPS
HIGHER VALUE: - CURRENT DAY R3 AND S3 IS ABOVE PREVIOUS DAY CONSIDER AS A BULLISH DAY.
Current Day R3 and S3
Previous Day R3 and S3
If the price open above R3 on the higher value relationship day, one can consider as a strong bullish day
and any pull back toward R3 will be buying opportunity for the target of R4 & R5 and Stop loss will be
candle closes below R2.
Figure 15: (Based on Higher Value)
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Lower Value: - Current day R3 and S3 is below previous day. It’s a bearish day.
Previous Day R3 and S3
Current Day R3 and S3
If the price open below S3 on the lower value relationship day, one can consider as a strong bearish day
and any pull back toward S3 will be selling opportunity for the target of S4 & S5 and Stop loss will be
candle closes above S2.
Figure 16: (Based on Lower Relationship)
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2.9 HIDDEN LAYERS OF CAMARILLA
The hidden layers in camarilla are S1, S2, R1 and R2. These hidden layers should be considered on
unusual day if the stock or Indices gave a big move on previous day. The following day gap between R3
and S3 is wide to trade so waiting for target of S3 or R3 is risky that day a one should consider R1, R2,
S1 and S2 as your target. In that day R1, R2 and R3 are bearish reversal zone and S1, S2 and S3 are
bullish reversal zones.
Figure 17: (Based on Hidden Layers)
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How To Draw & Identify

the Important
Levels/Momentum in
D
Market & Trading
Setup’s
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3 HOW ONE CAN IDENTIFY THE IMPORTANT LEVELS
3.1 POINTS TO CONSIDER BASED ON 5 MINS GRAPH BEFORE ENTERING INTO ANY INDICES
TRADE
Action Outcome/Result
1. Analyze Market • Check 5 & 15-min’s crossover direction to find out the
Momentum Market Momentum. (Ignore Gap up and Gap down cross
over) *
• EMA-5 crossover/cross under DEMA/TEMA-200*
• Identity the price momentum on supply/demand zone
on 15 mins chart.
2. Current Price on EMA One should wait for confirmation (Test breakout/breakdown), if
(20,200) price is near the EMA’s (20,200).
(This only for safe trader)
3. Camarilla’s support and One should wait for breakout/breakdown confirmation, if price
resistance is near to camarilla’s support and resistance.
4. Timing 9:15 AM to 11:00 AM – Market can give big movement (Prime
time zone)
11:00 AM to 01:30 PM – Chances of consolidation is high.
(Moderate time zone)
01:30 PM to 03:15 PM – Market can give big movement.
(Moderate to premium zone)
*Crossover only for Market momentum, not for trade
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Setup-1:
Success Rate: 70-75 % on Indices on if trade on prime-time zone.
Trade Type: ATM Option Buying
Setup - 1 is based on Camarilla and works only for Intraday and gives positive result on any
scripts(stock/Indices/currency/community) spot chart but not on Option & Future chart.
Camarilla SETUP-1 (Intraday)
1. Check the market momentum(bullish/bearish) with EMA-5/200 on 15 mins time

frame (crossover/cross under). 15 mins Crossover/Cross under is valid for T+1 days. *
2. If price is near to EMA-20/200, wait for breakout/breakdown before entering into
the trade. *
3. Check the Camarilla Entry/Exit/Target points.
4. Enter into the trade, if all above conditions are met.
5. If DEMA is lying before target. Check market reaction on DEMA as chance of reversal
is very high. *
*Optional Rule/ This only for safe trader if you’ve trading with small capital.
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Setup-2:
Success Rate: 75-80 % on Indices on if trade on premium time zone.
Setup - 2 is based on DEMA/TEMA/EMA and works only for Intraday and gives positive result
only Indices spot chart.
Moving Average Crossover SETUP-2 (Intraday)

