Day Trading के लिए Mother-Daughter Trading Strategy | #Learn2Trade Session 27
Welcome to the 27th session of learn to trade I am Vivek Bajaj and I am teaching trading to Annapurna Hello Annapurna! Hello Sir! How are you? I am good sir, how are you? I'm good too! We are getting good feedback for this learn to trade series. The Idea was to teach Annapurna trading and I thought why not teach everyone through her I hope that your learning journey is good with me. Let's move ahead we are done with 26 sessions and now a base has been formed, we will slowly move on to other things so that we are inclined to trading today we will discuss multi time frame trading. It might sound complicated, but I have only given it a jargon to scare you multiple time frame is when you observe different multiple time frames make your trading decision when ever I was showing you the charts in tradingview I used to show different time duration of same stocks that's multi time frame trading. I thought that I am showing it to you but I haven't explained you the concept deeply So today I will explain the concept. Let's go to tradingview and this is your screen your template is already made, where we have the price, the indicators that I have taught it's not required to use all the indicators. I have given you the explanation so that you can choose whichever suits you
this is the stocks price, candlestick, supertrend. Stock is Hindustan Unilever, this is the volume this is RS, that is stocks price divided by NIFTY, which indicates whether the stock prices going up or down This is RSI, that indicates a stock's Momentum or strength, whether it can keep outperforming or not This is daily chart now I will show you how do I do multi time frame trading. I will add another duration of chart to this this facility is there in tradingview but you need to take another version of this. you cannot do multi time frame in free version it is worth taking another version of this. When you click here, you will get the multiple time frame this is one day and this is 2 Hour. It is automatically set to 2 hours as I use it
you can change it to 2 hours as well. When you set a multiple time frame in tradingview you will get some parameters to sync when you click on this. If you click on symbol it means that the symbols for both will be same when you click on cross hair, then whenever I add a crosshair it will be on both the chart drawing is whenever I add a drawing it will be on the both. Interval is that both interval will be same if one is 2 hourly then the even the other one will be 2 hourly. We don't have to keep the interval same I will deselect it. Time is what time Horizon do I want to see the chart, so I can keep the time same I will click on this after I save the settings. We're seeing Hindustan Unilever shares daily chart and 2 hourly chart
you can ask why two hourly. Market is distributed between three sessions of roughly 2 hours per session but if you want to do intraday trading, then we will use 2 hours instead of one day and 15 minutes instead of 2 hours. You want to catch the movement early when you are doing intraday trading intraday trading is all about price movement, indicators do not play a very big role by the time price reacts, the indicators say something else.
The earlier we were able to catch the price movement with the volume data, the better we will be able to participate in the stock let's focus on swing first and then we will move on to intraday. Let's go to daily and 2 hourly I have hidden all the indicators here, which is replicated in the other there are some lines in the other one. We can remove the lines by clicking on settings and deselecting extended hours it will look cleaner if you remove it, these are the stocks that you are following I want to judge what is this stock trying to say in the longer time frame and if it is saying the same thing in the shorter time frame then I will follow it If Hindustan Unilever is negative in the longer time frame as the super trend is negative RS in downtrending and moving averages which are hidden now. It is good as per the moving average
but it is in the negative trend as per the price Trend. If we draw simple trendline we will see a negative Trend super trend is negative, negative trend line, RS is going down implying that it is under performing Nifty so this is a negative stock for me at the end of the day. If I want to do swing trading in it small swings, you can catch small swings into hourly chart. 3 to 5 days swing, the stop loss will also be small
and take profit will also be small. If you want to do long swing, need to see you long time frame we can keep weekly and a daily chart for a longer swing. It's important to fix the combination I want you to do the multi time frame analysis. There is a down trend in Hindustan Unilever the impact of me drawing the trend line has been replicated here, as the drawings have been synced I need to find the upper levels to sell as its trend is negative, so you will participate by selling as at the end of the day it is in the negative Trend. You will participate by buying if the trend is positive at the end of the day so you will not work against the trend. How will we participate by selling in swing trading? so you can do intraday trading. I haven't taught you futures or options till now
