• Disclaimer

• Using the signals

• Signal Guide (Each 6 Setups)
Disclaimer:
It's important to note that the information provided through our system is for educational and
informational purposes only. The signals generated are not to be considered as financial advice or buy-sell
recommendations.

1. Universal Systems:

The entry and exit setups we provide are based on widely recognized and popular systems used by traders
worldwide. These systems have a historical presence and have been employed for diverse market
conditions.

2. Educational Purpose:

Our signals aim to educate and inform you about potential opportunities in the market. It is imperative to
conduct your own research and consider your unique financial situation before making any investment
decisions.

3. Past Performance:

Past performance is not indicative of future results. Market conditions are dynamic and can change rapidly.
The accuracy of our setups is based on historical data and does not guarantee similar outcomes in the
future.

By using our stock signal feature, you acknowledge and agree that you are solely responsible for your
investment decisions. Nepse alpha Pvt. Ltd. shall not be held liable for any losses or damages arising from
the use of our signals.

USING THE SIGNALS

What do you mean by trading setups?

Trading setups are powerful tools in analytical arsenal. They help traders to objectively identify potential
entry and exit points based on a specific set of criteria. Whether you're a chart wizard or a fundamental
fanatic, incorporating setups into your strategy can refine your decision-making and enhance your trading
edge.

We understand that navigating the stock market can be both exciting and challenging. To enhance your
experience and address potential concerns, we want to clarify some aspects of our stock setup signal
feature.
1. Independent Entry and Exit Setups:

Unlike traditional theoretical buy-sell-buy-sell patterns, our system signals are independent Entry and Exit
setups. These are practical alternative to rigid theoretical frameworks of Entry-Exit-Entry-Exit. This unique
approach offers you greater flexibility and adaptability to ever-changing market conditions. With each
setup considered on its own merit, you have the advantage of making strategic decisions without being
tied to sequential patterns. This not only enhances your trading experience but also provides a more
dynamic and responsive strategy. Explore the possibilities with our independent signals and elevate your
trading game!"

Financial markets are constantly changing, driven by various factors such as economic indicators,
geopolitical events, and investor sentiment. A rigid "buy-sell-buy-sell" approach fails to adapt to these
changing conditions even if they may look great in paper due to real world trading commissions and
slippage and trade liquidity environment (Financial markets are not that easy). Instead, experienced and
successful traders often analyze market dynamics independently for both Entry and Exit setups. Real-
world trading requires flexibility and adaptability to navigate changing market conditions and
unexpected events. Independent Entry and Exit setups offer traders the freedom to adjust their trading
decisions in real-time based on new information, emerging trends, and evolving market dynamics. Entry
and Exit Setups are independent and should not be view as buy-sell sequence.

While algorithmic trading setup decisions can make the trading process more mechanical,
Nepsealpha.com has a layer of automated system to continuously monitor the performance of their
strategies and adapt them as needed. Therefore these are adaptive setups in nature. Markets are
dynamic, and what works today may not work tomorrow. By regularly reviewing and adjusting our
algorithms based on real-time market feedback, we can ensure that the Entry and Exit setups remain
effective in evolving market conditions.

While short selling might not be available in NEPSE, Exit setups remain an essential component of any
robust investment strategy. Here's why:

Risk Mitigation: Exit setups act as a shield against potential downturns in the market. When you're waiting
on the sidelines with cash, a fresh Exit setup serves as a warning sign, helping you avoid entering a position
during unfavorable market conditions. By sidestepping these situations, you minimize the risk of enduring
significant drawdowns on your investments.

Patience Pays Off: Rather than blindly jumping into the market, waiting for a favorable Entry setup, being
patient and disciplined pays dividends. Sell setups provide you with an opportunity to exercise caution and
prudence, ensuring that you deploy your capital strategically when the market conditions align with your
investment objectives.

Portfolio Optimization: Exit setups empower you to optimize your investment portfolio by identifying
opportunities to rebalance or reallocate your holdings. When a stock reaches its peak valuation or exhibits
signs of underperformance, Exit setups guide you in making strategic decisions to maintain a well-
diversified portfolio.

Profit Maximization: Just as Entry setups help you identify opportunities to enter the market, Exit setups
serve as signals to capitalize on profit-taking opportunities. By recognizing when a stock has reached its
long term or mid-term target price or is overvalued, you can lock in gains and maximize your returns.
2. Diversification for Setups:

System provide six different types of setups to help you diversify your portfolio and manage risk effectively.
Diversification of setups reduces the impact of adverse movements in any single stock or sector.

