Full transcript (4261 words)
Well, today you will enjoy this video. The biggest reason for that is that the strategy that I am going to give you today is exactly the same strategy that I like the most. In fact, my team and I use it continuously. The strategy that you are going to learn today, you can do its backtesting and see. If you want to make a lot of money, then you know that you have to follow the trend. So in this strategy, we are going to make money by following the trend and for this strategy, we are going to use three indicators. I will also tell you which indicators are there. Now, the first reason to use this strategy today, you will have to understand. You have to understand that there can be two things in the market. Either the market will be volatile or the market will move slowly. You can say that the market will be less volatile. Sideways movement can come in the market. So these are two things. Either the market will be volatile, it will go up very fast and go down very fast. In this, our money is made by going up fast and going down fast. But for this strategy, we want the market to be volatile and if the market is less volatile, then the market moves slowly and it goes in a range and gets consolidated, which you call sideways market. Now, if this is a sideways market, then this strategy will not make a lot of money, but if the market is volatile, then this strategy will make good money. In fact, I will also tell you a hack in this, which will show you how to make money in the sideways market if this strategy or setup is seen. I will tell you in the end. Now how will you know if the market is volatile or sideways? For that, you have a very good indicator or you say that there is a volatility index, which we call India VIX. If you go to Google and type India VIX, you will get the value of India VIX. So now for example, you see that India VIX is running at around 16.15.92. Now my question is whether it is more or less? Is 16 India VIX more or less? Now I will tell you that when India VIX is below 20, then the market is less volatile and if it is above 20, then the market is volatile and if it is above 25, then the market can be very volatile. So now you have understood that we will call the market below 20 less volatile. So the VIX I am seeing now, if I tell you that I wanted the market to be volatile for this strategy, but VIX is saying that the market is not so volatile. Now who produces this India VIX for you? NSE National Stock Exchange gives you a volatility index. It tells you by calculating the premium of options that how much volatility you can see in the market. Now the market is less volatile, there is a higher chance of being sideways. If there are moves, then they will be either slow or small. Big moves will not come. So if I am making this video today, then this strategy may not do so much good work, but if VIX goes up, then the chances of it working will increase. In fact, even if VIX is less now, I will tell you a hack of it. I will tell you that in the end. So I am making this video today, but I am not making it for today. VIX will not always be 15 or 16. 17, 18, 19, 20, 21, 22 can go anytime. It can increase. So because you are watching this video today, then according to today's VIX, we are giving you our analysis, and you are watching this video after 1 year, after 2 years, then you have to check according to the VIX that was going on at that time. So first of all, we saw how much volatility is in the market. If you assume that our VIX would be around 19, 20, then you can get a little volatility. If it is around 20, then volatility can come. So what will I do now? What is the strategy? Now you must have read that the strategy that I will tell you, you can use it on Nifty and Bank Nifty. I will tell you the truth, you can do it on any stock because we are going to follow the trend and the market goes in trend. Stocks move in trend, so wherever the trend comes, this strategy will be made. Now to catch the trend, I am starting now because many people trade in Bank Nifty. There is an example, so now you can simply trade price action. According to the price action, you are seeing that lower lows are being made, lower highs are being made, so according to this, a downtrend is going on. Now in our strategy, we said that we will use 3 indicators, so you will find out at once that which trend is going on. We used this indicator earlier, so to make a strategy, we are going to take our first indicator and that is super trend. As soon as I took the super trend, the indicator told me that if you see a line above red, it means that the downtrend is going on and as soon as you see green, it means that the price is going up, so the uptrend is going on, but very soon you will see that the trend changes. So you don't have to trade only on super trend, I want to tell you this and the second thing is that we will also change the setting of super trend. As soon as we go to the setting, we will put the input here, we will take the length of 20 and we will take the length of 2, as soon as we do this, see here it was completely red, but now see from here the trend has started, so because we have made it fast, we will get to know a little faster, if the trend changes, we will get it fast. Now what will happen by