you can short sell in options considering the size of your capital you can short in futures, but you need a larger capital size for it it can be suicidal to work in small capital in futures, we can do it in options that is a negative Trend, the super trend is also negative in the two hourly chart the Rs is down, so the stock is weak even in the two hourly chart The upper range, that is the resistance level that is the supply zone how do we find supply zone? previous swing High could be one supply zone, trend line can be one supply zone bollinger bands. If it is moving towards the upper threshold of bollinger bands, then there are chances of a selling pressure To Move It Down, if the upper level is merging with the trend line and is also in the upper zone of bollinger bands then we can make a short attempt. Can we use RS for supply zone? We cannot use RS for supply zone you can only judge a stock strength or weakness through RS. If it's in downtrend then its weak if it's going up then it's strong. Use RS for only that purpose. Use price to evaluate demand zone and supply zone
give more weightage to price. Each time the stock goes up and reaches the upper band of the bollinger bands or the supply zone which is drawn by the trend line, when you can make a short attempt for a small profit and small stop loss Our money management technique will be the same. We first define stop loss and my profit will be either 2 or 1.5 or 3 times of my stop loss this is the truth that is applicable in all our videos. In this case, when we are shorting you need to look for stop loss what should be the stop loss? Previous swing's high, or the previous candles high you always short after a confirmation or when a technical indicator gives you a level Like Bollinger is giving you a level so you can keep this as a stop loss to short if you shorted at 2365 and stop loss is 2375. The stop loss is of 10 points, so I need to earn 15 points 1.5x is ok in intraday, it's better if we can do two times. I need to earn 20 points, so I will shot and I will square it up at 2345
so you will trade continuously if you are doing intraday. You need to be continuously alert in swing as the trend can change in the two hourly chart. You may that if the daily is a negative Trend and if it's near the lower range should I buy? You should buy as per bollinger bands but I won't suggest you to do it. Trade in one direction as you've created a view in the stock that you need to play short this is the most important decision that you need to take. If we consider before the sell and the super trend is saying buy in the two hourly chart and the daily chart is saying sell, then? Wait for it to say buy. It's like mother and daughter We will not do it till the mother tells us. you can take the trade but there will be whipsaws
as daughters are not very sure of what to do, but mothers are more confident as they have more experience the mother should tell us that the stock is going towards uptrend. Here I have used super Trend and it takes time for supertrend to give confirmation you can use another indicator to judge strength or weakness. I'm leaving that to you but wait for the mother trend to confirm that the trend is in buy and then just trade by buying you will be able to filter out the noisy trades from your system. Let's convert it to weekly and then we will move on to intraday I'll change it to weekly, and this to daily. This trade will be there for a longer duration super trend is positive in the weekly trend even though the price is downtrending if I want to trade in Hindustan Unilever for a longer period of time then I need to find opportunities to buy so I will buy at a lower level and sell at a higher level. If the weekly trend is saying buy and the daily trend is sell so I will wait for it to go down so that I can buy at a lower range. It is good for me the daily chart is saying sell
wait for the daily chart to be buy. Weekly, mother is telling us to buy, but if it goes down the delete chart we will say sell it will recover from beneath. If you see this zone, there was buying in this zone and the weekly chart was also telling us to buy this was the perfect time to buy as the trend also give us confirmation to buy and the weekly chart also told us to buy both should speak the same language before you trade. I want to make this thing clear to you stock market is a place where you should learn the art of elimination, when should you not trade you will always feel like trading as market is made in such a manner that all of us want to trade all the time but the smarter guys know when not to trade, this combination will help you to filter down the trades even if the mother is telling us to trade, I will only trade the daughter also asks me to trade Or else I will not trade. In this case, if I want to make a view of 30 to 40 days then I cannot sell you have to buy as the weekly chart is asking you to buy, let's go to intraday the concept will be much more clear Let's change this to two hourly chart. You might feel that the supertrend is sometimes asking you to buy or sell in the same stock
It depends on the duration of your trade. You can buy if your duration of trade is for 7 days but you can sell the same stock if you want to create a view for 30 days. But you need to be strict with your view once you have taken the trade you need to carry the position for 20 to 25 days let's move on to intraday. We will catch the trend from the 2 hourly chart. The trend is negative now
and we will generate leads from 15 minute chart. So let's convert this to 15 minutes RS doesn't play a very major role in the 15 minutes chart. Price and volume is most important in this the lesser duration of chart we track the less dependent we will be on the indicators the more duration of chart we track the more dependent we will be on the indicators we will see the price behaviour, send it to negative trend we will trade by selling as soon as the stock goes up over the bollinger bands or trade near the resistance then we will sell and we will cover when it reaches the midpoint of bollinger or if its meeting our profit of 1:1.5
