YouTube Trading Strategy Lecture Notes

Introduction

• Sharing a strategy with more than 85% accuracy.
• Works on Bank Nifty and Nifty.
• Helps identify reversal and support levels.

Strategy Explanation

Nifty Setup

• Previous day’s opening value is crucial.
• Enter value in a system to identify important candles.
• Market reversals often occur at second candles.
• If a high or low of this candle is broken, decide entry.
• Entry point: when a low is broken and candle closes below.
• Stop loss: above the previous swing high or low.
• Target: Set at double the stop loss distance.

Application on Cryptos

• Similar setup tailored for cryptocurrencies.
• Use opening value to determine support and resistance levels.

Trading Conditions

General Rules

• Use opening value to determine reversal levels.
• Breaks in session at specific times can help understand market breaks.
• Use moving averages (7 or 9) for confirmation of trends.
• Entry when a red candle breaks a previous green candle and closes below the moving average.

Specific Trading Scenarios

• During range-bound days, strategies may not work.
• Look for major breakouts from established levels.
• Use candlestick patterns and moving averages to confirm entry points.

Backtesting and Practical Application

• Perform backtesting on past data to understand the strategy's effectiveness.
• Apply strategy both in live trading and backtesting scenarios.
• Use provided Excel files for easy calculation of levels.

Conclusion

• This strategy is used by many and continues to yield profits.
• It requires accurate calculation of reversal levels and understanding of support and resistance.
• Future videos will delve into more advanced strategies as viewership grows.