30 mins candle sticks strategy for next day trading setup
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30 mins candle sticks strategy for next day trading setup :
I want to share a strategy which is based on candle sticks price action and the time period we should take as base. If we are able to find the setup at right time (trading sense) then win rate would be 60%+, works well in trending market; side ways market this setup may not work. Stop Loss is key and ensure to put it along with the entry. Calculation of SL is an art and science, spend time on understanding it first before catching up/learning any strategies. SL will save us from wrong entries and ensures capital is saved. We get many opportunities of trade setups, so avoid FOMO (fear of missing out). Will try to explain strategy in simple words. I also welcome constructive feedback to make this much more better and also request you ignore this strategy if this is not making any sense to you. I am sharing only for educational purpose and not recommending anyone for real trading. Thanks in advance!
There will always be room for improvement and this is not any fool proof system/strategy and neither want to prove that this is correct, every transaction has a buyer and seller mindset. So please be cautious!
What we need :
Candle sticks of 15 mins time frame
Confirmation with indicators should be in same trend with candle stick trend
1. RSI (For trend identification)
2. Stoch (Entry and Exit confirmations / Overbought and Oversold confirmations)
3. Any other indicator of your choice which adds value to setup and confluence
Bit of explanation on time period:
Indian market starts at 915am and ends by 330pm which has about 25 candlesticks of 15 mins (time frame). Sentiments of the market behavior will be based on the timings, like in the morning trend will have an impact of over night news and/or once Europe market opens its impact will be around 1pm.. etc. 315pm till 330pm will have all closures for intraday by brokers which directly or indirectly impacts the candlesticks. So ideally if we consider 245pm and 300pm candle stick, in total 30 mins; this would typically create a base for next day strategy. That means taking these two candle sticks and marking high and low of them will give us a preparatory base for next day on how to setup trade or what needs to be done.
Rules of the game :
Once we mark the high and low of 245pm till 315pm candle sticks, price moving up from the high can be considered our entry with a stop loss of just below the high line and look for a good RR. If the price goes down the low point marked then it can still go down and our entry can be at that place keeping stop loss just above that low line and look for a good RR.
If market opens big gap up then chances of it falling till the high line are high; once it reaches this high line, it can further try for next target of touching low line. In similar way if market opens big gap down then chances of it raising up till the low line are high; once it reaches this low line and then it will try to touch the high line.
If one entry has already come in any of above setup in a day then don’t expect that it will give you another setup as it would have exhausted already with the levels given; So one day one setup only.
Stop Loss :
There are various ways to keep SL here (Please work out acceptable SL as per your risk appetite and entry should be truly based once SL is identified correctly. If you do not know how to keep SL’s then this strategy may not work and also hitting of SL. Please be cautious!)
1. Just below high line or just above the low lines
2. Half of the market area, high and low
3. For a short entry at low line, SL can be high line or for a long entry at high line, SL can be at low line
4. Prior candle high or low or entry candle high or low
5. Or any of your best working SL ideas
Risk Reward:
If you are having good understanding of the market/asset where you are applying this strategy then ideal RR should be 1:1.5 and can be trailed for a bigger reward too. Please do a good back testing of this strategy.
Avoid :
• If you do not understand the strategy
• If you do not understand how candle sticks are behaving
• If candle stick pattern is not respecting high and low lines marked as mentioned above
• If there is no confluence of the setup with indicators
• When calculated SL is way high due to the formed candle stick (large or big candle stick, if taking entry after this candle)
• When there is no confidence on the setup
• Fear of Missing Out
• In a sideways market, hitting of SL will be high
Please do let me know if you have any questions would be happy to respond.
Please do like and share this idea. Thanks
Disclaimer : This analysis/strategy is only for educational purpose and not be considered as any trading idea/tip. Please consult your financial advisor before you take any trade and we are no way responsible for your profits/losses. Thank you!
I will also put some examples (todays live charts) for better understanding :
I want to share a strategy which is based on candle sticks price action and the time period we should take as base. If we are able to find the setup at right time (trading sense) then win rate would be 60%+, works well in trending market; side ways market this setup may not work. Stop Loss is key and ensure to put it along with the entry. Calculation of SL is an art and science, spend time on understanding it first before catching up/learning any strategies. SL will save us from wrong entries and ensures capital is saved. We get many opportunities of trade setups, so avoid FOMO (fear of missing out). Will try to explain strategy in simple words. I also welcome constructive feedback to make this much more better and also request you ignore this strategy if this is not making any sense to you. I am sharing only for educational purpose and not recommending anyone for real trading. Thanks in advance!
