Full transcript of “RSI Scalping Strategy that really works in the market | By @HOLDwithPriyank”. Click a timestamp to open the video at that moment. Need another video? Use the YouTube transcript generator.
0:00 When I am unable to understand something in the market and I feel that nothing new is happening. Let me come straight to this strategy. I just rely on this. I trade on it for 10 days a week for 1 month and as per my experience till now, I always become happy after that. There are two types of strategies within intraday also. But today's era is of reels. Everybody wants to get something that gives the target quickly , gives the stop loss quickly and we can sit in peace. Either book your loss or book your profit. Why do most people place stop losses after divergences ? I will tell you the reason for that. And what happens nowadays is that people say on reels that the better the risk to reward, the more money you will make. But this is incomplete information. In any risk management, unless these three things are equal, you have not planned properly , you will never get profit. Even if you make the risk to reward 10:1,
0:46 you will still be in loss because if I can make 10,000 to 20,000 then why should I ask for 10,000? I will ask for 1 crore. Is it or not? Like samosas are available in every shop but the one which has good chutney tastes good. The chutney should be good. That's correct. So I will give you that chutney today. Whenever it comes up here then we should sell it because look the price is falling. That's correct. And whenever it comes down we should buy it because look the price is going up. So this concept is absolutely wrong according to me. Because the guy who created RSI did n’t create it for that reason. Allright. So what's up everyone welcome back to another video by Upsearch. You are with me Ansh R Hiren and this is another day another video for one great strategy and today with us for this strategy is Mr. Priyank Sharma, your favorite coach, hi sir,
1:32 welcome to this channel, thank you, welcome back actually and it's so great to have you again today, which strategy are you going to learn today sir, today we, as you were saying, have received a lot of comments on the last video that we have to learn something in intraday, correct, and what happens in intraday is that even within intraday, there are two types of strategies, one is that in intraday you take a trade in the morning and you hold it for the whole day. But today's era is of reels. Everybody wants to get something that gives the target quickly, gives the stop loss quickly and we can sit in peace. Either book your loss or book your profit. Correct. But sitting in front of the screen all day doesn't work. Sir, my patience is running out. What do we do now? That is what you can call reel strategy in the era of reels sir. Meaning, we will talk about a scalping strategy which can be traded even in 1 minute. Wow. So this
2:18 is proper scalping. This is proper scalping. You will calculate your win rate properly while testing. Then when you use it, I am hopeful that the results you get will be very good. Because till now the people whom I have taught have given me positive feedback that I like to trade in a very orthodox way as well. But sometimes what happens is that things don't go in your favor. The market is like this. Sometimes it goes against you , sometimes it goes with you. The game is that you win more often. That's all. This strategy is my most trusted strategy. When I am unable to understand something in the market and I feel that nothing new is happening. Let me come straight to this strategy. I just rely on this. I trade on it for 10 days a week for 1 month and as per my experience till now, I always become happy after that. So is this just a
3:05 teaching strategy or is it also a strategy for actual trading? This is a trading strategy. She is not the one to teach Sir, one has to just come to teach. This is not going to be traded. Alright then let's not wait and let's start with the strategy sir and I I actually can't wait to learn this. Let's start. Ok. Ok. So here we have used 1 minute chart of Nifty 50 sir. Ok? And also not only this, if people carefully see that this is the data of February, then we will use the data older than February only because as per SEBI guidelines, we cannot use the data of last three months in education. Although I am a research analyst, people may ask whether research analysts can use live prices but for their research purpose. For educational purposes, we either have to use 3 months old data or if we have taught it while teaching, then we have to make research on it. So I will be using 3
3:50 month old data because people ask that why are you showing 3 month old data, initially it works but later it doesn't. Got it. Ok sir. Ok. Let's get started. So basically let us first understand this strategy. So first let me write a little in black and show you. So in this we use an indicator and that indicator is also very basic. This is such a basic indicator which everyone likes and everyone knows how to use it. That is RSI. If some people don't know it then I will give a brief overview so that everyone can understand it. We will talk quickly and then understand this strategy. So what is this sir? This is the Relative Strength Index. Ok? Now let us first understand this indicator. So relative means comparison. Like you're smarter than me. Ok ? Strength: You have more strength than me
