5 AM Trading Club

Day 5 Session

Mindfluential Trading
Co nten ts
Day 1 1 What is Price Action Trading
2 Anatomy of Candlesticks
3 Volume Analysis
4 All about Support & Resistances, Demand & Supply Zones
5 Trends & Trend Lines
6 Chart Phases
7 Putting it all together

Day 2 8 GAPS
9 Effective Chart Patterns
10 Assignment Discussions
11 Master Breakouts & Breakdowns
12 How to identify Fakeouts & Trade Them
13 Playback Market Simulations

Day 3 14 Plotting important levels on the chart.

15 Understanding Trading View Tools & How to use the free trading view version in the
best way possible.
16 Central Pivot Range - CPR
17 EMA & SMA secrets
18 Entry / Exit Strategies
19 How to effectively place the stop loss & trail it.
Co nten ts
Day 4 20 Risk Management - Risk Reward & Position Sizing.
21 Trading Psychology.
22 In-depth Analysis & solutions on Trading with Emotions.
[ Fear / Greed / Regret / Hope / Frustration / Happiness ]
23 Bias Trading - An underrated concept.
24 Why most of the traders have a hard time becoming profitable & How to gain trading Edge
in Trading.
25 Trade Like a Monk: Trading Affirmations & Trading Meditation

Day 5 26 How to Select Stocks for trading.

27 Divergence Concept
28. Sector comparison with stocks & Index comparison
29 Volume Profile Analysis
30 How to use Institutional Zones & Alert System
31 How to Maintain Effective Trading & Emotional & Review process

Day 6 32 Using Fibonacci levels in the right way to find high probable trades
33 Heikin Ashi candlestick hacks in piking the stocks
34 Detailed session on Futures & Options - covering Basics, Option Chain Analysis, Premium Decay & more.
35 How our Premium Discord Community works.
26
How to Se le c t
Stocks fo r tr adi n g
Using Price Action For Both Intraday & Positional

Stock selection is based on the Price action patterns identified in the longer timeframes as
well as short timeframes.

Add the 200 + stock watchlist provided by us along with stocks identified by you on the
Trading view Platform.

Draw the patterns on longer timeframes and keep checking them on a daily basis if you can
to filter out any stocks that have a potential trade opportunity.
Using INSIDE DAY CANDLE Mainly for positional but can also be applied in Intraday

INSIDE DAY CANDLE

High & Low of the Inside candle is

completely covered by the
Preceding candle high and Low

https://chartink.com/screener/inside-day-155
 INSIDE CANDLE STRATEGY
IN A STRONG TRENDING MARKET

In a strong trending market, the market has shallow

pullbacks. This means if you’re waiting to enter on a
retracement, chances are, the market may not come to
your level.

So a solution is to trade the breakout in a strong

trending market — with the inside candle as an entry
trigger for it.

If the market is respecting a short-term moving

average like the 8EMA (blue line here) chances are,
Inside Bar it’s a strong trend.

Look to trade the break of the inside candle in the

direction of the trend (down trend here)
 IDEAL TIME FRAME

Daily / 4 Hour

It can also be observed in hourly, 30 min &

intraday timeframes time frames, however, it is
generally used in higher timeframes for better
analysis and to reduce the noise.
 HOW TO TRADE INSIDE CANDLE
There are 2 ways you can enter on the inside candle:
1. The break of the Extreme Candle
2. The break of the Inside Candle

1. BREAK OF EXTREME CANDLE 2. BREAK OF INSIDE CANDLE

The extreme candle is the bar before the inside candle Alternatively, you can trade the break of the inside candle.
(and usually has a large range). One way to trade the
inside candle is to wait for the price to break beyond the
highs/lows of the extreme candle.
PROS
PROS This technique offers you a more favorable risk to reward
This technique has higher odds of the trade working out as as you have an earlier entry (and a tighter stop loss).
stop-loss tends to cluster at the extreme highs/lows. So by
entering the break of the highs/lows, you’re triggering this
cluster of stop loss.
CONS
You have lesser order flow supporting your trade entry
CONS which results in a lower probability trade.
Sometimes the price has to move a distance in your favour
before triggering an entry. This results in having a wider
stop loss for your trade.
WHERE TO PLACE STOP LOSS INSIDE BAR TRADING MISTAKES
Short Trade:
These are some of the common mistakes traders make:

