Hi Traders, 1. Let us compare my previous post statements with real price moves in two days. In point no. 1 of the trade plan I mentioned is quoting for your consideration."If taken out in 15 min time frame then the price will move to the red dotted line . in case this line is taken out in 15 min then the blue upper line is the target. Green arrow showing this condition from the green upper line." you can see price after two days broke green resistance and in 15 min time frame, the condition gets fulfilled. Aggressive traders can take positions but timing their trades on a lower time frame of 5 min with stop-loss. I many times wrote in my conditions that they are made up of two-time frames. 1h and 15 min. when I talk about taken out then by default, I am talking of two frames, not one. In today's case how one has to deal with it. Showing 15 min time frame to understand how one should take an aggressive trade after fulfilling 15 min condition.
2. See in fig green line is taken out by bullish white candle closed above green is the first requirement to be watched circled in green. closing is always watched for breaching line. second, see next candle did not close above-breached candle so wait for next that candle gave close above breached satisfied the condition. Now go in 5 min time frame to find buy set up with the stop loss of breached candle low on closing basis. This is how one should take the position on both time frames. The same condition applies for 1 hr also. Pink color line in 15 min chart is the sl for long trades on closing basis. Many traders are confused about taken out now I want you to help others replying in the comment box when any new traders ask about taken out in a practical way.
Trade plan for the next day.
1. See fig I made a triangle of red color showing the candle qualifies of taken out condition. The previous candle breached the green line but not closed above it so does not qualify. when triangle candle high is taken out by any candle in the next session on a closing basis then taken out condition will qualify. the stop loss will be low of red color triangle candle on a closing basis. some times price moves very fast crossing the low of the breached candle then covers your position immediately rather than to wait on a closing basis. There is no hard and fast rule in trading sometimes one has to see price action at this stage. Because the time frame is 1 hr so if you wait for one hr then the price can go very deep.
2. If in any case price takes the pink color lower line in 5 min time frame then the trend will change to the downside. look for a sell setup. Do not jump into the trade.
3. Upside red dotted line is a target if takes out in 15 min time frame then the blue line is the target. The rest market will decide.
YOGESH VATS Disclaimer:- All trading positions should be taken from consulting your financial planner. This study is for educational purposes only.
Thank you sir, but one question,
If tomorrow gap-up opening is there between green and red dotted line, then how long we should wait for trade setup in order to qualify taken out condition i.e. candle highlighted with triangle. is it 1 hour or 15 min?
yvatsji
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@wadhwaamit4, one hr. This is a hypothetical question can only be answered only in live circumstances.
wadhwaamit4
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@yvatsji, Sir, now this question is become real :).
ckirtane
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AS NIFTY OPENED GAP-UP I SOLD 10400PE(9JUL) AT 105 THEN NIFTY WENT UP TO 10575 WHERE I SOLD 10600CE AT115. TOTAL POINTS EARNED 220. I AM SAFE FROM 10180 TO10820. I AM DISCLOSING MY STRATEGY FOR ALL TO LEARN. NOW IF NIFTY GO UP TO 10700(IN NEXT 2 DAYS) I WILL COVER 10400PE AT 10/15 & SELL 10600PE AT 75/80. IF NIFTY GO DOWN TO 10400 I WILL COVER 10600CE AT 10/15 & SELL 10400CE AT 70/80. THIS IS HOW YOU GO WITH MARKET BUT KEEP YOUR HEDGE POSITION TILL EXPIRY & EARN PROFIT.
HOPE EVERYONE GET MY POINT HOW TO EARN EVERY WEEK.
bhamve
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@ckirtane, how much capital needed for selling put & call option at the same time ? pls give some idea? is it possible to sell options with minimum capital ? how much capital needed ?
ckirtane
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@bhamve, 1.60lk for selling 1put &1call on this capital you can earn 3 to 5k per week.
Looks like support is near red dotted line and resistance is 10628. I entered after red dotted line was taken out clearly( Gap up opening and closing above red dotted line) after looking at hour chart and 15 mins chart and sitting on long position. Last hourly candle on friday shows weakness when i look at it but i know we need to look at multiple formations.
Thank You so much. I feel you are doing great job with the analysis. Incase you have some paid services, i will be interested. harry_reddy@yahoo.com
yvatsji
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@harryreddy, Thanks for acknowledging my work. I do not believe in paid services. Everything us free for genuine seekers.
Cheers.
sunyuvasonyr1
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Ji, I need target and view of Balaji Tele Films. Today i bought it. Kindly Give your advice
If tomorrow gap-up opening is there between green and red dotted line, then how long we should wait for trade setup in order to qualify taken out condition i.e. candle highlighted with triangle. is it 1 hour or 15 min?