Learn this Simple Indicator जो देता है Buy/Sell Signal | Ft Rohit Srivastava | MastersInOne | EP-28

[Music] [Introduction of the video] If I tell you that there is an indicator with the help of which we can detect buy and sell signals, then will you people believe it ? No right. I too have believed this thing. Did not believe means till date I did not believe in this thing but after watching today's podcast maybe you people will start believing a little because in today's podcast we have talked to Mr. Rohit Srivastava ji and his career spans in stock market is more than 30 years in which he in

itially worked in a magazine, after that he also worked in Sharekhan for almost 18 to 20 years and now finally manages his own fund and he has created a new thing. Which is what we will discuss today, so in today's podcast we have talked about the journey of Rohit ji and talked about the indicator which Mr. Rohit has created and how he uses the indicator. And after looking at the indicator, how we should have an idea as to where buying or selling occurs in the stock, how we should filter the sto

ck, we have talked about all these things, so without wasting time, let us start our today's podcast. And before that, if you like this podcast, then you must like and share this podcast. Let's go to the podcast. Welcome Sir. Thank you very much sir. So today I feel very good that you are here with us and like I know that you used to work in Sharekhan also, earlier I don't know the details but sir, please tell me a little about your roots so that everyone can know and I too, I started studying a

bout share market from college days. As I was studying commerce subject in 11th class, I started thinking about what to do next and opened business pages of Times of India and saw share prices and from there I started studying it. Let's write and study the price and then after the price, I came to know that I have to study the companies also, so I started studying the balance sheet, started studying the economic news, then I started studying the stock market from every angle and I became intere

sted in the fact that a total market analysis should not only look at the market from one angle, but charts and technical data points should be given a lot of importance in my entire process, so I would combine it with everything else. I do this, whether it is the fundamentals, I combine them with technicals and I combine the economic cycles with our Wave Theory, then I get a complete understanding of how, many things will happen in different time frames. It is working well and what is happening

in the market, so it has become a complete process which we follow now in investment and trading as well. It has been developed in every way , so it definitely took many years to do it. Like I told that I studied from college days and then completed B.Com in 1993, started working in Dalal Street Journal in 94, worked there for a few years and then did MBA, MBA in Finance from 97 to 99 and back again in the finance industry, I started working at a proprietary trading company and at that time my

attention came towards Elliott wave analysis because when I was looking for a job, I met a man in Darashaw & Company who said that we need a person with Elliott wave analysis. Whatever technical knowledge you have, we will take it only on this subject, then I left it and took a job in another proprietary desk and then I asked my brother in the US to send me a book on this subject and then I studied Elliott Wave Analysis. Now its importance is that Elliott Wave Analysis, which is the study of fin

ancial market , works to connect all these, from technical to economic to fundamental, because it is a subject which is a bit behavioural, people's behavior is studied in a pattern. It means that this is a repetitive pattern. People behave in the same way. When everyone goes bullish, what is seen in the market and when everyone comes into recession, what is seen, how to study it and how to understand it and that behavioral pattern of our companies business cycles also comes, then all this gets c

ombined, then an additional science came into my process and when I mastered a little bit of this thing in 99-2000, then I saw actual success in the markets, for the first time in terms of when we say success, it means that it should be visible in your P&L, not that in your mind you think that you know everything but you are not making money, then that process started from 2000 to 2001 at the same time I joined Sharekhan and when I used the knowledge I had gained there, I saw a lot of growth. I

worked there for about 18 years. So what did you do there? So I started as a market analyst. You give advice to people or recommend and give calls on day to day basis and then within two years from that position, I became the Head of Research. From the work of Head of Research, I started Market Strategy and then Portfolio Management Services in 2005-6. So these are also portfolio management services in a different area, not just long only products which are generally in the market, different fr

om that, we have introduced a long short kind of strategy because in futures market which can play on the upside as well as on the downside. Not Hedge Strategy, Directional, meaning you are either taking bullish positions or bearish positions and then to hold and how to ride them. So sort of positional, intraday trading doesn't happen at all. Positional trades are done for one month or two months. You stay in one side and then you go to the other side and we were doing the work of changing posit

ions in that way in those portfolios, so for many years I did that but eventually I felt to share what I analyze with people. To share, I started the platform of India Charts as a content and it was absolutely free for about 10-12 years. The Y2 bubble was reason behind starting this thing, because at that time everyone took domain names and started writing blogs. When people started writing, I said, I also should write so that everyone knows what I think and about market. So, let's start writing