1. Check the market momentum(bullish/bearish) with EMA-5/200 on 15 mins time
frame (crossover/cross under). 15 mins Crossover/Cross under is valid for T+1 days. *
2. If price is near to EMA-5/20/200, wait for breakout/breakdown before entering into
the trade. *
3. Wait for EMA-5 to cross-over/cross-under DEMA-200 & TEMA-200 for entry on 5-
Min chart. Target as follows: -
1st Target is DEMA-200/TEMA-200 (95% touches)
2nd Target is EMA-200 (80% touches)
4. SL - 5 mins candle closes below/above the decision DEMA-200 & TEMA-200.
*Optional Rule/ This only for safe trader if you’ve trading with small capital.
EXAMPLE
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Setup-3 :
Setup - 3 is based on Camarilla + Fibonacci (Scalping Technique) and works for

Intraday only and gives positive result on all
scripts(stock/Indices/currency/community) spot chart but not on option chart &
future chart. Automated script will be provided.
How To Take Long Trade:-
Once the price moves above the .236 level with the safety of margin one can take a long
trade for the 1st target 0.5 level and 2nd target 0.618 level.
(SL is 0 level of Fibo – Safety of margin)
First one has to draw the fibo between the following point
▪ S3 to R3
Step 1: Draw Fibo from R3 - S3.
Step 2: Set the entry point on 0.236 fibo level with safety of margin.
Step 3: Set the target for 0.618 fibo level.
Step 4: Start trailing your profit from .5 fibo level.
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▪ R4 to R5
Step 1 : Draw Fibo from R5 - R4.
Step 2 : Set the entry point on 0.236 fibo level with safety of margin.
Step 3 : Set the target for 0.618 fibo level.
Step 4 : Start trailing your profit from .5 fibo level.
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▪ R5 to R6
Step 1 : Draw Fibo from R6 - R5.
Step 2: Set the entry point on 0.236 fibo level with safety of margin.
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How to take short Trade:-
Once the price moved below the .236 level with the safety of margin one can take a short
trade for the 1st target 0.5 level and 2nd target 0.618 level.
(SL is 0 level of Fibo + Safety of margin)
First one has to draw the fibo between the following point
▪ R3 to S3
Step 1 : Draw Fibo from R3 – S3.

▪ 2:S4
Step Settothe
S5entry point on 0.236 fibo level with safety of margin.
▪ 3S5
Step tothe
: Set S6 target for 0.618 fibo level.
o trailing your profit from .5 fibo level.
Step 4 : Start
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▪ R4 to R5
Step 1 : Draw Fibo from S5 - S4.
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▪ R5 to R6
Step 1 : Draw Fibo from S6 – S5.
When Not to Take Trade

o First 15 min.
o Don’t mix scalping with any another strategy and harmonic patterns.
o Camarilla entry to not active.
o Parabolic movement.
o Ignore first swing on expiry day, event day and new position day. (Example:
06-Aug)
*If market have already given more then 1% movement try to avoid R5 and S5 trade.
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Swing Trading
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4 HOW TO DO POSITIONAL TRADING
4.1 SETUP TYPE-1
Time Frame: - 15 Min
Type of Trade: Only Option Selling (ATM strike price) and Equity in case of Stocks
Long Trade:
When the 5 EMA cross above/under the 200 EMA and the Green confirmation candle closes above the
5 EMA, one can enter into the long trade.
Target will be counter crossover OR any candle closing below the 200 EMA OR primum of strike price
is not worth OR resistance/supply/demand zone for intraday OR 1 hour camarilla support and
resistance to book profit.
The stop loss will any candle closes below the 200 EMA.
Figure 21: (Based on 15 Min Long Crossover)
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Short Trade:
When the 5 EMA crosses above the 200 EMA and the Red confirmation candle crosses below the 5
EMA, one can enter into short trade.
Target will be counter crossover OR any candle closes above the 200 EMA OR option primum is not
worth OR resistance/supply/demand zone for intraday OR 1 hour camarilla support and resistance to
book profit.
The stop loss, if any candle closes above the 200 EMA.
Figure 22: (Based on 15 Min short Crossover)
4.2 SETUP TYPE-2
ONE HOUR CROSSOVER
Time Frame: - 1 Hour
Positive Crossover
5 EMA cross above 20 EMA
Negative Crossover
5 EMA cross below 20 EMA
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ONE HOUR CAMARILLA
One hour Camarilla is weekly Pivots points so we have followed the same rules of advance camarilla
but with the time frame of 1 hour.
4.2.1 How to select stocks for swing trading

