Traffic Light Strategy | Intraday Trading Strategy For Options Buyers/Sellers/Job Holders

Hello friends welcome back to my channel this is Subasish. This is going to be a very important video Today I will discuss about traffic light setup in details like scalping, options buying, strike price, stop loss, re entry, target those who go to office, how to plan for them how to plan option selling I am telling this because when you heard about traffic light setup 1-1.5 weeks back you must have had a concept in your mind and you must have seen that after doing a forward test it works very well but you have to understand in details and some people are not believing that it can be traded so easily, you have to think little bit outside of the box it will happen only when you see things separately other people see support resistance, trend line, pattern etc. because if you are doing this 7-8 years back or 10 years back then technical analysis was an age when people knew that yes they know it but today even if you know trading or not but if you are in the market for 1 year support resistance or patterns people understand all these things slowly and you will get many videos. So for this I told you, like 5 PMA, something was different, when there was trend reversal you will get that setup there If you get a clear reversal you will get it. If the inside candle pauses in the middle of the market then a good momentum comes in If you see here, pause, then continued then you got the inside candle here. That was a setup. Then I told you the breakout theory and then it is 5 pma and now I am telling you that you can get this trade in the trend continuation also. you won't miss in trend continuation You can capture 90% trade then the trend will be very good. So let's start the video. First we get a point. I will tell you some points in detail. You can write in the details and hit the like button if you get 15000 plus like then I will tell you live trade on this in the coming time so that you will understand how you can do entry exit. But you don't have to see today's video. Still in the coming time I will make a video for you how you can do entry exit. So first thing if you want to do scalping then we start with scalping. If you want to do scalping then, time frame will be 1 minute because there nothing better in scalping than 1 minute We will keep small stop loss and our target is done. If you get 70-80 points in the flow then well and good. But the first important point is your time frame will be 1 minute for scalping. If you are not ready with pen and paper then first take pen and paper and write because I always believe that you should gain the most knowledge from the video in first time After finishing, see it again. What will happen with this? You will be able to see in and out in details. You will understand how I am telling you and how you can trade it. First thing we will see in 1 minute charts if you want to do scalping then we will see if you want to take trade in intraday or after some time. People who are not able to see because of office morning hour, in second half So this video will be useful for them too. Watch the video till the end. First thing we will follow it in 1 minute charts. first candle which is the first day candle from 9.15 to 9.16. When we will see this in 1 minute time frame then we will ignore it. This is the second rule that we have to ignore the first minute candle because there we have more volatility. After that what we have to see in 1 minute charts is a red candle, a green candle, we have to see this pair. I will show you an example then you will understand. It can be a red green or it can be something like this red or green, this is red color, this is green color, this can be a combination. It can be a combination like this that first green is made and then red is made. In any case we will see that we should see a buyer seller fight. Here we got a green color candle or a red color candle will be fine. So this combination is clear to you. In 1 minute charts we have to see this combination. This is the first point, these two are clear. After that we will mark the high of both the candles, it can be a red candle, top is weak, high is on high or green candle is made. High of that and low of both the candles is weak, we will mark the range. This is our range and after that if we see similar in the case of first green color candle red is made, doesn't matter, red is made first, green is made first, we have to find two pairs, after finding this we will mark here high and low. The two candle will be high in weeks, when we will show in charts it will be easy. But first write the rules, it will be easy for you. This is yours, after that your pair is alerted, we will trade as soon as it breaks. I will show you then you will know, but what will be the strike price? The strike price of those who want to buy scalping option, I am telling you on points, 200 to 300 and at the money because we are going to do scalping. Scalping has the highest profit when we are near to strike price, so if we do market gives momentum then we will get a good profit and a good point. One advance point I am telling you if you want to capture a big trend then strike price should be out of the money. If you do option buy, my