a blog, then I started a blog by the name of India Charts. I did not get the India Charts domain till 2003 because in the Y2 bubble, everyone had bought domains hoping that someone else would buy, so I waited. When the Y2 bubble ended, all those domains became available, so in 2003 I bought indiachart.com domain and we are using that domain till today, so the content was the first thing that I should share my information knowledge with people and till 2013 I shared it with people for free and t

hen gave it a subscription model . Then in 2019, when I quit Sharekhan, there are many platforms for charting but all of them, all the tools I was using on charting platforms were not available on any one platform, specifically sentiment indicators which is said that everyone in the market is sitting on the bullish or everyone is bearish. NSE definitely provides these data points, it provides the data of participant positioning, it provides the data of derivatives, but all these data points can

be visualized in the form of charts. Accordingly, we were maintaining it on Excel sheets for many years, so we thought that now I am doing this, I am also teaching people but how will they do it themselves, so we thought about Strike Platform in 2022 that we will do this. It took about a year to prepare it and in January 2024 , it became available as a subscription based platform for people to use it every month and at retail pricing, which does not mean that it should be expensive like bloomber

g, but at retail pricing. We have created a platform where whatever tools we teach are available here and you can easily execute them by clicking on which are the stocks in which we have to trade, how to do it and which are the indicators. All that is available for use on it and apart from that, the information and data coming in the market, whether it is fundamentals, results, insider trading of companies, all the information that is being received from the market, all of it should be collected

at one place. So this was I think the last thing that we did so that this journey is complete from my India chart. Sir this is your journey of how many years, meaning the way you told me that you were doing it right from the college, yes so since 1990 I have been in the market. Started studying ok so maybe reached 11th 12th I finished school in 1988 and in 1990 I think entering into 12th so from there Just before the Gulf War I think about six months before the Gulf War, I started making charts

manually on graph paper. There was no software at that time. The first software I used was Meta Stock in 1994 because Dalal Street Journal was the distributor in India for that software, so it was there that I got access to the technical software for the first time, so your passion means how did it come to the market, means how did you come to know because of the years you are talking about, so much people couldn't knew at that time maybe we think like this today, because today many people are

coming into the market, youngsters are also coming, so we think of 1990, we think that maybe this has never happened before but this your question is very interesting and people should know about it that whatever has happened in the market today, yes, it has happened before, everyone knows about Harshad Mehta, yes but the story of Harshad Mehta and Sucheta Dalal's story which is has been shown on TV. In it, they have not shown how the public environment was in 1991 and 1994 and at that time the

public environment was crazy, that is, like now for options, that time it was for IPO. There was a queue of one or two kilometres to fill the IPO form, people used to go to the banks outside the Bombay Stock Exchange to fill the IPO form. There used to be a queue of one and a half kilometres. Morgan Stanley was the first mutual fund that came to India. At that time 1000 crores was considered a lot of money. It was considered the highest amount. They raised it in the mutual fund and people queued

up to deposit money in it. It means like now 100 times subscription is coming, it was also on that time. Yes. 1000 Times 500 Times Subscription When I worked in Dalal Street Journal, there were 10 to 15 IPOs a week, so I joined the IPO department. We had to analyze the IPOs. The entire department was set up to analyze the IPOs, that is, how many IPOs were coming on that time, that is, whenever a bull phase comes in the market, on that time, the emotions of the people are the same and very stro

ng emotions, the number of values ​​of money changes. It was absolutely very good Sir, this journey of yours and I guess you had started your career in the market right from my birth but that is good, Sir, in so many years, if I ask you like this, I very rarely find people with so much experience and I never miss an opportunity to ask that Sir, in all my years, if I could ask you one thing, what was the thing that has kept you in the market till now and what should be the thing that a new trader

should always follow because you have experienced in the market for so many years, you must have seen many falls and also many bull phases, so which is the thing that we should keep in mind and which is the thing that you have learned, so to pay attention, there are many things to consider because when we think about a portfolio or even about trading, it is important to make some basic guidelines for ourselves that what percentage of the portfolio will I invest in trading and even while trading

, if I am getting profits. So reallocate those profits to investments because trading is a very different game from investing but in the market also keep in mind that not every deal you make is a good fit. People have expectations especially from other people when you take advice. So your expectation is that 100% will go right but in the market when you achieve at 60% to 70% then it is considered very good but even in this goodness your trades go wrong at 30% or 40 % then this is when 30-40% if

they go wrong then many people are not able to control themselves. Okay, so the mental process involved in learning this thing is a science. I have taught you the science. How do you have to study the market scientifically and what indicators do you have to look at. Later you come to the market and then the market teaches you, so actually you pay tuition fees twice, first to a mentor or to the books from where you learn yes and second time you give it to the market because without paying money t