1. You can check the 15 min cross over
2. Weekly Narrow CPR stocks can be traded with 1 hour camarilla
Reliance for 27th May
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TCS for 25th May
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5.
45- Minuets Trading

Technique in Stocks
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5 45-MIN’S TRADING TECHNIQUE IN STOCKS

9:15 AM: Open Chart link Dashboard. (Discuss the stock strategy on chart link*)
9:18 AM: Start picking up the stocks from the result Grid based on CL-01 & wait for below condition
to meet.
Entry Target SL – Safe Traders SL - Final

R4 – Breakout* R5 R3 P
R5 – Breakout* R6 R4 R3
*Any 3 Min candle closing above R4/R5.
Elaborate/Discuss on Chart
Stocks Setup Logic
CL-01: Stocks will be filter based on below time zones and algorithm
Time Zone Success Rate Allowed Breakout

1 9:15 - 9:30 am Premium zone 95% R4 & R5
2 9:31-10:00 am Moderate zone 80-85% R4 & R5
3 10:01 – 01:30 pm Consolidate zone 60-70% R4 for target .718 fibo
level.
R5 after one reversal
4 01:30 - 2:45 pm Moderate zone 80-85% R4
5 02:46 – 03:20 Premium zone 95% R4
CL-01: 15’min Breakout

Valid based on above time zones
( ( [0] 3 minute close > [-1] 15 minute max ( 20 , [0] 15 minute close ) and
[0] 5 minute volume > [0] 5 minute sma ( volume,20 ) and
[0] 5 minute close > 20 and latest volume > 20000 ) )
[0] 5 minute Volume > [0] 5 minute Sma ( volume,20 )
[0] 5 minute Close > 20
Latest Volume > 20000
CL-2: Weekly Breakout

Stocks will be valid for entire day
Logic
( ( ( latest high - latest low ) > ( 1 day ago high - 1 day ago low ) and
( latest high - latest low ) > ( 2 days ago high - 2 days ago low ) and
50 | P a g e
latest close > latest open and latest close > 1 day ago close and
weekly close > weekly open and
monthly close > monthly open and
1 day ago volume > 10000 and
latest sma ( close,20 ) > latest sma ( close,50 ) and
latest sma ( close,50 ) > latest sma ( close,200 ) ) )
General Rule For 45-Mins Stock Strategy
1. One can trade in Stock Cash/Option/Future. Every segment has their own Pros & Cons. My
recommendation to trade in cash market, if you’re new comer to market.
Refer the link: https://zerodha.com/brokerage-calculator/#tab-equities
2. Don’t take more than two trades at the same time.

3. Don’t take more than 3 trades in single time zone.
4. Avoid same breakout once the target achieves.
5. One can reenter into the trade after SL for the same breakout.
6. Target and SL must be in the trading terminal not in mind.
7. Don’t carry the intraday position.
8. Quantity is based on below table for the new traders: -
Range Cash Qty

0-500 250
501-1000 200
1000 – 2500 150
2500 – 5000 100
5000> 50
51 | P a g e
Price Action Reversal

