92% found this document useful (74 votes)
172K views120 pages

Binary Trading

1. The document discusses various candlestick patterns and their associated trading levels, including hammer candles, spinning top candles, engulfing patterns, piercing lines, and inside/outside bars. 2. Important trading levels are identified for each pattern, such as the 50% level of a strong candle or engulfing candle. Gap levels, overlap levels, and common horizontal/trendline levels are also examined. 3. Guidelines are provided for validating certain patterns, like engulfing candles needing to engulf 51-149% of the previous candle's body. Context on trends, momentum, and single vs. double candlestick levels is also given.

Uploaded by

Kd Daz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
92% found this document useful (74 votes)
172K views120 pages

Binary Trading

1. The document discusses various candlestick patterns and their associated trading levels, including hammer candles, spinning top candles, engulfing patterns, piercing lines, and inside/outside bars. 2. Important trading levels are identified for each pattern, such as the 50% level of a strong candle or engulfing candle. Gap levels, overlap levels, and common horizontal/trendline levels are also examined. 3. Guidelines are provided for validating certain patterns, like engulfing candles needing to engulf 51-149% of the previous candle's body. Context on trends, momentum, and single vs. double candlestick levels is also given.

Uploaded by

Kd Daz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 120

Content

Hammer Candle ------------------------------------------------------------ 2


Strong Candle -------------------------------------------------------------- 3
Spinning top Candle ------------------------------------------------------ 4
Doji --------------------------------------------------------------------------- 5
Trend ------------------------------------------------------------------------- 5
Common Level ------------------------------------------------------------- 8
Gap Level ------------------------------------------------------------------- 12
Overlap Level -------------------------------------------------------------- 13
Engulfing Pattern ( Level ) ----------------------------------------------- 15
Piercing Line & Dark Cloud Cover ( Level ) --------------------------- 19
Inside Bar & Outside Bar ( Level )--------------------------------------- 22
Bullish Hammer Level ---------------------------------------------------- 25
Bearish Hammer Level --------------------------------------------------- 25
Spinning Top Level ------------------------------------------------------- 26
Morning Star & Evening Star Level ------------------------------------- 27
M and W Pattern Level --------------------------------------------------- 30
Head and Shoulder Level ----------------------------------------------- 31
All Chart Patterns --------------------------------------------------------- 32
Candle gap-up & gap-down trade -------------------------------------- 38
Bullish & Bearish Engulfing Trade -------------------------------------- 41
Piercing Line & Dark Cloud Cover trade ------------------------------ 45
Morning Star & Evening Star Trade ------------------------------------ 47
HH, LH, HL, LL Level Trade ---------------------------------------------- 55
Chart Pattern Trade ----------------------------------------------------- 60
Market Structure ---------------------------------------------------------- 64
Tail Less Candle Strategy ------------------------------------------------ 65
How to Find Buyer And Seller Positions ------------------------------ 67
Candlestick Reaction ------------------------------------------------------ 72
FFLL & FFLC ----------------------------------------------------------------- 91
5-Minute Candle Strategy/Single Candle Minor Level -------------- 97
Three Candle Rejection Pattern ----------------------------------------- 101
Trading Rules ---------------------------------------------------------------- 107
Compounding Rules -------------------------------------------------------- 112
Emotion In Trading ---------------------------------------------------------- 113
Day #1

* THERE ARE FOUR TYPES OF CANDLES IN THE MARKET


1. Hammer Candle
2. Strong Candle
3. Spinning Top Candle
4. Doji Candle

1. Hammer Candle

Important Levels

NOTE: - The opening and closing of any candle is a level

Type of Hammer Candle


2. Strong Candle

Compare
Last
Candle
50% Strong Level

Type Of Strong Candle

Marubozu Candle

50% Strong Level

NOTE: - 50% level of a strong candle is a strong level


Type Of Marubozu Candle

3. Spinning Top Candle

Important Strong Level

Type Of Spinning Top Candle


3. Doji Candle

Strong Level

Type of Doji Candle

Doji Gravestone Dragonfly Four Price

NOTE: In any doji, the party making the wick can be strong if the
trend is towards the party making the wick.

* TREND

Uptrend Downtrend
LL

NOTE: When a level breakout from the body of the


candle, then that level will be considered a breakout.
Day #2
1. Common Levels
2. Gap Level
3. Overlapping Levels

1. Common Levels
A. Horizontal Level

NOTE: There should be maximum touch points for the common level and there
should not be body break of any candle.
Common Level
B. Trendline Common Level

NOTE: Instead of a 45 to 90-degree trendline, the trendline between 0 to 45


degrees will respect any levels more.
Common Level
2. Gap Levels

Gap Level

NOTE: The gap level is only in the candle of the same color

NOTE: If there is a gap level in the market without any reason,


then that level will work less.
NOTE: The gap and Overlap level is a strong level.

CLICK HERE TO WATCH THE VIDEO OF THE GAP & OVERLAP LEVEL
2. Overlap Levels

Overlap Level

NOTE: The Overlap level is only in the candle of the same color
Day #3
1. Engulfing Pattern
2. Piercing Line & Dark Cloud Cover
3. OutSide Bar & Inside Bar
NOTE: If the market is in an uptrend and if the market is
coming by creating HL, then the first target of the market
will be to break HH similarly, after creating the market LH
in a downtrend, its first target will be to break the LL.

NOTE: For more accuracy, trade should always be done in impulsive


waves only.

NOTE: If a pattern is created on the top of the corrective wave and the
market is coming without retesting that pattern, then that corrective
wave can come only up to 50% of the impulsive wave or will reverse
before that. But if the market is coming after retesting the pattern,
then the market can reach the lower support and can also break the
support.
1. Engulfing Pattern
NOTE: This is a continuation pattern.

A. Bullish Engulfing

This level is only useful for retest.

Power Of Level

( 50% )
( 75% )

50% Strong Level ( 100% )

Market Support Level

B. Bearish Engulfing
Market Resistance Level

50% Strong Level ( 100% )

( 75% )
( 50% )

Power Of Level

NOTE: Although the 50% level is the strongest level, you


can ignore the other levels if you wish.
NOTE: Other Engulfing Type Candle.

Gap Engulfing

NOTE: Gap up and gap down should not be too much. and
candles should be healthy.

NOTE: If we consider the previous candle of the engulfing candle


as 100%, then the closing of the engulfing candle should be
between 101% to 149% of the previous candle, only then the
engulfing pattern will be valid.

NOTE: If the engulfing candle engulfs the body of the previous


candle then also this pattern will be engulfing pattern, it is not
necessary to engulf the wicks of the previous candle to be
engulfing pattern

NOTE: These engulfing patterns will not be valid


2. Piercing Line & Dark Cloud Cover
NOTE: This is a fake breakout pattern
A. Piercing Line

50% level of the red candle

50% level of the green candle ( Strong Level )

Market Support Level

NOTE: For this pattern to be valid, it is necessary that the


second candle closes above the level broken by the
previous candle and also above the 50% level of the
previous candle.
NOTE: The 50% level of the 2nd candle is the strongest
level in this pattern. And the 2nd candle can form from
51% to 100% of the previous candle

B. Dark Cloud Cover

Market Resistance Level

50% level of the Red candle ( Strong Level )

50% level of the Green candle

NOTE: For this pattern to be valid, it is necessary that the


second candle closes below the level broken by the
previous candle and also below the 50% level of the
previous candle.
NOTE: In Piercing Line and Dark Cloud Cover patterns, the
market does not require retest, the market goes without
retest.

NOTE: Other Piercing Line & Dark Cloud Cover.


Market Level

50% of previous candle

A. Piercing Line B. Dark Cloud Cover


3. Inside Bar & OutSide Bar

A. Inside Bar B. Outside Bar

Candle Level Zone

NOTE: By the way, this level zone is no trade zone because


the market reverses from anywhere in this zone.