o the market you cannot learn. He will shake you here and there a couple of times and then you will understand that I have the same mental deficiency that what are the issues, that will come forward. And when I'll overcome that then actual success I'll receive. So it takes time to accept that. Many people who comes from business. For example: People think that they always get success. Many people who study also get marks of 90 but 100%, so you have an expectation that we are always right we can

achieve 100 but the Stock Market 100 doesn't exist. So this acceptance which is very difficult for people. Now this you have accepted this acceptance, then you need a method to work in the market. So for many years I thought that in the trend readings which we see only on the basis of indicators, there was a need for some simple indicator which could indicate an upward trend or a downtrend. Catch the trend and come a little early because many basic indicators are always there, ROC, MACD is all t

his but it also has some weaknesses like MACD is a very good indicator but till the time the signal comes in it, sometimes there is a delay. Then it is not always useful, for long term it is okay if you find a long trend and you wait for the confirmation in it. But when you want to do fast trading then the utility of MACD gets reduced somewhere. Okay and rate of change, if we use it pure then it is very erratic, so while searching for it, I went to volatility indicators and looked at different t

hings, then I realized that somewhere in between these things, there is something and then I formulated it myself. How to formulate its formula? It is between this indicators means when we say basic that I want a momentum indicator, then the rate of change is the base but then we have to smoothen it and combine it with other things. Also, because Momentum is a broad name, there are about 50-100 indicators in it, so many may not be needed, but two or three fairs, a combination and a smoothening,

it means smoothening of the indicator with moving averages so that the curve is clearly visible. Okay, so by doing this thing, I created an indicator and then named it Rohit Momentum Indicator or in short we call it RMI, so in RMI buy sell signals come like every other indicator, yes where there is a moving average line whose crossover gives a buy signal. When it cuts upwards and when it cuts downwards, it gives a sell signal. Okay, but the advantage that comes from doing this is that one of th

e things noise is less in it with which buy and sell doesn't happen more. And second thing is that it will give indication 2-3 days before of indicators like MACD. in such way trade can be made. It means there is no lagging, there is no lagging, so this thing till date means I probably wrote this initially in late 1990 and from 97 to 99, one or two modifications have been done for smoothening of it and since then again we have been using the same thing timelessly. I am using it, I have given my

teams to use, I gave it to Sharekhan and then finally we also put it on strike so that everyone can use it. Okay, so this means that the indicator that you have created with that indicator can you trade intraday as well as you can do positional or long term by looking at charts of slightly larger time frames. Trading can be done in given every timeframe. For this I tell people only one basic pointer. For best results, you should mix two time frames, like even intraday, if I am doing 15 minutes w

ith 30 minutes or 5 minutes with 15 minutes, if I have to trade for four to five days, then using hourly charts with daily charts, if we do combination of two time frames then its results are much better but it can be used for anything. I also told long term investors how to use it which can be kept for 5-10 years. They can hold the investment by seeing the same thing on monthly and quarterly charts, it works on every time frame, so it is not that it will work on any time frame, or not. Man can

use it on every time frame. Okay, so sir, what trading style have you developed over the years, I mean, this show is ours, about Masters in One, so like I always say that every trader has a style, a unique style, so you have already told that you have created an indicator but, how did you reach this indicator and dhowo you use this indicator? For example, do you trade equities with it, do you trade options with it or do you trade mostly equities and then less options? or are you just an equity t

rader? then there is a bit of a journey in this also because in the beginning when your size is small then you run more towards trading. I am sure that is the tendency of all the people. As many people come into the market thinking that let's earn quick money by trading, go into futures, go into options. The thought is right but some knowledge and wisdom will definitely be needed because like I told you, you will be trading in the beginning, there will be many mistakes, it will take time to lear

n. When I started options in 2001, I too tried to take my first trade in options. Actually it failed because it was August 2001, 911 was in the next month. I have a feeling that there is one lag left in the market and only after that the phase of recession will end, so there was a loss in the option in the month of August and in the month of September, the market crashed, I understood one thing about the option market that time is very important in this, then you will go right, but if you do not

go at the right time, then you have to spread out your money in such a way that when the opportunity comes your way. You are able to take that opportunity then a little bit of money management also comes into it and then I started this thing again after a year, so first of all my trading journey which is on the option side, I got success in that thing. I stopped this thing for about 6-8 months after this incident because the money hit there and it went away. I started it again and then between