Trading with Fibo
52 | P a g e
9. PRICE ACTION REVERSAL TRADING WITH FIBO

The basic requirement of price action reversal trading strategy is to identify the Swing and draw the
Fibonacci and enter into the trade.
a. HOW TO TAKE TRADE WITH FIBONACCI

i. How To Draw Swing
Normal Opening: Draw swing from previous day low/high.
Gap Up and Gap Down*: Draw current day swing.
* Difference between the previous day close and current day opening should be equal and above .75%.
i.e., Bank Nifty is closed 32665 and opened 32965 so 32965-32465/32465*100 = 0.91%. one can
consider as gap up opening.
1) How to identify & draw the previous day swing in case of normal opening.
Figure 25: (Based on Previous Day swing)
Above chart is based on 4th May and to check that the previous day swing should be from 3:00 Pm
candle or 3:15 Candle what have to be done is draw the Fibonacci from 3:00 clock low to 3:15 high
and the retracement touched .5 level so that’s the low of 3:15 candle is previous day low
2) How to identify & draw current day swing.

Let me show you on charts
53 | P a g e
b. HOW TO TAKE TRADE WITH FIBONACCI

i. Normal Opening
One can draw a Fibonacci from previous day swing.
Short Trade:
Figure 25: (Based on Short Fibo Trade)
Above opportunity is based on 7th May with normal opening and drawn the Fibonacci from previous
day swing low to current day swing high.
Scenario 1: If any 5 min candle gives closing below .236 (33126) level, one can enter into the short
trade.
Buy ATM/ITM option i.e., 33200PE or 33300PC. Never buy OTM option, it works as slow poison.
Scenario 2: If any 3 min candle give closing below .236 (33126) level and following candle breaks its
low, one can enter into short trade.
Target is .618 fibo level (32909.85) and stop loss is candle closing above 0 level (32260) level or 0 level
(32260).
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Long Trade:
Figure 26: (Based on Long Fibo Trade)
Above opportunity is based on 9th Apr with normal opening and drawn the Fibonacci from previous
day swing high to current day swing low.
Scenario-1: If any 5 min candle gives closing above .236 (32439) level, one can enter into long trade.
Scenario-2: If any 3 min candle give closing above .236 (32439) level and following candle breaks its
high, one can enter into the trade.
Target is .618 fibo level (32622) and stop loss will be any candle closing above 0 (32326) level.
ii. Gap Up and Gap Down Opening

Rules
▪ In Gap Up and Gap Down opening, one can draw today’s swing despite previous day because
market has to give immense retracement to achieve the target but recline toward the stop
loss because of market momentum.
▪ Safe traders have to observe the market for first 15 min’s before getting into the trade.
▪ Firstly, draw previous day swing and mark level on .382 and one has to validate, if current day
swing .618 level should be under .382 level of previous day swing before entering into the
trade.
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Example based Gap up/Gap down
Figure 27: (Based on Gap up Fibo Trade)
In above chart the blue line is .382 level of previous day swing and in the current day swing .618 level
is lying inside the level so one can enter into the trade.
Short Trade
Figure 28: (Based on Gap up Fibo Short Trade)
Above opportunity is based on 29th Apr with Gap Up opening.
Scenario 1: If any 5 min candle gives closing below .236 (34195) level, one can enter into short trade.
Scenario 2: If any 3 min candle give closing below .236 (34195) level and following candle breaks its
low, one can enter into short trade.
Target is .618 level (34047) of Fibonacci and stop loss will be any candle closing above 0 (34287) level.
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Long Trade
Figure 29: (Based on Gap up Fibo Long Trade)
Above opportunity is based on 19th Apr with gap down, one can draw the Fibonacci from current day
swing.
Scenario 1: If any 5 min candle gives closing above.236 (30549) level, one can enter into the long trade.
Scenario 2: If any 3 min candle give closing above .236 (30549) level and following candle breaks its
high, one can enter into the trade.
Target is .618 (30791) level of Fibonacci and our stop loss will be any candle closing above 0 (30400).
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iii. Trendy Market

