30 mins candle sticks strategy for next day trading setup 30 mins candle sticks strategy for next day trading setup :
I want to share a strategy which is based on candle sticks price action and the time period we should take as base. If we are able to find the setup at right time (trading sense) then win rate would be 60%+, works well in trending market; side ways market this setup may not work. Stop Loss is key and ensure to put it along with the entry. Calculation of SL is an art and science, spend time on understanding it first before catching up/learning any strategies. SL will save us from wrong entries and ensures capital is saved. We get many opportunities of trade setups, so avoid FOMO (fear of missing out). Will try to explain strategy in simple words. I also welcome constructive feedback to make this much more better and also request you ignore this strategy if this is not making any sense to you. I am sharing only for educational purpose and not recommending anyone for real trading. Thanks in advance!
There will always be room for improvement and this is not any fool proof system/strategy and neither want to prove that this is correct, every transaction has a buyer and seller mindset. So please be cautious!
What we need :
Candle sticks of 15 mins time frame
Confirmation with indicators should be in same trend with candle stick trend
1. RSI (For trend identification)
2. Stoch (Entry and Exit confirmations / Overbought and Oversold confirmations)
3. Any other indicator of your choice which adds value to setup and confluence
Bit of explanation on time period:
Indian market starts at 915am and ends by 330pm which has about 25 candlesticks of 15 mins (time frame). Sentiments of the market behavior will be based on the timings, like in the morning trend will have an impact of over night news and/or once Europe market opens its impact will be around 1pm.. etc. 315pm till 330pm will have all closures for intraday by brokers which directly or indirectly impacts the candlesticks. So ideally if we consider 245pm and 300pm candle stick, in total 30 mins; this would typically create a base for next day strategy. That means taking these two candle sticks and marking high and low of them will give us a preparatory base for next day on how to setup trade or what needs to be done.
Rules of the game :
Once we mark the high and low of 245pm till 315pm candle sticks, price moving up from the high can be considered our entry with a stop loss of just below the high line and look for a good RR. If the price goes down the low point marked then it can still go down and our entry can be at that place keeping stop loss just above that low line and look for a good RR.
If market opens big gap up then chances of it falling till the high line are high; once it reaches this high line, it can further try for next target of touching low line. In similar way if market opens big gap down then chances of it raising up till the low line are high; once it reaches this low line and then it will try to touch the high line.
If one entry has already come in any of above setup in a day then don’t expect that it will give you another setup as it would have exhausted already with the levels given; So one day one setup only.
Stop Loss :
There are various ways to keep SL here (Please work out acceptable SL as per your risk appetite and entry should be truly based once SL is identified correctly. If you do not know how to keep SL’s then this strategy may not work and also hitting of SL. Please be cautious!)
1. Just below high line or just above the low lines
2. Half of the market area, high and low
3. For a short entry at low line, SL can be high line or for a long entry at high line, SL can be at low line
4. Prior candle high or low or entry candle high or low
5. Or any of your best working SL ideas
Risk Reward:
If you are having good understanding of the market/asset where you are applying this strategy then ideal RR should be 1:1.5 and can be trailed for a bigger reward too. Please do a good back testing of this strategy.
Avoid :
• If you do not understand the strategy
• If you do not understand how candle sticks are behaving
• If candle stick pattern is not respecting high and low lines marked as mentioned above
• If there is no confluence of the setup with indicators
• When calculated SL is way high due to the formed candle stick (large or big candle stick, if taking entry after this candle)
• When there is no confidence on the setup
• Fear of Missing Out
• In a sideways market, hitting of SL will be high
Please do let me know if you have any questions would be happy to respond.
Please do like and share this idea. Thanks
Disclaimer : This analysis/strategy is only for educational purpose and not be considered as any trading idea/tip. Please consult your financial advisor before you take any trade and we are no way responsible for your profits/losses. Thank you!
I will also put some examples (todays live charts) for better understanding :
15min
LARSEN & TOUBRO 15 Min AnalysisLARSEN & TOUBRO has already given channel breakout in a daily timeframe on 7th July. Currently, it is forming a flag and pole pattern in 15mins time frame, which is a continuation pattern.
Enter trade if the price closes above 1675 with proper candle and volume. Because it was a strong resistance right now.
Possible targets are mentioned in the chart. For Less Risk taker 1645 stop-loss. And for taker 1630.
Do your own analysis before making an investment decision.
NSE:LT
Keep an eye on Reliance In 15 Min Chart ,Watch Out for possible breakout or breakdown in Reliance.