Candle Level Zone

NOTE: We will consider Inside Bar & Outside Bar only when there
is momentum of at least three healthy candles after the
formation of this pattern, and in uptrend the closing of that
momentum should be below the low of the previous candle, and
in a downtrend, The closing of that momentum should be above
the high of the previous candle.
NOTE: Three Candle Rejection Pattern

Level
Day #4
Single Candlestick Level
1. Bullish Hammer Level
2. Bearish Hammer Level
3. Spinning Top Level

NOTE: The 5-minute trend will be important for 1-minute trade.

1. Bullish Hammer Level

C
Single Candlestick Important Retest Level
O
Double Candlestick Important Level

Hammer

50% Level

C
O

Inverted Hammer

2. Bearish Hammer Level


O
C
50% Level

Hammer
Double Candlestick Important Level

O Single Candlestick Important Retest Level

Inverted Hammer

NOTE: Single candlestick levels work more in a sideways markets.

1. Spinning Top Level

C
O Important Level

Important Level
C
O

O
C Important Level

Important Level
O
C
Day #5
Multiple Candlestick Level
1. Morning Star & Evening Star Level
2. Inside bar & Outside bar Level
NOTE: The 5-minute trend will be important for 1-minute trade.

Power Of Level :-
HH, HL, LH, LL Level

Chart Pattern Level

Level Power Increase


Triple Candlestick Level

Double Candlestick Level

Single Candlestick Level

NOTE: gap up, gap down and overlap levels will be in between.

1. Morning Star & Evening Star Level


Morning Star

Level Importance
Level Importance

(3)

(1)

(2) (2)
(1)

NOTE: The 50% level of the green candle is to be taken only when
this candle is an averagely stronger candle than the previous 10
candles, but if the green candle is weak then its 50% level is not
to be taken.
NOTE: When the market comes back
from above, it can take a reversal
from these levels.

NOTE: The wick side of the middle candle should not be above the
body of both candles, only then this pattern will be valid.

NOTE: If the middle candle in this pattern is green then the


accuracy of this pattern will increase slightly.

NOTE: When a strong candle appears in any pattern, the 50%


level of the strong candle will always be an important strong
level.

Evening Star

50% Level

1. Inside bar & Outside bar Level

Levels of this pattern are given on page 22.

NOTE: If two-three patterns are formed in the market


simultaneously, then there the market will mostly follow the
trend or else the market will turn sideways.
NOTE: Gap level and overlap level always work in the market,
even after going far away.

Green Candle 50% Level

Morning Star

NOTE: The green 50% level is more important than the gap level
in this above chart because the gap level is formed on the left
side of the green candle and the level of the green candle is a
newer level than the gap level.

NOTE: When immediately after the closing of a candle, another


candle starts forming on the opposite side, then the first candle
can be an Exhaustion candle.

NOTE: If a candle does not reach the target in the first 30 seconds
of opening, then the candle will try to touch the target for sure in
the next 30 seconds, but if the candle has touched the target in
the first 30 seconds, then the candle may form the opposite. If a
candle has not been able to achieve the target the first time,
then it will try to achieve that target next time.

NOTE: The market never completes " V and FFLL " against the
trend (full feel last leg -FFLL ).

NOTE: If there is a gap down after a strong candle, then that gap
down is done by the opposite party because the party of the
strong candle does not need to gap down because the party of
the strong candle is already very strong.
Day #6
Chart Pattern Level
1. M - Pattern & W - Pattern
2. Head and Shoulder & Inverted Head and Shoulder

1. M - Pattern & W - Pattern

NOTE: For the M and W pattern to be valid, it is necessary that


this pattern should consist of at least 5 or more candles.

M Pattern
Common Level

B
Neckline Common Level
A( 1 )
A( 2 )

Level Importance

NOTE: In the M pattern, when the market moves from top to


bottom, its target is to break the neckline (A) and when the
market moves from bottom to top, its target is to break the
neckline (B).
W Pattern Level Importance

A( 2 )
A( 1 )
Neckline Common Level
B

Common Level
1. Head and Shoulder & Inverted Head and Shoulder
Head and Shoulder

Common Level

Body Neckline Common Level Neckline

NOTE: In This pattern, when the market moves from top to


bottom, its target is to break the Wick Common Level neckline
and when the market moves from bottom to top, its target is to
break the Candle Body neckline. all same as the M pattern.

Inverted Head and Shoulder

Common Level Neckline Body Neckline

Common Level
W
NOTE: HH, HL, LH, LL, and the neckline level of the chart pattern
are a reversal level, the rest are continuation levels. Because
whenever the market breakouts or skips these levels, a reversal
candle appears.

NOTE: Continuation happens whenever a candle without a tail


appears in the market. And if the trend is with you then the
accuracy increases

NOTE: A breakout of round number levels ( ex.775, 770, 700 ) can


result in a reversal in the market, but trading in round numbers
is a bit risky because there are breakouts of round number levels
many times in the market, so trade every time should not be
taken.
Day #8
Gap up and Gap down trade
1. Green candle gap down Trade
2. Green candle gap up Trade
3. Red candle gap up Trade
4. Red candle gap down Trade

1. Green candle gap down Trade

Entry Candle
(C)

Level

(B)
50% Of Green Candle

Wick Level

(A) Entry is to be taken


below these levels

NOTE: It is necessary to reject the B candle from the level. It is


necessary that the wick touch of the B candle from the level.
NOTE: Candle B should not be a Doji candle.
NOTE: Candle C should not be the last candle of 5 minutes.
NOTE: If candle B is a strong candle, then entry is to be taken
below its 50% level or below the rejection point of the wick of the
previous candle. This means entry has to be taken below some
support level.
NOTE: The first momentum of candle-C should be below its
opening. If the first momentum of candle-C is above its opening,
then candle-C can touch the level and come down and form a red
candle.
NOTE: This setup can be risky on round numbers.
NOTE: If the market gap up, gap down without any reason, then
most of the time it reverses.

2. Green candle gap up Trade


(C)
Entry Candle

Level

(B)

Entry is to be taken
below these levels

Entry
(A)

NOTE: The gap-up level should not be a reversal level (HH, HL, LH,
LL, Chart pattern neckline). The candle can reverse when the
gapup level is the reversal level.
NOTE: It is not necessary for the B-candle to be rejected from the
level.

NOTE: Here sellers have gap-up and


gap-down because here buyers did
not need to gap-up and gap-down.
Here buyers did not need to gap up
and gap-down after level breakout

NOTE: If the opening of the gap-up


and gap-down candle is done at the
fixed level, then avoid the trade
because there will be market
indecision.
3. Red candle gap up Trade

Wick Level

50% Of Red Candle

Level

Entry Candle

3. Red candle gap down Trade

Level

Entry Candle
Day #9
Two Candlestick Level Trading
1. Bullish Engulfing Trade
2. Bearish Engulfing Trade
3. Piercing Line Trade
4. Dark Cloud Cover Trade

1. Bullish Engulfing Trade


Pattern #1
Trade Candle

(D)
Wick Level
50% Level

(C)
Trade Entry

Retest Level

50% Level

(A) ( B)

Level

NOTE: The entry candle ( D-candle ) should not be the last candle
of five minutes.

NOTE: The retracement candle (C-candle) should not be doji.

NOTE: Trade on the next candle (D-candle) only when the


Retracement candle has broken the high of the B-candle.

NOTE: While placing the trade, it is important to note that there


should not be any resistance level near the top, nor should the
previous candle touch that level.

NOTE: If the trend is up then you can trade on candle opening at


your own risk.
NOTE: If this pattern is formed in the middle of the impulsive
wave, then this pattern does not require retracement, the
market moves without retracement.

