we will learn mainly chart patterns which are used in the market a lot Which will give you a good direction and a good long profit We will learn those chart patterns more First pattern will be pole and flag pattern Second we will learn triangle patterns These two are used in the market a lot In these your judgment will be less wrong Third we will learn trap trading can be the most important topic right now Chart patterns may not be helpful for you But trap patterns will be helpful for you. Trap trading has increased a lot in recent years like 2023.
As soon as you feel that there is a break out in the market, you will be trapped again So it is very important to learn this thing We will understand pole and flag first What is pole and flag and then we will move ahead Pole and flag is simple, let’s go to the name Pole and flag means there is a big trend in the market After that the market is stuck in a flag pattern It can be from up side and down side For example, if we see here This is also a pole and flag pattern This is made in bullish side This same thing can be made in down side There is no such thing that it is made in bullish side Now the problem is how big this flag can be.
Many times it happens that this market comes up Flag is just two candles and market breaks out from here This is also a pole and flags you have to judge the market that the market took a pause and continued That is also a pole and flag pattern Target of pole and flag pattern is basically the size of the pole, Like the market has taken a pick up from any place and then paused The next pick up of C line is equal to Alit will be a little less but almost equal Like if you move 1000 points in But you have a pause of 300 points
So you can assume that the next 800 points will also come let me show you an example This is the most recent example It is a one day time frame of bank nifty After this pause, the market has made a pole of 1600 points Almost 1600 points After that the market took a pause If you see this pause in an hour chart You will see that the market is down This is an example of a triangle will explain it later After that you will see that what should be the target According to me, the target is like it has gone up by 1600
After the pause, it should go up by 1500-1400 points Now you see the next example It broke out here And what is the move after this Here it is It is a move of 1300 points, the next one means C version So whenever you take a trade on breakout And you think that I will put a target of 1600 points There is less chance of it hitting Because C in ABC is a little less than Now we can’t explain the Zara here Whether Zara is 1% or 1.5%But a little more Like you got 1300 points in 1600So you have gathered almost 80% of 1300 points in 1600So this becomes the target pattern
We call this pattern as continuation pattern Because let’s say Just like you did a breakout trade After a certain time, you closed the breakout You cancelled the trade Now how will you get the next trade You will get it after the pause Because after this trade, when the red candle will come People would have closed the trade As soon as this breakout came in the market Trade happened in the market Public exit in this red candle This has been exited here Now how will we take the next trade When a pattern will be formed here, it will be taken on the breakout
Now you have a lot of problem in deciding its target Because the problem is that Our previous target was 1600 points We earned 1600, what’s the next target When you take a trade here You have to keep the next target a little below the size of that pole You took 1600 points in the pole After the flag, you can take the next one You can get 1300-1400 points
We got almost 1300 points here You can close this trade here easily Simple In the next class, we will understand the price action patterning that, we will see how to close these trades Entry is easy, exit is the most dangerous We are learning entry in chart patterns We will learn exit in price action So now we have told you an important thing The entry that is being told here You are taking entry according to chart pattern But you will take exit after seeing the price action.
Correct We will write a second example of this That was also a classic pattern Here, when the market made a pole after sideways market Now, let me explain this What happens is, pole doesn’t mean that all the candles will be green Or all the candles will be red Pole means aggressive buying or aggressive selling Aggressive buying means the place from where the market rose Like the market went up from this place
The market is going up So the market covered a move from 39,300 to 41,300A move of 2000 points Now, look here, it has made a pause In pole and flag, it is not necessary that the market should be like this Because pole and flag can also be straight What happens is, we have learned chart patterns, candlestick patterns In these, it goes up and down.
