HariHar Indicator and Strategy Presentation

HariHar - Based Trading Strategy:

01 • To help clients understand the strategy and use it
effectively for better trading decisions.

Understanding HariHar Strategy:

02 • Helps you identify genuine trends by reducing noise from
low-volume periods.
• More responsive to significant market movements.

HariHar Indicator Key Takeaways:

03 • HariHar provides a powerful method for trading trends with greater
accuracy.
• Combining multiple time frames in VWMA ensures you capture
both short-term and long-term market movements.
• Proper risk management is critical for maximizing success.

Risk Management:
04 • Risk-Reward Ratio: Aim for a risk-reward ratio of at least 1:2 or
higher.

• This means for every 1 unit of risk, you should aim to make at least
2 units of profit.

Welcome & Introduction

05 • Brief overview of what will be covered: HariHar trading strategy,
how it works, and how it can benefit your trading.
 HariHar Indicator and Strategy Presentation
1. Introduction to HariHar Indicator:
HariHar Indicator: It provides a more accurate trends and VWMA based on how much volume was traded during each time period, and
along with our HariHari Secret Method/Strategy, which print on chart the permanent BUY signal and SELL signal.
➢ Purpose of VWMA in our Strategy: We’re using three VWMA lines to gauge the market trend.
➢ Green VWMA (Lower Time Frame): Represents short-term momentum, providing early signals for changes in trend.
➢ Black VWMA (Present Time Frame): Represents the current market trend and acts as a baseline for entry signals.
➢ Blue VWMA (Higher Time Frame): Represents the long-term trend, helping filter out noise and confirm the overall direction of the market.
➢ HariHar Indicator Print the Permanent BUY and SELL signal, which is our most accurate method tested over 5year.
➢ HariHar Indicator allow you to Plot most trustable 200 SMA, and also the hollow candle will print if the price is below 200 SMA.
➢ HariHar Indicator allow you to Plot Trend Line, and Table for RSI Level.
➢ HariHar Indicator allow users to set the level of Golden Crossover of SMA
➢ HariHar Indicator allow you to Plot the 4 (four) SMA (Simple Moving Average).
➢ HariHar Indicator allows to set the levels VWMA in Minor, Medium & Major of HTF (Higher Time Frame).
➢ HariHar Indicator allow you set the levels of VWMA in STF (Shorter Time Frame).
All Levels are standard and it works good, we founded accurate after 10 year backtesting with 500+ live trades and paper trades in past 5
year, However users can change the levels with their suitable levels.
 HariHar Indicator and Strategy Presentation
• 2. Entry Criteria:
The conditions for a long entry (buy trade) based on the chart:

1. Buy Signal Appears: The system generates a buy signal (e.g., triangle marker below the candle).

2. Price Closes Above the High of the Signal Candle: Wait for the candle after the buy signal to close above the high of the signal candle, This ensures that momentum is confirmed
and reduces the chances of false signals.

3. VWMA Confirmation: Green VWMA (Lower Time Frame) and Black VWMA (Present Time Frame) must be supporting the trade, this means the green and black lines should be
trending upwards or aligning in a way that confirms the bullish momentum, the price should be above both the green and black VWMAs.

4. Blue VWMA (Higher Time Frame): Ideally, the price should also be above the blue VWMA or close to it, indicating that the long-term trend is still bullish.

5. Blue 200 SMA : Ideally, the price should also be above of blue line (200 SMA) this double indicates the long-term is bullish.

Example Trade – A Step-by-Step Process

Step 1: A buy signal appears.
Step 2: The following candle closes above the high of the signal candle.
Step 3: The price is supported by the green and black VWMAs, confirming short-term and present trends.
Step 4: Long position entered.
Stop Loss: Set Stop Loss: Below the blue VWMA or recent swing low to protect against sudden reversals.
Risk-Reward Ratio: Target a minimum of 1:2 for each trade.
Trailing Stops: The black VWMA can serve as a dynamic trailing stop to lock in profits while the trend continues.
Note. F&O Trade: Always Hedge your trades if you are trading in F&O (Futures and Options)
HariHar Indicator and Strategy Presentation

3. Example Analysis (Based on the Chart):

Let’s break down an example trade from the NIFTY50 chart:

Buy Signal:

o A buy signal appears after a pullback. The following candle closes

above the high of the signal candle.

o The price is above both the green and black VWMA lines, confirming
upward momentum.

o The blue VWMA is also trending upwards, confirming that the long-
term trend is intact.