Pattern #2

Trade Candle
(E)

Wick Level

50% Level

(C) Trade Entry


(D)
Retest Level

50% Level

(A) ( B)

Level

NOTE: D-candle should not be a doji candle

NOTE: The closing of the D-candle should be above the high of the
wick of the B and C candles.

NOTE: If the retracement


candle (C-candle) closes above
the level of 50% of the
engulfing candle with rejection
instead of the retest level, then
Retest Level the next candle may break the
(C)
level of 50%, so do not trade
50% Level
here. Do not trade if the candle
(A) ( B)
closes between the retest level
and the 50% level of the
engulfing candle, retracement
candle should close above the
retest level
NOTE: If the D-candle fails to break the high of the previous
candles and its next candle is a tailless candle that breaks the
highs of all the previous candles, then we can take a little risk if
the trend is with us. ( in Pattern #2 )

NOTE: (Pattern #1) If the C-candle does not retest in the uptrend
and the C-candle is a tailless candle that breaks the highs of all
previous candles, we can enter a trade here.

(C)
NOTE: If there is a gap from the
Retest Level retest level of the C-candle then
50% Level the next candle can retest. so
don't trade here
(A) ( B)

Wick Level

Gap Up
(C)
NOTE: Gap up below the level, do
Retest Level
not trade here.
50% Level

(A) ( B)

NOTE: Whenever Engulfing is in between two levels, do not trade


there. Because here the market can get stuck.

NOTE: Whenever a strong candle has a big wick, then that candle
is not to be considered a strong candle..
do not trade here

(D)
(C)

Retest Level

50% Level

(A) ( B)

NOTE: If the market does not meet the target in the direction of
the trend but completes the target in the opposite direction of
the trend, then there can be a trend change.

2. Bearish Engulfing Trade

Pattern #1
Level

(A) (B) Trade Entry

50% Level

Retest Level

(C)
50% Level
Wick Level

(D)

Trade candle
Pattern #2
Level

(A) (B)
Trade Entry
50% Level

Retest Level

(C) (D)
50% Level
Wick Level

(E)

Trade candle

3. Piercing Line Trade

Trade Candle

(C)

50% Level

(A) ( B) Level

NOTE: In this, the accuracy of the trade in candle opening


remains up to 80%..

NOTE: Entry is to be taken below the level of 50% of B-candle only


when buyers' entry (rejection) is seen there. Because if this does
not happen, the C-candle can also become a big red candle.
NOTE: If the C-candle gap-up gapdown, then the rule of gap-up
gap-down will apply here.

NOTE: Generally retest is not required in this pattern but for


safety, you can take entry if you see a rejection of buyers below
the 50% level.

NOTE: There should not be any resistance level near the entry
candle.

NOTE: If a pattern forms in the middle of an impulsive wave, the


market can move from there without retesting the pattern.

3. Dark Cloud Cover Trade

Level (A) ( B)

50% Level

(C)

Trade Candle
Day #10
Three Candlestick Level Trading
1. Morning Star Trade
2. Evening Star Trade

1. Morning Star Trade


Pattern #1

Trade Candle
Safety Entry

(E)

50% Level

Wick Level
(D)

Retest Level

50% Level

Wick Level
(A) (C)
(B)

NOTE: The trade candle should not be the last candle of five
minutes.

NOTE: The continuation candle (D-candle) should not be a doji


candle and there should not be any strong level nearby.

NOTE: The market does not need to retest in the middle of an


impulsive wave.

NOTE: The closing of the D-candle should be above the high of the
wick of the C-candle.

NOTE: For more safety, you can take the trade below the 50%
level of the D-candle or below the high of the wick of the C-
candle.
NOTE: The accuracy of this pattern comes up to 90-95%. For more
accuracy, you can trade at the beginning of the impulsive wave.

Pattern #2

Trade Candle

Safety Entry
(F)

(D) (E)
50% Level
Retest Level
50% Level

Wick Level
(A) (C)
(B)

NOTE: ( Pattern #2 ) The E-candle should close above the high of


the D-candle. But it is even better if the E-candle closes above the
high of both the C and D candles.

NOTE: ( Pattern #2 ) The continuation candle ( E-candle ) should


not have a doji or spinning top.

NOTE: ( Pattern #2 ) For safety, the trade can be taken below the
50% level of the continuation candle ( E-candle ).

NOTE: Trading the one-minute charts with a five-minute market


target can give you some help with your trading setup.

NOTE: If the continuation candle is of tail less then the trade can
also be a sureshot
NOTE: If ever a tailless candle comes into the market which
fulfills or engulfs the previous candle, then whenever a tailless
candle comes in the subsequent momentum, the market mostly
does continuation. And if the trend is with it then it mostly
becomes a sureshot. It is necessary to have the head of the
tailless candle.

NOTE: If the tailless candle hits the target, most do


continuations.

Pattern #3

Trade Candle

Safety Entry
(F)

(D) (E)
50% Level
Retest Level

50% Level

Wick Level
(A) (C)
(B)

NOTE: If you look at pattern #3, there are two patterns being
formed, Morning Star and Engulfing, so you can trade according
to both patterns.

Trade Candle

Safety Entry
(F)

(D) (E)

50% Level

50% Level

Wick Level
(A) (C)
(B)
GapUp

NOTE: If there is no level below


if there is a level
********************************************************
the gap-up opening, then this
(D) (E)
gapup is done by the sellers. But
Retest Level
50% Level if there is a level below the
gapup which has been skipped,
(A) (C)
(B) then it is done by the gapup
buyers.

NOTE: If there is no level above


GapDown the E-candle, then this gap-down
if there is a level
is done by the sellers. But if
there is a level above the E-
********************************************************

(D) (E)

50% Level
Retest Level
candle, then gap-down buyers
have done this to break that
(A)
(B)
(C)
level. Here trade entry for safety
can be taken below 50% of E-
candle

Trade Candle
(G)

(D)
(E) (F) Retest Level
50% Level

(A) (C)
(B) Two Retracement Candles

NOTE: Retracement can happen from two candles but not from
three candles.
Trade Candle

Trade Candle

Two Retracement Candles

This W will be considered to


be made up of four candles.
NOTE: A-candle has not even
Market Target

this candle should broken the key level of engulfing


have been green.
This can also be an
exhaustion candle
level and the target of the
market is also pending and the
(A) Engulfing Key Level market is also in an uptrend. So
you can take entry from the
opening in the next candle or
Uptrend
from below any level.

NOTE: If a candle in this pattern


breaks the key levels but does
not break the common level,
then this pattern will not be
considered failed. This pattern
will be considered failed only
Key Level

Common Level
when the common level of this
pattern is broken. If the
common level is not broken, the
market can move according to
the pattern.

NOTE: The D-candle is a weak


candle but this candle has
broken the high of both the A
Market Target
and C candles, the market target
is also far away. So we can take
Trade Candle

(E) a trade on E-Candle here. If the


(D)
Retest Level
D-candle is a strong candle and
(C)
50% Level the high of the A-candle has not
(A)
(B)
Wick Level been broken, we can still enter
the trade here, because the D-
candle is a strong candle.
NOTE: Do not trade here
Trade Candle Opening
because the D-candle has not
been able to break the high of
Retest Level the A-candle and the D-candle is
(D)
also a weak candle. But if the D-
50% Level

(A)
(C) candle being a weak candle
Wick Level
(B)
breaks the high of the A-candle
then we can enter the trade
here.