intention is to catch 300, 400, 500 points. I can see a trend, a big trend is coming, so I will not go 200, 300 and at the money. Because if it is 500 for 300, 800 or 900, here slippage will be there confidence and volatility will be more. So my aim will be that in any condition, let's say if I choose a strike price of 50 to 100 then what will happen, I can wait till 800 or 900, so that means strike price is only when this is an advance point, when you have a big target strike price should go away from the money, if your target is small and you want to scalp then your strike price should be near the money. So now we are learning for set up scalping, so imagine if you are doing scalp, buying option or you can do it in positional but I will tell you to wait, first let's do scalping I will tell you how to use 5 minutes, 15 minutes. So we got two pairs, then our strike price is 200 rupees price between 200 to 300 and at the money. Sometimes you can get 300 or 200 around Friday, you can get 150 rupees around expiry we will plan at the money, so either at the money or 200-300 between this so that we get a good profit in scalping, this is our scalping in terms of option buying, I will tell you for selling don't worry but first let's clear the buying, I hope this much is clear, now we will directly go and see the charts where we got the entry, then we will talk about stop loss, so first we will convert the 1 minute chart here, first we will see the last day, see I have made this for 1.5 weeks and given it to you, but we will see for 2-3 days how you can plan the trade, if you see here that we have to ignore the candle of 9:15 our time frame is 1 minute, you are getting to know this, here you have to ignore 1 minute and then you have to find two pairs, you got a green colored candle here, what is the next candle made red, it is not made, that means here the pair is not made, is the second candle made green, yes it is green, second candle after that made red, that means we got a pair, we got a green colored candle, after that we got a red colored candle, that means we got a pair, so what is our work, draw here, this is our range if it comes above this, we will buy, if it comes below this, we will sell if we want to buy an option, if it comes above this, we will add CA, if it comes out below this, we will add PE, it is so simple, now let's go and see, if you want to trade this, it is done in your spot price, now if you want to see, you want to see in the options you want to see in the options chart, how it was working, then it will be interesting let me bring the options chain, here you are easy, so let's do one thing, we decided around the money, you must be seeing 39500, so let's go, 39500 strike price, here a little trade, adding, trading for scalping becomes a little easy, because the options chain is visible in front, so you can check the link in the description box, you can check the file terminal, and in the coming time, I am thinking of making a platform in less money, in which you can do unlimited learning and we can do some live trading, so what slowly slowly, I have done a lot of live trading with students, but now it happens that I cannot accumulate more people and many things have to be managed, so I am seeing how, if I can give you learning in one or two days, you can learn, you can see me in the live market, in the coming time, I will make a video, don't worry about it, and it will be a little privilege, that people are opening accounts in the description box, because they have been opening accounts for a long time, I have never given any benefit, but in the coming time, I am planning all these things, so now our main focus will be let's see that you will be seeing the spot price on this chart, here you will be seeing the option price, so let's go to the one minute chart, where I put the one minute chart, exactly we have kept it ready in the morning hour if you are watching here, 915 candle, this was ignore, 960, 917, this is our pair, so let's go to the option chart, where we can trade, in one minute chart, here we see in the morning hour, yes, somewhere around this level here, that means we have to add PE here, I have added CE here, 39500 CE, let me open let's see first where is the strike price, that means the option price is there more than 300 or inside 300, if you see this, you will understand, here you can see, somewhere around, our trade will be executed on which candle, when this third candle will break, then if we are buying option here for scalping, PE will be added, this will be our stop loss, in this case, if you will see, 1, 2, 3, third candle, somewhere around here, our stop loss will be here, if I tell you in the price, 298 entry, that means, we have 200 to 300 range, well within the range, we can plan this, with strike price, so 300 rupees here, and stop loss is 268, that means, we have 298, 68, almost 20 to 30 rupees stop loss, which is fine, if you want to do scalping, 20 to 30 rupees stop loss is very good, after that, if we see, it went to us, around 373, somewhere around 70 to 80 rupees profit, which is very good profit, if you combine this, scalping also, in scalping, profit margin is not seen, mostly, they see, by increasing accuracy, less plan, but still, here you can get 