4:36 or I have more strength than you. Is it or not? Ok? So you understood relative strength and what is index? What do you call indexing anything? Like Nifty 50 is an index which tells you that from this valuation, a value ultimately comes out to you in percentage. Ok? So comparing and indexing a strength is what this tool does. So, whose strength is this showing? Ultimately? Now as it shows the strength of your brother. Ok? So what is this RSI? This shows the strength of the trend. Ok? Ok? What this tells us is that whenever the price moves, the price will move making swings. I call it swings. When people say swing swing. Ok? A swing high is formed, a swing low is formed. I say the swing is going swinging. So when the price goes in a swing, it either goes up or it goes down. Right? Or it
5:23 goes sideways. Ok? So, how much strength is there in any trend that is going on? What is the strength? This is what the RSI tells us. So what is the concept of RSI? The concept of RSI is that it tells you that wherever the price moves I will also tell you how much strength it has. Ok? So let's suppose the price is going like this. Ok? This is the current price. So the RSI indicator will also continue drawing a line. Exactly like this. Ok? Now we will understand it through the indicator. Ok? This becomes our RSI. So what this says is that look, if I am going up then it means the strength of the price trend is good. If I am going down with the price then his strength is getting weak. It
6:10 is getting week. Ok? Or if it is in a down trend then I am going down. If RSI is also going down then is its strength good or not? It will keep telling you the RSI simultaneously. Now let me show it to you live once. Ok ? So what do you do? Basically any broker you are using. Like here we are using money broker. So what will we do? We will go into indicators here. Ok? This is the sign of the indicators and you can write RSI on it from your side. Okay, I am writing RSI. Or you can also write the Relative Strength Index. And as you do this the RSI will come to the top. You select this. Ok? When you select it will come by default as it is in the beginning. It comes exactly like this. You do not need to make any changes in it. Unless you like its color. If you want this color, it is purple, I
6:57 like pink color, I like red. If you want to change then do it. Apart from that, there is no need to tamper with it. Ok? You can access its settings from here. And what you will check here is that there is a value written inside it, 14. I will tell you what it is now. The length is 14. Ok ? So you have to let it remain 14 only. Ok? clear? Rest you don't have to do any mischief. You can apply the colour of your choice. Ok? Now, inside this, you will notice one thing. Look a little, I will explain it with the price. This is our price. Right? So what are you seeing in this? If the price is forming a high. Sorry if RSI is forming highs. It is being made along with the price. Correct. If the price has made a low then RSI has also made a low in respect of the same. We will see here that if the price made this high then a high was made here also.
7:42 Ok? Meaning wherever the price moves, RSI will move there. Look, the exact same line is visible. Right? Is it clear? So did you understand the RSI indicator ? It is exactly like that. Now there is one thing inside it, what is it? How does one indicate strength? Now what is the scene is that sir we know there is a thing called manipulation. Now what is manipulation? I'm taking your 10 seconds from the middle of the video. Why? Because I know that if you are a new trader then the most confusion is regarding support resistance. How to draw? How to trade? What is risk management ? Hey, don't take tension. You know I have recorded a master class for you guys in which I will explain to you what is technical analysis? What are candle sticks? What information does it give? How to draw support resistance ? what happen? And the most amazing thing is how to trade support resistance
8:29 ? That too with risk management. I have to learn. Don't worry. It is available absolutely free of cost. Where can I get it? What do you simply have to do? There is a link in the description. Click here. You go to Search's website and watch that master class free of cost. Now just continue the video. Manipulation is basically what you understand like the UPI frauds going on these days. We will call you. Ok ? And so many are running in my name. People use my name. Create fake channels. He asks people for money saying that this is Priyank's service and he converts Rs 10,000 into Rs 20,000 in an hour. Ok? Although I never understood why I would ask for 10,000 if I can make 10,000 to 20,000? I will ask for one crore. Is it or not? So what are people doing ? They are manipulating you. Right? In the same way prices are also manipulated. Ok? Ok? How the price is manipulated,
9:15 brother, suppose a person has a lot of money. Are we okay? So what can he do within a stock? Can do a lot of buying or selling. Right? At one moment. Due to which the price may fluctuate slightly for some time. Which may be slightly less or more than its actual strength. Right? That's correct. So this manipulation is captured by RSI. This is what RSI does. So what is it basically? Suppose such a situation comes before you, if we see, let us reduce the price a little. Such a situation may arise before you that the price is moving like this. It is making higher highs. This is the price. Making higher highs. Correct. Ok? So if you feel that the price is going up then RSI should also go up like this. That's correct? Right? Ok