1. Just above the highs of the inside candle (or)

1. Trading every inside bar you come across

2. A distance above the highs of the inside

2. Trading an inside bar that’s against the trend
candle

For Long Trade: 3. Trading an inside bar during a low liquidity period
1. Just below the low of the inside candle (or)
For high probable trade entry and exits, use
2. A distance below the low of the inside other price action tools in addition to Inside
candle.
candle strategy.
Examples -
1. Adani Enterprises - Feb 5th
2. Naukari / Info Edge - 4 Dec, 14 Dec
3. Coal India - 10 Sep
4. Hindalco - 12 Feb - Do Sim., use long position tool, ATR & ride the trend.
Using VOLUME dOMINATION

The first 5 Min Volume is More Than the last 3 days 5 min volume bars

This Gives an Indication that some big activity is happening

Have to add the stock and analyze based on the price action techniques to find out any
trading opportunity

https://chartink.com/screener/volume-domination?src=wassup
27
RSI + DI VE RG EN C E
Con ce p t
wHAT IS rsi indicator
RSI stands for relative strength index and it is an indicator that you apply to your charts that is
often used for identifying overbought or over-sold markets.

We never use indicators on their own for trade entries

in case if we use them, we use them to support what we

already established with price action
wHAT IS DIVERGENCE

When price is moving in the opposite direction of RSI indicator, which

can then be used as an early indication of a possible trend change.

divergence is one of the most powerful tools for spotting

high quality reversal trades when used correctly
Lower Lows

higher highs
topic DIVERGENCE + confirmation

Just divergence is not enough as you can get fake signals. So

you need confirmation to validate that the reversal is real.

You look for Price Action "after" the divergence occurs to confirm that the
reversal is "real" and not a fake out.

Don't forget that you are trading counter-trend, so RSI divergence is not enough
& entering just from an RSI divergence signal would be just a guess based on the
indicator.
28
Sector comparis on w ith
stock s & Index co mpa rison .
 Sector comparison with stocks

Important Sector Indices in NSE

Nifty AUTO
Nifty Pharma
Nifty FMCG
Nifty Metal
Nifty Media
Nifty Energy
CNX AUTO
As of June 30, 2021
CNX Pharma
As of June 30, 2021
CNX FMCG
As of June 30, 2021
CNX Metal
As of June 30, 2021
CNX Media
As of June 30, 2021
CNX Energy
As of June 30, 2021
Comparing Stocks with relevant Sector Indices
Compare the stocks with their relevant indices to any potential reversals etc.
Comparing Sector with relevant Stocks
Analyze the sector for any potential breakout/breakdown and take trades in relevant
weighted stocks.
Index Comparision - Nifty with Bank Nifty
12 Feb 13:50 See the Bank Nifty Chart Sim. then compare why the price got reversed after
2 PM. You will be careful before entering any trades

NIFTY

BANK NIFTY
29

Volume Profil e A na l ysis

wHAT IS volume profile
Volume Profile is an advanced charting study that displays trading activity over a specified
time period at specified price levels. Essentially, Volume Profile takes the total volume traded
at a specific price level during the specified time period

Important Terms
Point of Control (POC) - The price level for the time period with the highest traded volume.
Profile High - The highest reached price level during the specified time period.
Profile Low - The lowest reached price level during the specified time period.
Value Area (VA) - The range of price levels in which a specified percentage of all volume was traded during the time period.
typically this percentage is set to 70% however it is up to the trader’s discretion.
Value Area High (VAH) - The highest price level within the value area.
Value Area Low (VAL) - The lowest price level within the value area.
High-Value node - Area with high volume
Low-value Node - Area with Low Volume
 Point of Control

High Value Node

 Analysis
From 2021 - month wise
30 Bonuses

H o w t o a d d I n s t it ut io n al Zo n e s
a n d t a k e u p t r ade s usi ng t he m
 What are Instituitonal Zones
"These are the zones that have been custom coded which takes into multiple factors based past last 10 trading
days data like days range, high, low, open, close, etc. Based on the calculations, it identifies the secret zones for
the current day. We also call it "Mindfluential Trading Zones"

Characteristics of Institutional Zones

They act as Trend Changer

Works in almost all instruments like Stocks & Commodities.