1:1, 1:2, 2, in flow, if someone says, no, it has gone so far, here I will close it, it will work, if you want to wait, you can wait, because it is a one minute trade, so 50, 60, 70 rupees or in flow, 80, 90, 100 rupees is also found, that is also very good, I hope this point has been cleared to you, this is very good, this was found on Friday, now I will show you the scenario of stop loss, because after the stop loss, because this happened, in the last 5 days, almost 3 or 4 days, very good profit was given, 1 or 2 days, there were chances of getting SL hit it must have been hit sl in the one minute chart, but then people were confused, what to do, sir, we have to find this pair, we have to find this pair, this is very confusing, because I did not clear this, when I went to Delhi event, my important thing was that, no, I will explain the concept to you, then in the coming time, we will talk about it in details, so you have seen the concept you have learned, in this video, you are going to these details, how to trade, now it has become easy, if we go above this, we buy, call buy, it has come below, then we have bought PE, it has become easy for you, what if here is SL hit, so let's find the scenario of SL hit, first I will tell you the rules of SL, the first point is that in 1 minute charts, you should not take more than 2 trades, these people make mistakes, that they trade 1 minute chart entire day if you trade 1 minute chart entire day you will see a trade in each and every area, and then the time when volatility or side edge will be there, then you will have a lot of SL hit, then in the end, your charges will increase a lot, but you will not be able to trade or you will not be able to earn money, it's always better, I am telling you one point, not more than 2 trades in 1 minute chart, after that we will switch to 5 minute time frame, I will show you an example, don't worry, the first point is that if you get profit in 1 minute chart, day is good, you got 50-100 rupees, stop it, but imagine that SL hit, you can take 2 trades in 1 minute charts, after that you have to come in 5 minutes by default, I told you this at that time, so let's see the first day in 1 minute charts, because as far as I remember, the first day of SL hit, otherwise we will find the SL scenario, let's go in 1 minute charts, this is 9.15, you will get a perfect example, if you see here, 9.15 was the day of expiry, so we will get the current expiry option, we will not get the previous month expiry, we will calculate it on the money, if the market moves in our favor, then it will be a little more profit, because at that time if the expiry of theta decay will be at that time, then gamma value will be there, if the market moves, then it moves very well, because premium theta is slowly decaying, due to its time value, it moves very well, so keep this point in mind, you can make a good profit on the day of expiry, so if you see on the day of expiry, you have ignored the first candle, as per rules, we got a green candle, correct, after that we got a red candle, that means we got a pair, we had intended a green, red or red green, we have to find these two candles, here we got a pair, so we have marked its high, here we have marked its range, now what we have to plan, if it will cross here, then trade, then if it crosses again trade here you must have understood, this is the SL day, should we do this entire day buy here, sell here, no, as I told you, here you have to do two trades in one minute charts, by default you have to switch to five minute charts, here if we see, here we must have got one trade, somewhere around, here a PE must have been added, let me go to 39500, let us see how you got the trade on that day, in one minute charts, you will get an idea, I have added PE to you, you must be seeing, you had bought above this range, and somewhere around here you had SL, so somewhere around 250, buy of 235, that means SL of 15 to 20 rupees, here you have bought once, the market went up, when it goes up, you will add C here, because this is your range high, C is added, then the market came down, that means here 2 SL hit, what is the rule of us, after 2 SL hits, never look for a one minute chart, one minute chart is not valid for us, I prefer one minute chart, sometimes the market moves 300, 400, 500 points, at that time if we get a capture, well and good, or if we get a volatility, then you don't have to do time pass and you have to close it, you have to see in 5 minute charts, here we have taken out the conclusion that 2 SL hits, you must be understanding, somewhere around this level, one PE SL hit, the market has reversed, here you must have added CE, this SL hit, so both CE and PE SL hit, so what we have to do now, let's go to 5 minute charts, we go on the same day, 5 minute chart, here also we have put options, I have put in bank nifty, let's go to the expiry day, we will see the chart of that day, 5 minute chart, here if you will see, you will remember, when this one minute chart was going on, between this only 2 SL hits were there, now in 5 minute charts, important point is, if you are looking at 5 minute charts, like in 1 minute charts, your rule was that the first candle from 9.15 to 9.16 is to ignore, but in 5 minute charts, you have