10:00 ? But what happened? After this, the price which is going up, it is being thrown away. This is manipulated. So that person or that team or that group can manipulate the price. Ca n't do RSI. Ok? RSI is indexing. What will he do then? He will start telling this. It will start doing that. It will start staying down. It will not make a new high. Right? Price is making high. Ok? The price went up even higher. It will go but it will create a high in place of high. But you will see that RSI has started to come down. Divergence. Divergence. Absolutely. This is basically called divergence. But what is the concept? The concept is that it detects price manipulation. And that's what we have to look at. What we need to see is when RSI is
10:46 indicating manipulation of price. And by using this quality, you can do trading. Ok? Many people may already be using divergence. You might know about divergence and might be thinking that I tried using it and then left it. I used to be an expert on divergence. But results were never received. This question must have come in the mind of most people. I understand your feelings. It took me a lot of time too. Divergence is the first thing a man learns. Right? But maybe I don't learn from this logic. But even if one learns from this logic, when he makes a strategy for it, he often incurs a loss. But the amazing thing is that today I will tell you something extra along with this. Like samosas are available in every shop but the one which has good chutney tastes good. The chutney is great. That's correct.
11:32 So today I will give that chutney and go, brother, this is what samosa is. Look, samosa will be made of potatoes only. Correct. Ok? You may be getting chocolate samosa these days but the fun is in potato samosa only. Is it or not? So what that chutney is today I will tell you where the difference comes and that is the interesting thing. Ok? So did you understand this diversion? So basically what happens is that this RSI tells you the difference in strength in this way. Right? Now inside this, you need to understand a few things. You know it very well. Otherwise watch the video a little faster for 1 minute. So basically if you look at this indicator, you will see that the indicator starts from here. It is up to here, all the way to the bottom. Ok? You must be able to see the scale also. From here to here. all the way down. Ok? There is this band inside it. Ok? The one above is called the upper band, the one
12:17 below is called the lower band. And this center one is called middle band. Ok ? So you can set the values of these bands yourself. Otherwise it will come already set. The value of the upper dotted line is set to 70. Already the value below that is set to 30. Ok? Starting off as a beginner you guys will keep its value as 70 and 30 only. If you are trading any such stock, index or any such script in which volatility is very high due to news or any other reason, then if you want, you can make this 70 to 75 and 30 to 25. Ok? What difference will it make by doing this or can you make it 80 also? Depending on volatility like Bank Nifty used to be earlier. It 's 80, right? We used to use 80 then as well.
13:03 But right now the poor Bank Nifty has been cheated so much that it is facing trouble even at 70-30. Ok? If yes then you can also do 80020 in different situations but after some time you should start with 70-30 only. So what will happen with 80-20 ? The only difference will be that you will make fewer setups, nothing else will make a difference. Ok ? But what will happen if those who make less will be more accurate. It will become much better. Yes. So they are there to observe that volatility. The number of your stop losses will decrease. Ok? Ok? That's it. Quantity Versus Quality The fewer setups you make, the better your chances of success. Ok? Now what does this mean? So basically what does RSI say? Well there is a lot of confusion about RSI too. What is the misconception that people think that whenever it comes up here we should sell it
13:48 because look the price is falling. That's correct ? And whenever it comes down we should buy it because look the price is going up. Oversold Overbought to Law. So, what do you call this? When it goes above 70, we call this condition overbought. That brother buying has become too much. Correct. Ok? And what is this condition called? Oversold means selling has become too much. Now we can buy it. So this concept is absolutely wrong according to me because the person who created RSI did not create it for this reason. Now his concept was not that you sell as soon as you go here and buy as soon as you come here. Because what happens? The correct definition of RSI is that RSI simply tells you strength. Buying on Selling zone is not specified. What is the second reason? According to RSI, if the price is
14:34 moving above your middle band, then it is in an up trend and the price can only remain overbought for a very long time and can still keep going up. If I see such an example, I will show it to you right now. And when the price is oversold or it remains below the middle band, then the concept of RSI says that the down trend of the price is strong and the price can remain oversold for a very long time. So, it is not wise to buy as soon as the price is oversold because the price may remain in the same oversold situation for a very long time and you may incur a loss. So what is the way to do this? We will understand it today. RSI helps you
15:19 find reversal setups. Which setups? Reversal setup. Reversal. Reversal means it will tell you that the strength has become weak here. When it becomes weak, then you know whatever trend is going on, suppose an up trend is going on, if its strength has gone up a lot, then it will now start becoming weak, that's right, correct, so now you can find setups for selling but you will not short directly, there is a lot of difference between these two things. What people do is they sell directly here. He is wrong. Coming here means this up trend is getting weak. Now you can start looking for selling setups. You don't want to sell it directly. Start Looking for Selling Options Start Looking for Selling Opportunities. This is the only difference between