knowing this, see super trend is a very good indicator, although you will say that most of the indicators follow the price, but still we need to have a confirmation. We are trading price action, it is okay, but indicators help in your confirmation, so my first confirmation was given by super trend, here it said that the price is going to fall, so super trend changed, it said that the price is going to fall, now what should I do, now I will use my second confirmation and for that I will use another indicator, which I call MACD, that is moving averages convergence divergence. As soon as I applied MACD, there are only two things to see, if the blue line is cut from above, then the price will fall, if it is cut from below, then the price will increase, that's it. Now you will see more histograms, you will see divergence, you can see a lot, I have made a complete video on MACD, if you want, you can watch the video by clicking on the I button, the link is there. Now here I am telling you in short, you have to see only two things here, when super trend said that the price will fall on this candle, at that time, what did MACD say, MACD gave a crossover, intersected the red line, so MACD is also saying that the price will fall, two confirmations have come, now I will not trade, because I also need a third confirmation, and that third confirmation will give me my third indicator and that is VWAP, as soon as I place VWAP, what you see, a blue line has come here, as soon as a blue line comes, now what I have to see, at the time when the super trend and MACD said that the price should be near VWAP, if VWAP was below, it would have been better, I am telling you why, because the price tries to come on its average and VWAP also follows the price, slowly if the price falls, then VWAP also comes down, but still the price tries to go on VWAP, so if the price is near VWAP and it is going down from there, then the downtrend has started, if VWAP was already down, then the price would have tried to come down, then my triple confirmation has started, it is near it, I can take the entry, what happens with this, if it tries to come near VWAP, then your stop loss will be reduced if you take the entry near VWAP, if I took the entry, suppose somewhere here, you will say that at that time MACD was also giving the entry, if the downtrend is continuing, then the price has gone down a little, but my stop loss can increase, because if the price tries to go near VWAP, then if it goes near VWAP, then I will be at a loss, so I do not want to lose, so I will try to take the entry near VWAP, so if you see this triple confirmation on the chart, you can see that the price is near VWAP, MACD has given the crossover, the trend has changed, you enter and what is your stop loss, now let's understand the stop loss here, now what you have to do, the candle on which you entered, you say on this candle, now basically if I tell you genuinely, you can take a candle above, which is this candle, you can take the stop loss of its high, but still I do not want your stop loss to hit, because you are trading with a high price, due to a little volatility, the price can go up and down a little, so what you take, you take a horizontal line and put three candles first, I entered this candle, one two three, I will put my stop loss somewhere here of its high, if it is clear, if the price goes down and comes up again and my stop loss hits immediately outside, it means that the trend has changed, if the trend has changed, then the down trend will become green if the price will run upwards, but I am still telling you that as soon as the trend changes, we will go out, now what will be the target, exactly you have caught it, as soon as the trend changes, we will go out, although if you want to take less risk, then when MACD has a crossover again, the blue line intersects the red line from below, then an early sign is generated from there that the price can go up, so if you want, you can do your profit booking here, otherwise you just trail, you do your stop loss, if the price is going down. you can remain. But if you want to take less risk, then you can also go to the MACD crossover and book a profit, but if you follow the trend, then you will make a lot of money. Now here you got a big move. We are looking at the time frame of 5 minutes. Why are we looking at 5 minutes because we want to trade in intraday, but to take confirmation, we will also open a
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and the trend is made, then until the trend is not changing, time frame of 15 minutes. Why? When you enter, after that, when your setup is saying that you entered at the time frame of 5 minutes, at that time, what trend has changed at the time frame of 15 minutes, what is the MACD saying at that time, you will follow 5 minutes, but in a while you can check what is going on at the time frame of 15 minutes. Accuracy increases with time. So I told you at the time frame of 5 minutes, you can use this triple confirmation strategy. I call this strategy Brahmastra because as many times as it becomes Brahmastra, it makes a lot of money. Now if we want to see more examples of Bankruptcy, then we will have to check. Now if you say from here, then there is an example here, I will show you, so there is