to conclude every candle, nothing will be ignored here, so keep this point in mind, that in 1 minute charts, you have to ignore the first candle from 9.15 to 9.16, but in 5 minute or 15 minute, if you are looking for positional, I will tell you, but in 15 minute or 5 minute, you can consider the first candle also, so in this case, what is the first candle made, red, second candle, red, did we get a pair, we did not get, what is after red, we have got again, did we get a pair, we did not get, in this case, what is after red, we got, green, that means we got a pair, so a red, green is made, so what we will do, we will mark here, this is our alert, after this, we will sit peacefully, if it crosses, we will buy, if it goes below, then we will trade P, one point, we have hit 2 SLs in 1 minute charts, for that we have come in 5 minute charts, always keep this point in mind, now if we see, let's go to this, we will convert this in 5 minute charts, one point, somewhere around C, where we got trade, we got trade on C side, because it did not break for 5 minutes, so we got on C side, so instead of P, we put C here, let's check it, the add the money 39800, so here I put the option chain, I put 39800 here, one second, we put the call of 800 here, correct, so let's see on Thursday, how the market behaved, here you can see, you must have got a profit, somewhere around, where we have to trade, this is the red candle, this green color is our range, here we have to take trade, here is our trade, if you see here, point wise, entry at 491, and our stop loss is 423, here SL has increased, if you see, it is around 60-70 SL, keep one point in mind, if you are not planning SL of 60-70 in option buying, then make sure, if it is such a big SL, then it is possible that you are trading in 100 quantities, or 1000 quantities, make sure, if SL is increasing, I prefer maximum 70-100, if it is SL, then only I prefer, if both these pairs of candle SL is within 100 points, then only prefer in 5 minutes or 1 minute, write this point also, if SL is within 100 points within 1 minute, then only plan, same in 5 minutes, if you imagine, sometimes SL is seen 200-150 points, then ignore this pair, then we will go to next pair, if it is also seen big, then next pair, next pair is to go only when you get more than 100 points range, I hope you understood this point, and once I will clear you, you saw this in 5 minutes charts, 1 minute SL has increased, so you got in 1 minute charts, if the range of the first pair is more than 100, then we will ignore it, because in such a big stop loss, what is the benefit of option buying, because risk to reward will not be maintained, in every system, risk to reward is maintained, so that you will see, that money should not come in longer run, that today I made 70-80, and tomorrow again 80-90 went from the market, this should not happen, so in 1 minute charts, or in 5 minutes charts, if the first range is more than 100 points, then ignore this, then we will see the second pair, till we go within 100 pairs, if in the first pair, if it is within 100 points, 60-70, well and good if it is 60-70 points more, then you can play around with quantity, so that if you can take 25, 25 quantity, 100 quantity, or you can take half of the quantity, correct, so here trade happened, if you imagine, if you have taken trade here somewhere around 491, 493, 494, from here to 652, you tell yourself, 652 is not that week, it is expiring next week, same day expiry, more than this, the momentum will be 100%, and a good profit, means if it is going from 500 to 650, within 10-30, it is a very good profit, and many people said, sir you should try it all day, I am going to tell you this, but I hope you understood this point, and this market, I told you 2 weeks ago, what is this 1 week, 2 weeks ago, what is the concept, you can see in Pushkar Raj's video, I told you the concept, now we have done forward testing, you have been trading for 2-3 days, how should you trade, now forward testing is done, you have seen the analysis of 2 days, within 2 days, there was a good profit, there were no losses on the first day, easily profit was obtained, on the first day, like on expiry day, losses were seen in the 1 minute chart, now you will say, sir if this 3 SL hit, then it will reverse, it is possible, probability will vary, if the market goes sideways, then it will hit, what can we do, 3 SL late day, I have taught you this rule from 2018, do not plan more than this, if continuously 3 SL is hitting, if you have not seen my videos before, then make sure, continuously 3 SL is hitting, better to stop, if the first trade is profit, you can take 3 more trades, because it is your profit, if the first trade is loss, second trade is loss, third trade is profit, then you can take 4 trades also, because it is not your consecutive loss, being a consecutive loss means, today the market is completely sideways, today whatever you try, it will be losses, it is better to trade next day, because generally, if you get profit in 2 or 3 trades, if you are not getting, then you will trade next day, small things are very useful, if you are liking the points, hit the like button, all the points I am telling you, remember all these points, now this is our intraday, we will