Swing & Positional Trading - Cash & Stock Options Entry

This trading guide outlines a simple and effective setup for both positional and swing trades, focused on high beta, highly liquid stocks. Follow the rules strictly for better consistency and profitability.


🔹 Positional Trade Setup

• Open the Monthly Chart of the stock.
• Add the RSI (Relative Strength Index) indicator.
• Uncheck all levels (30, 50, 70) and only keep one level at 60.
• Edit the level from 70 to 60 and highlight it in green.

Entry Criteria:
• Stock must cross the 60 RSI level on the monthly chart.
• Entry is only triggered if the price breaks the previous month's high.

Stop Loss:
• Place the initial stop loss below the previous month's low.

Trailing Stop Loss:
• Trail the stop loss to the current month’s low, but only after the monthly candle closes.
• Continue trailing the stop loss every month using this method until exit.

Exit Rule:
• Exit the positional trade only if the current month’s candle closes below the previous month’s low.
⚡ Note: The RSI 60+ setup is a powerful momentum strategy with high reward probability.


🔹 Swing Trade Setup
• Precondition:
• Monthly RSI must cross above the 60 level.

• Switch to the Daily Chart of the stock.

Entry Criteria:
• Identify the current swing high on the daily chart.
• Entry is triggered only when the stock breaks the swing high.

Stop Loss:
• Place the stop loss below the current swing low.
• If unsure how to mark swing low, then use a daily close below RSI 60 as your stop.

Trailing Stop Loss:
• If the trade moves in your favor, trail the stop loss to each day’s low.

Exit Rule:
• Exit the swing trade only if RSI crosses back below 60 with a daily candle close.

📝 Conclusion
This is the final and simplified setup designed for traders looking for clarity and consistency in trading. No complicated indicators or confusing rules—just clean chart action with momentum logic.

🔥 Stock Options Trading Strategy – Built on Core Swing/Positional Principles (75% Win Rate Setup)

As a continuation of my last post on Swing and Positional Trading Setup with 75% Win Rate, I’m now sharing a Stock Options Trading Concept that follows the same core principles but is tailored specifically for liquid stock options.

You’ve already been provided with a list of 100+ high-beta, liquid stocks. For this strategy, you will strictly focus only on those stocks.

✅ Strategy Setup
🔹 Timeframe Filters:
• Monthly RSI > 60 (RSI has crossed and is holding above 60)
• Daily RSI: RSI must be crossing 60 or on the verge of crossing
Now, on the Daily Chart, mark the current swing high and swing low.

📌 Two Entry Approaches:
Approach 1: Breakout Entry
• Entry: When swing high is broken.
• Stop Loss (SL): Swing low or previous week’s low.

Approach 2: Pullback Entry
• Wait for a retracement from swing high (should not exceed 50% retracement).
• Confirmation of pullback weakness: Volume bars should be shrinking/decreasing.
• Entry: On breakout of the last candle high of the pullback.
• Stop Loss: Swing low or previous week’s low.
Once in the trade, trail your stop loss to cost after 3 consecutive bullish candles.

📤 Exit Rules
• Exit the Stock Options position only if the Daily RSI close below 60.


⚠️ Important Guidelines for Stock Options
• 💡 Trade with only 1 lot. Never exceed your lot size.
• 📅 Enter after 2 days of the monthly expiry and exit before 2 days of next monthly expiry to avoid smart money manipulation.
• 🎯 Choose strike prices in multiples of 25, 50, 75, or 100 for better liquidity.
• Example: If stock is at 1564, choose 1550 ITM or 1575 ATM.
• ⏱️ For quick exits, always place exit orders at round numbers like 5 or 10 levels.
• Example: If you entered at ₹70 and the option is at ₹144, place an exit at ₹140 or ₹145—not any random price.


For PE buying-
Monthly RSI < 40
Weekly RSI < 40
Daily RSi crossing 40 or below

Same process for PE with 2 approach as you like but in reverse form.

📊 75 High-Beta, Highly Liquid NSE Stocks
These stocks are liquid, fundamentally strong, and mostly traded in the F&O segment — giving you both flexibility and depth.

🚗 Auto
• Bajaj Auto
• Bosch Ltd
• Eicher Motors
• Hero Motocorp
• Maruti Suzuki
• TVS Motors
• Tata Motors

🏦 Banking & Financial Services
• Bank of Baroda
• Kotak Mahindra Bank
• Axis Bank
• ICICI Bank
• HDFC Bank
• IndusInd Bank
• Bajaj Finserv
• Bajaj Finance
• SBI

🧪 Chemicals
• Aarti Industries
• Atul Ltd
• Navin Fluorine
• UPL
• Tata Chemicals

🍫 FMCG
• Britannia Industries
• Godrej Consumer
• Tata Consumer
• DMart
• Hindustan Unilever
• Dabur

💊 Pharma & Healthcare
• Apollo Hospitals
• Alkem Labs
• Biocon
• Divis Labs
• Dr. Reddy’s
• IPCA Labs
• Laurus Labs
• Lupin
• Aurobindo Pharma
• Sun Pharma
• Cipla

💻 IT Sector
• HCL Technologies
• Infosys
• LTIMindtree
• TCS
• Tech Mahindra
• Wipro

⛓️ Steel & Metals
• APL Apollo Tubes
• JSW Steel
• Jindal Steel
• Tata Steel
• Hindalco
• L&T

🛢️ Oil & Gas
• Reliance Industries
• Gujarat Gas
• Indraprastha Gas (IGL)
• Mahanagar Gas (MGL)
• Tata Power

🏢 Realty
• DLF Ltd
• Godrej Properties
• Lodha (Macrotech Developers)
• Oberoi Realty
• Phoenix Mills

🛋️ Durables & Others
• Sona BLW (Sona Comstar)
• Amber Enterprises
• Bata India
• Crompton Greaves
• Dixon Technologies
• Titan Company
• ACC Cement
• Ambuja Cement
• Ultratech Cement
• Voltas Ltd
• Polycab India
• Mazagon Dock (Mazdock)
• Asian Paints
• Berger Paints

📝 Final Thoughts

This is not just a strategy — it’s a framework to reprogram your trading mindset. Use higher timeframes, respect structure, and focus only on high-probability setups. You’re not here for noise. You’re here for moves that matter.
If this helped you, prepare a trading journal based on this strategy. Stay focused. Be consistent. Trade less, but trade right.