3. Realistic Accuracy Measures:

The entry and exit setup accuracy displayed is based on practical execution (success event is calculated
only after 3 candles to make it practical for Nepal stock Market), not just theoretical scenarios. We consider
reaching bearish or bullish targets and the feasibility of executing trades in real market conditions. Risk
Management section shown in signal area provides basic but practical risk management informations.

4. Risk management and Profit Capture

In accordance with common trading approach, it is recommended to initiate partial exits at a minimum of
25% of at the 1st target level, while complete liquidation is advised upon reaching the 2nd target. It is crucial
to acknowledge the potential for continued upward or down-ward movement in stock prices even after
executing an exit. For such case, the preferred setup is trend-following which is already available in the
system (experienced traders can use their own exit strategy). (And for large portfolio management ideas
to capture huge market returns, Quant Model portfolios (alpha 30 and sector rotation) are available in
Sastoshare. It is highly difficult to achieve the performance of such portfolios with trading signals even
with high profit factor and higher accuracy. So for large portfolios trading with signals or setups is not
a recommended approach)

Prior entering a trade, important consideration should be given to position sizing. Software provides a
position sizing calculator to ensure optimal capital deployment and risk management. Additionally,
Sastoshare employ a dual-stop loss mechanism consisting of a 'Initial' stop loss at the trade's inception
and a 'trailing' stop loss once the position is in profit. This comprehensive strategy is designed to optimize
risk-adjusted returns and align with disciplined investment approach."

5. Are there any types of traders who should avoid using these signals?

This software is not intended for traders who are unaware of the risks involved in the stock market.

6. For whom is this trade setup signal intended?

The software focuses on active trading strategies and the may signals require analysis and interpretation,
they are likely best suited for individuals with prior knowledge of the market and a willingness to manage
risk. Complex signal strategies might be overwhelming for beginners and require understanding of
technical analysis or other trading tools.

Are they buy and sell recommendation?

These signals are not buy/sell instructions or guaranteed profit predictions. They're designed for education
to new traders. And for experienced traders to assist them find potential setups reference with an effort
to balance accuracy and profitability.

Signal Guide
Trend Following Setups Signals
Concept

Trend following trading is a strategy that aims to profit from sustained movements in asset prices, either
upwards (uptrends) or downwards ( downtrends). Instead of trying to predict specific price levels, it
capitalizes on existing momentum by riding the wave of a trend.

Sastoshare software combines two key approaches to trend following: trend reversal and trend
continuation, aiming to capture both new trends and profitable pullbacks within existing ones.

1. Potential Trend Reversal Setup Signals:

These signals identify potential reversal from established trends, suggesting a change in direction.

2. Trend Continuation Signals:

These signals confirm the continuation of an existing trend, allowing for re-entry after pullbacks.

The software dynamically adjusts the weights or thresholds of different signals based on market
conditions.
Breakout Setups Signals
Concept

Breakout trading is a strategy used by active traders to capture potential profits when an asset's price
breaks through significant levels of support or resistance. Breakout traders wait for the moment it "breaks
out" of this range, signaling a potential shift in market momentum.

Dual Power for Every Market Regime :

Unlike one-dimensional strategies, sastoshare software analyzes the market through a dynamic lens,
adapting its breakout detection based on prevailing conditions:

Bullish Market: When the overall market trend is up, the software prioritizes indicators that confirm
buying pressure and upward momentum. Think of it as cheering on the bulls, identifying moments when
their strength pushes prices higher.

Bearish Market: When the market dips, the software shifts its focus to signals that point towards selling
pressure and downward movement. It becomes the bear's confidante, recognizing their dominance and
potential profit opportunities in falling prices.

Combating False Breakouts:

False breakouts are like fleeting mirages in the desert, luring traders with deceptive price movements. But
sastoshare software is armed with a sophisticated toolkit to combat them:

Indicator Weighting: By assigning different weights to various technical indicators, the software filters out
noise and focuses on signals that best fit the current market context.

Volume Confirmation: High volume often accompanies true breakouts, acting as a validation of the price
movement. Sastoshare software factors in (historical liquidity pattern of that symbol) reference volume
data of the overall range based on the stock history to ensure the breakout has sufficient backing.