Entry Point: You would enter a long position at the close of the candle that confirmed
the break above the signal candle’s high.

Stop Loss: Set below the recent swing low or blue VWMA.

Exit Strategy: You can either exit at a significant resistance level or trail the stop loss
using the green or black VWMA.

Risk-Reward Ratio: Aim for a risk-reward ratio of at least 1:2 or higher. This means for
every 1 unit of risk, you should aim to make at least 2 units of profit.

Trailing Stop: Use the black VWMA (present time frame) as a dynamic trailing stop for
your position. If the price closes below the black VWMA, consider exiting the trade to
protect profits.
 HariHar Indicator and Strategy Presentation
4. Trade Management:

Position Sizing:

Calculate position sizes based on risk tolerance (e.g., risking 1-2% of your capital per trade).
Use the average true range (ATR) or volatility measures to set stop loss distances and ensure proper trade sizing.

Scaling In/Out:

Scaling In: If the trend continues after the initial buy, you can add to the position when there are pullbacks to the green or black VWMA with confirmation of a continued
uptrend.

5. Strategy Customization
Adapting the Strategy:
This HariHar strategy is adaptable to various assets: stocks, indices (e.g., NIFTY 50), commodities, and even Forex.
Clients can tweak HariHar Indicator settings (time frames) based on the asset class or market they are trading.
Key Takeaways:
HariHar Indicator provides a powerful method for trading trends with greater accuracy.

Combining multiple time frames in VWMA ensures you capture both short-term and long-term market movements.

Proper risk management is critical for maximizing success.

*****Note: This Indicator/Strategy is made for Educational purpose only. We do not recommend an indicator/strategy as
an advice or tips, always take advice of your financial advisor before investment. We are not responsible for any kind of
profit and loss. Stock Market Investment are subject to Market Risk.
 HariHar Indicator and Strategy Presentation
Based on the bullish sentiment, you could explore the following types of trades:

1. Equity Trading (Cash Market)

Buy the Stock: You can simply buy shares of the stock, expecting the price to increase based on the bullish pattern. The aim is to sell later at a higher price.

2. Futures Trading

Buy Futures Contracts: If you are confident in the bullish outlook, you can buy futures contracts of the stock, expecting the price to rise by the contract's expiry date. Futures are leveraged, so
they offer higher returns but come with higher risks.

3. Options Trading

Call Options: Buying call options on the stock would give you the right (but not the obligation) to buy the stock at a certain price (strike price) within a specified period. You would profit if the
stock price rises above the strike price before the option expires.

Bull Call Spread: This is a strategy where you buy a call option and simultaneously sell a higher strike call option. It limits your profit but also reduces the cost of the trade.

4. Exchange-Traded Funds (ETFs)

Buy ETFs: If you prefer to trade a basket of stocks, ETFs that track sectors or indices (like the Nifty 50) can be a good choice when the overall market shows bullish signs.

5. Intraday Trading

Buy in Intraday: If you're looking for short-term gains, you can buy the stock in an intraday trade and sell it within the same day, based on the bullish price movement.

6. Swing Trading

Swing Trade: If the bullish pattern suggests a multi-day or multi-week upward move, you can buy the stock and hold it for a few days/weeks, aiming to capture larger price movements.

6. Long-Term Investment

Long-Term Investment: If the bullish pattern suggests a multi-week or multi-month upward move, you can buy the stock and hold it for a few weeks/months, aiming to Long-Term price
movements.
 HariHar Indicator and Strategy Presentation
When trading with a bullish outlook but also wanting to manage risk, you can use hedging strategies. Here are the common
hedging strategies you can employ while trading in the NSE:
1. Covered Call
How It Works: If you own shares of a stock (long position), you can sell call options on the same stock to generate premium income. This caps your upside but helps offset any losses if the stock
price falls.

Example: If you hold 100 shares of XYZ stock and expect a moderate rise, you sell one call option with a strike price slightly above the current price. If the price rises, you earn the premium, and
your upside is capped at the strike price.

2. Protective Put
How It Works: If you own a stock and are bullish but want to protect against a downside move, you can buy a put option. This ensures that if the stock price falls below the strike price, your loss
is limited to the premium you paid for the put.

