good morning friends I'm Nandaki Swami Welcome into my channel smart index edge Previously I have made for the multibagger stock selection for intraday trading So I'm going to do again this um video prerequisite for the explanation on the chart how to trade after this selections of this stock selection The first thing is we for it is it involves stock selection process based on the mathematical calculation We are focusing on the significance of 66.6 percentage threshold which serves as a pivotal point in our analysis This percentage not only reflects a critical metric but also symbolizes a turning point in stock price movements akin to a 90° angle within a circle I've already mentioned in my video how to calculate the first thing you need to calculate the square root of the closing price of the stock and then you are multiplying with 66.6 6 and then whatever the value you get it you are taking the percentage of that 66 the value percent percentage so that it will be very manageable value which can be added or subtracted to the closing price then you will derive two levels support and resistance in that video I have already made in a detail how we are going to do that So based on that we have uh created a screener for that for the stock selection So we are getting uh on the charting we have done that So I have provided in the link the screener also here This is the video for the people who are visiting my channel for the first time It is a repetition but it will be helpful for you to refresh your memories So stock selection funnel how it is done initial we are getting the stock data that is closing price of the stock and next is this is the strategic criteria application 66.6 percentage evaluation So we will get a promising investment opportunity Not only investment on intraday you will get on that particular day where you get this uh stocks on the screen at it will be a momentum stock you can trade for minimum to two to 3%age gain in the stock Sometimes some stocks will give you 8%age also So why we are selecting these type of stocks is to trade in options Those stocks even though they were illquid in option uh option pre platform they become liquid and they provide an opportunity for you to capture the momentum and make profit exponentially That is the idea of this stock selection Mathematical foundation of stock selection I have explained it to you That is the calculation what we are doing it This is the slide to explain you how it has been done The choice of 66.6% as a key threshold is not arbitrary It is deeply rooted to mathematical principle This percentage correlates with a 90° angle which is often associated with significant changes in direction In the context of stock prices reaching or exceeding this threshold can signal a turning point nothing but we are identifying the breakout stocks I've already explained in my previous video the stock selection is the closing price of pre the uh the stock we need to get above the 5 days closing price based on that only we have made the screener that is the thing so it will be in the momentum so we are getting the stocks on the particular day from the screener we are picking it up and for our trading for that day because they are breakout stocks momentum stocks Why momentum stocks these stocks in option premium they will be liquid They will increase exponentially So on that particular day we can capture the momentum and make exponential profits That is the idea of that importance of 66.6 threshold in the stock prices Why is 66.6% chosen as a key threshold that I have explained This is the flowchart It is based on mathematical principles You need to remember this flowchart What does reaching this threshold signify for stock prices so when you get the stock from the screener you should understand why it has been selected When this type of stocks has been selected they are there is no chance of these stocks going down or anything It is a sure shot uh sure shot uh what I can say is a selection with confidence you are entering into the market It is not going to fluctuate or anything in the on you will be entering into the stock with confidence That is the idea of that Concluding strategic implication We aim to enhance our ability to identify stocks with high potential for appreciation That means we are selecting the stocks that is nothing but weekly breakout stocks That means they are after completing one cycle of up move they are entering into a second phase of cycle of up move That is the idea about that This is the graphical representation of stock selection process I have explained it to you 66.6%age threshold we are applying to filter the stocks So we get filtered stocks with the momentum not any ordinary stocks you are getting So if you check the stocks they will have they will be in the radar with volume with open interest high open interest increase So everything will become added to these stocks These are all high potential stocks In conclusion our stock selection process is heavily influenced by mathematical calculation So next I'm going to the slide for trading in for option selection trading strategy for option selection and timing See after selecting these type of stocks we are aiming to cash in our profits not on the equity but we are entering into the option So what we need to do so what we need to do is first thing you need to select the option premium and also timing is very important in option entry In this we are going to why we are going to select out of the money options Why out of the money option is because we know the target definitely it will achieve one is to2 target measured more in the market So we are confident of the uh achieving that that target because of our stock selection The stock selection these stocks are in the momentum So we are selecting out of the money options because they will be uh little bit cheap It is affordable for you people and also uh while trading they will give gain give you profits and apart after selection of the out of the money options timing market conditions is very very important So we are analyzing the market trends for optimal entry Next is implementing stop-loss measures to protect our investments The first step involves the selection of the options Next step involves the we are identifying the target price in the underlying by seeing this by after the selection of the stock and also we will analyze for the uh even in option also you can get the target price This is the flow chart for that Next step is we wait for the market correction Once you select the options it is crucial to wait for the underlying asset to correct and the turnar around Why because initial reaction when the market opens the market uh it they will show a momentum breakout uh according to GAN principle they will to show the structure make higher high even in