Hey folks!!! CA Rachana Ranade here and I welcome you all to an amazing video
which is about a Simple Swing Trading Strategy which does not have a 99% accuracy or anything
like that but mind you it works pretty well in a trending markets. It's been quite a long time
since I did a video about any trading setup strategy so I thought of doing this video today so
don't forget to watch this video till the end and don't forget to share this video with your friends
and family members but before we move on I would love to thank our viewers Mr. B.R. Nagaraj Sastri
and Shiv Pujari for their wonderful comments. Now before we go on to our RR trending strategy
let us understand that if you want to learn about Technical Analysis in absolute detail in a very
simplified and systematic manner, do not forget to check out our course on Technical Analysis on
our website www.rachanaranade.com also you have a special coupon code for you wherein you can get
some additional discounts as well. Now what is the name of our today strategy? It is RR super
trending strategy okay but we have to visualize that whenever I talk about any strategy I'm sure
some points might be coming to your mind!! First thing that comes up to your mind could be what
indicators are we going to use? Second point that comes to my mind is what should be the time frame
that I should be using for this? should I be going ahead with a daily time frame or a weekly time
frame? a monthly time frame what? Third thing that you that would come to your mind would be what
all signals if I get or what could be the point wherein I should enter into this trade? what could
be the point where I should book my profit? What could be the point where I book a stop loss
or put a stop loss as well so all these things keeping in mind now let's go through one by
one okay so have a look at this table we'll go through one by one first thing is what? which
indicators right two major indicators we're going to use here? which two measure indicators one is a
Super Trend indicator so this is a trend following indicator and second one we are going to use is
a Pivot Point and pivot point is nothing but one of the leading indicators. Leading indicators is
basically an indicator which tells that ideally this should happen okay, it ideally has the
capacity to tell things in advance but a lagging indicator generally shows comparatively late, like
a lagging indicator. Now second thing again as I mentioned what could be the entry point for this?
Ideally if the price of the stock is in green, the super trend it has crossed to the super trend
and it goes above R,1 now what does it mean? Trend is showing positive plus it has also crossed the
R1 in the Pivot Point okay it means that now it is showing momentum, it can now Skyrocket quickly
that is when we could have an entry point, but if you are unable to find any stock in this category
you could also go ahead with another category wherein price is already in green in the super
trend plus it has gone above the Pivot Point at least that could be the second possibility right.
Now comes the Target Price, ideally from here if if our if our entry points are met then target
should be a 10 percent profit and of course the 1:2 risk reward ratio your stop loss should be at
five percent from your entry point. What could be the time frame in which I look at this setup? Time
frame for this will be of daily time frame. Now what have we done is that we try to back test this
strategy and the back testing was done majorly on Nifty stocks only so whenever we are using this
strategy for our own trading purposes also we use this only typically for Nifty stocks because the
accuracy rate is a shared higher in Nifty stocks for this right so I hope these points are clear
and also you have to keep one more point in mind before you take any position, you just can't look
at these two parameters before taking any position you also have to check what are the candlesticks,
I mean any specific candle if we can see, you can check the price action, you can check where is the
support level, where is the resistance level, any pattern which is being formed, all these things
are to be kept in mind and then only ideally you should be taking any position. Now that you have
understood the theory. Now let's move on with some practical examples. All right so let's go
to our first example which is of Bajaj Finance Limited so what I've done is that I've gone to
the indicators Tab and then I've put Pivot Points which already appears on the screen right now and
second one is super trend right and you can see here on the chart as well so I have already marked
15th July just for your reference points that you understand whatever I'm trying to teach you in a
very simplified manner. I'm zooming this in, now let's see whether our first point is met or not
what you can see on 18th July is that first time the Super Trend now has gone bullish. Here you can
see the green one starts here right the so price has gone into the bullish zone of the super trend
and here you can see this is the R1-5,972 and the price on this day that is 18th July 2022 closed
on at 6,059 so ideally this should be the candle where you should have taken the entry because both
conditions super Trend as well as R1 being crossed so price should go above that and price should
also close above R1 so that is important right so assume that we took the trade at just 329
or so okay so assuming that the trade was taken somewhere around 6,059. Now what happened?
Ideally what should be my target target should be ten percent from here so let's try and measure
whether 10 percent was hit or not so I'm taking the price from the closing till during the day
only it was hit on 28th of July in next almost 10 days this was hit and trading sessions and
here if you see even on this day itself on the closing basis it has gone up almost 16-17
percent. Actual has gone above 25 percent also so with this I hope you have understood
how this acted as a trending indicator number one trend was anyways positive the price crossed
above that closed above that plus R1 was crossed. Let me take another example so that we reiterate
on the same point let us take this example of your favorite stock which is ITC and zooming the
data again and I've already marked 2nd September as a reference point. Here we are on the 5th of
September which was a Monday again now understand was this the day when the price went into the
green super trend or went into the bullish super trend? Answer is No, if you can see here I'm
just zooming out and you can see that the price, price has been in this green zone for quite a long
time OMG from this time almost six months price is in the green zone only of the super trend but why
am I talking about this point only because here is the point where you can see that the price has
crossed and has closed above R1 also right so now if I were to take a trade here at 326 let me see
how much was the gain from here till here outside is only 5.9 so let me do one thing let me zoom
out and see till now trade has not been closed yet so even if I had taken a trade here let us see
what has happened till date, till date you can see it till the highest point still is almost nine
percent, trade has not yet been closed so this is an open trade as of now but does it make entering
at this point answer is no because the entry point was at what level? Entry point was at the level
of almost 328 rupees what could have been the stop loss? Stop loss could have been at five percent
below the entry point. I hope you have understood how this example how this RR super trending
strategy works with the help of two examples. Well now that you have understood the examples
let me tell you two more important points number one as I mentioned earlier these strategies
work better in trending markets rather than in sideways market and second is that if you
want to keep yourself updated about which stocks are in action? Is there any specific
stock where some price action has been seen? where some specific pattern has been seen? And
that too absolutely free of cost, then how do we go for it, you just have to visit our website
rachanaranade.com then you can see a Blog section, here you just have to click on that Blog section,
once you go inside this you can see that we upload blogs every single day not only about IPO analysis
but about various stocks as well for example ABB, Triple Top, you can see Ambuja Cements with the
consolidation breakout and a lot more. Well other than this what we do is we also put a weekly
review of the blog and if you scroll down you will see that we had discussed on 7th October
about Bank of Baroda when we had said that if it sustains above 131, it shows bullishness
and see it made a high of 151 and almost 16 percent upside so if you want to know more about
such things please don't forget to check out our blog on our website rachanaranade.com. I hope
you enjoyed today's video and if you want you can know more about MACD indicator just by
clicking here and if you want to know more about stock for the Next Decade, you can click
here till then take care, Jai Hind and bye, bye.