There is a difference between the book’s language and In the actual chart, it is not necessary that it should be symmetric It can go up and down a little So whenever we practice these things The market should give a buffer of 100-200 points If it is a support, then keep it 200 points down Because you are looking at it in a big time frame It is a daily time frame You should not keep this judgment herein the book, I learned like this This pattern will be like this That’s why, the book and the original market are different The book will never run in the market But the one who has practiced from the market He will stay in the market
How much move came in the market and how much we can judge From this place, the market started its move The move in the market is almost 2200 points After that, a flag was made in the market That was also a consolidation move From here, when it broke out from this place After the breakout, the market gave almost 2400 points Here, A, B, C is also bigger than that But where you have booked, it is around 2000 points No problem It is not written anywhere that you have to exit at the top This is a very difficult thing that you hold the bottom and topic don’t think 80% traders hold the bottom and top You can just judge this If I have this line, my pole size is 2200 points
You close it at 1800 or 1900 points below 2200Because many people think like this should have bought it below should have entered from where it started And where it started falling from the top, I would have exited So it is not important What is important is that you are working according to the risk to reward ratio But you are making money Don’t think that you have to become God here You can’t become God in this market And nothing is perfect You just need to risk something to get something You have taken one risk Some people are happy with 2, some are happy with 3, some are happy with 10But risk reward is important Like you took the risk of low
Now what is the low of this? This is almost 400 points Now 400 points is low, 1 is to 2 means 800 points So many people are happy with 800 points out of 2000Some people will go for 1600You are happy with 1600, 1 is to 3 or 4 is a very good risk reward ratio If you have caught this pattern, then you have earned 2 months profit So flag pattern is very simple won’t drag this too much won’t teach you more flag patterns Next pattern is triangle pattern Triangle pattern is also used a lot in the market Because even after that, the width of the triangle is that big am just considering the ones where you can get a big move won’t teach you 100-200 points because you keep catching it in intraday want that if you catch a trade in the market
Then your 2-3 months trade will be calm want to be a silent trader If you get caught in intraday, you will trade daily But if you get caught in this trade, then you will be silent for 3 months Your mind will be calm and you will become a good trader Let’s remove this Now in triangle, mostly people think that triangle means this Exactly, it is not necessary that the market will make this kind of triangle In market, many times move can come like this But what public wants is that the triangle should be like a booking market, this is a structure Finding a triangle in a structure is a tough task
But now I can see that this is a triangle Market has made it as an ascending triangle But you can also take it as a symmetrical triangle Yes, like this Now I can see many types of triangles But what will happen that I want a triangle like a book No, you will not get a triangle like a book in the marketing this example, you will see that I am the target Your entry and how many targets you can keep,
we will learn that This is a good example of both types of triangles Symmetrical triangle and ascending triangle We will separate these two Symmetrical means where the market has made it Ascending means In which the market is rising This is the move Resistance is getting from the top
This went up Then it came down Slowly it’s moves get smaller Means Before the bomb explodes It feels like the lion has stepped back Before the storm So in ascending, it’s move is faster So here I am telling you one more thing If you have any problem In catching it Take line chart instead of candle You will see it easily Here we are on line chart This is ascending triangle Market will go up And it will become calm And after that it will explode The width of ascending triangle Is equal to that of line There are many new people here So don’t get confused What is the difference between line and candle Line is made according to closing Where the market is closed
So it is connecting close Fluctuation is removed In candle, you are getting open, close, low, high 4 things So many people prefer candle Many people prefer line Those who want clean chart They are still using line Before line was there Then this Japanese candlestick came We started using it But in line, the closing price Closing price matters Suppose market was closed at 43500 Yesterday it was closed at 43500 Even after giving 1000 points So the line chart person Will judge that there was no move in market
But actually market was moved for intraday For that, the judgment is Market was calm There are many people Who want to use clean Who want to trade fluctuations They can use candlestick Now in ascending triangle When market went up You have this pattern We only have to trade this much Where in market This breakout Or this breakout Your target will be the width of both sides Width means this area Here we see have found it will change it to candlestick We will use it again Here is ascending triangle Upside Here is downside Here you will see the height of triangle, Triangle means
This whole area When we are considering it as an ascending triangle Its height is around 1600 points Our height is 1600 points Now whenever this triangle Will have breakout, Breakout can be on both sides Like this triangle You can understand that it can come like this And it went here But we will consider both If it went up, then our target will be Equal target Like in pole and flag, 80% target is in C round But here 1600 points Will be equal If I take target here, this is daily candle My target is 1600 points
The biggest reason for this is Because it has been generated Its move is sharp In pole and flag, you can go slowly In this, it has become Calm and small candles have been made Its breakout Is fast in intraday And even in daily candles You can see 3-4 green candles Here you can see 4 green candles So it is a good trade You get good trade on small Slits SL is also small Let’s see its count You got a good move of 2200 points From breakout We will book it at 1600Because we have to judge this That our triangle was 1600Now we have to judge
Assume that your triangle is made here Like this So the closest swing of this area Is our Slave we see here, this is our Sloth’s is our breakout area We will draw a line on both of them And see the gap And the risk-reward is decided Seat is around 600 points If you are trading in daily If you would have done in small, it would have been smaller Now it is 600 points You have got 22006 into 1 is 23.5,
But we have to book it at 1600We can book it at 1.2So it has fulfilled our target in both ways Many people must be thinking How will we buy SL of 600-700 points will explain you one thing This SL and whatever we are doing You have to wait for some time You have to understand it Because we are not talking about intraday Someone will think that capital is over in 600 points am out of the market But I will tell you We have not told you any strategy.
