© Copy Rights Reserved to Fedify Technologies private Limited … Trading... · 2017-01-25 ·...

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Trader’s weapon of choice

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U-TURN Echartar Trading Methodology

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1) U-Turn helps you to identify the trend reversing price point effectively.

5 Benefits of using our U-TURN Signal

2) Among the thousands of stocks in market you can scan for Trend reversing stocks with the U-Turn Scanner.

3) U-Turn Scanner saves lot of your time which is wasted on choosing the right scrip for day trading.

4) Always use U-Turn in higher time frame charts (eod) to choose stocks for intraday trading.

5) Buy signal at the Bottom of an down trend and Sell signal at the Top of the Up trend are the only qualified signals and will achieve targets quickly.

Signals that occur on same sided trend and side ways market are false signals.

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Stock Selection using U-Turn

Step 1 – Stock Selection

Scan all Stocks with EOD Data

using U-Turn Scanner & Choose

only familiar Scrips, those are high

in volume .

Tip:For better results use only EOD data

& Complete your analysis prior to the

market opens.


6 Steps Trading Methodology

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Step 2 – Reversal analysis

• If U-Turn Buy signal appears on the

Down trend reversal you can choose to

buy above the closing Price & the Stop

loss should be the low price of the same

candle.

• If U-Turn Sell signal appears on the

Uptrend reversal you can choose to sell

below the closing Price & the Stop loss is

high price of the same candle.

• If it is in side way movement, please

avoid that particular stock for trading.

Tip:U-Turn Signals occurring in strong trend

reversals may achieve target very quickly.


Trend reversal Analysis with U-Turn

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It is always better to do more analysis to get higher rate of accuracy. For getting multiple confirmations to understand the strength of the signal you can do 4 more simple steps.

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Step 3: Apply Candlestick A.I

Apply Candle Stick Patterns Auto

Identifier in the selected stock

chart and check for candle pattern

formations in the last bar where

the U-Turn Signal has occurred.

Tip:If there is any candle pattern occurred

and if the type of that pattern matches

the U-Turn Signal’s trend, that is a

Double confirmed signal.


Trading Methodology

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Step 4: Apply Elliot Wave A.I

Apply Elliot Wave Auto Identifier in

the selected stock chart and check

for wave formations in the last bar

where the U-Turn signal has

occurred. Consider C,3rd & 5th

waves only.

Tip:If there is any wave ending in the

last bar, where the U-Turn Signal

has appeared, that is a Triple

confirmed signal.


Trading Methodology

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Step 5: Apply Darvas Box A.I

Apply Darvas Box Auto Identifier

in the selected stock chart and

check for any Upward Candle

Penetration at outside top of the

Darvas box on the last bar, where

the U-Turn signal has occurred.

Remember that Darvas box is only

for taking Long Positions and Not

for Short positions.

Tip:If there is a upward candle penetration,

that is an another Strong confirmation for

stock selection...


Trading Methodology

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Step 6: Apply Fibonacci,

Indicators & All other

Studies.

Apply any studies you may want,

like Fibonacci, Indicators,

Crossovers, Macd, Support &

Resistance etc., and do your

analysis at your convenience. 23%

break out in Fibonacci retracement

will work very well along with other

confirmations. Tip:Doing more analysis and finding

multiple confirmations to trade will

increase your success percentage

drastically.


Trading Methodology

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Fixing the Entry Price, Target Price & Stoploss Price

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Entry Price

Entry Price

Entry price is always 0.1% above

the close price of the candle where

the U-Turn signal has occurred.

For ex: If the close price of a stock

is Rs. 500 then the entry price is

500*0.1% = 500.50.

Tip:If you choose more than one

stock to trade then It is better to

place basket orders from your

trading software. Pre-Orders

helps to avoid panic during market

hours.


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Target Price

Target

Even though the U-Turn Signal’s

target percentage is 2%, but to get

higher number of successful

trades, always keep your target

between ½ % to 1 % that is

Rs.02.50 to Rs.05.00 for a

500.00Rs Stock. ½ (0.5%) target

is recommended to make regular

profits.Tip:

Many times Targets will be

achieved rapidly before pre noon

session, So never forget to place

the target. If once the target is

achieved don’t trade the same call

again.


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Stop Loss

StopLoss

Your Stoploss is always the

Low/High of the last candle that

has generated the U-Turn Buy/Sell

Signal.

Tip:Try to neglect signals occurring in

big long candlesticks to avoid long

stop loss amount which is risky.

Choose only medium & small

sized candles with strong trend

reversal to gain better results.


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6 steps method – Quick Look

Step 1: Use U-Turn scanner to choose stocks. After scanning select stocks that are reasonably high in volume.

Step 2: Open selected stock and check if Buy signal is occurred at the bottom of an down trend. For Sell signal, check if it is occurred at the Top of the Up Trend. If it is vice versa and occurring on side ways market then it is a false signal, just ignore it.

Step 3: Apply Candlestick A.I to check for any relevant candle patterns occurred.