May 2002 and May 2003, there were about 12-13 months of phase between April and May. I multiplied the amount with which I started many times. Okay and that was the first step towards that yes this is a system and that was purely options buying. So my first success was on the options buying side which most of the people do not do. Or people think that the option buyer always loses money, but in option buying, money is made provided you have a slightly higher time frame, meaning you keep time of a

tleast 2-3 weeks. People think, do a weekly option, do a day option. I was going to tell you the same thing sir, now the weekly option has arrived, the weekly option has arrived, so I don't like it at all, I don't even touch it, even if I do, it is not fun because if you are trading weekly and daily options. You are for playing for ₹2-4. You think that I took an option for ₹20 and sell it at ₹22 is very good. It's the same thing as day trader thinks like I buy something at ₹222 and sell it at ₹2

22.5 It's a very small gain for which we are working so hard. But if you can ride a positional cycle, okay, you can ride a momentum, then the same option becomes two times three times also. Provided that you ride it, it is there in the option, yes, so I focused on that thing that if you hold the option, then what wealth can be created from it, so that is the first step towards wealth that we create wealth from trading. Which is a nature of a lot of people who start in the market but once you do

that you know that there will be ups and downs in trading and you may not be profitable every year so some where you have to start investing. Eventually I moved towards 80-20 the money which is at 80% should go into investment and the money which is at 20% should remain in trading. In this way, I did a broad portfolio breakup, so when I invest 80%, that too, my method remains the same where my RMI indicator is being used on higher time frames and when I am doing options, I am using the same thin

g on shorter time frames but what happens in this indicator is that your momentum in any indicator starts from zero and goes up. Then it comes back down so it's like a cycle okay so this cycle, it will be a cycle of a few days or a few months depending on which time frame you are using, you are going to ride that cycle completely you try. Then you can hold it for a little longer period, then instead of earning two rupees, try that if we hold something as an investment here for one month, two mon

ths, six months, then we can probably make more money. So on the investment side use the same method on longer term charts and on the trading side use the same method on short term charts and then try to earn through options. Now this does not mean that you cannot sell the option. You can use the RMI indicator and can also sell but the difference in buying and selling is that buyer should think that I am trying to make 2x 3x option price in this, the buyer needs momentum, he needs momentum, the

seller needs the opposite and he does not want. There is no difference momentum comes doesn't come. He has to be on the opposite side of the trend, meaning bullish or not bullish. If I have sold a put, it does not matter in both the situations, then he is winner, more than the buyer but his returns are less on the premium because the margin you pay, then if you are very tight then 3-4%, your on the margin premium will probably come into your hands. Okay, if you go a little out of the money, the

n it will come only 2-3% and every month you count 2-3% then it will go away a little in some months. Your net return for the year will definitely be less than the buyer's, so it is the choice of the person to choose buying or selling according to his return expectation. Just like you have said that Some option sellers returns goes within a day, I remembered that candle of Nirmala ji, which was in Nifty Bank at that time, I think, there was a movement of 1000 points in Nifty, so as a Option sell

er I think there then managing those options is a very difficult thing, you can reduce the loss by managing but you cannot avoid the loss when your view means goes 360 degree wrong. Absolutely and the day we met today a day before that, there is a stock in the US, I don't know the name of the stock and taxi, like we have Ola and Uber, it is a taxi company, so in any of their financial documents, which we give to the exchange. That our result is this then our result could be that they had added o

ne zero by mistake and made it 500 instead of 50 and that stock there went up to 40 in the US yesterday just because of a mistake. So sometimes such days come where option sellers face problems but yes, those who do professional option selling also manage it in some way. So sir, what you have told me now and I can understand that you have tried so many things. You have created that indicator after years of hard work so I am very excited to see that indicator and right now I have a lot of questio

ns for you in my mind because I trade on the basis of long term charts so sir you can show me that indicator. And how it should be used in trading. Please tell me that thing. Of course, here I have opened the Strike software which is a web app which opens on the browser of any desktop or laptop or iPad and in this we have put the menu on the left so that a lot of space can be saved, so its first menu is where we see Scanners, OK, I have opened Scanners and after going through Scanners, the compl

ete main list will appear and it will be written as Rohit Scanner, so I have opened Rohit Scanner because I can also see the indicators and scan the stocks on the basis of RMI, so first of all let's pay attention to the indicator, what is this indicator and how is it used, then I have zoomed in on it, correct ok, now this is the indicator which we are seeing this on the screen, this is the RMI, we can see this on any stock, ahead or behind, OK, now it will look visually similar to the indicators

that most of the people have seen, this one on the bottom side is your indicator right. And above is the price, above and what else is above, all the other things are above the price, yes, this above the price, so we call it Rohit Setup, in this basically a Bollinger Band and a moving average, I have put two things together, so which is the moving average? One, it will have an average of 20 in the band, it is absolutely correct and I took the exponential average to be 40. Okay, whatever the blu