If there is no confirmed Fibo trade till 9:55, one can enter into the trade based on 9:55 candle. One
can draw the fibo till 10 am and draw the fibo swing.
Figure 30: (Based on 9:55 Fibo Short Trade)
Above opportunity is based on is based on 31st Mar trading session, one has to extend the fibo till 10
am i.e. 33412. One can enter into the trade on breakdown i.e. any candle of 5 mins closes below level
0.
Stop Loss will be closing of any candle above .236 i.e. 333539.
Target will be the difference between 0 and .382 levels i.e. 0 Level is 33412 and .382 levels is 33617
so the difference is (33617 – 33412 = 205). So, target will be 33412 - 205 = 33207.
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iv. How To Trade In 2nd Swing
Figure 31: (Based on 2nd Swing Fibo Short Trade)
Above opportunity is based on 27th Apr where first swing was being missed because decision candle
touched the target and one can trade based on 2nd swing.
Scenario 1: If any 5 min candle gives closing above.236 (32223) level, one can enter into the trade.
Scenario 2: If any 3 min candle give closing above .236 (32223) level and following breaks its high, one
can enter into the long trade.
Target is .5 (32301) level of Fibonacci and stop loss will 0 (32153) level of Fibonacci.
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c. RISK MANAGEMENT
i. When Not to Take A Trade
Scenario 1: If the Gap between the .236 level and decision candle closing is more or the decision candle
closes below the .382 level then take the trade on reversal with touching our target.
Figure 32: (Based on risk management Fibo Trade)
Above opportunity is based on 5th May chart and 9:20 candle gave closing below the .236(32510) level
but the its also gave closing below the .389(32449) level so in this case we won’t take trade in this
candle. We will take a trade 9:30 candle as we got the reversal without touching .618(32351) level
60 | P a g e
Scenario 2: If the decision candle give closing below .236 level after touching the .618 level. In that
case we won’t take a trade or will take trade in 2nd swing.
Above opportunity is based on 13th Apr and 9:15 candle gave closing below .236(30958) level but this
candle has already touched the .618 (30745) level. So, we won’t take trade in this case.
Scenario 3: If the difference between the high and low of the candle closing above and below 9:55
candle is less than 20 points in that case we will wait for the next candle to break its high and low
before taking a trade.
Above opportunity is based 26th Apr chart the candle gave closing above the 0 (32556) but the gap
was only 6 points and the next candle not broken the high of this candle. So, it’s a no trade zone.
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Scenario 4: If the market gives big one side movement after opening and one get entry with 9:55 rules,
then the target and profit should book as per current day swing.
Above opportunity is based 21th May chart and its not a gap up opening but nifty gave one side
movement after opening so one should consider current day swing to mark SL and target.
ii. How To Reduce Your Losses