Step 4: Apply Elliot Wave to check for any C, 3rd or 5th wave for reversal confirmations.

Step 5: Apply Darvas Box only for upper break outs.

Step 6: Apply Fibonacci, Crossovers, Indicators & All other Studies as required for multiple confirmations.

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Trading Levels

Entry price: is minimum 0.1% from the close price where the signal occurred.

Stop Loss: Low of the candle is the stop loss for buy entry and High is Stop loss for the Sell entry of the candle where the signal has occurred.

Target: Set target as 0.5% from the stock’s close price where the signal has occurred. Do not enter until the stock crosses the entry price.

If you think the target is lesser, then increase the

number of stocks or lots quantity but not the target levels.Remember that small targets and quick exit are always safe for a day trader.

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Never forget the echartar golden rules..

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Echartar - Golden Rules

1) Always analyze with EOD data. Real-time data can be used for double confirmations, reducing stop loss and for market watch. EOD analysis will keep you well informed and prepared before market hours. Panic Trading will be avoided by doing EOD analysis.


2.) Use pre market orders and place all your planned orders in advance before market opens, so that you can avoid missing out the price. As soon as you buy/sell the stock, place Target & Stop loss immediately.

3) If targets are reached once, never use the same level again to trade. Go for new analysis.

4) If the stock’s price opens above/below the calculated Target/Stoploss the call you have taken is

cancelled. Never wait to trade in same level again.

6) Wait till 15 mins before market ends and exit only on Target/Stoploss price. If the target price is not achieved, wind up all your positions 10 mins before market ends.

5) If the stock price gap opens and Incase your Target/Stoploss is not achieved, then wait for the price to come to your buy price level and enter the trade.

7) Ignore U-Turn signals in long sized candles to avoid high stop loss levels.

8) If Stop loss is hit on some days, accept it. You can gain in another trades. Do not get panic and Never break your trading discipline.

9) If some days, if you can not catch the price of your analyzed stocks or the stock opens Gap Up/Down DONOT WORRY because ONLY few GOOD trades can make solid profits

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Both Real Time & EOD can be accessedthrough our EChartar 9.0 advanced version


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BUT…


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Safe Traders Analyze with EOD

A Safe Trader will always choose the Stocks and the Trend for next day trading , only based on end of day charts and use Real time charts only to reduce Stop Loss and to increase profits by multiple entries.


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Why you should not use Real Time charts for analysis?


Key Factors

•Real time prices fluctuate more and creates panic. It confuses the trader’s mind, and makes him to take wrong decisions.•Analysis is very difficult to be done in Real time, Only executions can happen real time. Analysis always need patience and peace of mind.•Traders who have lost huge money trading the market, have always used Real time charts to analyze the market.•Real time charts create addictive nature and induces gambling attitude to traders.

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WHY TO USE EOD?

Moreover in Real Time charts, the price fluctuation will be high. Most traders get confused and end up taking wrong trading decision and will lose their money very quickly by executing many orders in a single day. So it is always better to analyze with EOD & reconfirm to execute it in Real time.


•1 Min Time Frame Analysis = Work For Next 1 Minute.•5 Min Time Frame Analysis = Work For Next 5 Minutes.

Similarly,Day Chart (EOD) Analysis = Work for Next Day

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•Commodity Market Traders: If there are lessersignals and entries in EOD charts, you can usereal time charts. But always analyze with 1 hourtime frame and exit quickly with minimum profitpoints. Follow the same methodology. But,understand that lesser entries with eod analysiscan get more profits.


• Stock market traders: Use only EOD charts foranalysis and simply execute the same in the nextday market. There is no need to see RT charts. Ifyou still like to use real time charts during marketfor multiple entries then follow the same trendand trading levels which you have decided withprevious day EOD chart and reconfirm the samewith 5 or 15 min U-Turn signal.

It is always better to have both Stock and Commodity market trading accounts. Do the U-Turn system scanning in both markets data, where ever you get the strong signal choose that scrip for your trading day.

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EChartar Advanced - Software features

CORE FEATURESAutomatic Support & ResistanceCandlestick pattern Auto IdentifierCandlestick pattern Scanner Elliott wave auto findings Elliott wave scanner U-Turn Buy Sell SignalsU-Turn Scanner Built-in Buy Sell Strategies (MACD, GAP, GANN)Darvas Box StrategyAll Famous Indicators (including MACD, SMA, WMA etc)Explanation for all IndicatorsLine Studies (including Fibonacci Retracement, and all line tools etc?)Line, Bar & Candle Stick ChartsAuto Save Chart TemplateUser Defined StrategiesSupports Real Time and EOD data in metastock format


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Most new traders lose major part of their hard earned money by testing multiple signals & studies. Instead of that, just

stick on to one proper methodology, fine tune the same to your need. Remember that simplifying your analytics will

enhance your success ratio in trading.


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Happy Trading!


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© Copy Rights Reserved to Fedify Technologies private Limited … Trading... · 2017-01-25 ·...

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Transcript of © Copy Rights Reserved to Fedify Technologies private Limited … Trading... · 2017-01-25 ·...