Enhanced Accuracy, Increased Potential:

This dual approach to breakouts offers several advantages:

Wider Range of Opportunities: You're not limited to just bull markets; you can capitalize on both upward
and downward trends, maximizing potential profit opportunities.

Reduced False Signals: The dynamic weighting and volume confirmation help weed out deceptive
breakouts, leading to more reliable trading decisions.

Adaptability to Market Dynamics: The software's ability to adjust its focus based on market conditions
makes it a versatile tool for navigating different trading environments.

Caution: Breakouts, even with advanced detection methods, are not foolproof. Always employ sound risk
management practices like stop-loss orders and position sizing to protect your capital. Back testing and
demo trading are recommended before venturing into live markets.

Mean Reversion Setups Signals

Concept
Mean reversion trading is a trading strategy based on the idea that prices of assets, like stocks or
currencies, tend to return to their average levels over time. Imagine a ball bouncing around on a
trampoline. The ball might go high and low, but it always eventually comes back down to the center. In
mean reversion trading, you're basically betting that the ball will come back down after it goes up too high.

Different timeframes can be used for mean reversion trading, and this software focuses on the shorter
end of the spectrum, from a week to a few weeks. This has its own advantages and challenges:

Advantages of Short-Term Mean Reversion:

Faster Action: Shorter timeframes offer quicker potential profits because price movements tend to be
faster and more frequent.

Reduced Commitment: Smaller timeframes require less capital at risk and allow for quicker adjustments if
the trade goes against you.

More Active Trading: For those who enjoy the thrill of frequent trading activity, shorter timeframes provide
more opportunities to enter and exit positions.

Challenges of Short-Term Mean Reversion:

Increased Noise: Shorter timeframes are more susceptible to market noise and volatility, leading to false
signals and missed opportunities.

Greater Risk: Price movements can be more unpredictable in shorter timeframes, amplifying risk and
requiring tighter stop-loss measures.

Psychological Demands: The fast-paced nature of short-term trading can be stressful and demanding,
requiring strong discipline and emotional control.

This software caters to this short-term approach by analyzing indicators and detecting mean reversion
opportunities within the weekly to few-week timeframe. By focusing on this specific window, it aims to
capture quicker price swings while staying mindful of the inherent risks.
Momentum Trading Signals

This software employs a momentum trading strategy specifically focused on capturing profitable
opportunities within established trends. It achieves this by combining two key ideas:

1. Trend Confirmation: Before initiating trades, this software first ensures the presence of a clearly
established trend in the intermediate timeframe. This timeframe, between short-term and long-term,
provides a good balance between capturing quick movements and gauging overall market direction. By
confirming the trend, the software aims to increase the probability of your trades aligning with the
prevailing market momentum.

2. Buy High, Sell Higher: Once the trend is confirmed, the software generates momentum setups
recommending entry high and exit higher. This might seem counterintuitive, but the logic lies in identifying
strong momentum within the existing trend. Imagine riding a wave: you wouldn't jump on at the bottom;
you'd wait for it to rise a bit, then catch it for a further ride up.

Inside the Trend: These setups don't necessarily aim to buy at the absolute peak of the trend; they focus
on entry points with strong momentum indicators suggesting the trend still has room to run. This helps
avoid buying near potential reversals and increases the potential for capturing further upward movement.

Benefits of this Approach:

Increased Accuracy: Combining trend confirmation with momentum signals helps filter out false breakouts
and identify entry points with higher probability of success.

Profitable Entries: Buying during strong momentum periods within a trend can potentially lead to larger
gains compared to buying at the beginning of the trend.

Flexibility: This approach can be applied to both uptrends and downtrends, allowing you to capitalize on
momentum in both directions.

Challenges to Consider:

Timing the Market: Identifying the optimal entry and exit points within a trend requires practice and
analysis, as momentum can reverse unexpectedly.

Risk Management: Strict risk management practices like stop-loss orders are crucial, as even strong trends
can reverse, leading to potential losses.

Psychological Control: The "buy high, sell higher" concept might be counterintuitive for some traders,
demanding discipline and emotional control to avoid chasing risky entries.

Understanding Software's momentum Signals:

Familiarize yourself with the specific momentum trading.

Backtest and demo trade the strategy to gain confidence in interpreting the signals and managing potential
risks.