There will always be room for improvement and this is not any fool proof system/strategy and neither want to prove that this is correct, every transaction has a buyer and seller mindset. So please be cautious!
What we need :
Candle sticks of 15 mins time frame
Confirmation with indicators should be in same trend with candle stick trend
1. RSI (For trend identification)
2. Stoch (Entry and Exit confirmations / Overbought and Oversold confirmations)
3. Any other indicator of your choice which adds value to setup and confluence
Bit of explanation on time period:
Indian market starts at 915am and ends by 330pm which has about 25 candlesticks of 15 mins (time frame). Sentiments of the market behavior will be based on the timings, like in the morning trend will have an impact of over night news and/or once Europe market opens its impact will be around 1pm.. etc. 315pm till 330pm will have all closures for intraday by brokers which directly or indirectly impacts the candlesticks. So ideally if we consider 245pm and 300pm candle stick, in total 30 mins; this would typically create a base for next day strategy. That means taking these two candle sticks and marking high and low of them will give us a preparatory base for next day on how to setup trade or what needs to be done.
Rules of the game :
Once we mark the high and low of 245pm till 315pm candle sticks, price moving up from the high can be considered our entry with a stop loss of just below the high line and look for a good RR. If the price goes down the low point marked then it can still go down and our entry can be at that place keeping stop loss just above that low line and look for a good RR.
If market opens big gap up then chances of it falling till the high line are high; once it reaches this high line, it can further try for next target of touching low line. In similar way if market opens big gap down then chances of it raising up till the low line are high; once it reaches this low line and then it will try to touch the high line.
If one entry has already come in any of above setup in a day then don’t expect that it will give you another setup as it would have exhausted already with the levels given; So one day one setup only.
Stop Loss :
There are various ways to keep SL here (Please work out acceptable SL as per your risk appetite and entry should be truly based once SL is identified correctly. If you do not know how to keep SL’s then this strategy may not work and also hitting of SL. Please be cautious!)
1. Just below high line or just above the low lines
2. Half of the market area, high and low
3. For a short entry at low line, SL can be high line or for a long entry at high line, SL can be at low line
4. Prior candle high or low or entry candle high or low
5. Or any of your best working SL ideas
Risk Reward:
If you are having good understanding of the market/asset where you are applying this strategy then ideal RR should be 1:1.5 and can be trailed for a bigger reward too. Please do a good back testing of this strategy.
Avoid :
• If you do not understand the strategy
• If you do not understand how candle sticks are behaving
• If candle stick pattern is not respecting high and low lines marked as mentioned above
• If there is no confluence of the setup with indicators
• When calculated SL is way high due to the formed candle stick (large or big candle stick, if taking entry after this candle)
• When there is no confidence on the setup
• Fear of Missing Out
• In a sideways market, hitting of SL will be high
Please do let me know if you have any questions would be happy to respond.
Please do like and share this idea. Thanks
Disclaimer : This analysis/strategy is only for educational purpose and not be considered as any trading idea/tip. Please consult your financial advisor before you take any trade and we are no way responsible for your profits/losses. Thank you!
I will also put some examples (todays live charts) for better understanding :
Nota
My 2 cents / an opinion :Please do work on one strategy on any one stock or index alone and continue to do practice daily on that and create a journal on the learnings or outcome. Document what went well and what did not went well. Next time ensure learnings are put to work. This will give you more insights on how it can be traded and exceptions if any can be understood with experience. RR can also be improved with this way.
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Please use smaller time frames for your entry and exit, keep two charts one with 15 mins and one with 1 min. example below :15 mins chart ..
1 min chart ..
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Todays entry Bank Nifty
Nifty
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Nifty todayNota
Todays 15 mins chart 1 min chart for entry
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Todays 15 mins chart5 mins chart for entry and exit
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Bank nifty 15 mins chart 5 mins chart for entry and exit
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5 mins Nifty chart, did not pull back to yesterday levels as its huge gap down Nota
Nifty 15 mins chart for setupNifty 5 mins chart for entry and exti
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Todays setupNota
Nifty 15 mins Nifty 5 mins
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15 mins Nifty chart 5 mins chart for entry and exit
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Bank Nifty 15 mins chart Bank nifty 5 mins chart for entry and exit
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Second target hit... power of 30 mins strategy...Nota
Bank NIfty 4th Aug 2022Nota
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5th to 8th Aug Nota
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14th Sep 2022 trade Nota
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19th Sep 2022
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