1. Evening Star Trade

Pattern #1

(B)
(A) (C) Wick Level

50% Level

Retest Level

(D) Wick Level

50% Level

(E)
Safety Entry
Trade Candle
Pattern #2

(B)
(A) (C) Wick Level

50% Level

Retest Level
(D)
50% Level
(E)

(F) Safety Entry

Trade Candle

Pattern #3

(B)
(A) (C) Wick Level

50% Level

Retest Level
(D) 50% Level
(E)

(F) Safety Entry

Trade Candle

NOTE: When a candle does not have a head, the next candle is
likely to reverse. Even if it is a retracement candle of a strong
pattern. But if a candle has a big head and a small tail, then there
are more chances of continuation.
Day #10
Trend Level Trading
1. HH, LH Trade
2. HL, LL Trade

1. HH, LH Trade

Trade Candle
(D)
Wick Level

(A) (B) (C)

HH, LH Level

Safety Entry

Uptrend

NOTE: The continuation candle (C-candle) should close above the


high of the A and B candles.

NOTE: The continuation candle should be healthy. And there


should not be any trendline and level on the upward side.
Continuation candles should not be doji and hammer.
Continuation candle rules will remain the same everywhere.

NOTE: Usually, one candle should be left after the HH, HL, LH, and
LL level is broken. Because from here the market can reverse. But
if the market is coming from behind with a lot of momentum
then the market will first continue from there and then reverse
after that.
NOTE: Don't trade here because
the B-candle is a headless candle
(D)
and it is also a weak candle. But if
Trade Candle
there is a head of B-candle then
(C)
Wick High
you can trade here and if another
(B)
(A)
green candle comes after the
hammer candle (B-candle) then
HH, LH Level
you can take a trade on the next
Safety Entry candle. By the way, when a
hammer candle comes on top, it
becomes a hanging main candle.

Trade Candle

(C)
(B) NOTE: The continuation candle (
B-candle ) should close above the
HH, LH Level
(A) high of the A-candle

Safety Entry

NOTE: The continuation candle should not be gap-up gap-down.

Gap Up
Opening NOTE: This gap-up buyer has
done, but due to the reversal
HH, LH Level
level, there is a high possibility of
the formation of a red candle, so
do not trade here.
Gap Down
Opening NOTE: Here this gap-down has
been done by the buyers and
HH, LH Level
there is a high possibility of this
gap-down candle becoming
green. You can take trade here.

Gap Up Opening

HH, LH Level NOTE: do not trade here

Trade Candle

HH, LH Level NOTE: You can trade here.

Gap Down Opening

NOTE: If there is no level on the


If there is a level
********************************************************* upside then do not trade here.
But if there is a level on the
upside, even if that level is a
HH, LH Level round number, you can take the
Gap Down Opening trade here. But take entry
according to the gap-up gap-down
trade rule.
Trade Candle Trade Candle

HH, LH Level

HH, LH Level Gap Up Opening

Trade Candle

New HH Level

HH Level

Uptrend

NOTE: There are two-morning


Trade Candle star patterns made here. There is
no need for a retracement here,
the market will go on without
retracement. And here the
pattern of two red and two green
candles is also formed.
2. HL, LL Trade

Do
wn
tre
HL LL Level nd
Safety Entry
(A) (B) (C)

Wick Level
Trade Candle (D)
Do
wn
tre
nd

HL LL Level (A) Safety Entry


(B)
Wick Level

Trade Candle (C)

NOTE: If you want to take an up trade and are using the safety
margin, the candle should come down first. If first go up and then
come down and you have clicked for up then there will be 90%
chance of loss.

NOTE: If you want to be successful in trading then get mastery on


any one setup don't try to trade on every setup,
Day #11
Chart Pattern Trading
1. M Trade
2. W Trade

1. M Trade

NOTE: Chart patterns are generally used for long term trading.

NOTE: There are three types of chart patterns – Reversal,


Continuation, and Neutral.

M Pattern

Common Level

Neckline Level

Trade Candle

NOTE: When the market moves from top to bottom in the M


pattern, the neckline of the lowest wick will be the target of the
market. The common level will also be an important level.

M Neckline Level

Trade Candle
NOTE: Continuation candles should not be a hammer, doji etc.

NOTE: When this M pattern is formed, some or the other pattern


will be formed on its right top. If the market goes down without
retesting this pattern, then it is less likely to reach the neckline,
and the market may reverse from the middle itself. To break the
neckline, it is necessary that the market retests that pattern.

M Body Neckline

M Wick Neckline

Trade Candle

NOTE: If the market is going without retesting the neckline, then


the market can reverse from anywhere.

NOTE: Do not trade here because


M Neckline the market has become indecision.

NOTE: The trading rules for all patterns are the same as for the M
pattern.

NOTE: You can take a trade on candle opening in M ​pattern but if


you take it with safety margin then it will be better.

NOTE: There should always be a break of the previous candle's


low (in M pattern) by a continuation candle. This rule will be
applicable in every setup
NOTE: The levels keep on shifting in the market, so the levels
should keep on changing according to the movement of the
market.

NOTE: If the market retests the second HL break, then the


downtrend is fully confirmed. Sometimes after retesting the first
HL break, the market makes it back to HH, so after the second HL
break, the market is more likely to go into a confirmed
downtrend.

NOTE: This will be the neckline


in this head and shoulder

M Neckline Level

Trade Candle

NOTE: This pattern is neutral.


Because the sellers have kept
their positions in the uptrend.
Common Level

Gap Down
NOTE: This M pattern will still be
valid.

NOTE: Take the first 2-3 trades of the day with the minimum
amount on your preferred setup. If that trade becomes lose, then
be a little cautious on that day. Because your favorite setup has
lost 2-3 consecutive trades, then other setups may lose more.

2. W Trade

Trade Candle

Neckline Level

Common Level
Day #12
Market Structure
NOTE: Here the market has not made a new high and has broken
the previous low, which means that the structure of the market
has changed here. And the market is not yet in the mood to make
new highs.
character change breakout

CLICK HERE TO WATCH THE VIDEO OF THE MARKET


STRUCTURE
NOTE: D, E, and F levels are weak levels, so avoid trading here, the
market can easily go down by breaking these levels.

NOTE: Market structure is used for long-term trading.

NOTE: Whenever the market comes to the demand zone, it will


try to go up.

NOTE: In internal price action, when the market will break the C-
high from the demand zone, then from there the market will go
to break the HH.

NOTE: There is no need to retest the market after breaking the C-


high as the market is still in an uptrend. After breaking the C-
high, the market may suddenly go up
NOTE: Trading on the one-minute chart by observing the market
structure, levels, and targets on the five-minute chart can
increase your accuracy. For example, you can see the target of
the five-minute running candle.

Demand Zone Example

NOTE: When the market is unable to establish a new HH and


breaks its previous low (D-Low), it means that the structure of
the market has changed. And the market is not in the mood to
install a new HH. Now the market can go up to HL. If the
structure changes after coming to HL, then we can take trades
from there.

NOTE: If the market will not be able to break HH, then the
structure of the market will start changing from there.

Tail Less Candle Strategy

Trade Candle
(3)

Tail Less Candle

(2)

(1)
Safety Entry

Uptrend
NOTE: Do not trade against the trend in a tailless candle

NOTE: The tailless candle should be the second candle and we


have to trade on the third candle. For example, if a red candle is
followed by a green tailless candle in an uptrend, do not trade
there, but if the second green tailless candle comes, then you can
trade on the next third candle. If a tailless candle is the only
candle in its party, then the next candle can be reversed, so
whenever a tailless candle comes, the previous candle of that
tailless candle should also belong to that tailless candle's party.

NOTE: Tailless candles must have a head. Do not trade tailless


candles without a head.

NOTE: There should not be any level near the tailless candle.

NOTE: You can take a trade in the opening but it will be better if
you enter below 50% of the previous candle.

