Swing & Positional Trading Setup - 85% Win Rate

✅ Set up for Positional and Swing Trades (High Beta Liquid Stocks for Cash and Options)-

This trading guide outlines a simple and effective setup for both positional and swing trades, focused on high beta, highly liquid stocks. Follow the rules strictly for better consistency and profitability.

🔹 Positional Trade Setup
• Open the Monthly Chart of the stock.
• Add the RSI (Relative Strength Index) indicator.
• Uncheck all levels (30, 50, 70) and only keep one level at 60.
• Edit the level from 70 to 60 and highlight it in green.

Entry Criteria:
• Stock must cross the 60 RSI level on the monthly chart.
• Entry is only triggered if the price breaks the previous month's high and 60 levels are broken in RSI.

Stop Loss:
• Place the initial stop loss below the previous month's low.

Trailing Stop Loss:
• Trail the stop loss to the current month’s low, but only after the monthly candle closes.
• Continue trailing the stop loss every month using this method until exit.

Exit Rule:
• Exit the positional trade only if the current month’s candle closes below the previous month’s low OR Exit also if the BigWick is formed below previous month low.

⚡ Note: The RSI 60+ setup is a powerful momentum strategy with high reward probability.


🔹 Swing Trade Setup
• Monthly RSI must cross above the 60 level.
• Switch to the Daily Chart of the stock.
• Identify the current swing high on the daily chart.
• Entry is triggered only when the stock breaks the swing high.
• Place the stop loss below the previous week low at first.

Trailing Stop Loss:
• If the trade moves in your favor, trail the stop loss to cost from week low.

Exit Rule:
• Exit the swing trade only if RSI crosses below 60 with a daily candle close.

📌 High Liquid Stocks List
(Suitable for both Cash and Options Segment)

🚗 Auto
• Bajaj Auto
• Bosch Ltd
• Eicher Motors
• Hero Motocorp
• Maruti Suzuki
• TVS Motors
• Tata Motors

🏦 Banking & Financial Services
• Bank of Baroda
• Kotak Bank
• Axis Bank
• ICICI Bank
• HDFC Bank
• IndusInd Bank
• Bajaj FinServ
• Bajaj Finance
• SBI

🧪 Chemicals
• Aarti Industries
• Atul Ltd
• Navin Fluorine
• UPL
• Tata Chemicals

🍫 FMCG
• Britannia
• Godrej Consumer
• Tata Consumer
• DMart
• Hindustan Unilever
• Dabur

💊 Pharma & Healthcare
• Apollo Hospitals
• Alkem
• Biocon
• Divis Labs
• Dr. Reddy’s
• IPCA Labs
• Laurus Labs
• Lupin
• Aurobindo Pharma
• Sun Pharma
• Cipla

💻 IT Sector
• HCL Technologies
• Infosys
• LTIM
• TCS
• Tech Mahindra
• Wipro

⛓️ Steel & Metals
• APL Apollo
• JSW Steel
• Jindal Steel
• Tata Steel
• Hindalco
• L&T

🛢️ Oil & Gas
• Reliance Industries
• Gujarat Gas
• IGL
• MGL
• Tata Power

🏢 Realty
• DLF
• Godrej Properties
• Lodha
• Oberoi Realty
• Phoenix Mills

🛋️ Durables & Others
• Sona BLW (Sonacoms)
• Amber Enterprises
• Bata India
• Crompton
• Dixon Technologies
• Titan
• ACC Cement
• Ambuja Cement
• Ultratech Cement
• Voltas
• Polycab
• Mazdock
• Asian Paints
• Berger Paints

📝 Conclusion
This is the final and simplified setup designed for traders looking for clarity and consistency in trading. No complicated indicators or confusing rules—just clean chart action with momentum logic. Please don't trade Intraday and Index options - its a TRAP. Index and Options are hedging tools used by Sharks to secure their capital. Don't use as a tradable script. You will loose 100%. Focus on what you can achieve with their footprints.



Faraz T
Sr. Equity Research Analyst (Ind, US, UK)