Example: You own shares of a stock and buy a put option with a strike price lower than the current stock price. If the stock falls, you have the right to sell the stock at the strike price,
minimizing losses.

3. Collar Strategy
How It Works: This involves holding the stock, selling a call option, and buying a put option simultaneously. It limits both your upside and downside. You sell a call to generate income and use
part of that income to buy a put for protection.

Example: You buy 100 shares of XYZ stock, sell a call option, and use the premium to buy a put option. Your potential gain is capped at the call's strike price, but your loss is also limited by the
put's strike price.

4. Bull Call Spread

How It Works: This strategy involves buying a call option at a lower strike price and simultaneously selling a call option at a higher strike price. It reduces the cost of the trade and limits your
maximum risk while capping potential profit.

Example: You buy a call option with a strike price of ₹100 and sell a call option with a strike price of ₹110. If the stock rises above ₹100, you make money, but your profit is capped at ₹110.

Cont…..
 HariHar Indicator and Strategy Presentation
5. Bull Put Spread
How It Works: You sell a put option at a higher strike price and simultaneously buy a put option at a lower strike price. This strategy limits your potential
loss while giving you limited profit in a bullish market.
Example: You sell a put option with a strike price of ₹100 and buy a put option with a strike price of ₹90. If the stock stays above ₹100, you earn the
premium; if it falls below ₹90, your losses are capped.
6. Long Futures with Protective Put
How It Works: You buy futures on a stock or index, expecting a rise, but hedge the position by purchasing a put option. This limits your
downside risk while maintaining the upside potential.
Example: You buy Nifty futures and also buy a Nifty put option with a strike price below the current index level. If the index falls, the put option
will offset some of your losses on the futures contract.
7. Straddle with Futures
How It Works: You take a long futures position and simultaneously buy both a call and put option. This strategy can be used if you expect high
volatility but want to hedge against both directions.
Example: You are bullish on Nifty, so you take a long Nifty futures position but also buy a call and put option to protect against any significant
move in either direction.

Considerations:
Cost of Hedging: Every hedging strategy comes with a cost (e.g., option premiums), so it's important to balance the cost with the level of
protection you want.
Risk Tolerance: The type of hedging you choose depends on your risk appetite and market outlook.
 HariHar Indicator and Strategy Presentation
Key Points for Short-Term Trading
Short-term trading generally involves higher risk and quicker decision-making. It requires a solid understanding of technical analysis, market sentiment, and trading psychology.

1. Market Trends and Sentiment

Identify the Trend: Understand whether the market is in an uptrend, downtrend, or range-bound (sideways). Align your trades with the broader market direction.
News and Events: Keep an eye on earnings reports, economic data, government policies, and geopolitical events that could impact short-term market movements.
Sectoral Movements: Short-term traders often target sectors with momentum. If one sector is gaining traction (like IT or Pharma), focus on stocks within that sector.

2. Technical Analysis
Chart Patterns: Learn to recognize key chart patterns like head and shoulders, flags, pennants, double tops/bottoms, and triangles to predict price movements.
Indicators: Use technical indicators like Moving Averages (VWMA, SMA), RSI, MACD, Bollinger Bands, etc., to make informed decisions.
Support and Resistance Levels: Identify key support and resistance zones on the chart where price action might reverse or break out.
Volume Analysis: High volume typically confirms a strong price movement, while low volume might indicate weak or unsustainable moves.

3. Risk Management
Stop Losses: Always set a stop-loss order to limit potential losses. Risk only a small percentage of your capital per trade (e.g., 1-2%).
Position Sizing: Determine your position size based on your risk tolerance. Avoid overleveraging, especially in short-term trades, as it can lead to significant losses.
Risk-Reward Ratio: Ideally, aim for a risk-reward ratio of 1:2 or higher. This means for every ₹1 risked, you expect to make ₹2 or more.

4. Trading Strategy
Day Trading: If you are engaging in intraday trading, focus on high liquidity stocks, track real-time price movements, and close positions by the end of the day.
Swing Trading: For trades lasting a few days to weeks, focus on momentum stocks that show potential for short-term price swings.
Scalping: A very short-term strategy where traders take small profits on quick trades. It requires fast execution and low transaction costs.