Reliance is in very important zone, wait for proper breakout or breakdown with proper candle & Volume.
At present it is better to trade with Future and option than cash segment.
With Proper hedging and risk reward, we can enter in reliance.
This is just a view not a recommendation to trade. Do your own analysis before taking any trade.
NSE:RELIANCE
Nifty 50global sentiment are Slight bullish
2. war was not end
Observe the trend lines
(16000)Fib 50 % reversal level for down side short time frame
(Chart shows halt and cup and handle break )
1.IF Tomorrow gap up 15 min candle if break the resistance 16000 .. if we can see the price action for buying side and exit at the target price no Trail as per your rules
2.If Open in flat wait for the trend up side or downside Or it may have side ways then take the trade
3.if gap down wait For close the 5 min or 15 min candle the crossed 15494 buy and target price no Trail as per your rules
Weekly high and low should be mark
**(Friday
Total Oi base call side 6,61,203 compare to put side 6,84,087 OI
So call atm to 500 points itm contracts 1,00,992 oi
Put atm to 500 points itm contracts 87,151 oi)**
put options purchased itm 16700 strike price 11,773 oi
every 50 points straddles are created
Option chain shows bullish
**(monday
Total Oi base call side 10,80,454 compare to put side 11,56,804 OI
So call atm to 500 points itm contracts 1,87,024 oi
Put atm to 500 points itm contracts 71,804 oi)**
call options purchased itm 16700 strike price 11,773 oi
every 50 points straddles are created
Option chain shows bullish
Note . this just prediction. market can happen anything
Bank nifty1.global sentiment are slightly bullish
2. war was not end
(Chart shows a lower lows and cup and handle )
1.IF Tomorrow gap up 5 min or 15 min candle if break the resistance 33775.. if we can see the price action for buying side and exit at the target price 34000
2.If Open in flat wait for the trend up side or downside Or it may have side ways then take the trade
3.if gap down wait For close the 5 min or 15 min candle the crossed 32000 buy and wait for the target
Weekly high and low should be mark
**(Friday
Total Oi base call side 4,19,077 compare to put side 3,52,723 OI
So call atm to 500 points itm contracts 65,595 oi
Put atm to 500 points itm contracts 39,402 oi
atm options added 33500 strike price)
**(monday
Total Oi base call side 6,98,680 compare to put side 7,44,537 OI
So call atm to 500 points itm contracts 1,03,941 oi
Put atm to 500 points itm contracts 67558 oi
atm options added 33500 strike price both call and put side
33500 are created a straddle
options chain shows slightly bullish
Note . this just prediction. market can happen anything)
TCS 15 Min ViewIn TCS we are seeing ascending triangle pattern. wait for the proper breakout, at the same time movement is not that much powerful, that's why we are seeing M PATTERN also, so wait for proper breakdown with volumn. This is just a view not a recommendation to trade. Trade at your own risk management.
Bank nifty 15 min Analysis Bank nifty 15 min Analysis
After the continues down trend, now the momentum is paused and forming a symmetric triangle pattern in bank nifty. Have to see whether we can see breakout or breakdown, Support and targets are given in the chart.
Give your opinion in the comment section.
Note: This view just for education purpose not a suggestion to trade.
TATACONSUM 15min TF INTRADAY Bullish See the chart of Tata Consumer Products in 15min time frame. The chart forming a symmetrical triangle pattern.
Today 16Jun2022, the global indices are in green as it reflecting in Indian markets. So there is more possible chance of Bullish . We can trade LONG in INTRADAY if it breaksout the upper trendline.
ASIAN PAINTS LTD 15min INTRADAYIn this chart we can see that the price is forming an Ascending Triangle pattern. If it breaks the trendline below, we can go SHORT. But the global market indices are in GREEN today. So there is more probablity of breaking the RESISTANCE above. If it breaks, we can go LONG in INTRADAY.
NRBBEARING 15 Min AnalysisNRBBEARING is in sideways from past many days. We can see stock is rejecting 127-128 range at the same time buyers also showing their aggression that why we can see trendline also. Overall view is given in the chart. Trade @ your own risk. I am not SEBI Reg person. These views are for education purpose only.
KVB Bank 15 min Chart; Bullish Pennant FormationOn 9th Nov 2021, the stock gave a strong upmove as the market opened, thereby consolidating over the day. The structure resembles a bullish pennant formation on 15 min chart (Quite visible at 1H charts too). Support Region remains around 55.5-55.6. A breakout from here can instill fresh momentum in the stock and further upmove.
**I am not a SEBI Registered Advisor, Kindly consult your advisor before taking Trade**