the five minute candle itself they will make an higher high actually in my previous five minute trend strategy we were using it for the index here the strategy we need to wait for the structure to create usually usually what I have observed is within Six candles Six candles that means 30 minutes Around 9:45 it reaches the peak Underlying it will reach pe around 11 11 means 1010 it forms the base So it is very very essential for you people to wait till that period because you will be entering entering into the option at a discounted price around that time when the underlying corrects you need to wait for the correction Usually it happens around 1010 where the price will become um price will be squared with the 10 So at that time the price will come to the uh I mean almost near the low point of the um opening low point of the day almost near that that is very essential Even sometimes option premiums also will correlate with the lowest lowest of the opening of the first 5 minute candle When you see after confirmation around 1010 in the market cycle I'm going to explain it in the chart in my next video Wait for that I'm going to make that video so that you will have practical knowledge I will be explain it in the chart Before that you should understand what I'm doing What is the concept behind my strategy so that's how we are entering into a option price at the discounted price Next step is first this is the flowchart selection Select the options Wait for the market correction Identify price decline Align with the first candle low almost Enter the trade After entering the trade what you need to do is you will be entering the trade with minimal stop-loss Stop loss will be very minimal and it is manageable So you'll be entering at a very discounted price with confidence not random Here after entering we get increased trading activity momentum building will be there and improved liquidity will be there in these stocks Traders employing this strategy may find themselves in a position to cash in profits ranging from minimum 4,000 rupees to sometimes even high of 14,000 rupees That's what happened in PI industries And also you get to cash in good amount nearly 4,000 rupees in the Bajach Finance Bajash Finance came into the screen and preferably we are selecting the stocks which they come in the morning itself So when they come in the morning itself around 9:15 9:16 9:20 the strategy is to wait We are not entering into the stocks immediately because option premiums will be random They have to settle because we are going to trade not in the underlying We are going to trade in the options That is the strategy So you need to wait for the market correction I'm going to explain it to you very clearly on the chart in my coming videos For today this is the basic video You should understand the concept properly Why the stock has been selected how the why we are trading in the options and where when we are trading in the options on that day why we are waiting for the discounted price and everything you you have understood about that This is the minimum profit and 14th of is the maximum profit So you can this is not a confirmed thing but it is an it is possibility Next step is this is an high potential strategy process appealing in volatile market consequences will also be there in the market like risk of losses but we are minimizing the risk of losses by proper timing our entry with the underly tracking the underlying prices requires market timing and effort intensive It is effort intensive You need to have patience You need to wait You need to wait like a sniper to make an entry This strategy provides a structured approach to selecting options and also timing entries in the market We are waiting for the corrections and managing risk with stop-loss orders Traders can enhance their chances of achieving s substantial profits with careful attention to market conditions and timing This strategy can be a valuable tool for navigating the complexities of trading So you might have heard so many strategies for stock selection intraday stock selection for option trading but I have found this as a very best strategy very best strategy with confirmed mathematical calculation No no look back no sus I mean you will not have any dilemma You are entering into the market with confidence because everything is setting That is the reason we are entering into the market So we are getting the stock from the screener selected from the screener based on the calculations So you are immediately you are you can select two to three stocks You cannot trade many stocks as a retailer with the minimum amount of money you can trade only few stocks at least you can trade in minimum of two stocks Suppose if the stocks three to four stocks in the comes in the screener early in the morning by the opening bell around 9:15 to 9:20 So you can put them in your watch list and then you can start applying on the chart and assess it whether it is suitable and I've already given you the indicator that is the combined indicator for you people with all the 66.66 and 26.6 six and also combined with the pi calculation pi indicator and also Kelner channel with the modified Kelner channel with 66.6 and 26.6 So everything is set for you people So you have to trade with patience After putting them into the template you need to wait for the time wise correction that usually happens around 10:10 a.m in our Indian market That's what I have seen in the GAN uh square of 9 sequence series 2 6 11 19 28 28 40 53 and 69 These are the time periods around this major turnings will happen in the market So usually when market opens uh around 6 that is 9:45 it reaches the pe around 11 period 11 period means around 1010 or 1020 the market forms the bottom holding the opening level So you are getting a discounted price at that level and matching with the option premium also you are entering into a discounted price and riding the momentum You will you are going to ride the momentum You are not disturbed by any candle uh green candle red candle formation You are not disturbed You are just keeping the stop loss and you are riding with the momentum till your target is achieved That is a measured move that is every stock in my next video with example I'm going to show you people on the chart This is a this is a video to understand the concept of stock selection option how to select the options and how to trade the options How to time the market when to trade when to enter how to enter These are the things which has been covered in this two presentation I think I hope this will clarify everything You do comment in the section if you are having any doubt and I'm also attaching in my description previously made video multibagger selection stocks based on the square root calculation Thank you very much friends Navi Swami signing off