NOTE: Continuation happens whenever a candle without a tail


appears in the market. And if the trend is with you then the
accuracy increases

NOTE: If ever a tailless candle comes into the market which


fulfills or engulfs the previous candle, then whenever a tailless
candle comes in the subsequent momentum, the market mostly
does continuation. And if the trend is with it then it mostly
becomes a sureshot. It is necessary to have the head of the
tailless candle.

NOTE: If the tailless candle hits the target, most do continuations

NOTE: Do not enter the trade when the tailless candle breaks the
reversal level

NOTE: If a strong candle is the only candle in its party, its 50%
level is the weak level. But if there is a strong candle in any
momentum then 50% of it will be a strong level.
NOTE: Avoid taking trades on the first and last candle of five
minutes in the tailless candle strategy

NOTE: While taking a trade on the tailless candle, it is important


to keep in mind that the wick of a tailless candle has not been
rejected by any strong level.
Day #13
How to Find Buyer And Seller Position

NOTE: When the market breaks the positions of buyers and


sellers, it usually reverses from there.

NOTE: The accuracy of this setup is 70 to 75%.

NOTE: Sellers and buyers positions are generally used to avoid


trades. This means that whenever the market breaks the
positions of buyers or sellers, avoid continuation there as there
can be a candle reverse. But many people trade with filters on
this setup. So if you want to trade on this setup, you can do so by
taking the help of other filters.

Seller Position

Reversal Candle

Buyer Position

NOTE: There must be 2 to 3


(2) candles after the candles of
buyers and sellers positions,
only then those levels will be
(1)
considered as positions of
strong buyers or sellers. The
candles of buyers and sellers
should not be single candles.
Buyer Position
Sellers Position

NOTE: The last wick of any


Momentum
momentum would be the
positions of sellers and buyers.

NOTE: The level of buyers position in uptrend and sellers position


in downtrend will be stronger.

NOTE: Once the positions of buyers or sellers have been broken,


irrespective of whether there has been a reversal or not, then
those positions have no value.

NOTE: If by stopping any strong momentum, the opposite party


has created sellers or buyers position, then this position will be
the strongest position.

NOTE: If after the weakness of any momentum, the opposing


party comes and creates positions of sellers or buyers, then that
position level will be weak. Because the opposition party did not
have to work hard to come. So if the market breaks such a
position level then there is less possibility of reversal, the market
can exit from there even without giving reversal.
Weak Sellers Position Strong Sellers Position
Momentum Weakness

Strong Momentum
NOTE: Positions of buyers and sellers have to be seen in the
direction of the trend, opposite to the trend the accuracy will be
less.

NOTE: Avoid reversing strong momentum

NOTE: If there is a strong level near the breakout candle, which


shows the possibility of reverse, then you can reverse from there.

NOTE: When the market breaks a level for the third time, the
chances of a reversal will be high from there. Because it will be a
strong level for the positions of buyers or sellers. Or when the
market breaks the common level with two touches, then the
market is more likely to reverse from there.

NOTE: In chart (1), the buyers are going up by creating their


pressure, from here the buyers have to work hard to go up, so
when the buyers position created by this momentum is broken, a
reversal candle will appear there.

Big Red Candles


Reversal Candle

Weak Red Candles

Big Green Candles


Strong Buyer Position
Weak Buyer Position
Weak Green Candles

(1) (2)
NOTE: The strength of the buyers and sellers positions is
determined by the market momentum. If there is a lot of
momentum after a buyers or sellers position, then that position
will be a strong position.

NOTE: HH, HL, LH, and LL is a strong buyers and sellers position
levels.

NOTE: If a pattern is formed on any HH, HL, LH, LL and the


market is going to break any of these levels, then the market can
react on the key levels of the pattern. Therefore, if a pattern is
formed at any level, then one should be careful with the key
levels of the pattern.
Day #14
Candlestick Reaction
1. Bullish Hammer
2. Inverted Bearish Hammer
3. Inverted Bullish Hammer
4. Bearish Hammer
5. Strong Candle
6. Spinning Top
7. Doji

1. Bullish Hammer

Up

Most of the
reaction has
happened in
the wick

NOTE: If there is no level above then the next candle is most


likely to be green.

Down

Exhaustion has
happened
Down
Level Create Indecision

Most of the
reaction has Touching this level
happened in the market can go up
the body

NOTE: If the reaction of a candle is more inside the wick, then the
probability of continuation of the next candle is high. But if the
reaction of a candle is more inside the body then the next candle
is more likely to reverse

NOTE: If there is no level around the candle then the next candle
will come according to the reaction

Continuation can happen if there is buyers dominance


Down
Indecision

NOTE: This is all reaction without level. But if there is a level


around, then trade according to the level

Gap Up Opening
Up
Down
Level Create

Touching this level


the market can go up

2. Inverted Bearish Hammer

Most of the
reaction has
happened in
the wick

Down

Touching this level the


market can go Down

Indecision
Up
Touching this level the
market can go Down

Indecision
Up

Indecision
Up
The continuation can happen if there is sellers dominance

Exhaustion has
happened
Up
3. Inverted Bullish Hammer

Most of the
reaction has
happened in
the wick

Up

Here the entry of buyers is


necessary in the last time.
this is a tailless candle

NOTE: But if the sellers have made the last entry here, then be a
little cautious. But if there is an uptrend, then even if the last
entry was made by the sellers, the next candle will be most likely
to go up.

Touching this level the


market can go Up

Down
Indecision
Touching this level the
market can go Up

Down
Indecision

Touching this level the


market can go Up

Down
Indecision

4. Bearish Hammer
this is a tailless candle Here the entry of sellers is
necessary in the last time.

Down
Most of the
reaction has
happened in
the wick
Touching this level the
market can go Down

Indecision
Up

If there is a trend, it is
more likely to go with the
trend

NOTE: If most of the reaction of a candle is in the body, then the


next candle can be a reversal, so one should be a little cautious
while doing continuation there. But if most of the reaction of a
candle is in the wick, then the probability of continuation of the
next candle is high.

5. Strong Candle

Up

Buyers' dominance is visible in


this candle, so the probability of
continuation of this candle will
be more than 90%.
Touching this level the
market can go Up

Indecision

Down

Exhaustion has also happened


in this candle and the reaction
has also created a level, so the
next candle can also reverse.

Gap-Up Opening Up

Gap-up also occurs due to


buyers dominance, in such
a situation the next
candle is made green.

Exhaustion has
Down
happened
Down

Exhaustion has
happened

Down

Exhaustion has
happened

Down

Exhaustion has
happened
Up

NOTE: If the reaction is happening for a long time at any place in


the candle, then a level is formed there.

Up

Down

Exhaustion has
happened
It can also do the continuation
Down

It can also do the continuation


Down

Down
6. Spinning Top

NOTE: Closing is important in a Spinning Top candle

C Down Here closing sellers have done


O

Up
C
Here closing buyers have done
O

O
Here closing sellers have done
C
Down

O
Here closing buyers have done
Up
C
NOTE: In the spinning top candle, whether more reaction has
happened in the body or in the wick, it does not matter, the only
thing that matters is who has done the closing. The party which
closes, the next candle is more likely to be formed by the same
party.

NOTE: There should not be any level around the spinning top
candle otherwise the next candle can reverse by touching that
level.

NOTE: All these candlestick reaction predictions are given for the
situation without level. Prediction candle can also be opposite if
there is a level around, so it is very important to pay attention to
the levels while trading on candle reaction.

7. Doji

NORMAL PREDICTION

Down
Neutral

Up

Neutral
Down

Up

NOTE: Never trade on Doji. Because usually doji is always


neutral. The place where the doji is formed in the market is
important. According to the place where doji comes in the
market, it is more likely to react.