16:06 RSI and reality. Ok? Now how will we know that? When to sell and when not to sell ? What do we have to do? We have to wait for the divergence situation that we talked about. Manipulation has to be waited for. When we feel that the price is going up. But RSI stopped going up. When RSI is going down then the trends of both get separated. Ok? If both become a trend then we will call it divergence or manipulation, whichever you want to call it. Ok? What is the second situation in the same way? What is the price doing in a down trend? Price is making lower lows. But RSI started making higher lows instead. This is RSI and this is price. So what is this even? There
16:52 is divergence. That's correct? So when this situation occurs then there is a chance of us getting an opportunity that buying and selling can now happen. So now we will mix these three situations together, after that apply chutney and your strategy is ready. So now you must have become clear about divergence, what happens ? Now we will understand how a setup can be created at one place by combining these conditions? How will the strategy be made? So let's make a strategy now. Basically what do you need to do within the strategy ? The first thing you have to see is what the price should be or what the value of RSI should be, we understand from the value of RSI that it is either overbought or oversold, meaning basically the value of RSI should either have gone above 70 or gone
17:39 below 30, first of all you see this condition, till the time the value of RSI does not go above 70 and does not go below 30, meaning you do not have to do anything in this zone. Have to sit peacefully. Just have to show patience. Right? Ok? As soon as the price goes above 70, okay? Or it goes below 30, in such a situation you have to understand that there are chances of my setup getting formed. So what I told you about the first condition of overbought or oversold situation is that from here we have to start looking at the selling opportunity or buying opportunity. Do not do sole or short or long. clear? So we understood the first condition. What's the second thing we need to look at? Now we have to look at the divergence or manipulation that I just explained to you. Now you have to see whether there is a divergence between the minimum two highs
18:25 prices and RSI or between the minimum two lows prices and RSI. Ok. Ok? Now what minimum two means is that three highs might have been made and RSI might also have made three highs. Price might have made four highs and RSI might have made four lows as well. Because this number is not fixed that it will be only two. Divergence can also be formed in 2, 3, 4, 5 high, low. Meaning that the price can continue to move up and up like this and the RSI can continue to move down and down. But one of the highs must have traded in this territory of the RSI at least once. Correct? Any one of them made the rest go down. Ok? Ok. So the second condition is clear to you sir. Yes. We have to see divergence in overbought or oversold situation.
19:11 Ok? What do you want to do now? You have to understand that my chances of getting setup have increased further now. The setup has not been created yet. Well it's still not done. It is still not made. It is still made. Now we will add chutney in it. Ok? and what is the chutney? That is market structure shift. Now what will we wait for? We will wait for this sauce that the market structure should shift. Now what is this market structure shift? We will understand this. Ok? What will we do within the market structure shift ? Now when these three conditions are fulfilled then our trade setup will be formed. Now look, some people might be doing the first two setups of the divergence. Now he will say what is chutney? Now let us understand that. So basically what do you need to understand? Suppose the price is going like this. Ok? And this is also forming a divergence with the RSI
19:57 below. We saw. The price is being reported like this. So this is a divergence, right? You didn’t take the short. We did not take it even though we were overbought. Look the price went up. Right? Otherwise your stop loss would have been executed. So what did we do? Don't let anything happen. It became another bar. We still have n't taken a short. What will we do? When it is going up, we will wait for the last low to break. Ok? This one is low, we will wait for it to break. So the structure of the market is now shifting. Right? So your market structure has shifted here. When this structure shifted. Here you got the breakout. Now your trade is made. What do you do now? As close as possible to this line, either right here on the line, for example, the next candle, suppose you come later and retest the candle, right, or if you ever feel
20:44 that it is very close, even if the next candlestick is here, it will also be fine; you have to plan your entry anywhere in this part of it, clearly around this level, if the price goes up like this, then it will be better, you can add it to your position here. Well you can add it even if the price goes up. No problem. What I mean to say is that overall you have to plan your entry here, as close to this level as possible, either downwards or upwards. ok clear? Your stop loss will be whatever is the highest. Got it. Ok? Now from here you have to set your first target at minimum 1:1. Minimum 1:1, do not go less than that. Ok?
