11/20/2016 IntradayTradingFormulasandRulesTradingTechnicals

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BikramjitSingh | October2,2013 | Trading | 27Comments Subscribetoourmailinglistand
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equity,stockfno&niftyfno
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IntradayTradingisanalluringideafortraderstomakequickmoneyinstock
markets.Afterall,whowouldnotbeinterestedinmakingsomequickbucksina SIGNUPNOW
matterofminutesorhours.Thatisthereasonofitspopularityinasectionof
traders.

Intradaytradingordaytrading,asthenameisexplanatory,istheprocessof
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takinglongorshortpositioninmarketsandsquaringoff(exiting)thatposition
beforethecloseofthemarketonthesameday.Intradaytraderstakethe TradingTechnicals
advantageofthemovementinthepriceofthestockortheindexduringthe 719likes

tradingsession.Movementcanbesmallorsignificant.Tradecanbeforminutes
orhours.
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Intradaytradershavetotakepositioninlargequantitiesofastocksothata
smallmovementinthestockprovidesbiggains.Consequently,theriskisalso Bethefirstofyourfriendstolikethis
equallybigintheeventofadversemovement.

Takingpositioninlargequantityofastockandsquaringofftheposition
immediatelyafterthestocktakesasmallmoveinthefavourabledirection,is
calledScalping.Scalperstakeseveraltradesduringthedaysothatattheendof Moreusefulcontent
theday,theprofitsaresignificant.OnlinesharetradinghasmadeIntraday UnderstandingFutures
Tradingeasyfordaytraders. Trading
Futuresmakeoneofthe
Now,whatistheformulaortechniqueforIntradayTrading? twosegmentsin
Derivatives
Trading,other
Ofcourse,therearesomeformulaewhicharepopularamongtheintraday
traderslikePivotPointFormulaorFractionTheory.Butintradaytradingisnot WhyTradingisthebest
allaboutusingformulas.Whenyouarethereinthemiddle,itisatotally Businessin
differentballgamealtogether. TradinginStockmarkets
offersaveryunique
Weshallexplainheretheabovesaidformulasbuttheotherthingswhichare business
opportunity.The
veryimportantandneedtobetakencareofare

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11/20/2016 IntradayTradingFormulasandRulesTradingTechnicals

HavingaproperMindsetandPsychologyShareTradingfor NationalStockExchange
funorhobbycanbedangerous.Yourapproachshouldbevery introducesVolatility
IndexVIX
professional.Youshouldbeawarethatyouareriskingyourhardearned
TheNationalStock
moneyandtheriskstartsthemomentyouenterthetrade.Taketradingasa
Exchange(NSE)has
business. introducedthevolatility
ControlovertheEmotionsEmotionslikeGreedandFeararethe index
biggestenemiesofatrader.Marketsdontstandataplace.Theykeepon
TheImportanceofPut
moving,upordown.So,dontletthefeartakeyouforrideifmarketsmovein
CallRatiofor
theoppositedirectionofwhatyouwereanticipating.Youshouldbeawareof
ThePutCallRatioorPCR
yourexitpointinsuchcase.Ontheotherhandiftradestartsturning holdsasignificantplace
profitable,exitthetradeatyourtargetpricelevel.SticktoStoplossand
TargetstoavoidEmotionsintrading. Howtoincreaseyour
HavingaPlanHavingapropertradingplanisanimportantpartof tradingsuccessrate
tradinginstockmarkets.Youshouldbeclearoftheentrylevel,targetleveland Majorityofthemarket
traderslooseinstock
stoplossoftheparticularstockwhichyouaretradingin.Theselevelsare
markets,somarket
determinedonthebasisofTechnicalAnalysisandtheformulas.Youneedto
sticktoyourplantobeasuccessfultrader.Writingtheplanonapaperisa
goodideasothatyousticktoyourPlananddontgetswayedawaybythe POPULAR RECENT

marketmoveswhenyouarein.Withoutanyofthese,itisgoingtobevery
COMMENTS TAGS
tough.

IntradayTrading
Formulasand
Rules
SelectLanguage IntradayTradingisan
alluringideafortraders
tomake...

TheImportance
ofPutCallRatio
forTraders
ThePutCallRatioor
PCRholdsasignificant
place...

OptionPricing
TheFactors
IntradayTradingFormulae AffectingOption
Prices
BeforegoingforIntradayTradingFormula,youshouldbeawareofarealfact OptionPriceinvolves
thatmorethan80%ofthepeopleloosemoneyintrading.Itmeansthatno twocomponentsIntrinsicValueand
formulaisperfect,otherwisethatfigurewouldhadbeenotherwayaround. Option...

