Steps to Follow:

A minimum of 3 time frames when planning trades:

1. Higher Time Frame (HTF) – Used to assess Curve / Location.

2. Intermediate Time Frame (ITF) – Used to assess Trend.
3. Lower Time Frame (LTF – Zoning) – Used to identify demand and supply for execution trade.

Types of Traders:

1. Hourly Income Trader – Trades that last up to few hours.

Intraday Trader
2. Daily Income Trader – Trades that last up to a few days.
3. Weekly Income Trader – Trades that last up to a few weeks.
4. Monthly Income Trader – Trades that last up to a few months.

Decide Trading type:

Types of Traders HTF (Curve / Location) ITF (Trending) LTF (Execution)

Hourly Trader 75 Min 15 Min 5 Min
Daily Trader Daily Chart 75 Min 15 Min
Weekly Trader Weekly Chart Daily Chart 125 / 75 Min
Monthly Trader Monthly Chart Weekly Chart Daily

Note: “Fresh Level” A Supply or Demand level that has not been touched (pierced) since the original
level was formed (created).

HTF – On location chart: Find demand and supply zone

Demand Zone: Look left and down look for explosive green candle.

Supply Zone: Look left and up look for explosive red candle.

Note:

1. All zones are made of 3 Elements Leg-in, Base & Leg-out

2. Once demand and supply zones are identified draw retracement line from proximal line of
demand zone to proximal line of supply zone to divide it in 3 equal parts.
3. Check where price is trading:
a. High end of the Curve – Short (Decision Matrix).
b. At equilibrium – Go with the trend (Decision Matrix).
c. Lower end of the curve – Buy (Decision Matrix).
4. If there is no fresh supply but only fresh demand  assume prices are in equilibrium and trade
along with the trend.
5. If there is no fresh demand but we have only fresh supply  assume prices are in equilibrium
and trade with the trend.
 6. Your highest probability trades will be those in which your execution time frame is inside the
location time frame.

ITF – On trending time frame:

Plot 50 SMA (Simple moving average)

1. Count 7 candles from cmp & plot a vertical line on 7th Candle.
2. Plot a horizontal line where the 50 SMA and the vertical line intercept.
3. Divide the same in clock wise segment.
a. If SMA is Green & Slope is between “12-3”  UP Trend  Go Long
b. If SMA is Red & Slope is between “3-6”  Down Trend  Go Short
c. If SMA is Green / Red & slope is flat at “3”  Sideways  Can take both trades

LTF – Execution / Zoning time frame:

1. If the bias is long – look for demand zone quantify your zone using odd enhancer score if score is
7 plan type 1 (limit entry), if score is between 5.5 to 6 plan type 2 (zone entry) or a type 3
(confirmation entry)
2. If the bias is short – look for supply zone quantify your zone using odd enhancer score.
3. Odd Enhancer Score:
a. Freshness:
i. Fresh and Untested – Score 3
ii. Once Tested – Score 1.5
iii. Multiple time tested – 0
b. Strength  Leg-out Candle
i. Gap-up or Gap-Down or 2 exciting candle of same color – Score 2
ii. Single Exciting candle – Score 1
c. Time:  Base Candles
i. 1 – 3 Basing candle – Score 2
ii. 4 – 6 Basing candle – Score 1
iii. More than 6 basing candle – Score 0
4. Mark your Entry, Stop loss and Target on the chart. (Adjusting stop loss line automatically add
“DATR” on your chart double click on the stop loss line)
5. Stop loss Rule :
a. Hourly Income and Daily Income trade : 2% of Daily ATR
b. Weekly Income and Monthly Income trade: 10% of Daily ATR
6. Target : Look for opposing level on the execution chart (execute your trade if and only if Risk to
Reward is greater than 1:2)
a. If 1 target (1 Bracket order)
b. If 2 targets (2 Bracket orders)
c. If multiple targets ( Multiple bracket orders)
 7. Position Size :
a. Risk = 100
b. Stop loss = 0.50
c. Position Size = 100 / 0.50 = 200 Shares (Risk / Stop loss)

Risk management and Trade Management:

1. I will not be simultaneously in 3 or more trades

2. I will not place an additional trade till and until one of the earlier trades meet target 1
3. If I have 3 losses on any given day I will stop trading and shut my shop and do something else
(Watching a movie, reading a book or going out for a walk)
4. If I have 2 consecutive losses I will preferably decrease my position for the 3rd trade just to be
safe (50%)
5. Let us say we are in a trade and that trade is our favor giving 1:1
 Do not exit the trade and book partial profits instead get SL to cost ( Many times many
trades will be closed for breakeven and this is normal)
 Once price reaches 1.5:1 you have choice to take partial profits and bring SL to cost.
 Once price reaches 2:1 you have a choice to exit the complete position or exit 50%
position. The remaining 50% will be managed using either a manual trailing stop loss (In
front of the screen) or an automated trailing stop loss (Trade Tiger)…..
Stocks Selection:

1. Price Requirement – Between “Rs. 100 – Rs. 3000”

2. Average Daily Volume – 5 Lakhs shares / day ( 5 lakhs shares a day is ideal, but 2 lakhs is
adequate)
3. Daily Average True Range – at least >= 5
4. Spread During market hours – Spread 5 paisa.
5. Go to ignite scanner window:
a. Use predefined scans to create a list of stocks for income.
b. Right click and add to market watch.