Up
exhaustion

NOTE: Whenever a candle exhausts, there should not be a head


of that candle. When the head of the exhaustion candle is there,
the chances of the next candle reversing are less.
Dow
Level
n

Up
Level

this is the real breakout candle

70%

Level

30%
NOTE: If 70% of the body of the candle that breakouts a level is
above the level, then it is a real breakout. And if the next candle
reverse also comes, then it will definitely respect the breakout
level and the reverse candle will most likely close above the
breakout level. And apart from this, you can also detect real and
fake breakouts from candle reactions.

Level Down

NOTE: Do level trading where you do not understand the candle


reaction at all.

Main Level

Minor Level

(B)

The reaction of the


B-candle at the
minor level can be
(A) like this.
Target Level

50% Level
Trade Entry Point

Candle reaction in
first 30 seconds

Target Level

NOTE: Reversal should never be done without a level, because if


there is no level, the exhaustion candle can also do continuation.
That's why always trade should be taken at the level and should
be strong level, the minor level cannot reverse the momentum
Down Trade Entry Point

Level

This is an exhaustion candle


but the level is a bit far from
the candle closing.

NOTE: If in any momentum a candle closes inside the wick of the


previous candle, then continuation should be avoided there.

NOTE: If the reaction of the candle is according to the trend then


the next candle will continue.

NOTE: Out of reaction and level, the level is to be given more


importance.

NOTE: If you are not able to understand where the market will go
in the 1-minute chart, then you can understand where the
market can go by looking at the 5-minute chart.

NOTE: The market will complete the target of the opposite trend
only when the market is going towards the opposite target by
retesting a pattern.
NOTE: The common level will act as an average level and HH, HL,
LH and LL levels will act as sellers and buyers positions.

NOTE: If the market is coming from behind in strong momentum


and after that, an exhaustion-type candle comes with strong
pressure, then that candle can be a real pressure of the market
instead of an exhaustion candle. And if the market is coming
from behind an exhaustion-type candle with momentum
weakness, then that candle can be an exhaustion candle.

NOTE: If a green candle is forming in the 5-minute chart, then the


chances of winning the Up trade in the one-minute chart are
high. But if the opposite candle is being formed in the 5-minute
chart, then you can wait a bit.
Day #15
Market Target
1. FFLL ( Full fill last leg )
2. FFLC ( Full fill last candle )

1. FFLL ( Full fill last leg )

NOTE: FFLL is always complete with the trend, not the opposite
of the trend.

NOTE: Most of the time whenever the market completes the FFLL
a reversal candle occurs.

NOTE: The market always completes the target of the impulsive


wave.

HH
Next FFLL Target

FFLL Target

Here the target of the market


will be to reach the high of
the wick of the last opposite
candle.

NOTE: Whenever the market completes FFLL, there is a


possibility of consolidation.
NOTE: FFLL can be completed only if the corrective wave is
coming after retesting a pattern, otherwise it will reverse up to
50% of the impulsive wave.

NOTE: Whenever a target is completed, the strength of the


market goes out there. And there can be a reversal so one should
wait there. But there can be continuation if there is dominance.
Domination has happened or not, it will be known by the candle
reaction

NOTE: When the market is going to complete FFLL, there should


not be any strong level in between, otherwise the market may
reverse from there.

NOTE: You can take long trade in FFLL for safety. For example,
you can take a trade of 2-3-5 minutes in a 1-minute chart.

2. FFLC ( Full fill last candle )

NOTE: FFLC concept is used in stuck areas.

NOTE: As long as the candles are full-fill each other, the market
will remain in the sideways zone and when it stops full-fill, the
continuation will begin.

NOTE: If the market is not dominating then usually the market


moves to the FFLC zone after the FFLL is complete. When the
candle starts to full fill each other after the FFLL is complete, it
means that the stuck area has started.

NOTE: It doesn't matter whether a candle's wick is full fill or not.


But the body of the candle should be full fill whether it full fills
with the wick or with the body.

NOTE: By the way FFLC is not very important, you can focus more
on FFLL only.
full filled with wick full filled with body

NOTE: If a candle has not been able to full fill the previous candle
completely, then the next candle can come to full fill.

Candles that full fill each other

The full Fill zone has


been broken as soon as
this candle is formed,
now the market will
continue
NOTE: Usually, if three consecutive candles come of the same
color, then the market breaks the FFLC zone and exits and
continues.

NOTE: FFLC area is always formed near the level.

NOTE: Retest is not necessary for breaking the FFLC zone. Usually
when the FFLC zone breaks, the market does continuation

In FFLL there should not be a head-to-head


match of any candle, otherwise, the next
candle may reverse.

FFLL Target

Trade Candle

Confirmation Candle

NOTE: When the market is starting to move into an impulsive


wave, then the FFLC area can be formed there. These two candles
have completely filled the previous candle, so will wait for a
confirmation candle and then trade.
NOTE: Here the confirmation candle should not be hammer, doji,
or spinning top candle.
NOTE: Doji is also a strong level.

NOTE: If a candle closes inside the wick of the previous candle,


then the next candle may reverse. Be careful.

Resistance Level

single candle levels

Support level Single red candle closing target

NOTE: Support is important in an uptrend and resistance is


important in a downtrend.

NOTE: This level will be important for


50% the closing of the red candle and the
50% level of the strong candle will also
be an important level.

NOTE: The buyers will not let the


sellers go below the opening but if the
sellers go below the opening of the
buyers then the buyers will not let the
sellers go below the low of the wick.
Opening level
Buyers will try to close sellers above
Wick level
the low of the wick
Common Level
Right Level
Wrong Level

Right Level

NOTE: If you have 2-3 consecutive losing trades, then just observe
the chart for 10-15 minutes and understand the movement of the
market and then take the trade on the tailless candle on the
confirmation setup. Because a tailless candle is a sureshot in
itself and if another setup is also found with it, then its accuracy
will increase further.
Day #16
5-Minute Candle Strategy/Single Candle Target/
Single Candle Closing Target/Market Minor Target

NOTE: The high and low of a 5-minute candle are also a target of
the market.
NOTE: Any candle always closes near the body or wick of the left
side candles.

Next red candle closing possibility

50%

The target of the next candle will be


to break the low of the wick of this
candle.
These are all 5-minute candles.

NOTE: Who entered the last of


this candle is important, and if
there is a level in the rejection
area, the next candle may
reverse. If the candle reaction
is of reverse and there is also
a level then the next candle
may reverse.
NOTE: To trade on C-candle it is
necessary that B-candle should
Trade Candle (C)
close above the high of the A-
candle's wick only then we have
(B)
to trade. Because for the market
to go up and to sustain it, it is
necessary that the B-candle
(A)
closes above the high of the A-
candle. If the B-candle closes
inside the wick of the A-candle,
the next candle is likely to
reverse.

NOTE: The high and low of the last 5 minutes candle is an


important level.

NOTE: Whichever candle breakouts the high and low of the


previous 5-minute candle on the 1-minute chart, the next candle
does 99% continuation.

Trade Candle

5-minute candle high

5-minute candle Low

NOTE: There should not be any nearby levels after the breakout
candle.

NOTE: Always trade with the trend.


NOTE: The candle that breaks the high and low of the 5-minute
candle should not be too large.

NOTE: Every candle has its own work, if any candle is not able to
do its work then the opposition party will come.

NOTE: You can also consider the closing and opening of the 5-
minute candle as an important level, but the high and low will
always be the most important levels.

NOTE: Whenever the market breaks the high or low of the 5-


minute candle, then whichever is the next target of the market in
the 1-minute chart, the probability of the market going to that
target is up to 90%. If there is no strong level in the middle then
the market will not reverse from the middle.

NOTE: This "5-minute candle breakout" strategy is suitable for


trendy markets and does not work for sideways markets.

NOTE: The trade candle should not be the last candle of 5


minutes.

NOTE: Usually most of the candles close near the wick level of
the left side candles or their 50% level. It hardly happens on the
body.

