A perfect setup for Entry
Hello friends
I received number of requests, on how to draw the setup
First of all I am mentioning two links for the indicators the first link is for super trend indicator and the second link is for volatility and trend indicator
I have attached herewith a sample image for a perfect setup
so here are the few points that you have to consider before entering into a trade. Timeframe of chart, will be always 3 mins
1. First of all I will look for signal in supertrend, for a buy there must be up signal and for sell it must be a down signal in supertrend.
2. Then we will look for pullback. Signal which is after a pull back is more reliable than others
3. Now we will search a basic pattern of price action that is double top for sell and double bottom for a buy. The more, price tested a level, the more it's better. Like instead of double bottom double top if you find triple bottom for triple top it is much better
4. Then we will move to a lower indicator and look for a volatility. Lesser the volatility, better is the signal. It is denoted by Black bars on the top line of the table so while taking the trade, if there is a black bar in the lower indicator, on that candle, the signal is more reliable
5. The rest of the two lines denotes that Trend. Lower line denotes the trend in 15 minutes and Middle line denotes the trend in five minutes. So while taking a bullish trade at least 1 line must be blue among these two lines and for a bearish trade one line must be Orange among these two
6. We have to take a entry only after completion of the running candle. Like whenever a signal is generated in supertrend, we will wait for the candle to close and as soon as the candle closes we will enter a limit price for the close price of the signal candle. I personally never entered on market price
7. Target will be always 1% from the entry level. If we buy at 500 then the target will be 505 and if we sell at 500 target will be 495
8. At any point of the trade we can never control the result but quantity is always in our control suppose you trade with 1 lakh rupees, then quantity for a 500 rupees share will be 200. I term it as 100 percent quantity. But suppose one condition is missing or you are bullish on index and got a bullish signal but volatility black box is missing then we will enter with reduced quantity like 70% or 80%
or if a pullback is missing we can go with 80% quantity so lesser the conditions are met lesson the quantity will be
9. Now to make the quantity higher I will check the support and resistance lines as well. Suppose after all the conditions met, a pullback is formed exactly on the support then we can slightly higher the quantity of trade or a doji is formed at pull back then also we can increase the quantity.
10. so you start with a simple setup and then keep on adding different parameters as you feel confident. Normally I try to post charts based on my personal trades, you keep tracking them this will help to clear your doubts.
11. Whenever I do a change in any of the integrator, I changed its version and will be updated at tradingview website. so whenever you find a change of version in my screenshots then remove the indicator from your favorites and add it again. Links for the indicators will remain same
(I have written this post by speech to text software so there may be some grammatical errors)
-Ajeet Singh