21:30 Second thing, every move comes after making a bigger move from somewhere. That's correct. This is how the price is moving. So from where this move started, this is your second target. Ok? Now you also have to make sure that from here to here you have a minimum of 1:1. Right? Suppose this level which is coming is less than your one 1 1 then you will leave this trade. Then what was the benefit if you did not get a good reward? He will not sit. Isn't it? Risk management is most important. Ok? I will also explain a little about risk management now. Ok? So now you understand the setup. Yes. This entry has been made. This became the main target. 1 Forest came in between. So you will already be out on your first target. We will automatically book partials as per your choice. And this is your stop loss. This
22:15 is now the bread butter strategy. So the sauce here is this market structure shift. Why do most people place stop losses after divergences? I will tell you the reason for that. The reason why most people have stop losses is because when we learn divergence, we learn it like this. The price went up. We saw that RSI has formed a downward trend. We can short here by doing any candlestick pattern or anything else. Let us make our entry here. We place a stop loss here and then target somewhere below. We are also getting much better risk to reward. That's correct. But in this risk to reward chase to earn more money, you don’t let your win rate drop. And what happens nowadays is that people say on reels that the better the risk to reward, the more money you will make. But this is incomplete information. Risk to reward is not a single tool that
23:02 can benefit you. Risk reward ratio plus your position size plus your win rate. In any risk management, unless these three things are equal, you have not planned properly , you will never get profit. Even if you make the risk to reward 10:1, you will still be in loss. Because your win rate will probably only be 10%. Right? So what was the benefit? That will look good on the chart. Such a long target, such a small stop loss. So, my target was also achieved. Butt how often? Correct. So all three things happen together. It cannot be done by one person. So what happens here? You have taken this entry. Hmm. The price comes like this and goes back like this. You place your stop loss and then it drops. Then you say
23:48 that Price is my only enemy. There is an operator sitting in the market who is my enemy. Right? Whereas it was not like that. Price is the guy who is manipulating. How do you know his manipulation ends here? Correct? I don't know, right? So you wait for the market structure to shift. Now after this, can manipulation not happen? It can definitely happen. Then we will have our stop loss. But number of stop losses will reduce. Right? The number of targets will increase. And this is what is needed. There is no strategy that will give you 100% results. Right? Our ultimate goal is to find a strategy that helps us achieve maximum targets with maximum number of stop losses. Right? So we have to do that. This is the blood butter strategy. Ok? Now let us understand this on live chat also. If you want to
24:34 ask something or you don't understand it then you can ask. From what I am able to understand, what we did in this is that the higher highs were being formed, right after that the breakdown happened, higher highs were being formed, after that the breakdown that happened now, correct from here, so it means that the market structure has shifted, what you are saying, that is basically we are now entering into a lower high lower low structure within the down trend, correct because now what are the chances that now the lower low will form here, what was this higher high, correct this was high, this was higher high, this was higher low, now it has become a lower low. So your up trend got disrupted. It got disrupted. Exactly correct. Correct. Now what is the probability that the price will make a lower high and a lower low. So you will capture this leg. So you are in a way following your trend on a shorter time
25:21 frame. Correct. Correct. The trend is your friend. Right? Until it bends. So you just waited for the bend to happen and then you caught the other trend as soon as it started. Ok? That's why it is a reversal strategy. So there are two types of strategies. One is reversal trade strategy, one is continuation trade strategy. Right? What happens in continuation? Now we will grab the next leg. We will hold this one leg. Right? Right? After double confirmation. But when you are doing scalping on 1 minute, 5 minute charts then you should catch the reversal. So that I can achieve maximum restore rewards by trailing. But sir, this was a contradiction in a way. Correct. So it is not very risky. No sir. Look, you see, there is nothing risky. Now people tell me that this option is more risky. Some say intraday is more risky. Correct. Some say swing trading is
26:07 risky. Sir, I have even seen people trading in cash making losses. There is nothing risky. Risk is all about risk management. Right? Right? So what is strategy? When you are catching a reversal, you have made every possible effort to catch it so that you get confirmation that you are catching the reversal at the right place. That's why it works. Ok? Let's let's see some examples right. So here we see. Now here we have used a 1 minute chart. And again, I have already told you in the beginning why we are using February's data. So let us see it here. We will see divergence forming somewhere. So let me see. Like look at this here, this is a swing high. What? Well let me explain the definition of swing high once. A lot of people don’t know what is swing high and