e line is, okay, so right now I will not go too much towards them, otherwise we can make it disappear. So that people do not get distracted, we only focus on the indicator first because it is the simplest thing, so the indicator will look visually like any other indicator, the only thing is that as I said, the signals come quickly but method of taking the signal is the same, the green line is the indicator and the red line is the 9 day Exponential Average of the indicator. Okay, so wherever ther

e are crossovers, the green line goes above the red, that is a buy signal and where the green line goes below red. That's a sell signal. OK, so we will see many buy sell signals on the screen. Correct, but the most relevant signals are the ones that come is buy comes after the cycle comes to zero, so what is a cycle first of all let us understand that there is a line of zero in any momentum indicator because momentum zero means rate of change has become zero. Okay, so when the rate of change of

price becomes zero, we consider that point as the beginning and end of a cycle. Okay, so for example, the kind of sign wave, now that is a little different mathematical subject which anyone understands that the meaning of any cycle is that it goes up and then comes back down. Yes, then goes up and then comes back down. So going up and coming down is certain. Yes, the entire process of going up and coming down should happen along the zero line, meaning from below the zero line you go up and come

back below the zero line, then a cycle is complete. This means that if you are getting any buy signal, then I am getting it below the zero line, it is more relevant. After the arrival of zero line, meaning whether the cross of the buy signal is above zero but before that it has come back to zero or not. Okay, so coming to zero is important because it is part of the current move, part of a previous move because sometimes extended moves, right now this is a simple move that here if we look at this

, a buy signal came here, yes this stock is here, now this buy signal is here, a buy signal is being created, a sell signal is coming here, this is a complete move captured, but this is a simple situation where I got a very trending move and straight buy sell signal is not an issue but sometimes there is a little zigzag in the market so when there is zigzag then many times buy sell signals come ok and at that time I told you the concept of zero. It becomes necessary, now I'll saw here the buy si

gnal came here, this price went up, went a little sideways and then went back up. Yes, meanwhile this green line did not come down to zero at all. Yes, and it has gone up again. Okay so. We consider this to be the same cycle and the same move. We do not believe that this move is different and this move is different. This is the same move. This is not a new buy signal. It is a continuation of the previous move. OK and when it returns to zero and buy signals come again. Then it is considered a fre

sh move, so for this filtration we can sometimes use moving average or can use trend line that if we want to filter that this move is complete or not? When it is going into a sell. Is it really breaking down? Is it breaking the trend line? Is it breaking the 20 DMA? Okay, so if those levels are not being broken then the previous signal is still going on. It has not ended then, with this thing, we can remove a lot of noise from you know price. But the main point is that which buy signal will I ta

ke because sometimes if the buy signal like here comes from the middle, then we do not consider it relevant. Main buy signal came here and the main sell signal came here okay and after this sell signal came, when the whole came below zero and again it is giving bye here then this is an important buy. Correct. Okay so now as you told. It was said that you people use two time frames, so understand that I take an example that if a person wants to work intraday then the first thing is that he will h

ave to make a watchlist of stocks that this is a universe of 10 stocks and I will do intraday in these stocks and I will check by applying this indicator in these stocks or is there any scanner through which we can directly find out which stock is going to get momentum now. Yes then how will we do intraday one. Basically, I want to tell the intraday trader how he should plan his trades. Okay, so first I will tell you how the two time frames are used and then I will tell you how we will come to t

hose stocks. This is why the two time frames are used like this. It happens that the broader trend is the trend of higher time frame, it tells us the direction, so if I understand that if we combine daily chart and hourly chart, then daily becomes higher time frame, hourly becomes smaller time frame, daily time frame will tell me whether I need to be bullish or bearish. So if in the daily time frame the signal is in buy mode like here buy signal has come then it is in buy mode all the time. It h

as not gone in sell mode then In all this time. In small time frame it means, in hourly time frame, I have to be bullish and I don't have to be bearish, then in hourly time frame, I will be bullish and will also exit. Okay, so this means this one rule. Once I have filtered the stock on daily time frame. That it has come in Buy, meaning it touched zero and then turned green, its indicator became positive, then I have to go to a smaller time frame, there again the same setup, I have to find Buy Se

ll Buy Sell, correct ok. Then where is the buy signal coming there? OK and then if the sell is coming then exit and then buy. We will not short because daily it is saying that there is a bullish environment so we will not go against it. So sir, let us just see an example. As per the current, understand that I have to plan a trade for Monday. Yes, it means for tomorrow, not for Monday, for tomorrow, so what should I do? First of all, obviously, first I have to find a stock, like right now the mar