Scenario 1: Market revert from 0.382 level
If the market reverts from 0.382 there are the chance that market will make double top and bottom
and then will revert so you should trail your stop loss between 50% of 0 and 0.236 level. You can
reenter if it gave closing bellow 0.236 level again or you can take a counter trade as per 9:55 Rule.
Above opportunity is based 28th Apr chart and the market reverted from .382 level and hit our SL. And
then we git the counter trade as per 9:55 rule.
62 | P a g e
Scenario 2: If the Market revert from middle of 0.618 and 0.5 level
If the Market revert from the middle of 0.618 and 0.5 level chances are less that market will revert so
you if you are same traders then book your profit of if you still want to wait then your stop loss should
be cost to cost and, in this case, don’t take the counter trade with 9:55 rules.
Above opportunity is based 1st March chart and after giving the short entry its reverted from the
middle of 0.5 and 0.618 levels and hits the stop loss. So, in this case we should book our profit or
change our SL to cost to cost.
Scenario 3: Counter Trade
In case the market reverts before hitting target and hit SL. We can take a counter trade as per 9:55
rules to cover our losses.
63 | P a g e
Above opportunity is based 12th May chart and the first trade was insisted at 9:55 but in that trade
the SL got hit at 10:20. So there was a opportunity to take a counter trade with 9:55 rules.
Note* I only trade with first two swings not more then it. If my target achieved any of first two swings.
I will not take trade with 9:55 rules.
64 | P a g e
d. ADVANCE FIBONACCI
i. What is Advance Fibo
The basic requirement for the advance Fibo is 15 Min time frame and identify the swing and Fibonacci
then if any candle give closing below and above .236 level and Following candle breach its low and
high take a trade.
Figure 38: (Based on advance Fibo Trade)
Above opportunity is based is of 11th May and the 9:15 candle gave closing above the .236 level and
the following candle breaches its high so here we will take the long trade.
65 | P a g e
ii. How to set your target
1. If the point difference between the 0 and .236 level is between 100 to
150 points in case of Bank nifty and 30 to 40 points in case of Nifty
then your target is .618 level
Above opportunity is based 11th May and the 9:15 candle gave closing above the .236 level and the
following candle breaches its high so here we will take the long trade for the target of .618 level as
the point difference between the 140 points. Stop loss will be 0 level.
2. If the gap between the 0 and .236 level is between 150 to 250 points
in case of Bank Nifty and 40 to 80 points in case of Nifty then your
target is .5 level
Above opportunity is based is of 20th Apr and the 11:45 candle gave closing below the .236 level and
the following candle breaches low so here we will take the short trade for the target of .5 level as
the point difference between the 211 points. Stop loss is 50% of 0 and .236 level.
66 | P a g e
3. If the gap between the 0 and .236 level is between above 250 points
in case of Bank Nifty and More the 80 points in case of nifty then the
target is .382 level and SL is closing above .236 Level.
iii. Important Points to remember

1. There is no Gap up and Gap down rules
2. Can draw swing any time in day
3. If the 20 EMA is just above the target, then one keep trailing your profit once price
touches 20 EMA.
4. If the first closing candle cover most of the target points or touches the target level
then don’t take trade
67 | P a g e
Trade on Option
Buying and Selling
68 | P a g e
10. OPTION TRADING
a. WHAT ARE OPTIONS?

An ‘option’ is a contract that permits (but doesn’t necessitate) an investor to purchase or trade
instruments like securities, ETFs or index funds at a pre decided rate after a specified period. Selling
and purchasing options are carried out in the options market. An option that permits you to acquire
shares sometime in the future is referred to as a “call option.” On the other hand, an option that
enables you to sell shares sometime in the future is a “put option.”
i. How to Use Call Options

A call option enables a trader to acquire a certain quantity of shares in either bonds, stocks, or other
instruments like indexes and ETFs at any point before the contract expires. When purchasing a call
option, to make profits, you would prefer that the asset or security price increases. This is because
your call options contract enables you to purchase that underlying asset or security at the
predetermined rate which is lower. Hence, in this case, you receive a discount when you use your call
options contract to make a purchase.
1. How to Use Put Options

A put option contract gives the investor the opportunity to sell a specific quantity of shares of some
underlying security, asset or commodity, at a pre decided rate before the contract expires. With such
contracts, one can make profits in case the asset or security prices drop in the future. This is done by
selling underperforming shares at a predetermined price closer to the original price using the put
option.
2. What is option buying?

An options buyer is one who is willing to pay a premium in advance, for having a right to buy/sell
(depending on Call/Put) underlying asset on expiry
a. Benefits of Options Buying
1. Options give you the power of Leveraging, as with limited capital one is able to ride the
bigger move.
2. The Risk involved here is to the tune of Premium paid. Say, if someone is buying a Nifty call
option by paying a premium of 40. And a Nifty lot consists of 75 units. Therefore, the total
premium paid will be equal to 40*75 = Rs. 3,000. So, by paying a premium of Rs. 3000 one is
able to ride the full move.
3. The option buyer has the opportunity of earning unlimited profit by just paying a premium
and the loss is limited to premium invested.
3. What is option selling?