a gap opening here, still if we see a big move here, then I will show you, but you need all three things, you just keep in mind that you need all three things and one more thing, some people can ask this question, so first I will give the answer, then we can do a little back testing of it, you can do it yourself, there is no problem that if the crossover we see in the super trend and MACD is after a delay of 1-2 candles, then it will work sometimes, that is okay, so 1-2 candles do not make much difference to me, but the price indicators tell me that they will give confirmation and then we will enter. So let's see an example here, so we have taken another example of a candle, so now let's see that the super trend has come in this candle, now here you can see the crossover, the third biggest thing is that was the price near VWAP, you see that the time the candle is made, the price is near VWAP, you took your stop loss 3 candles down, 1, 2, 3, here you took your stop loss and after that you simply waited, if your trend continues, you are going to make big profits, now here you can see that the crossover of MACD has come, if you want you can book your profit here, but what I told you, if you can take a little more risk, just trail the stop loss, the price will go up, when the trend changes, we will come out, so you will be there until the trend changes, now see one more example, it is a very small example, I will show you, it will be very useful for you, if you had seen here, in this candle, in this candle you can see the crossover of MACD, the blue line is cutting from above, you can see that the price will go down, you can see the super trend changing, now you have taken the entry, after taking the entry, we told you to take a stop loss of 3 candles above, 1, 2, 3, this was your stop loss, if you enter in this, you see that the price has gone down and came up again, but there is one thing, was it a superstition, the question is, if you are taking the entry, then at that time you have to see VWAP, if the price has gone down a lot, if you are taking the entry here, then this price will try to come near VWAP, if the price goes down from here, it tries to come near VWAP again, that is a different thing that from the next day, the market has a lot of gap down opening, so you have to check all three things that the closer the price is to VWAP, the better the price is, although your stop loss did not hit, now this strategy is for intraday, so I am not carrying it forward, and if I am not carrying it forward, then if you look at the overall, then if it is made overall and you have only done option buying, then you will not have any profit, in fact if the price goes up, you are trying to get out somewhere here, then you will have some small loss in buying, so now if the market is sideways, depending on what was the WIX at that time, if WIX was very low, then the probability of these chances was more, so I do not want you to get stuck in sideways, that's why I am telling you this thing that we do not want to get stuck in sideways markets. Now I take one more example for you, now you see here, the trend has changed here, you see in the candle that the uptrend has come, look below, the crossover has also come for you, that the blue line has cut the red line from below, now what you see, the price in the candle in which you are entering, at that time the price is in the candle itself, means you are getting an exact entry, now this is a good Brahmastra, this is a good triple confirmation that the VWAP is right there, your MACD is saying, your super trend is saying, you are entering, now there are no three candles below, so here one and two candles, this is your stop loss and after that you just trail, until the trend does not change, if you are made to change the trend, you will make profits, if you want to go out after a small profit, when you see the MACD crossover again, you can go out, now there is one more thing, the trend is not changing for a long time, but why am I telling you that you can take a little risk, because after the MACD crossover, there may be chances of the market that the price may not fall suddenly, but the market may not come up very fast, so sideways will be there, so here you can see, you can book your profit and go out, but if you keep making it, even after a short time, it is not very useful, so that's why I said that after the MACD crossover, you can just book your profits, so this was for Bank Nifty, if we talk similarly about Nifty, here I have taken the chart of futures, the reason is that if you open the index chart, then there will be no VWAP line, there is no volume, here if I take only Nifty, then you see that the super trend has come, MACD has come, VWAP has not come, when will VWAP come, when I will open the Nifty chart in futures, so as soon as I go to futures, I will get VWAP, so now similarly if you see here, if you were trading in Nifty, so if you saw the super trend, and see the amazing thing is that you should not leave such a trade when VWAP is up and the price is down, what did I tell you, the price tries to go up, so if VWAP is up and the price is down, just enter as soon as you can, because there the probability of going up the price is very high, and below MACD also gave crossover, VWAP is