NOTE: If the market has come down from a high by making a big
and strong candle, then when the market again goes near the
level of that high, then there is a possibility of a reversal candle
at that level.

NOTE: The 5-minute candle should not be a doji candle. This


means do not trade at the level of a 5-minute doji candle.
NOTE: The high and low of the 5-minute doji candle are also
small targets of the market, after breaking the high or low of the
5-minute doji, the market can continue in 1 minute, but it will be
better for you that you always follow the 5-minute Trade only on
healthy candles.

5-minute candle high

Trade Candle

5-minute candle Low

NOTE: The high and low of any candle is always a target for the
next candle, whether the candle is of 1 minute time or 5 minutes.

Trade Candle
5-minute candle high

Gap Down opening

1 Minute Candles

Market Target

Trade Candle

5-minute candle high

1 Minute Candles
Market Target

Trade Candle

5-minute candle high Target


1 Minute Candles

5 Minute Candles
5-minute candle Low target ( body )

NOTE: Do not trade against the trend.

Market Target

Trade Candle

5-minute candle high

1 Minute Candles

5-minute candle Low

NOTE: In this setup, the market will do a continuation most of


the time.

Three Candle Rejection Pattern

Safe Entry Point


Common Level

Trade Candle
NOTE: In this, you can take trade in opening also. The accuracy of
this pattern comes up to 90%.

Common Level

Trade Candle

NOTE: All three rejection candles should be of the same color in


this pattern.

Common Level

Do not trade here, the


pattern has now failed.

NOTE: This pattern wins even when the trend is the opposite.

NOTE: When a pattern is formed at the end of the corrective


wave and the market retests that pattern and starts moving
towards HH or LL, then the impulsive wave starts from there. And
sometimes the market may move without retesting the pattern
because the market is trendy at that time.

NOTE: Sometimes due to the pressure of buyers or sellers also


gap level is formed where you are not even able to find any
skipped level around.
NOTE: This is not a piercing line pattern.
Here there is market indecision because
according to 2 Minutes, the doji candle is
formed here.

NOTE: On the day the market is bad, on that day the trade
candle mostly becomes a doji candle, so in such a situation safety
margin entry is important.

Trade Candle

NOTE: The morning star pattern works very well if the middle
candle in the morning star pattern is a doji or a hammer.

Trade Candle
NOTE: When the market reverses from above and comes back to
the key levels of the Morning Star, the buyers will try to keep the
market above the key levels of the Morning Star.

NOTE: A reversal candle usually comes after the break of the


neckline of the chart pattern, but if there is momentum from
behind, the market may continue without giving a reversal.

NOTE: Here the target of the


market was to break the LL but
the market could not break the
LL and the market has reversed
Neckline from the LL itself, so now the
LL new target of the market is to
reach the Neckline.

Neckline
Piercing Line Pattern

NOTE: Don't go for Up here because there is pressure


(momentum) of sellers behind. And buyers have created a
piercing line pattern by breaking the neckline, so now sellers will
come back and sellers can make a red candle here, so wait for a
confirmation candle here.
Red Candle Opening ( High )
(C) (D)
M Neckline

(A) (B)

(E)
Trade Candle

NOTE: Here we should not take a down trade on C-candle because


C-candle should have been a confirmation candle for us which
breaks the low of the A-candle but it did not happen and the
reason for D-candle becoming red is that C-candle, failed to close
above the high of the A-candle, so sellers made a D-candle, which
has become a confirmation candle, so we will trade the E-candle.

M Neckline

NOTE: 1st buyers position has


1st Buyers Position
been broken by the sellers, now
next buyers position is far away
so can trade here.

Trade Candle
2nd Buyers Position

NOTE: The high and low of a 5-minute candle are always a market
target. They come in the small target of the market.
NOTE: In such a situation, the
M Neckline
trade should be taken with
some caution. In such a
situation, the trade candle will
Wick Low become a weak candle or a doji
candle. This can lead to the
Trade Candle next candle being a big candle.

NOTE: Do not trade on E-candle


here because C-candle
(A) (B) (Retracement candle) has
(C) closed above the retest level of
Pattern (D)
Retest Level Engulfing. Here C-candle has
(E) not retested properly so do not
trade on E-candle here.

NOTE: Usually the market gets stuck there when the market does
not continue for 2-3 candles after completing the FFLL. After
completing FFLL the market needs continuation as soon as
possible but if it does not happen then the market will get stuck
there.
Trading Rules

NOTE: You cannot be successful in trading until you follow the


rules and discipline in trading.

Rules
( 1 ) Always trade with the trend.

NOTE: Trade to complete the target or trade to start the target.

( 2 ) Do not make any trade of more than 2%. The first trade
should always be less than 2%.

( 3 ) Always trade on that setup that you have mastered. And


until you recover all your losses and make a full profit, always
trade on your mastered setup.

NOTE: In case of loss in any trade, do not take the next trade
without knowing the reason for the loss.

NOTE: Till the time you do not come in daily or all-time profit, it is
always necessary to do it with trading discipline.

( 4 ) Always trade on your 4-5 favorite charts. Trade on your


favorite charts which you understand more easily, like - USDINR,
USDBRL, etc.

NOTE: If you have 100$ on the first day and you have lost 10$,
then on the second day you have to trade with the amount up to
2% of the 90$, which means always trade with the amount up to
2% of the total funds of the trading account.

NOTE: Stop trading if you have 3 consecutive losses on your


favorite setup.

NOTE: If you want, you can keep a profit target according to the
session. If you keep four sessions a day and keep a target of 5% in
each session. So your daily profit will be 20%.
NOTE: Trade after waiting for some time in case of loss of any
trade.

( 5 ) Fix trades per day or for each session. Like per day or per
session only 5 trades have to be done.

NOTE: If you keep a profit target of 10%, then you can keep a
stop-loss target of up to 20%.

NOTE: If you keep a daily profit target of 10%, then don't try to
achieve the full 10%. Stop trading whenever the target is
achieved by 7-8-9%.

NOTE: Do not trade on the breakout


of the A-candle (5-minute candle) on
the one-minute chart because the
(A) (B) breakout 5-minute candle should
match the color of the previous
5 Minute Candles candle. And here the 5-minute red
candle is being breakout by the 5-
minute green candle. Therefore,
whenever you enter a trade on a
breakout of a 5-minute candle, the 5-
minute breakout candle should also
match the color of the previous
candle.

NOTE: In the 5-minute strategy, you should trade by looking at


the target of the 5-minute chart, which will slightly increase the
accuracy of your setup.

NOTE: If you want to do compounding, always do it on your


favorite setup and go with the trend.
NOTE: Never trade with the expectation that all your trades will
win. Always assume that 3 out of 10 trades will be your losses.
Due to this even if you lose 1-2 trades, you will not get emotions.

NOTE: In a 5-minute strategy, the 5-minute chart should also be


trending. The 5-minute chart should not be sideways.

NOTE: If the reference is on the left side of the market, then the
round number is not to be given any importance.

NOTE: Trading in a 5-minute strategy Avoid trading on the 4th


and 5th-minute candles. In this strategy, you have only 5-minute
1st, 2nd, and 3rd-minute candles to trade.

Trade Candle
( This is a sureshot because the
5-minute candle high previous candle is a tailless candle
and there is also a tailless candle
head. )

5-minute candle

NOTE: When the breakout candle is a tailless candle and there is


also a head of that candle, the next candle will be 99% Sureshot
and the trend must be UP and the previous 5-minute candle must
also be green.
NOTE: The breakout candle in the 5-minute strategy should not
be too large. The breakout candle should be a normal candle.

NOTE: Don't trade in the tailless candle after 3rd candle means
trade only if 1st and 2nd candle comes tailless in any momentum
don't trade on 4th candle when 3rd candle comes tailless.