We will tell you the strategies That your loss will be protected When we will see the strategies In the strategies, everything is included When you will put strategies in it In that, your 600 points The lowest loss in between We will consider that We will consider the highest profit That’s why we are making a base am continuing one more thing We are seeing the same thing in daily time frame That’s why the points are increasing If you will see in intraday time frame You will see that my SL is of 60 points And I am getting 200 points So people are understanding
But here it is 600 and not 200Many times there is a confusion That how to do it What is this? This is a chart pattern Chart pattern is seen on the chart Chart is not of 1 hour It is of 5 minutes and 1 minute You will see the same pattern in 5 minutes am just telling you the logic
That how much you have to keep the target How much you have to keep the Sloe have to keep the target below the swing You have to keep the target’s width You can see it in 5 minutes, 1 hour or 1 day It doesn’t matter Chart pattern is same We will take one more example of triangle Because we have to understand trap am taking this example of trap
This is very important In trap, we will understand the psychology of people How people trade Here is a very good example This is of triangle Here you can see clearly This ascending triangle It is forming You tell merit has broken up According to this, our target Should be this Breakout traders The most recent swing is Sheer is its Sheeree can put the same trade How trap was created here If we Take the time frame in 15We will understand Today is 23rd January
Today did this trade It was a very good trade got this trade twice Here it is Make it bigger You should see the candlelit is on 19th23rd January It is done Here you can see Market has a good consolidation Market is not able to go upmarket started Making triangle It went up and then support The same as before Here it should break After breaking, target should be this Where will be the Spheres is 42600BreakoutIt is 100 point Breakout area is 42700SL area is 424 504 50 As we saw in the example In the market We got 600 point Sheer we are getting250 point Here we need 500 point
Hereafter putting the trade It is a trap trading am putting my SL here450I will hold Market is still up This next day There was no break out Where there was a break out Market stopped it Because it was a break out area But it didn’t come down All the traders didn’t cut the trade They hold the trade Because market is still on break out Next day market opened gap up Again
They got a hope That my breakout was right Market opened gap up again They didn’t cut the trade When it broke down Because the hope of holding is increasing Market came back Where it broke out If I want to do this trap trading need to find out their Where they have put According to me, here is the Because they put it below swing Below swing, SL is at 42460
Now from this place What happened First it broke up Now it broke down How much will be the target It was a triangle It was a trap Maybe your 150 point Because you took 250 point Sloe didn’t re-entry Public thinks that we failed But failing is the biggest move You are trapped If we see What is the most common trading in India The most common trading is In India, it is Most of the time, range breakouts are traded In India, it is Breakdowns and breakouts are traded In India, it is In India, it is We are trading breakouts from everywhere In India, it is If the breakout fails, 80-90% of the people lose In India,
it is In India, it is If 80-90% of the people lose, it creates a panic So the target of trap trading is bigger than normal So you will see here Our normal target should have been 500 points You will see here, the market fell from here Same day, it fell from the same places we got 400-900 points in one day We could have sat here for 500-600 points But the panic created in the trap Because of the S&L cut, you got 900 points in one day Your 1 is 2, 2.5 or 2.8And this thing got carried out
The market is giving you 2500 points instead of 600So the trade you get in trap trading Is always an aggressive trade You can make people understand pole and flag again Correct, in the market You took a trap trade of triangle You can see here again, you got pole and flag You can use anything What is the target of pole and flag again?
You got the size of the pole You can use a buffer If the width of the triangle is 600 points, you can book it at500 points You will get the target easily You got 600 points in pole and flag, you can book it at 500 points but the most important thing to explain the trap You should understand it yourself If I took a trade on break out have a target of 100 rupees below the break down If I am cutting the trade, then 80% of the people are cutting the trade What is the trade cutting?
If 80% of the people are selling at the same time What should be the size of the candle? That is the most aggressive trade Sometimes, we will not trade But you will get a better trade Break out fail is a better trade Our job is to do trading If you are new to trading, do it with 1 lot or 2 lots You will get 2000 rupees in 1 lot or 2 lots You have to put 1 or 2 lakhs to learn If you don’t put the original trade can explain it That the market went up, we will not buy it human will trade like this Because the symmetric triangle is broken want to take this trade But I will take the next trade will do the trapping trading will put the SL on this swing have 100 SL and 900 points.