26:53 swing low. What makes them think it looks like it's high. There will be a swing high here. Let's assume that it will happen. This does not happen, there is a pattern of swing highs in the candlesticks. Whenever there is a candlestick, is it okay? If its high is higher than the high of the candlestick on its left and the high of the candlestick on its right then it is a swing high. Correct. So swing high is not a single candle pattern. what do people do? As soon as this candlestick is formed we will accept it. This became a high. Divergences assume this. Doesn't happen like this. A pattern of three candlesticks is called a swing or swing low. Similarly, if the low of a candlestick is lower than the low of the candlestick to its right and the low of the one to its left, sorry left and right, then it is a swing low. Correct. So
27:39 until the third candle stick closes you don’t know whether a swing low or a swing high has been formed or not. So keep this thing in mind also. Now as I would like to show you here. I just saw one thing so I am teaching it here. You will see that a high has formed here. But if you look carefully there is no high formed here. That's it, right? No no, in respect of this two have been made here. See right? So only one has been made here. Let me show you. Ok. Here in this entire zone only one swing high has formed, this one. Correct. what do people do? Let us consider this as swing high. I'm saving you this mistake. Yes, they stretch it. You look here. If you look carefully here, you will see that two swing highs have been formed. Correct,
28:24 in this zone, look from here, if I can draw a straight line, then correct, in this zone, if you see, two highs have formed here. Correct whereas only one high has been made here. Right? So you also have to make sure that you do not calculate divergence at such places. Because divergence will always form between two swing highs or two swing lows. Ok. Ok. So, I saw this thing. So I thought let's clear it up because you can understand these small things, these are the extra things that along with green chutney, there is also red chutney. Ok ? So that the taste of your samosa or chaat becomes even better. Ok? So what do you basically need to do? Understand this. Like the price has been going on since morning, assume it is like this. Neither going up nor down. Don't do anything. Have to sit peacefully. Have to keep watching.
29:11 As soon as the price moves above it the chart should be looked at immediately. Became the first high. Yes. Now we have to see whether divergence will happen or not. It didn't work out, it doesn't matter. Then we will wait. Then the price went below it. We have to see whether the divergence is forming or not. It is not getting done. No problem. We will not do anything. So you have to be patient until your setup is ready. This is a divergence sir. Here's a high. Which is above our overall zone of 70. And then there are similar highs but these are lower highs. Now see what the scene is? Now you understand this. When we are high, it should be in continuation. Should not be random. Ok? You will come to this through your own experience. Now see what is happening here, the price has gone completely sideways. So when you see divergence, you should
29:57 see it like this in the price continuation. You should feel this. There are some things that you understand only through practice. Now what will happen many times is that you look at the price, like for example if we talk about look here, you see the high of this price. Ok? This is also made high. Correct. Now you are seeing that after such a long time this also has made a high and this also has made a high. So, you can find divergence between them also. Right? Right? So, it must be. Now you will get a question or a comment here Sir, how many candle sticks should there be. Count and tell me. It's common sense. It is not, count and tell me. It's common sense. Ok? That you should understand yourself whether there is continuation in the price or not. So you will learn these small things with time. If you do two or four stop losses you will learn. Some things can be learned only by paying money. So do paper trading and
30:46 make 10 20 stop loss. Write down the things that need to be kept correct. What things need to be applied as common sense. Concentrate on those things and then you can use it. Ok? Is it clear? Let's see if there's a setup. Let's see here. Two highs have been made. Let's see. What is made here? A yes. Look where not to trade now. This is a good example. Ok. Like here we will feel that the setup is ready. Divergence happened. Look, these two highs are formed. Correct. Now we have seen that this high is high and this high is low. Right? So this became a divergence. Trade it, trade it. No, we had to wait for the third chutney. What was that? Market structure shifts. What happened? Where is it made? Here you go. Was there any break? No. So was any trade made ? No. Stop losses are placed here.