They also work in indexes like Nifty , Bank Nifty

They act as strong Support / Resiatance zones

They can confirm the trend continuation

Each concept above will be discussed in detail going forward.

 Importance of these levels while trading
Topic Acts as Trend Changer

We observed that often price reacts violently when it reaches institutional zones and it throwback the candles far, Once the
trend change is confirmed by momentum candles, using intraday strategies one can take the trade position. This trend change
pattern often gives high-risk reward trades. However one must not immediately enter the trades on seeing price reaction from
those levels. We always need to wait for price action confirmation like the formation of higher highs and higher lows in long
opportunity and the formation of lower highs, lower lows in short opportunity.
 Importance of these levels while trading
Topic Works in indexes like Nifty / Bank Nifty

We observed that these zones work well in index too like Nifty and Bank Nifty. There are many instances where the price
reacted perfectly from the zones.

Nifty / 5 min / 24 May 2021 Bank Nifty / 5 min / 4 May 2021

Topic They act as strong support / resiatance zones

Not always the price moves in opposite directions on reaching the zones. Sometimes when there is no strength in the reversal,
the price tends to move near support and resistance zones. It's better not to take up any trades in this kind of situation as you
won't see any definite trend and chance there are more changes of stop-loss getting hit or it can become a boredom trade.

Acted as strong resistance zone

Acted as strong resistance zone

Acted as strong support zone

Acted as strong support zone

 Importance of these levels while trading
Topic Can confirm the trend Continuation

Like any other support/resistance zone, once it faces some minor price rejection but the price is able to break through the
institutional zone with a good momentum candle, then it confirms the trend continuation existing before the breakout of the
zone. After breakout, one should wait for candles to touch dynamic resistance (8 / 20 EMA) and after that, if we get a
confirmation candle then we can take the trade.
See the example below

Acted as strong resistance zone

 Importance of these levels while trading
Topic When the stragegy won't Trigger?

There will be days where the price won't touch any of the institutional zones. We can ignore these levels in those scenarios.
 Importance of these levels while trading
Will it work everytime..?
You know the answer, Of course, no strategy works every time. Even if it works 30% of the time in a worst-case scenario and you
maintain a 1:3 risk-reward ratio you'll be profitable. If it works for 40% of the time and you maintain 1:2 risk-reward, you'll be
profitable. If it works for 60% of the time, even a 1:1 risk reward makes you profitable but we suggest having a min 1:2 risk-reward.

How can I increase my probability

You can increase your winning probability when you take up high probable trades.

High probable trades are those trades the any of the other factors like trendline break, CPR
support/resistance, Pivots S1/S2 or R1, R2, general market conditions also support your trade entry
that you are planning to take based on institutional zones.

By following proper entry and exit strategies also you can increase your winning
probability.
31 Bonuses

W h y & H o w to M ain t ain

E f f e c t i v e T r ad in g Jo ur n al

Most Important Habit

Overlooked by Many Traders.
Topic An Effective Trading Journal

A trading journal is a deciding factor of whether you are learning

from your mistakes or not.
You must have heard many times many people saying that you need to maintain a trading journal and the importance of it. Most of the
traders overlook its importance majorly because of 3 reasons

1. You feel that you can remember everything and think that maintaining a journal is what novice or newbies do [Its actually the opposite]
2. You feel it is cumbersome and time taking. [We will help you with a hack with which updating the journal is no more a tedious task]
3. You do not know the real power of maintaining the trade journal which is based on the phycological analysis. [We decode it for you here]

Let me tell you the fact, many experienced and successful have revealed that they used to think in the same way until they got hit badly by the
losses undisciplined trading behavior. It's like running a company without an accounts department. No one knows why they are into losses or
where they are heading to. They will not be able to make the analysis and learn from the mistakes.

What all details your trading journal should have?