Let's take some other stock for better clarity. Dabur. Dabur is positive in the two hourly chart so I will trade by buying. I will buy near the demand zone or When It Breaks the supply zone it's telling me to buy in the 15 minute chart as the super trend is positive I will buy when it reaches the midpoint of bollinger. Midpoint of bollinger is when there is a chance that the particular price will mean deviate it's a mean deviation, the stock will always be near the mean. Buy when it trades near it put the stop loss as a candles Low or a previous swing's low. 534 can be a stop loss and buy here The stop loss is of 5 points. I chose this as it was previous swing's low
so there are so many approaches to stop loss which according to you is the ideal one? there is nothing called ideal. There are so many boys, have you ever found in ideal boy everyone has their own strengths and weaknesses. There was Pandavi who wanted all the traits in a husband so she got 5 husbands, so there is nothing called ideal. You should always focus on one and continue using it no matter what path you take you will reach your destination this is one of the path which I am suggesting you to take. Bollinger is a great utility for intraday trading as there are higher possibilities of mean deviation in intraday. It is very volatile in intraday there are very less stocks with just keep going up in intraday, so bollinger will not work on it but generally in a normal movement the bollinger works, I will advise you to adapt this for an intraday setup catch the trend through a two hourly chart and track the 15 minutes chart whenever it reaches near the mean of the bollinger then buy with stop loss of previous swing's low previous swing low means the previous 15 minutes candle. Keep the stop loss below previous 15 minutes swing's candle's low
buy only if it retraces or buy If It Breaks the previous swing's high, as it might just keep going up and keep shifting your average upwards. There are many swings, there are small and big swings should I focus on the bigger swings on the smaller swings. That will depend on the time and the duration of your trade if it was 15 minutes then you can only catch small swings, if you convert it to 2 hourly then you will be able to catch bigger swings and if you convert it to daily then you will catch much bigger swings. The bigger the swing the higher the risk
larger will be your stop loss. You cannot old 50 rupees with the stop loss of 5 rupees it's very rare. You can earn up to 15 rupees with stop loss of 5 rupees. You cannot expect to earn a lot in intraday when is this possible, only when we're working in Limited stocks. How will it be possible if we track all the stocks all the time? I know this template has Limited stocks but the one that I actually track the screen is filled up with stocks that's ok as I had said that we will keep adding stocks with time, but don't see more than 25 stocks for intraday You need to create more watchlist for intraday, where you will trade intraday and separate watchlist for swing with 25 stocks. So create different watch list for both
But the stocks will keep changing in intraday, as it depends on delivery if we keep adding stocks in the watchlist then a huge repository is created so keep deducting some and keep adding some as per the chances of earning we can adopt the same thought for indices, like Nifty or Bank Nifty it's a Universal thought so we do not need to be stock specific for this. Let's go to Nifty This is Nifty's 2-hourly chart and this is 15 minutes chart. Nifty is positive in the two hourly chart this is the bollinger band, the 15 minute chart is also positive Till this is positive and the price is near the mean, we will make an attempt Can I buy Nifty 50 as well? You can buy Nifty 50, you need to buy a Nifty futures you can trade in nifty or Bank Nifty futures and options. You can trade in futures if you want to buy we will discuss this in details when we go to futures, but the most actively traded indices is Nifty and Bank Nifty the trend into hourly chart and we will try to attempt through the 15 minute chart there are higher chances of the stop loss getting hit in intraday, but the number of trades will also be high So maybe you took 10 trades of nifty on one day, 5 of them might hit the stop loss in five of them might get you profits but at the end of the day you will make money. Should you short? No as there is buying propensity
practice this, you will be able to adapt to it hundred percent. But define the multi time frame that you need to work on do you want to do two hourly and intraday or do you want to do daily and two hourly, which is more appropriate for a shorter frame 7 to 10 days swings Or you want to do weekly and daily so that you can take 30 to 35 days swings the bigger the swing the higher will be the stop loss the more risk you will take I thought there is higher risk in intraday. In terms of number of trades it will be higher in intraday in 50% cases the stoploss might get hit, but in terms of longest wings the stop loss is bigger so the number of trades will be less but the possibility of making money is probably equal in both there is more effort in intraday when there is less effort required in end of the day swing strategies wait and watch strategy works better in it.
this was a small attempt to teach Annapurna a trading strategy using multi time frame this is a very effective strategy and if you are already there in the market trading then use the multi time frame to create your own model. I'm sure you will benefit from it if you get stuck somewhere then I am there. Comment and I will reply and I will try to answer all your questions thank you for watching this video and sharing my initiative with others, Bye
2021-06-13 12:53