HowtoMake
Itisadvisabletousetheseformulaeaftertestingbypapertradingorvirtual MoneyinStock
tradingtoseewhichformulaisbestforyou.Personally,IpreferPivotPointsasit MarketsinEasy
givesbestresultwhenappliedafteridentifyingthetrendinastock. Way
Weknowhowharditis
PivotPointTheory:Takingpreviousdaystradingpricesofastock,wecan tomakemoneyin...
calculatethesupportandresistancelevelsforthatstockforthenext
BollingerBands
day.SupportandResistancetermsareselfexplanatory.Astockwhichismoving TradingStrategy
higher,maystopatresistancelevelandcomeback.Similarly,astockmoving ToFindPrice
lower,maystopatsupportlevelandreverseitsmove.Aftercrossingfirstsupport Targets
orresistancelevel,stockisexpectedtomovetonextsupportorresistancelevel. BollingerBandsarea
technicalindicatordevelopedbyJohn
ComingtothePivotPointFormula,weselectastockforIntradayTrading.For Bollinger.They...
thatstock,weneeditspreviousdaytradingdataIntradayhighpriceittouched Next
(H),intradaylowpriceittouched(L)andthepreviousdayclosingprice(C)
forthatstock.

AddthesesthreevaluesH+L+C=X.

http://www.tradethetechnicals.com/tradingsuccess/intradaytradingformulasandrules/ 2/9
11/20/2016 IntradayTradingFormulasandRulesTradingTechnicals

Dividethetotalvalueby3(P)=X/3.
TradingTechnicals

Multiplyitby2:X/3*2=Y Follow +1

+ 81
ThisvaluePiscalledthePivotPoint.StocksustainingabovePivotPointis
likelytomovehighertowardsfirstresistancelevelandabovethattowards
secondresistancelevel.IfstockcontinuestotradebelowthePivotPoint,itis
likelytodriftlowertowardsfirstsupportlevelandafterthattowardssecond
Tweetsby@bikramjitz
supportlevel. BikramjitSingh
@bikramjitz
Letscalculateresistanceandsupportlevels. CurrencyNotesofDenomination500&
1000Scrapped:tradethetechnicals.com
Firstresistancelevel(R1)=Itisthedifferencebetweenthe{PivotPointX2} Ingoo.gl/fb/PqZ88f
orYandtheIntradayLowprice.
08Nov
R1=YL
BikramjitSingh
@bikramjitz
R2=P+(HL)
Embed ViewonTwitter
Firstsupportlevel(S1)=itisthedifferencebetweenYandtheIntradayHigh
price.
Categories
S1=YH
Finance(13)
IncomeTax(6)

S2=P(HL).
SelectLanguage
Insurance(6)
FractionTheory:Thistheoryisalsobasedonpreviousdayprice Investing(15)
movementsofastock.
NiftyOutlook(51)

Adduphigh(H),low(L)andclosing(C)priceofpreviousdayofthestockand OptionsTrading(7)
multiplyitby0.67(ratioof2:3asinpivottheoryanditisconstant) RiskProfile(4)
TechnicalAnalysis(16)
(H+L+C)*0.67=Y
Trading(26)

Resistance(R1)=YL TradingTips(42)

Support(S1)=YH

PossibleBuy(P.B.)=YC

Abovepossiblebuy(P.B.),buythestockforresistancelevels.

2652TheoryofintradayTrading:2652Theoryisbasedonpreviousday
andpresentdayHighandLowpricesofastock.Thistheoryhasitsown
disadvantagethatitmakesyoutradeforgainof0.5%whilekeepingyourstop
loss1%lower.Yourriskisdoubleofyourprofitandusingsuchstrategyinday
tradingdoesntmakesensewhereprobabilityofgoingwrongremainshigh.

Youshouldalsousetechnicalanalysisbasedonshorttermchartsforstockto
knowthetrendandotherindicatorsoftechnicalanalysis.Buystockwhichshow
uptrendwhilelooktoshortwhicharedowntrending.

TheIntradayChartwith15Minuteintervalremainsbestforeffective
Intradaytrade,thoughyoumayuseanyintervallike1Minute,5Minuteor10
Minute.PrefertousetrendlinesonIntradayChartstotakebuyorsellcallon
yourtrade.5MinuteBarChartcanbeagoodmethodtousetrendlinesfor
IntradayTrading.