Remember, no strategy guarantees consistent success. Always prioritize risk management and adapt your
approach based on market conditions and your own risk tolerance.

By combining sastoshare software's trend confirmation and momentum setups with thorough analysis,
disciplined risk management, and emotional control, you can potentially navigate established trends and
leverage momentum for profitable trading opportunities.
Swing Trading setup Signals
Swing Trading: Riding the Ups and Downs in Days or Weeks

Swing trading is a style of trading that aims to capture profits from short- to medium-term price
movements of assets like stocks, commodities, or currencies. Think of it as riding the swings on a
playground set – not holding on for the entire climb up and down, but hopping on for a few swings while
the momentum is good.

Timeframe: Swing trades typically last from a few days to a few weeks, focusing on price movements that
happen over a longer period than day trading but shorter than long-term investing.

Strategy: Swing traders analyze technical indicators and charts to identify trends or potential trend
reversals, aiming to enter a position when the price is moving in their favor and exit before the trend
weakens or reverses.

Risk Management: Disciplined risk management is crucial, involving using stop-loss orders to limit
potential losses and taking profits when appropriate.

Benefits of Swing Trading:

Potentially higher returns than day trading: Holding positions for longer periods can offer greater profit
potential compared to the quick in-and-out trades of day trading.

Suitable for various markets: Swing trading can be applied to stocks, commodities, currencies, and other
assets with sufficient volatility.

Challenges of Swing Trading:

Requires active analysis: Identifying good swing trading opportunities takes practice and understanding
of technical analysis.

Market risk: Even short-term trends can reverse unexpectedly, leading to potential losses if not managed
properly.

Not a get-rich-quick scheme: Consistent success in swing trading requires discipline, patience, and risk
management, not luck.

Remember:

Swing trading is not a guaranteed path to riches. Thorough research, understanding of technical analysis,
and disciplined risk management are crucial for success.

Backtesting and demo trading with your software and its specific signals are highly recommended before
using real capital.

Adapt your approach based on your own risk tolerance and adjust your strategies based on market
conditions.
Price Action Trading Signals

Price action trading is a technical analysis approach that focuses on understanding and interpreting the
movements of an asset's price itself, without relying heavily on external indicators or tools. Price action
traders decipher the "story" of the market through the raw price movements.

Here's the explanation of price action trading:

Focus on Price: Price action traders analyze the patterns, trends, and formations created by the price
movements on a chart. This includes studying factors like:

Candlesticks: Their shapes, colors, and relative positions offer insights into market sentiment and
momentum.

Support and resistance levels: Areas where the price tends to bounce or stall, revealing potential turning
points.

Chart Patterns: Visual representations of the overall price direction, aiding in identifying continuation or
reversals.

Minimal Indicators: While some price action traders might use a few basic indicators like moving averages
or volume bars, the emphasis is on interpreting the price action itself rather than relying heavily on
external signals. This fosters a deeper understanding of market dynamics and encourages independent
analysis.

Subjective Judgment: Price action trading involves a considerable degree of subjective interpretation.
Different traders might analyze the same price movement and draw different conclusions. This requires
experience, practice, and a disciplined approach to avoid confirmation bias or emotional trading decisions.

Benefits of Price Action Trading:

Develops market intuition: Analyzing raw price movements can enhance your understanding of market
psychology and dynamics.

Potentially adaptable: Price action analysis can be applied to various markets and asset classes with some
adjustments.

No reliance on proprietary tools: You don't need expensive indicators or software, just a basic charting
platform and analytical skills.

Challenges of Price Action Trading:

Subjectivity can lead to errors: Different interpretations of price movements can result in missed
opportunities or losses.

Requires practice and experience: Masterful price action analysis takes time and effort to hone.

Disciplined mindset is crucial: Emotional biases can cloud your judgment and lead to impulsive decisions.

Using Price Action Trading with Sastoshare Software:

This software provide automated price action setups signals or tools or features like candlestick pattern
recognition, support and resistance identification, or drawing tools to facilitate your price action analysis.

Use these tools as guides, not replacements, for your own interpretation and critical thinking.

Backtest and demo trade with your software to develop your price action analysis skills and gain
confidence before venturing into live markets.

Remember: Price action trading is a powerful tool, but it's not a magic formula. Combine it with disciplined
risk management, continuous learning, and a realistic understanding of its limitations to unlock its full
potential.

Thank you!

Nepsealpha.com