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Sigma-LineCharts HowToUse V1

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814 views59 pages

Sigma-LineCharts HowToUse V1

Uploaded by

vivekdhande.work
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Sigma Line Charts

(Method-I)
By
Dr. Pravin Mokashi

Discovered Sigma Line Charts


India’s Only Ph.D. & Doctoral Research Guide [University of Mumbai] in Technical Analysis of Financial Markets
Former Researcher & Visiting Faculty at BSE Training Institute Ltd., Mumbai
Fund Manager / Active Trader / Investor for over three decades
Sigma line charts have ripple, wave & One sigma line, whether ripple, wave
tide sigma lines drawn by connecting or tide reveals everything about
the specific peaks & troughs of the trends, supports, resistances, targets &
three sequential charts, like daily, momentum of the shorter, medium &
weekly & monthly charts. longer term, respectively.

Sigma line charts have simplified the


art of trading & investing. Anyone & Sigma line charts are equally effective
everyone can master it within weeks by in all the markets of traded financial
learning (10 % efforts) & practicing securities like stocks, commodities,
(90 % efforts) on as many charts as forex, crypto etc.
possible.

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Wave => Medium
Tide =>Longer term. Ripple => Shorter
term. Weaker than
Strongest trend, term. Weakest trend,
tide but stronger than
momentum, momentum,
ripple trend,
supports, resistances supports, resistances
momentum, supports,
& targets. & targets
resistances & targets

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SESSION 1
Signs & Signals on Sigma Line Charts

Trends
Momentum
Supports
Resistances
Targets
1. Trends

Trend means the


direction of price Green price bars Red price bars
movement. On above the sigma below the sigma
sigma line charts, line confirm line confirm down
trend can be up or uptrend trend
down

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2. Momentum

Momentum
Orange sigma
means the Green sigma
Red sigma lines lines confirm
speed of price lines confirm
confirm strong weak
movement. It strong
momentum in momentum in
can be strong momentum in
down trend uptrend & down
(fast) or weak uptrend
trend
(slow)

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3. Supports

Support is the
1. Earlier sigma 2. Earlier price bar
price level where
lines below the troughs below the
down trend can
current price bars current price bars
stop, or even
are the supports are the supports
uptrend can begin

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4. Resistances

Resistance is the 1. Earlier sigma 2. Earlier price


price level where lines above the bar peaks above
an uptrend can current price the current price
stop, or a down bars are the bars are the
trend can begin resistances resistances

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5. Targets

Targets are the


Supports Resistances
price levels
(explained in 3 (explained in 4
that can be hit
above) are the above) are the
in an uptrend
lower targets higher targets
or down trend

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SESSION 2
Signs & Signals on Sigma Line Charts

Blue & Pink Dots


Breakouts
Fakeouts
Flips
Length of sigma line segments
6. Blue and Pink Dots

Blue dot below a price bar is


the point where tide, wave & Pink dot above a price bar is
ripple become green and the point where tide, wave &
confirm strong uptrend. ripple become red & confirm
strong down trend.

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7. Breakouts

Up breakout of
Down breakout of
Breakout of sigma sigma line has a
sigma line has a
line can be up green price bar
red price bar close
breakout or down close above the
breakout below the red or
green or orange
orange sigma line
sigma line

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8. Fakeouts

Down fakeout has a Up fakeout has a red


Fakeout of sigma green price bar price bar moving
line can be down moving below the above the red or
fakeout or up green or orange orange sigma line
fakeout sigma line but closing but closing below the
above the sigma line sigma line

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9. Flips

Flip is the sudden up or


Sigma line segments Sigma lines initially flip up
down movement of sigma
initially flip down after the after the down breakouts
line segment. Sigma line
up breakouts or bearish or bullish fakeouts and
segment initially flip on
fakeouts and thereafter, thereafter, flip downward
the opposite side of
flip upward making higher making lower highs till a
breakouts or
lows till a new breakout or new breakout or fakeout
fakeouts and thereafter,
fakeout appears, as the appears, as the bearish
on the side of breakout or
bullish trend continues. trend continues.
fakeout.

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10. Length of sigma line segment

Shorter sigma line segments (compared to the adjacent


segment) confirm stronger momentum, but longer & extended
sigma line segments (compared to the adjacent segment)
confirm weaker momentum.

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SESSION 3
Entries & Exits: Long / Buying
LONG (in trading) OR BUYING (in investing)
A. Entry on breakout or down fakeout
Green Price Bar Cutting > 3 Green Sigma Lines (Blue Dot)

Place Safe Stop < Latest Trough

Trail Stop < Sigma Line After the Flip

Trail Stop Till Stopped Out Or Till Sigma Line Turns Orange

Keep Testing Other Sigma Lines & Change, If Necessary

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LONG (in trading) OR BUYING (in investing)
B. Entry in between the rally

Green Price Bar > 3 Green Sigma Lines (Blue Dot)

Place Stop < Sigma Line

Trail Stop Till Stopped Out Or Till Sigma Line Turns Orange

Keep Testing Other Sigma Lines & Change, If Necessary

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LONG (in trading) OR BUYING (in investing)
C. Entry after the gap-up open or breakout

Identifying the gap-up open or gap-up breakout cases

Entry after the price close above the gap-up open bar high or gap-up breakout bar high

Other steps of breakout & in between rally trades remain same

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SESSION 4
Entries & Exits: Short Selling
SHORT (in trading)
A. Entry on down breakout or down fakeout
Red Price Bar Cutting < 3 Red Sigma Lines (Pink Dot)

Place Safe Stop > Latest Peak

Trail Stop > Sigma Line After Flip

Trail Stop Till Stopped Out Or Till Sigma Line Turns Orange

Keep Testing Other Sigma Lines & Change, If Necessary

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SHORT (in trading)
B. Entry in between the rally

Red Price Bar < 3 Red Sigma Lines (Pink Dot)

Place Stop > Sigma Line

Trail Stop Till Stopped Out Or Till Sigma Line Turns Orange

Keep Testing Other Sigma Lines & Change, If Necessary

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SHORT (in trading)
C. Entry after the gap-down open or down breakout

Identifying the gap-down open case

Entry after the price close below the gap-down open bar low or gap-down breakout bar
low

Other steps of breakout & in between rally trades remain same

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ONLY PRACTICE CAN MAKE YOU PERFECT.
WATCH AS MANY CHARTS AS POSSIBLE BEFORE
ACTUALLY TRADING & INVESTING.
The simple secret of trading & investing

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