5. Psychology and Discipline

Emotions Control: Avoid emotional trading. Stick to your trading plan, and don’t chase trades based on fear or greed.
Stick to the Plan: Predefine your entry and exit points, and avoid deviating from your strategy mid-trade based on impulses.
Stay Informed: Always stay updated on market conditions and the stocks you’re trading. Quick reactions to market news can make or break a short-term trade.
 HariHar Indicator and Strategy Presentation
Key Points for Long-Term Investing
Long-term investing requires a focus on fundamentals, valuation, and the overall growth potential of a company or sector. Patience and a disciplined approach are critical for successful long-term investment.

1. Fundamental Analysis
Company’s Financial Health: Examine the balance sheet, income statement, and cash flow statement. Focus on revenue growth, profit margins, debt levels, and return on equity (ROE).
Earnings Growth: Consistent growth in earnings over time is a sign of a healthy company. Compare the company’s growth rate with industry peers.
Valuation: Look at key valuation metrics like Price-to-Earnings (P/E) ratio, Price-to-Book (P/B) ratio, and Dividend Yield to determine if the stock is undervalued or overvalued.
Debt Levels: Companies with manageable debt levels (low debt-to-equity ratios) are usually safer long-term investments, especially during economic downturns.

3. Sector and Economic Trends

Growth Sectors: Invest in sectors that have long-term growth potential (e.g., technology, renewable energy, healthcare). Avoid sectors in structural decline.
Macroeconomic Factors: Understand how inflation, interest rates, government policies, and global economic conditions might impact your long-term investments.
Industry Life Cycle: Invest in companies at the early or growth stage of their industry cycle for long-term compounding benefits.

4. Time Horizon
Investment Tenure: For long-term wealth creation, your holding period should ideally be 5+ years to ride through market cycles and compound returns.
Patience: Short-term volatility should not prompt you to sell long-term investments. Stay focused on the underlying business and its potential.

5. Risk Tolerance
Diversification: Spread your investments across various sectors to reduce risk. A well-diversified portfolio will minimize the impact of underperforming stocks or sectors.
Asset Allocation: Keep a balance between equities, fixed income, and other asset classes based on your risk appetite and investment goals.

6. Dividend and Growth Potential

Dividend-Paying Stocks: Choose stocks that provide steady dividends along with capital appreciation, which can provide income while you hold the stock long-term.
Compounding: Reinvesting dividends and capital gains can significantly enhance your returns over the long term through the power of compounding.

7. Inflation and Tax Considerations

Inflation-Adjusted Returns: Ensure that your investments can beat inflation over time. Long-term investments in growth stocks or real estate are generally good inflation hedges.
Tax Efficiency: Be aware of long-term capital gains taxes and dividend taxes. Holding investments for more than one year can help lower tax liabilities in many cases.
 HariHar Indicator and Strategy Presentation
Common Considerations for Both Short-Term and Long-Term Trading
Brokerage and Transaction Costs: High trading frequency can erode profits in short-term trading, so choose low-cost brokers. For long-term investors, ensure that your broker
doesn’t have high holding fees.
Liquidity: Ensure that the stock or asset you are trading or investing in has enough liquidity. Illiquid stocks can be difficult to exit without affecting the price.
Leverage: Avoid excessive use of leverage, as it increases risk. Leverage can amplify both gains and losses, making it dangerous for both short-term and long-term trades.
Monitoring and Research: Continuously monitor your portfolio and stay informed about market conditions, but avoid micromanaging or panic trading in long-term investments.
Summary:
Short-Term Trading: Focus on technical analysis, market sentiment, risk management, and quick decision-making.
Long-Term Investing: Prioritize fundamental analysis, valuation, patience, and staying aligned with economic and sectoral trends.

*********Note: This Indicator/Strategy is made for Educational

purpose only. We do not recommend an indicator/strategy as an
advice or tips, always take advice of your financial advisor before
investment. We are not responsible for any kind of profit and loss.
Stock Market Investment are subject to Market Risk. *********
 The Trader on Top who stands
with Rules

Steps 4

Step 3

Step 2
Exit with Rule & Be
Step 1 Happy with Result

Place a StopLoss

Set Risk : Reward Ratio

Take the Trade with Rule

Check the BUY Signal

Accuracy BUY Signals by HariHar Indicator

Simple Strategy and Rules Based Trading

More Accurate in Swing and Long-Term Trading

HariHar Indicator provides a powerful method for trading

trends with greater accuracy
Chalo Trend ke Saat Trade Kare…….
चलो ट्रें ड के साथ ट्रे ड करें …….

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