I am not a certified analyst. The charts shown and the content in the blog are for educational purpose only and in no way is a buy or sell recommendation. Readers are advised to use discretion.

Saturday 2 January 2016

How to Locate Strong Setups -4 !!

(SS) Strong Setups Series - 4

So now we have 2 things clear -
1) Bias
2) Squeeze formation

If not clear, plz re-read again and then move on to the Trigger- The Entry Pattern !

As we are looking for only strong setups, so we will get lesser opportunities with high strike rate ! so its worth waiting

Now when the squeeze is evident, Mark two DP zones (Support / Resistance) - One on the Pivot high before squeeze, another on the Pivot Low of Squeeze start.
For our entry, we should be looking for a candle formation on UBB or LBB touching this DP. If the Bias is Up, then look for a candle formation on UBB first then on LBB and Vice Versa. 
Any candlestick pattern you love - like Engulfing, Hammer, Doji... whatever the names are (and i am least bothered about it), it should have break of UBB with few points and then moved to LBB. 
The candle can be bigger or can be smaller.. It can be with high volume or low volume.. we seriously don't need these things, all we need is a breakout of UBB followed by breakout of LBB in a Squeeze with Up bias. Yupp, DP touch is a must !!
Let me give an example here with Nifty 15 min chart- In an Up Bias, 2 squeeze are formed..


(1) First touch to UBB + DP. we are waiting for LBB touch
(2) Second touch to LBB + DP. 
Now any RED Candle High break is our Entry with SL below it.
(3) First Touch to DP, but not BB so avoid
(4) First touch to UBB + DP, wait for LBB
(5) Second touch to LBB + DP. Any Red candle High break is our entry !!

Watch the Entry candles below marked with pink circles..


Just practice this, and will come up with Targets/ Money Management & few Situations to avoid...

5 comments:

  1. Watch out MARUTI Daily Chart !! & see if anyone can spot something.. !!

    ReplyDelete
  2. hi deven,
    HERE ARE 2 CHARTS ATTACHED, KINDLY HAVE A LOOK AT THAT, AND ONE REQUEST PLZ ELABORATE THIS EXAMPLE...

    http://postimg.org/image/bpmg0au3t/
    http://postimg.org/image/wl44xt0x5/

    Regards
    danish

    ReplyDelete
  3. posting here one more chart, plz have a look at it
    query - which is the entry candle.....

    http://postimg.org/image/78yofd59l/

    ReplyDelete
    Replies
    1. Hi Danish,

      Great you worked upon it !! Will update your charts in a post today.

      Thanks,

      Delete

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