Do not trade on this candle.


(E)

(D)

Tradable Candle
(C)

(A) (B)

NOTE: When the B-candle engulfs the A-candle and the B-candle
becomes a tailless candle. Only then the trade is to be taken on C-
candle.

No Tradable Candle

Trade Candle

NOTE: Always trade with the trend on tailless candles.


Market Target

Trade Candle

Tailless Candle

NOTE: Generally, in case of a gap-up, or gap-down in Strong


Momentum, only the same party comes because sometimes gap-
up, and gap-down also happen due to the pressure of the market
(Buyers and Sellers).

5-Minute Candle High


Entry Point

1-Minute Candle

5-Minute Candle High

Do not trade this candle


Three Candle Rejection Pattern

Entry Point
Common Level

Trade Candle

NOTE: This pattern may also have to do 1step martingale in OTC.

NOTE: If the market creates an SNR


Common Level
on a smaller timeframe and the
pending target of the market is
further away, you can enter a
continuation trade when the
Market Target market breaks the SNR. But the
Trade Candle accuracy of this setup is less (70%)
this setup is not that special.

Compounding Rules
NOTE: Compounding should always be done with extra profit
only. After doing 5-step compounding properly for 5 consecutive
times in the demo, you can do 3-step compounding in a real
account.

NOTE: This means on the day you win 25 consecutive trades, you
can do 3-step compounding in a real account.

NOTE: Compounding trade is always to be done with Sureshot


and trend.
NOTE: Do not trade on the 1st and last 5-minute candles for
compounding.

NOTE: Do compounding with the amount of extra profit in such a


way that you get 4 chances for compounding.

NOTE: Patience is most important for success in


trading.

Reasons for emotions while trading


NOTE: take a trade that is too large.

NOTE: Don't know why the loss is happening.

NOTE: You have taken a trade even when you do not know about
the market. lack of patience.

NOTE: There is already some pressure to make a profit, that is,


there is pressure to make a fixed profit daily or per month. Or
there is pressure to recover the losses already done.

NOTE: On breaking your trading rules.

Ways to Avoid Emotion in Trading

NOTE: Whatever loss or profit has happened earlier, forget it.


That is, whatever has happened before in life, consider it as over
and start completely new in the market.

NOTE: The daily profit target is to be kept at 10% and


compounding should always be done with extra profit.

NOTE: Never take a trade bigger than your capacity.


NOTE: Always be patient while taking a trade, do not take a trade
just for the sake of taking a trade, no matter how much time it
takes, do not trade until a proper setup is found.

NOTE: Never break your trading rules.

Tailless Candle
Downtrend
If you want to trade, take it here

50% Level
(C)
(A) (B)
Tradeble Candle
Piercing Line level

( LL Level ) Market Main Target

NOTE: Here the market has completed the key level (minor level)
target of the piercing line pattern and has also completed the
hammer low target (minor level). That's why buyers have come in
the next candle despite the tailless candle and downtrend.

NOTE: The tailless candle has not broken the level of the piercing
line. So if we take a trade on the next candle (B-candle) of the
tailless candle, there is a possibility of reversal from the level of
the piercing line of the B-candle. Therefore, if there is a reversal
level nearby, do not trade there.

NOTE: Here B-candle has not been able to close above 50% of the
A-candle, so you can take a down trade on the next candle (C-
candle).
Level

Gap-Down Opening by sellers


Wick Level 50% Level
(C)

(B
)

(A
)

Uptrend

NOTE: Here buyers have not felt any level in C-candle. This means
the C-candle level has not been touched. That's why the buyers
have not yet felt any level here. That's why the buyers here have
not felt the need to do a gap-down, so this gap-down has been
done by the sellers. But the sellers have not been able to gap-
down below the wick level and 50% of the previous candle (C-
candle). Buyers have stopped sellers from gapping below the wick
level and 50% level of C-candle so green candle can also be
formed here. Sellers have done this gap-down, so sellers will try
to make a red candle here, but due to the uptrend and
dominance of buyers, a green candle can also be formed here.

Downtrend

Strong Level and 50% Level


(A (B Do not trade here
) )

NOTE: Don't trade down here because B-candle has not touched
the level means B-candle has not felt the level. By the time the B-
candle touches the level, the time of the B-candle was over, so
now the buyers can come in the next candle to touch the level,
but if the B-candle was rejected by touching the level, we would
have Down trade could be taken on the next candle of the B-
candle.
Downtrend

Safe Entry

Strong Level and 50% Level


(A (B (C)
Trade Candle
) )

NOTE: If a continuation candle is headless and a healthy candle in


a bullish pattern or setup, you can enter trades below 50% of the
headless candle or below its opening.

(B Entry Point

Trade Candle )

(A
)

Retest Level
50% Level

Body Level

NOTE: By the way, if you want, you can also take trade on A-
candle.

NOTE: The target of the market is always to breakout the strong


level or to close till that level. Therefore, rejection trade should
always be taken at the nearest other level instead of the target
level.
Wick High Level
Trade Entry Level
Hammer 50% Level

Common Level

NOTE: If you have to trade on rejection, then you should not


trade at the level which is the target of breaking the market but
should trade at the level ahead of it.

NOTE: The first target of the market is to break the common


level, then after that the HH, HL, LH, and LL levels have to be
broken, so the entry of the rejection trade should be taken at
another level close to the common level.

NOTE: Never trade on single candle analysis. This means never


trade by analyzing only one candle.

NOTE: One should take a break from trading on the day when
there are 3-4 consecutive trade losses. And on the day when your
setup is working well, you can do aggressive trading with extra
profits. Due to this, you will avoid big losses on the day the
market is bad and on the day the market is going well, you will be
able to make a big profit.

NOTE: If you do not learn from your mistakes in trading, then in


the future you will never be able to make a profit in trading.

NOTE: Target can also be completed with the market wick.


Trade Candle

Common Level

Market Pattern
Uptrend

(2)
Level
(1)

HL

NOTE: In an uptrend, level ( 1 ) is more important than level ( 2 )


before HL. Because level (1) is the key level of the pattern.
Trade Candle
Wick Level

Entry Point

HH Level

NOTE: Here you can take a trade with some caution. But the
entry candle should fall below the 50% level of the previous
candle in the first 30 seconds. Because the trade candle can also
reverse from the high of the wick of the previous candle, it is
necessary to have the head of the continuation candle.

Downtrend

Evening Star

do not trade up here

Gap-Up Opening

common level of the market

Gap-Down Opening

Morning Star

NOTE: Here usually the buyers did not need to gap-up because
the buyers had already broken the common level with the gap-
down candle. But if the gap-up is above the key level of the
evening star, then we can consider an up trade here. But the gap-
up is below the key level of the evening star and there is also a
downtrend, so a red candle can also be formed here and the
trend is down anyway, so we do not go for the up.
Sellers Position
Trade Candle

Common Level

Common Level

Uptrend

NOTE: reasons to trade here


( 1 ) is an uptrend. ( 2 ) The previous candle has formed an
engulfing pattern. (3) Sellers position is also far away. With this
type of thinking, you can take a trade here.

NOTE: The next candle may reverse if there is a breakout of


sellers' positions.
NOTE: After the buyers position breakout, if the reversal candle
closes inside the buyers position, then buyers can come again.

NOTE: Buyers can come in this


candle because after the breakout of
the buyers position, the buyers have
closed the next candle above the
Buyers Position
buyers position. So it means that the
buyers have been able to cover their
positions. That's why buyers can
come again in the next candle to
save their positions. And the sellers
will again have to exert more power
to break the buyers position.

NOTE: But if the buyers are not able to close the reversal candle
above the buyers position then the next candle is likely to be red.

You might also like