up, boom, these are the trades that shoot up very fast, so do not leave them, similarly we can see more trades, if we are taking the example of Nifty, because we are backtesting this strategy, so here you see the MACD crossover was very early, the super trend changed very late, no trade, so keep this in mind that when the trade is made, I will be allowed only when I will trade, otherwise I will not trade, you have to do this very carefully, now you see here, the super trend has come, MACD has also given crossover, now here it is totally up, you saw the price going up, but VWAP was very low, so as per our strategy, this trade is not made, you can do anything, I would like to tell you that this trade is not made, so for me it is not a Brahmastra because VWAP is very low, it is low, it means the price can try to go near its VWAP, although if there is volatility in the market at that time, the price will go up, it will come to one side, now the trend is going on, but it is very important to be near VWAP, this is the first requirement for me, so if this requirement does not match, then I cannot enter, so here you see a downtrend is formed, but as I said, MACD can give you a crossover, so that is okay, but the third thing is very important that the price is near VWAP, so if you enter here, so what I said, if you take only one candle up, then the price will try to go up , see here if there is only one candle up, then there is a stop loss, I will show you by increasing it, see this, so if I had taken only one candle up, then my stop loss would have hit, so 1, 2, 3, if I took this stop loss, then my stop loss did not hit, MACD and crossover came, when I entered, the price at that time was near VWAP, I entered, the price is going on and after that you get profit, similarly you can see many trades in this trade, now here you see in this trade, again you see that there is an uptrend, trend changed, after that MACD gave crossover and the price is near VWAP, boom, the price goes up, so in the same way you can see this thing in many trades, similarly if we see here, then the price was near VWAP, there is a crossover here, our uptrend has come, and when our uptrend came, in fact, you can see this thing as soon as the market opens, so after that you entered from here and how long you stayed, until the crossover of MACD has not come, almost in this candle, so after the crossover of MACD, you will go out and if you want to take a little risk, then you can wait for the trend to change, so when the trend changes, your profits decrease, that's why I told you that you want to take less risk, after the crossover, you will go out, now I think I have explained the strategy to a large extent, before using this strategy, I will tell you, before using it, do trade paper for a few days, after that you start with very less lot, I do not want that you invest a lot of money so that you start a new platform, so invest it just like a heavy you can start trading from the lot. But the thing is when this strategy is made and the trend runs well, it makes a lot of money. Rest, how did you like
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trade, who wants to invest this strategy, do tell a Demat account yet, then
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by commenting. Here we have opened upstox, if you do not have you can go to upstox and open your Demat account for free. There are no maintenance charges in the lifetime. The biggest thing is that many platforms take maintenance charges, but not upstox. In fact, you can earn money by referring on upstox. Many people already tag us on Instagram, who are making money on upstox by referring on Instagram. So if you also want to open your Demat account on upstox, in fact, you want to make money by referring on Instagram, then you will get the link of Demat account in the description and comment box. So if you like this video, then do share this video with as many people as possible so that they can also use this Brahmastra strategy. If Brahmastra is made, then I say that it should not be left. Because Brahmastra is being made, your trend is changing, you can make good money by following the trend, but now which instrument to trade. I said one thing at the end, I will tell you one thing that if the market is sideways or the volatility is less, then at that time, you do not buy only the good option. You buy the options here. Suppose you see that Brahmastra is saying that the market will fall, so what did you do? You just went to the put option and bought it. I will tell you here that you reverse it. You sell the call option. This will increase your safety. This will increase your safety. If you feel that I have to buy the call option, then you reverse it. You sell the put option because if there is no movement in the sideways market, then you will make money due to theta decay and if your trend remains and the price increases a little, then you will benefit from it. You will also benefit from theta decay. We are going to learn theta decay in the coming videos, so if you do not want to miss those videos, subscribe now, click on the bell icon so that you do not miss any upcoming video. So I think I served you in some ways. I will see you in the next video. Till the time you share this video and go self-made.