DATE | INSTRUMENT | LOT SIZE | LONG/SHORT | PRICE IN | ENTRY TRIGGER | PRICE OUT | STOP LOSS | PROFIT / LOSS | IMPROVEMENT POINTS

Date - Date you entered the trade, Entry Trigger – A trading setup that triggers your entry, Lot size – Size of your position, Long/Short –
Direction of your trade, Price in – Price you entered, Price out – Price you exited, Stop loss – Price where you’ll exit when you’re wrong,
Profit & Loss – Profit or loss from this trade, Improvement Points – The learnings you got from that trade (This is very Important)
 How to update the Journal easily & effectively?
As soon as you take up the trade, enter details in the above columns. Make sure you clearly mention the
Entry Trigger - When mentioning the reason you need to analyze in detail the exact point why you took the trade, what trade confirmation that
you have observed for entry like pattern formation, CPR breakout, etc.

When you exit the trade you need to update the Improvement Point. This is very important, the major reason for maintaining the Journal is for
this purpose. Analyzing your improvement points helps you identify where you are making mistakes and what emotional factors you need to
work upon. It could be stop loss hit, or target hit / early exit due to some news in the market, exit due to low momentum, etc.

Also if required you can save the particular charts especially if you feel that you have something to learn from that strategy or want to master
a particular trade setup etc.

How to review your trading journal & improving your trading

strategies for gaining an edge over markets.

1
Identify patterns that lead to your losses - Among the different trading setups, there might be some which are causing you to lose consistently.
So, look through your trading journal and identify the worst performing setup — and stop trading it or make modifications to make it better.
This simple adjustment will reduce your losses and ultimately increase your net profits.

2
Identify patterns that lead to your winners - Next, you’d want to identify your best trading setups. These are the ones that bring in the dough
consistently. So, look through your trading journal and identify the best performing setup — and focus on it.If you want to find more trading
opportunities, trade more markets, trade a new timeframe, or both.

3
Find ways to minimize your losses - Now, let’s take things a step further. After you’ve identified your best trading setups, you’ll still have losers
on it. So, look through the losses of your best trading setups and ask yourself…“How can I minimize my losses?” Perhaps you can cut your losses
earlier. Perhaps you can use a filter that reduces your losses. Perhaps you can avoid trading at a certain time of the day (or week).
4
Find ways to maximize your gains - Do you want to take your trading up another level? Great! Then you must learn how to maximize your
gains. Here’s how: Look through your best trading setups and ask yourself…“How can I maximize my profits on these trades?

”For example, you can…

1. Scale out a portion of your trade and let the remaining run
2. Identify patterns that lead to monster winners and trail your stops on it
3. Think on your own two feet and figure something that works for you

If you can do these 4 things, then you’re close to becoming the best trader you can be. You can also analyze the no. of trades you are
taking each day, and if it keeps increasing then there is some issue to br rectified. DO NOT OVER TRADE. Can you see the power of
having a trading journal? But wait there is more..!

Phycological analysis on why trade journal is needed.

When you sit for reviewing your trade journal, when you encounter entries where you have entered the trade even without proper trade setups,
trades which have turned from profits to losses, trades where you have exited early etc. are identified. You need to feel guilty for not following
the trade setups and acting based on your emotions. You can give yourselves a punishment like refraining from trading for few days or
investing more time in learning etc.

When you do consistently your mind will be programmed to think that when ever you review the trade journal you'll feel guilty if you find
yourselves not following the trade setups and rules set for yourselves. So it subconsciously creates a responsibility for not taking up bad trades
when you are in live market as it is going be recorded in trading journal and so eventual punishment after review.
 Bonuses

Our watchlist of Stock s

Will be shared
q&A Session
 End of day 5 Session
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Mindfluential Trading
 The material doesn’t guarantee or represent that members acting upon any
suggestion mentioned in this material will result in a guaranteed profit.
DISCLAIMER Trading the financial market has a large potential risk, you must be aware
of the risks and be willing to accept them in order to invest or trade.

No part of this publication may be reproduced or transmitted in any form

or by any means, electronic or mechanical, without written permission
COPYRIGHT from the publisher. Copyright © 2021 by Mindfluential Trading
www.mindfluentialtrading.com. All rights reserved.