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Price Action Strategy by Nitin Bhatia

This document contains a summary of stock price data for Mahindra & Mahindra over a 5 day period from October 22nd to October 26th, including the daily closing prices and simple moving average of 732.38. It also outlines 14 rules for a price action trading strategy, including only trading in trending stocks, checking 1 month stock trends and daily market trends, using previous day's highs and lows as stop losses, and entering/exiting positions based on patterns of 2 green/red candles.

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Snehal Panchal
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823 views2 pages

Price Action Strategy by Nitin Bhatia

This document contains a summary of stock price data for Mahindra & Mahindra over a 5 day period from October 22nd to October 26th, including the daily closing prices and simple moving average of 732.38. It also outlines 14 rules for a price action trading strategy, including only trading in trending stocks, checking 1 month stock trends and daily market trends, using previous day's highs and lows as stop losses, and entering/exiting positions based on patterns of 2 green/red candles.

Uploaded by

Snehal Panchal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
  • Price Action Strategy by Nitin Bhatia - Rules

Mahindra & Mahindra

Simple moving averages – 5 days

22 oct 733.75

23 oct 729.95

24 oct 736.25

25 oct 733.75

26 Oct 728.20

SMA =733.75+729.95+736.25+733.75+728.20=2928.15/5=732.38

Price Action Strategy by Nitin Bhatia - Rules

1. Trade only in trending stocks – up or down trend


2. Observe price movement of stock for 7 days of the selected trending stock
3. Check stock trend of 1 month on nseindia website
4. Check Day’s stock market trend
5. Buy / sell as per trend
 Stock trend of 1 month, market trend of the day and call should be in the same direction
 Example:
Stock trend of 1 month – upwards
Market trend of the day – up wards
Call on the day - buy call
6. No trade before 10.30 to 11
 Intraday 15 minutes candle stick chart
 Check previous day’s chart
 Plot low and high prices of previous day’s chart with horizontal lines (this will act as
stoploss as per your call buy/sell)
 Only candle body no shadows
7. For Buy call - Previous day low should not be broken
8. For sell call – previous day high should not be broken
9. For buy entry after two green candles
10. For sell entry after two red candles
11. For buy – stoploss is 2 red candles or previous day low
12. For sell – stoploss is 2 green candles or previous day high
13. For buy – book profit on 2 red candles
14. For sell – book profit on 2 green candles

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