Option seller is one who receives a premium as a fee for surrendering his right on Asset till expiry
a. Benefits of Options Selling
1. When the Spot price moves above the strike price at expiry, the option expires In the
Money. Options buyers gains and makes money.
2. When the Spot price is at or near the strike price at expiry, the option expires At the Money.
The Option seller earns the premium received as his income as the contract expires
worthless for the buyer.
69 | P a g e
3. When the Spot price is below the strike at expiry, the option expires Out of Money. The
Options sellers earns the premium received as income as the contract expires worthless for
buyer.
4. Calculation for Call option P/L

Take for example if the B=Nifty spot is trading at 15432, and the option buyer buys weekly call
option of 15400 by paying a premium of 120, then the
ITM
• Spot price at Expiry: 15700 (Say)
• Premium: 120
• Strike Price: 15400
• Profit for Option Buyer: (15700-15400-120) *75 = Rs. 13,500
• Loss for Option Seller: Rs. 13,500

ATM
• Spot price at Expiry: 15405 (Say)
• Premium: 120
• Strike price: 15400
• Loss for option Buyer: (15405-15400-120) *75 =Rs. 8,625 loss
• Profit of Option Seller: Rs. 8,625

OTM
• Spot price at Expiry: 15275 (say)
• Premium: 120
• Strike Price: 15400

Here, loss for option Buyer: (15275-15400-120) *75 = Rs. 18375 losses. But the maximum loss for an
option buyer is to the tune of premium paid. So, the maximum loss to Option Buyer in Out of Money
Call option is Rs. 9000
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5. What is option chain analysis?
• OI- Open Interest

• Change in OI – Current Day open interest
• IV - implied volatility
• LTP- Last Traded Price
b. HOW TO SELECT WRITE STRIKE PRICE?
1. For Option Buying

• On Friday, Monday, Tuesday – Buy ATM or Nearest ITM
• On Wednesday– Buy Deep ITM option
• On Expiry – Buy Deep ITM option or Next week expiry option
I.e Current Spot Price of Nifty is 35750 and one is bullish for the bank nifty the strike one should
select is
• On Friday, Monday, Tuesday – ATM -35700 CE or Nearest ITM – 35600 EC

• On Wednesday– Buy Deep ITM option – 35500 CE or 35400 CE
• On Expiry – Buy Deep ITM option- 35500 CE or 35400 CE or Next week expiry option
2. For Option selling

• On Friday, Monday, Tuesday – Sell ATM or Nearest OTM
• On Wednesday– Sell Deep OTM option
• On Expiry – Sell Deep OTM option or Next week expiry option
I.e Current Spot Price of Nifty is 35750 and one is bullish for the bank nifty the strike one should
select is
• On Friday, Monday, Tuesday – ATM -35700 PE or Nearest ITM – 35600 PE

• On Wednesday– Sell Deep ITM option – 35500 PE or 35400 PE
• On Expiry – Sell Deep ITM option- 35500 PE or 35400 PE or Next week expiry option
71 | P a g e
c. WHAT IS HEDGING?
Hedging is used by trader to reduce their exposure to risk in the event that an asset in their trade is
subject to a sudden price decline. When properly done, hedging reduces uncertainty and limit losses
without significantly reducing the potential rate of return
There are four types of hedging we can do
1. Hedge option buying to sell option

2. Hedge option selling to buy option
3. Hedge Future with Buy Call/Put
4. Future & Sell Call/Put
Hedge option buying to sell option

One can buy ATM option and sell OTM option for the hedging. The margin required for this is
18,000.
Type of Trade Bank Nifty Spot Price Strike price to Buy Strike price to Sell
Bullish 35455 35400 CE 34800 CE