ket is in a slightly sideways market its little zig zag, so for example, I have to buy it. Yes, first tell me the stock, how should I find the stock? Yes, so we think that the market has been going up for the last two-three days and I have to find it where should I buy. If I have a thought that I have to speed up, then where should I speed up, and I take the example of daily hourly. So, first of all, as I told that the daily time frame should be bullish, then in the daily time frame, I have appl

ied the filter 'buy'. OK. Show me the stocks which are 'buy' in the daily. Okay, and after that, on the hourly time frame, I have applied the filter here. Let me know what new buy signal has come, .OK. And this list of stocks that is coming here is coming from the basket, this basket can be anything either my watchlist like you said, some of your own selected shares can be there or there can be a basket of pre-defined index. Some people will say that I want to work only in F&O, so I take the ba

sket of F&O. Okay, and it is telling you by selecting these only from the shares of F&O. Which is the buy in daily and which is the new buy signal in hourly? So here came our four stocks. Out of 180 stocks, four stocks are in front of me. What stocks are this Sir? This is Bajaj Finance, SBI Life, Trent and Zydus. OK, these four signals are here in live mode, it means that this current hour means right now the market is closed at this time, so these are the signals at 3:30 that these new buy sign

als come at the closing of 3:30, OK. Now sir, let us take an example of Bajaj Finance, yes so Bajaj Finance, first of all I have opened the daily chart in front of me, okay its candle changed again, then I think this is some different candles pattern. It is a bar chart, yes. So we infact prefer bar chart many times but one can use candle and bar chart yes now in this buy signal came here ok, at this point two-three days ago but what is important is from here till it is in buy I have to find new

buy signals which that they did here. Isn't this the daily chart, yes this is the daily chart. Okay, so I see that your indicator down there, the green line has come up, it has come up two days ago, now I click on its hourly chart. Like I clicked here hourly, then the hourly chart came in front of me where I can now see that this buy signal is coming new. Okay, so every time this thing will happen, then I will now consider it as an entry from here that I have to enter. Okay, so if you think that

now you know how to find the stock and what to do for intraday, then generally you suggest daily time frame and one hour time frame or any other time frame is suitable for intraday. Daily or hourly, it holds significance for three to four days. Okay, the deal is for three to four days, meaning if I go long today, it will be in buy mode for two to three days, maybe even one day, but for three to four days. So it is like swing trade. Yeah. If I have to do intraday then I will have to go to lower

time frames, I will have to use time frames like 15 minutes and 5 minutes. Okay, so now we have understood this about stock selection and this. This is known, now tell me sir, just understand that I want to take a trade here, then where should I place a decent stoploss and what should be my exit price, that here I should think about an exit. If you want to take then this method which is a simple method for the people because I am just using the indicator right now, here we are neither going into

web analysis nor anything else so if we use the momentum indicator then our work is that after a buy signal, I have to hold it till the end. Okay, that would be the trailing stoploss method. Yes, and the stoploss comes at the nearest high or low, so if this is my buy signal. So the nearest low point has come here, OK, right at the bottom, this means that in the past, I can also think that from the previous sell signal and the previous buy signal, where has the higher bottom been formed, then th

at highest lowest point. Here this is the lowest point, so this lowest point becomes my stoploss and if my entry is made here, then this is my risk. Now how much higher it will go, I do not know at this time, but the thing is that I have to ride this. It means that after the buy signal comes, as long as it is in buy, yes, I have to hold it, but when it breaks, if I mentioned in the beginning, then by using 20 day average or any trend line, whatever you are using. You take an exit with the help o

f it, then either the sell signal comes on the indicator or if the moving average is broken before that or yes 20 or a combination of both, both are broken, one of them is sold and the other is broken at that point, then we will take the exit. Till that thing does not happen, we will not take exit, meaning basically we are not deciding any place from the target because you are a trying to capture the momentum and you want to play the entire momentum. You don't know whether you will get ₹100, ₹ 2

00 or ₹50. It is correct, sir, I have understood this. Now let's take an example of higher time frame. As I told you above, I generally look at the weekly and monthly time frame only because I feel that if you keep a bigger time frame, your stress is reduced and the number of trades is also less but your accuracy increases automatically Correct. So if you can tell on that, yes, if I have to go to the monthly time frame, then I uncheck it first. Yes, so now all the stocks of the F&O basket are in

cluded in it. Now as an investor because you are talking about long term, I want any other basket and also I can get it in this, be it index, so any sector index, I can take it from it. If I have to focus only on midcap stocks, then I can take midcap index. Okay, so then in this I have to find the Nifty Mid Cap 100. Okay, so now let's think, out of Nifty Mid Cap 100, I can find out which stocks come from the combination of monthly and weekly time frames. If I want, I have to go to Monthly only,