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11/20/2016 IntradayTradingFormulasandRulesTradingTechnicals

TradingRulesforIntradayTradingtokeepyourRisktothe
Minimum

1.UsesurplusmoneyTradingshouldbedoneonlywiththesparemoney,the
moneyyoudontneedandcanaffordtoloose.Trading,althoughvery
profitable,isassociatedwithsubstantialrisk.

2.DoproperresearchBeforetakingtrade,properresearchshouldbedone
aboutthestockortheindex,usingchartsbasedtechnicalanalysis.Ithelpsin
determiningimportantlevelsofthestock,strengthandtrendofthestock.

3.UseofStoplossThisisveryimportantpartofanykindoftrading.Mostof
thetradersdontuseit,knowinglyorunknowinglyandenduptakinghuge
losses.Stoplosshelpscuttingshortthelossesandkeepingemotionsoutof
tradingtherebyprotectingcapital.Remember,capitalprotectionismore
importantthanearningprofits.Profitearningopportunitieskeeponarisingin
themarketswhichyoucanuseifkeepyourcapitalprotected.

4.DontovertradeOvertradingissuicidal.Moretradesbecomedifficultto
manage.Sotradeonlythatquantityyouarecomfortablewith.Keepnumberof
tradeslimitedto23.Ifonetradegaveyousufficientprofit,betterclosethe
systemanddosomeotherworkorrelax.ChooseyourtradesonthebasisofRisk
RewardRatio.

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5.BedisciplinedThisisthemajorqualityofthesuccessfultraders.Avoiding
overtrading,notfightingagainstthetrendandcuttingshortlossesandkeeping
fearandgreedemotionsoutofthetradingaresomeimportantsteps.

6.FollowtheTrendTohaveahighersuccessrateinIntradayTrading,always
rememberTrendisyourFriend.So,alwaysfollowthetrendandtradeinthat
directiononly.Inuptrendingmarkets,selectstockswhicharestrongoncharts
andhavelongpositions.Indowntrendingmarkets,selecttheweakerstocksand
shortthem.Nevertradeagainstthetrend.Theadvantageoftradingwiththe
trendisthatevenifyoutakeawrongcall,youwillnotsufferbiglosses.

7.LiquidityAlwaystrytotradeinhighlyliquidshares.Liquidityisthevolume
ofsharestraded.Inliquidstocks,itiseasytoenterandexitthetradeandyou
enterorexitthetradenearthelasttradedprice.

8.ProfittakingExitStrategyisreallyimportant.Takeyourprofitsandgetout
ofthemarketwhenyourtargetareachieved.Lettingtheprofitsrunbeyond
targetsleadstogreedwhichisdangerousfortrading.Youneverknowwhenthe
marketwillturnaroundandthrowyouinlossesaftereatingalltheprofit.

Cuttinglossesisalsoimportantpartofsuccessfultrading.Exityourpositionif
marketisnotgoingthewayyouanticipated.Dontbestubbornandletthe
marketdowhatitwantstodo.

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11/20/2016 IntradayTradingFormulasandRulesTradingTechnicals

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AboutTheAuthor
BikramjitSingh
Iamapassionate,activeTraderandInvestorinStockMarkets
andthefounderofthisblog.Myaimistohelppeople,especially
beginners,takeinformeddecisionsregardingTrading,Investing
andPersonalFinancebylearningbasics.

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raja
canyougive
sometipsforintradaytrading

BikramjitSingh
SorryRaja,IdontofferanyIntradaytradingtips:).MoreoverIwouldlike
toadviseyoutocreateyourowntradingideasbyreadingtechnicalcharts
thanrelyingontradingtips.

PrakashAmpile
HiBikramjitsingh
Goodmrng
Iamverynewtothistradingconcept
canuplstellme
formulaforSupportLevelandResistanceissame
For
Niftandsensex

BikramjitSingh

http://www.tradethetechnicals.com/tradingsuccess/intradaytradingformulasandrules/ 5/9
11/20/2016 IntradayTradingFormulasandRulesTradingTechnicals

HelloPrakash,
FormularemainssameirrespectiveofyouapplyitforSensex,Niftyor
anyparticularstockorshare.

Mr.Hari
Canplzzprovidemeyouremailid.

ManusKi
Whichtradingplatformdoyouuse?Whichisbestandlowestbroker?

BikramjitSingh
HelloManus!!IuseTradeRacerbyicicidirect.com
Whilechoosingabroker,youmustkeepinmindthatqualitycomeswitha
price.