plan 3 SL, now some people say, sir we are not able to get active in 1 hour, now we are doing job, so what should we do, I am going to give you the best solution, keep in mind, either you will watch the market from 9.15, and trade like this, if you are not able to watch from 9.15, then come around 1 o'clock, because second hand also gets momentum, after 1 o'clock also you can get trade, exactly 1 o'clock, before that what happened, we don't care, we will imagine 1 o'clock, if I tell you an example, imagine here, this is your 5 minutes candle, this is 1 o'clock candle, after this candle, you have to start looking for a pair, this is 1 o'clock candle, so we have found this pair here, from here we will buy, we will sell, in this case, this is AXL1, after this, here is AXL2, but in third trade, you have got very good profit, this was expiry day, so profit was very good, same, don't plan more than 3 SL a day, if we go before that, let's check, here we are looking at options price, let's see at the spot price, here we will see, where is 1 o'clock, somewhere around 1 around this candle, around 1 o'clock, so you can consider this candle, as I told you, we can consider 915 candle, 5 minutes candle, similar, here also we can consider, did we get pair in 2 candles, no, did we get pair here, no, did we get pair here, 100%, so we will consider this pair, and after 1 o'clock, you have got a good trade, this is looking so smooth, but everyday it will not be so smooth, so in 915 morning hour, people trade, and share the video, people ask me many times that sir tell a setup, which can be useful for office going this is not a better setup for you, because you don't have to do analysis, because sometimes, I also used to do job, I know how painful it is, you are in the market, you are investing money to learn or to earn but some work comes from office, some call comes, someone is calling, you have to do work, so at that time I used to think, some simple setup, and probability should be high, where you can get money, so I used to trade in second half, after 12:30 or 1:00 and if I do analysis, this is resistance, this is this, when will the price action be made, if I will keep seeing all these, I will not be able to trade, so I have made you so easy things, that you will get hit SL even after doing analysis, if you will say that I do very good analysis, here is trend line, trend line will go, here is a trend line, this is breakdown, I will sort at this place, even after doing all these things, SL is getting hit, if SL is hitting even after doing so many things so I need a simple thing, if you want to move the price this will be easily captured, what you did, you saw a buyer seller fight, here around 1 o'clock, we did not make a pair at this level, here we made a pair, we made a range, breakdown happened, earned profit, well and good, you can get this type of profit, but slow and steady, I hope you understood this point, most of the things are clear for buying, now for selling I will recommend scalping for selling, if you are doing scalping, make sure that you do at the money, I mean if you want to do scalping rules are remain same, you need to select at the money, if you are doing scalping in option selling, if you are going positional, then what you should do, in positional, you need to consider 15 minutes, why 15 minutes, because definitely, we are thinking positional, what happens, the option seller wants to take profit so we want to plan slow and steady trade, here what we will do, 15 minutes, for option buyer scalper, we will plan on immediate price change, but for let's imagine, here we have to sell option, here we got two pairs here you have marked, as soon as it breaks, 2 points, if you want to go positional, then what you will do, you can keep 39700 P.E. so that what will happen, if market goes up, close and slow steady goes up, then you will get premium dk, there is no high volatility if you want to go aggressive, then you can plan according to the loss, it's up to you, how many points you are going, here you are done, and if you go back, here you will see, market was continuously sideways, you got trade positional, here there was no trade, before that, you will see, no doubt you got 2 pairs, around at this level when it breaks, if you add P.E., no doubt it will be profitable, because it came above this for 2-3 days, then we will get money, I hope you understood this point, how you can do it, if you want to sell and buy option, I will make follow up video in coming time, as I told you, live trading, if you have any doubts, I will see, if I missed any point, I will make a video on it, if you get 15000 likes, then I will make some more video on it, so that you have a setup like this, 5 PMA trend reversal, inside candle, trend continues, this is in morning hour, inside candle, you get after the trend, this is possible, you get it in morning hour so you have 3 of these now you don't have to work on setup, you have to work on your psychology, money management, because in the end, it should be more stressful, I have made this for you, breakout theory, you can do it on investing, this video will be little big, I will tell you more about investing, if you liked the video, then like and share, that's all for now, thank you