I can also purely search in Monthly also. Where are the new buy signals coming in. Okay, so there are five stocks here, new buy signals are coming on monthly time frame. Keep in mind what I told in the beginning that buy signals are definitely coming. I will open chart one by one. We will see whether they are coming from below zero or not or after reaching zero they are coming or not. Then I have opened Astral among five stocks. Here they have definitely come at zero. There was a buy signal here

, after this it almost going to sell, maybe it is going to save and even after selling, it is coming back to buy and here it is very close to the 20 day average, a very good point where entry can be made. OK, similarly, poonawalla is the second stock in this, I will find the same thing in this also, but see here, it has come on sell but has not come till zero, then this is an incomplete cycle, sometimes there is a risk in it, it is not that it is impossible but it is risky, why do it, we have a

lot of choices,correct, then I move on to the next stock, then I saw cumminsind, here too there is an extended cycle, this stock is going on, it is going on, no entry is made here. Now I understand your point because the actual buy of this came a long time ago and I am just riding it, yes, I am not able to take a new entry here now. Okay right, then I go to the next Indian Hotels. Here also we have a similar case that the cycle is not complete in this, so broadly yes of course we see the setup i

n only one of the five stocks which matches, the rest doesn't match. Obviously, the bigger the time frame you look at, the less your number of trades will be. So, okay sir, I understand this, so it means if I get setup in weekly or even monthly, then I can keep my stoploss from 2 ways, either my 20 simple moving average which is the middle band of the bollinger band or its nearest swing low. Okay, this is done and my target will not be in this because I will write the trend till I get it. Till

I will not get actual sell in your indicator, I will ride this trend. Yes, it is right sir. Apart from this, if you understand that, I am an option trader, I do not have so much money that I have to work in equity, I have to trade in option. And if I have to do it only for four-five days, then what do you suggest that I can use this indicator for options, of course I have been doing it for years and years and the fair combination which I told about daily and hourly because time frame of 4-5 days

is set for the option trader in a combination of daily and hourly. If he wants to play only the daily cycle, then he can also go for the game of two-three weeks. Okay, but a little more in that. I will add trade management also for the people because in the beginning of course if you have very little money and you are buying only one lot then you do not have much choice that you cannot do position sizing but once your basic capital grows, I will encourage you to include position sizing in it. P

osition sizing means that either I diversify into 2-3 stocks or if I invest in only one security or say Nifty only. I am trading. So, if they are giving me four lots of Nifty, then I should not do all four at once, I should do one first, okay, then when the confirmation comes that yes, the trend is going in my favor on the second day, then I should add the second one to it, okay. The advantage of this is that if I make the first purchase for Rs 20 and that Rs 20 becomes Rs 25 and I buy again for

Rs 25, my average price is Rs 22, which means below the current price, in this my Rs 2 is still at risk is free because my cost is low and if the price falls even a little towards the cost, I can take an exit quickly, so there is no loss. The loss is less in this. When you size the position, the chances of loss are very less. And you are able to play that thing for a long time and hold the position. If you take the entire position at once, you will be afraid of even a small loss and you will no

t be able to hold that thing again. Therefore, position sizing is important in your entire system it is a bit important to bring it into the system and that too directionally as I told that position sizing is done in the direction of the trend and not against the trend i.e. I am incurring a loss and I am buying more. This is not recommended, so it is correct sir, I mean you have to use the same thing which was told just a little while ago, daily and hourly and sir in this then how will we select

the strike price, I mean I have seen many people that like suppose there is a stock which is priced at Rs 1000 and there is a breakout in it. They directly buy a call option of 1200, so if you understand this situation, if a stock comes in buy then how will you select the strike price, the answer to this is easy. There was a derivative trainer in Bombay Stock Exchange long ago, he taught me this. So, I teach the same thing to everyone. He said a very simple thing that the name of the Greek of o

ption is Delta, OK, only one, forget everything else, yes, the number of the Delta stays between 0.1-1. There remains a point number. Understand this point number as a probability. Okay, so when we buy an at the money option, that is, the price is Rs 1000 and I buy an option with a strike of 1000, then its delta is 0.5. This 0.5 means that the probability of your winning is 50%. The probability of losing is also 50%. Okay, so 50-50 is sitting here. Some people think, no, I don't want to take a

call of 1000, I want to take a call of 1100. Many people say like this. It is expensive.Yes, if I look at the probability of a call of 1100, its delta will be 0.2-0.1, which means your chances of winning are only 20% or 15%. This means to become in the money. Because the price should be 1200, that too in this month or whenever there is expiry, understand that the expiry is of three weeks, within three weeks you have to go from Rs 1000 to 1200, the chance of it is only 20%, so your loss is certai