BikramjitSingh
SelectLanguage
HelloManus!!IuseTradeRacerbyicicidirect.com
Whilechoosingabroker,youmustkeepinmindthatqualitycomeswitha
price.Somakesurethebrokeryouchoosealsoprovidessatisfactory
servicesalongwithlowcost.Iamquitehappywithicicidirect.comthoughit
isbitcostlycomparedtopeers.

ManusKi
Hi,

HowaboutZerodhabroker?Itisclaimingthatitislowestcharging
brokerwithbestservice?

BikramjitSingh
Youhavetocheckthembyyourselfonly

ManusKi
ok.Thanks

OmkarGajananVaikul
IFNIFTYSPOT
H7505.9
L7444.1
C7485.35

ThenPivotpointscome15032,butIguesssomeprbleminFORMULA,becz
IcantfindsupportlevelsbyyourfirstmentionmethodI.ePivotpoints
theory..plshelpmetofindPivotpointsandResis&support

http://www.tradethetechnicals.com/tradingsuccess/intradaytradingformulasandrules/ 6/9
11/20/2016 IntradayTradingFormulasandRulesTradingTechnicals

BikramjitSingh
HelloOmkar,
Foryourniftylevels,pivotpointis
(7505.9+7444.1+7485.35)/3=7478.45
Supportis(7478.45X2)7505.9=14956.97505.9=7451
Resistance(7478.45X2)7444.1=14956.97444.1=7512.8

Arpit
Siriamnewtothismarketiamnottradingrightnow.Wanttolearn
firstsopleaseguideme.Fromwheretostarttolearnintradaytrading.

BikramjitSingh
HelloArpit,
Intradaytradingcanbeveryriskyforthefreshers.Youwouldneedto
learnreadingtechnicalchartsbeforejumpingintotrading.Initially,
keepyourtradingtimetofewdaysinsteadofIntradayandstartwith
smallcapital.Allthebest

Arpit
Definatelysiriwillnottrade.Onlyiwilldoispapertradefirst.Is
theiranybookornotesforwhereicanlearntechnicalcharts.

BikramjitSingh
SelectLanguage
Youcandothatbyjoiningtechnicalanalysiscoursesconductedby
tradingbrokerslikeicicidirect.comorsearchonlineliterature
availablethere.

Arpit
Thanksforyourreplysir.

Arun
Hi

R1=YL

R2=Y+(HL)

R2doesnotseemstoberight?

BikramjitSingh
DearArun,
Formulaislikethatonly.Whatproblemyouarefacing.Kindlyshare

Arun
DearBikramjit,
Ifyoutaketheniftyvaluestodaythen
X=7508+7405.15+7498.75=22411.9
X/3=7470.63
Y=7470.63*2=14941.26
NowifyoucalculateResistancevalues
R1=YL=14941.267405.15=7536.11

http://www.tradethetechnicals.com/tradingsuccess/intradaytradingformulasandrules/ 7/9
11/20/2016 IntradayTradingFormulasandRulesTradingTechnicals

R2=Y+(HL)=14941+(75087405.15)=15043.85
IfyouseetheR2valueitdoesntseemstoberight.

BikramjitSingh
HelloArun,
Sorryforlatereply.Ihavemadethenecessarychanges.Itshouldlook
finenow:).Letmeknowifyoustillhaveanyquery.

Arun
ManyThanksBikramjiji.

Dileep
HiBikramjitsingh,
Whattimewewilldothisanalysis?Soonafteropeningthemarket?

SelectLanguage
BikramjitSingh
Youcandothatafterthemarketcloseorbeforethemarketopeningfora
dailychart.
Youcandothatforhourlychartalsoforeachpassedhour.

pandit
IampanditIliketodaytrading.
SirIreadurblogIlike.bitsirverylosses.Throughit.
Sirgivemeursuggestions.

Thanksdearsir.

BikramjitSingh
FirstsuggestionistoavoidDayTrading.Itisnotaseasyasitlooks.Keep
yourtradingdurationlittlelonger,sayfewdaysorweeks.
Secondlygofortradingonlyafterproperresearchandhomeworkfora
stockyouwanttotradein.

ManasChattaraj
AddthesesthreevaluesH+L+C=X.

Dividethetotalvalueby3(P)=X/3.

Multiplyitby2:X/3*2=Y
Sir,whatisthemeaningof=Multiplyitby2:X/3*2=Yvalueplzclarify

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