THE FOLLOWING PARAMETERS ARE BEING ADOPTED FOR STUDYING CHARTS AND ARRIVING TO CONCLUSION OF BUY / SELL WITH TARGET / STOP LOSS FOR THE INSTRUMENT (STOCKS OR INDICIES)
1. Trend following
Up Trend : Any chart which is making Higher Highs & Higher Lows is considered as uptrend and in this trend longs are generated near the support Points or breakout points as on when they are seen.
Down Trend: Any chart which is making Lower Highs & Lower Lows, is considered as in down trend and this trend is used to generate shorting opportunities near the resistance points or breakdown points.
2. Counter Trend: Any chart which is on the retracement process, when the price comes near the support points (moving averages, double bottoms, swing lows or any big candle of the trend), buy calls will be generating with the immediate bars low as stop loss.
Similarly, when the chart comes near the resistance points (Moving Averages, double tops, swing Highs or any big candle of the trend), sell calls will be generated with immediate bar as stop loss.
3. For all the Technical calls, candle stick charts are used and based on occurrence of various price patterns viz, Long Day Candle, Engulfing Pattern, Doji, Hammer, Hanging Man, shooting star, Inverted hammer, Spinning Top etc.
4. For Positional Trades, the other parameters Used are GAPS (Gap ups, Gap Down, Filling Of the Gaps), 20DMA for short term calls, 50DMA for medium term calls, 100 & 200 DMA for long term calls.
5. Along with Price patterns, Volume Breakouts are also considered for generating Trading Calls (Buy or Sell). when volumes support price moves, that implies big people (Institutions) are participating, hence the call is taken as position.
6. For Intraday call, 15 minute time frame is considered for generating trading calls, The other parameters used are Open = Low (considered as buy call), Open =High(considered as sell), Gaps, 3 days Highs & 3 days lows for Counter Trend.
7. Choosing the strong chart for generate longs and weak stock for generating shorts with in the sectors.