n, yes, that is why I say that I tell people I say simply just check the delta, don't go below 0.35 because the moment you go below that, your chances of winning, the price will be in your favor and then after that you will get profit in it, they are very less. Sir if the price of 1000 is going on and I bought a call of 990, which means the suggestion is then in the money, its delta will be 0.6 and will increase a little bit, there is no problem but there is no need to take that much risk. If I

take deep in the money, I understand. If I take a call of 900 only, then it becomes the future's account because if Rs 1 increases then the Rs 1 of the call will also increase, if Rs 1 decreases then the call will also decrease by Rs 1. The loss is to be the same. The main advantage of the option is that you are leveraging, you are buying a lot with a small amount, yes then take at the money, take a little out of the money, there is no problem, do not go out by more than one or two strikes, th

en if it is 1000 go till 1020 up to 1040, don't go more than that, don't go, and after seeing the delta, I get a little estimate that yes, the probability is within this much, you have reached 40%, from 50% not that you have reached 20%. Yes, I mean, I have seen it, sir. Many people do the same thing that, they will do 10-15 trades, of out of the money which one half of the out of the money trades, they sometimes mean like this, that too, I tell you that they had bought a call option worth ₹2, I

t had become 20 paisa in between that expiry. Then due to some movement, their price came to ₹1.5 or ₹2 so they just move from price to price, that too happens only once in 15 but still they have a hope that, this ₹2 one will sometimes be ₹20, that when will sometimes be that, we don't know, we get screenshots in twitter that this option took movement of 100 to 1000. But I always think who buys at 100 and stands till 1000. So this is the thing. Ok sir how can I check delta? In any option calcula

tor you can see you will definitely need an option calculator, we have not incorporated that thing in Strike yet, but its development is going on, so something, after a few weeks, you will also get the delta but in our broker. Many of those brokers have put their option calculators on their online platforms. Okay, so whoever has that thing, you will definitely be able to see their option chain. In the option chain of some people, it is written that this is the delta of the strike. Okay, sir, it

was nice to talk to you and we, I mean, I want to tell you that this was a pure initiative of sir, that Vijay, we met once and sir told me that Vijay I have one indicator, so I specifically requested sir that sir, you come and talk about that indicator because I, sir, always try to think that if you have something then it would be better if you share it with people of course. And sir one last question if this indicator means I know it is available in TradingView. We only provide the ID of Tradin

gView to those who take our training for mentorship. Otherwise it is only on this platform, so please tell us what is this platform, then this platform is run on monthly subscription, initially you will get a trial of 15 days, so people can use it for 15 days. Use anything on the platform, after that its monthly price is Rs 650 ok and of course discount on annual plans, so it is quite affordable at the retail level. We have kept the range so that it does not become too expensive. When people loo

k at the tools on this, they will get information and data is lot, today we have explored only one indicator, but the total indicators and tools, the information on it, data points like positioning, sentiment, all the data coming from NSE, we have included it in it, people will see accordingly. So they will get a lot of value, right sir, so thank you sir and I always ask one last question to our guest that sir, if someone wants to become a full time trader or investor in the stock market, then c

an that person become there and If he can become then what should he pay attention to? Yes so I think, I have highlighted many things along with I think in today's discussion and I can quickly wrap it up that first of all think about what is your expectation. What returns you are looking for ? What is your risk profile? How much risk can you take? Second take knowledge because if you enter the market without knowledge, thinking that I will earn by doing anything will be wrong, especially if you

are young and you are thinking, I earn quick money from futures and options, so without knowledge it is very difficult to deal with those instruments. You will definitely suffer loss and keep in mind that no one can be 100% right. You know you are going to be 30-40% right, wrong.So to learn about yourself, this is also a whole subject, it is called behavioral finance, it is a whole subject beyond which how our individual behavior hinders us from our success, then we learn that thing by exploring

it in real life. When you overcome these factors then you become successful in the actual market. So, if you guys have liked our video today and if you have liked the indicators that Sir has told, then you must like our video. And if you want to take whatever indicator Sir have, then I will tell Sir that we will put the link in the description below, you can go from there and use this platform of sir, so this was our video today Thank you sir thank you very much you came to us for that. Thank y

ou thank you. I am very thankful to help people know about what we are trying to do because spreading the word to people is what I think is the most important thing yes sir that's it This was our today's video. If you have not subscribed to our channel then do subscribe. I will meet you guys in the next podcast like this. Till then Bye. [Music]