Invester capability and analysis with examples.pptx

Pptx on trading invester capability

1. Volume Expansion: An edge for a low risk entry By: Anand Rathi

2. WHAT IS VOLUME PRICE ANALYSIS (VPA) Volume Price Analysis (VPA) is a technical analysis tool that combines both price and volume and attempts to confirm price action or warn of potential weakness or lack of conviction by buyers and sellers According to Anna Coulling : “There are only two leading indicators in trading. One is price, and the other is volume. In isolation, they are weak and reveal little, but put them together, and just like gun powder, they become an explosive combination. In short: Volume Price Analysis reveals the DNA of the Market, and places this awesome power in your hands You can become a confident and assured trader, removing emotion and stress from your trading Also, will start to enjoy your trading, as you will know where the market is going next based on simple logic and the power of Volume and Price

3. Basics important points of VPA & Markets wh a t is a volume: A transaction of buy and sell Market is all about supply and demand B uyer test supply & S eller tests demand buyer looks to buy low & seller looks to sell high 4phases: A ccum ulation , M ark -U p, D istribution, M ark - down, Additional: R e-accumulation, R e-distribution

4. IMPORTANT POINTS TO REMEMBER Always give Importance to Price levels (range) If the volumes are conflicting with price, then price levels take precedence Mid-point of high volume candle gives an Indication with respect to aggressiveness when ever vols very high or very low at not so imp lvl we need to be cautious.. Low/High of Breakout / Breakdown candle can be good indication about a false move Trading is all about probablity of an outcome, imp of all is money management accordingly.

5. I WILL BE TALKING ABOUT VOLUME EXPANSION TODAY , WHICH IS PART OF VPA THAT I FOLLOW

6. DISCLAIMER I have learned this overtime and is totally based on my learning's from the market I haven't gone through any books so u may or may not find these details in any books This is what I have been following since few years and has been working for me fine. I have my Right to be wrong . Any stocks / index views discussed here are just for learning purpose , do not consider it as buy / sell recommendatio n.

7. UNDERSTANDING VOLUME EXPANSION

8. WHAT IS VOLUME EXPANSION What is Volume Expansion ( VolExp ) Whenever higher volumes are observed than in the recent sessions with or without major change in price behaviour we consider it as Volume Expansion Advantages of following VolExp VolExp helps in identifying trading opportunities right near the inception of a trending move providing a low risk-high reward trade entry VolExp helps to get very gud ROI in very short time period.

9. DIFFERENT TYPES OF VOLUME EXPANSION

10. TYPES OF VOLUME EXPANSION When we get a candle whose color is opposite to recent trend with positive / negative close compared to previous day & Volumes are highest when compared to that of recent full leg of move “PRAKAT” VolExp

11. TYPES OF VOLUME EXPANSION In this case the candle color and close are as per ongoing trend but occurs after a good trending move & Next day high/low of this candle gets crossed without breaching low/high of previous day “GUPT” VolExp

12. TYPES OF VOLUME EXPANSION A very high vol candle with close in the direction of present trend Generally seen after end of major trending move. In subsequent sessions price trades mostly within this HVC range. Post this earlier trend or opposite trend may resume. “KAPAT” VolExp

13. Entry: Candle close above or below high or low of HVC candle. SL: Low or high of HVC Target: Minimum target- Range of HVC, Probable target - Recent swing high/low or major supply/demand zone having next comparable vols. How to trade using VolExp

14. Examples

15. Nifty Bottom VolExp

16. DHFL

17. Yes Bank

18. Vakrangee

19. ICICI Bank

20. Nifty VolExp Failure

21. Dish TV

22. State Bank Of India

23. Nifty VolExp - Voltaile Move

24. Nifty VolExp - midpoint of HVC

25. Nifty VolExp -close not +ve and false buy trigger

26. Few Tips on Money/Risk Management Trade Entry : Wait for entry signal & then enter with proper sl , never run after the trade with risk at stake in mind Position Size : never bet more than 2% of capital per trade & so have to manage postion size accordingly can find alternative like cash buying or ignore trade Exit Strategy : whenever sl gets hit exit is must without any hope on reversal or so, have to exit if any reversal is also seen . Trailing Position : Once positions gets in gud profits as per R:R, keep booking partial profits and do trail with TSL. Hedging Position : Options are best available instrument to hedge our position so as to minimize risk or protect profits.

27. Intraday Trading Wait for some time post markets open before entering a trade. Proper trade plan( lvls /view etc) is must everyday for trading. Intraday trading always book atleast partial profits on 1:1 risk reward and trail posn . Setups on 5/10/15 TF can be used for intraday.

28. Phycology or B ehaviour al Ananlysis too much noise on BO/BD is not gud . It may cause false move or a pause. lot of expectations /noise on an outcome of event generally leads to non event . whenever lot of -ve news flows occurs but price resists to go down tht would mean major reversal is ar ound and Vice versa. tops are formed on +ve news and vi ce versa post fresh breakdown if there is a +ve news flow then expect more downside in stock, th a t bounce due to news flow is used to dump more by operators ex: DHFL/ yesbank /jet-airways recently G enerally for index based on period of consolidation and then BO probable short term & medium term tgts can be calculated. F or smart money Rate of interest based return is imp so can calculate accordingly.

29. DOs & DONTs Stop trading too much & too big Trade what you see and not “What you Want o See” (hope) Never fight with trend , Always remember “Trend is Best Friend” Do not look to do bottom fishing, let mkts show some signs Cut your losers fast but never exit winners completely soon Never Trade based on so called “Insider Info” , always follow charts, charts knows everything Always Remember “ Trading is More about Discipline and Emotional Balance”

30. THANK YOU m: 9885392011 Have Conviction on your charts and Follow your charts “RELIGIOUSLY” @anandrathi12