Bearish 35455 35500 PE 35100 PE
Hedge option selling to buy option

One can sell ATM option and buy OTM option for the hedging. The margin required for this is
18,000.
Type of Trade Bank Nifty Spot Price Strike price to Sell Strike price to buy
Bullish 35455 35400 PE 35000 PE

Bearish 35455 35500 CE 35900 CE
Hedge Future with Buy Call/Put

One can Buy / Sell Future and buy ATM Call/Put option for the hedging. The margin required for this
is 18,000.
Type of Trade Bank Nifty Spot Price Future Strike price to buy
Bullish 35455 Buy 35500 PE

Bearish 35455 Sell 35400 CE
72 | P a g e
Future & Sell Call/Put

One can Buy / Sell Future and Sell ATM Call/Put option for the hedging. The margin required for this
is 1,80,000.
Type of Trade Bank Nifty Spot Price Future Strike price to sell
Bullish 35455 Buy 35400 CE

Bearish 35455 Sell 35500 PE
73 | P a g e

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Platform Type Monthly

StockDeveloper* Paid 500

** Mandatory for stock selection.

1.1 WHAT IS A MOVING AVERAGE?

1.2 WHAT IS A TYPE OF MOVING AVERAGE?

1.3 WHICH MOVING AVERAGES I USE TO CHECK THE MARKET MOMENTUM

1.4 POSITIVE CROSSOVER (BULLISH MOMENTUM CONFIRMATION)

Time Frame: - 5 Min

Candle Type: - Normal

Moving Averages: - 5 EMA and 200 EMA

Figure 1: (Based on Positive Crossover)

1.5 NEGATIVE CROSSOVER (BEARISH MOMENTUM CONFIRMATION)

Figure 2: (Based on Negative Crossover)

1.6 WHAT IS THE ROLE OF 20 EMA

Figure 3: (Based on 20 EMA Crossover)

Above opportunity is based on 21st May

Above opportunity is based on 8th June -2021

Above opportunity is based on 9th June - 2021

2 WHAT IS CAMARILLA PIVOT POINTS

• R4 = Close + (High – Low) * 1.1/2

2.2 STANDARD LEVELS

2.3 HOW TO USE THESE LEVELS

• R1, R2, S1 and S2

2.4 WHAT IS EXPANDED/ADVANCE CAMARILLA LEVELS

R5 = (High/low) >< Close

S6 = Close – (R6 – Close)

2.5 HOW TO TAKE TRADES WITH CAMARILLA LEVELS

Figure: 1 (Based on R3 Reversal)

Scenario- 2: R3 Test Fail Reversal

Figure 2: (Based on R3 test reversal)

Scenario -3: S3 Reversal

Figure 3: (Based on S3 Reversal)

Scenario -4: S3 Test Fail Reversal

Figure 4: (Based on S3 Test Reversal)

2.5.2 Price is between R3 and R4.

Figure 5: (Based on R3 Breakdown)

Scenario -2: R4 Breakout

Figure 6: (Based on R4 Breakout)

2.5.3 Price between S3 and S4

Figure 7: (Based on Se Breakout)

Scenario -2: S4 Breakdown

Figure 8: (Based on S4 Breakdown)

2.5.4 Price is outside the R4 and S4

Figure 9: (Based on R4 Reversal)

Scenario -2: R4 Test Fail Reversal

Figure 10: (Based on R4 Test Reversal)

Scenario -3: S4 Reversal

Figure 11: (Based on S4 Reversal)

Scenario -4: S4 Test Reversal

Figure 12: (Based on S4 test Reversal)

Scenario -5: R5 Breakout

Scenario -5: S5 Breakdown

2.6 WHAT IS CAMARILLA PIVOT WIDTH ANALYSIS

Note: Gap is wide. Try to avoid these stocks.

Figure 13: (Based on wide Width)

Figure 14: (Based on Narrow Width)

2.7 WHAT IS TWO-DAY CAMARILLA RELATIONSHIPS