31:31 People say divergence is bad. Correct. Understand? I told you one thing that the price will go overbought and even after that the price will continuously remain in up trend. This is the same situation. You can see it. So if selling because the price was overbought would have worked then this should not have happened. That is why I said in the beginning that RSI does not mean this. So, okay, we got that example also. Meaning that the people who are watching the video till here today are also getting all those points and they are having a good day. Comment and let me know if you guys are still watching the video. These things because I am telling these things for the first time because Aai has been in front. Sir, I tell you many times what are some things like strategy but you can explain it only when you see it in front of you. What if you do n't want to do it in life, that is also important sir. The most important thing is not to correct what you are doing. Ok. Okay, here I
32:17 feel it is ready. Yes it has gone down. Ok. Now look here the RSI came down. As soon as we reached this place we became activated. We are right. And we started to see where it was being made. Ok? Make this your first take. If you look carefully you may not be able to see it, you can go and match the time frame and see that there is a swing low. Ok? After that, the RSI went down. The price also went down. There is no problem. We are also watching. Ok? But here if you see, if I am pulling it right, let's take it vertical. Yes, let's take it vertical. Now look at this. If you look, you will see that it is made here. Correct. After this the price has come down further. Right? But RSI has gone up. Divergence happened. Right? What will come to mind once the divergence is formed ? We have to wait for the market structure shift.
33:02 Yes. Look for a high between these two. This one doesn't do anything until it breaks. No matter how much it takes, there is no problem now. The structure was made. Yes. it became. Now you can plan your entry anywhere here. Now as I told you. Now look here, some person must have entered this red candle. So let us take the new line in this, which will make it a little easier for everyone. So what will happen? Now think about the entry that a person might have taken, where can it be taken ? Now, someone must have entered this red candlestick. Someone might have taken the green one. Someone might have taken it here. So that is why I told you a little bit about the entry that you have to plan in this part. Because what happens? Many times we tell people to take entry on this. Now the price seems to go away from here every
33:47 time. Then we think, friend which entry should I take. So there is a small entry zone. What you need to keep in mind is that Price More Likely to repeat this part. The concept is that whenever the price shifts any structure, the market structure shifts, it tries to cover twice the amount of that range. Right? This is the basic logic. So your risk to reward should be maintained through this. And so you have to keep your entries as close as you can. If your entry is below this. Suppose it is here then it is very good. That's correct? Ok? Now let us apply the Wrist to Reward tool to it. Ok. Ok? So you take control and click on restore reward tool and the long key is here. Let's assume we took the entry after this above candlestick. We felt that the market here has confirmed the breakout. Ok?
34:35 Now you will be confused secondly here that my stop loss should be below this low. Should it be below this or should it be below this? This will bring another confusion to you. So what do you do? Look, first thing, whenever the swing losses are formed very close, you should always take the lowest low from it, you will get more profit for doing any work, but you use basic sense, you feel that the price will start going up, then you can cover your stop loss with this as well, you can manage it according to your convenience in practical situation, the standard which is main will always be your lowest low, okay, so for now we will keep our stop loss at the lowest low, this is our stop loss, perfect, okay, even I will tell you to keep it one or two points below the perfect stop loss. Many times you may get out in the spread. Ok? And
35:20 at minimum 1:1, your first target is this one only. It is 1.01. Right? So you can see the first target is cleared. Ok? Now what did you do? Suppose you have a position such that you can book some of it. You booked something. Now the second thing I told you about is how will you do the trail? From where this move started. Correct. Right? You will target his high up. So where will we target our second target ? Let us see here whether it happened or not. Done. Yes. So now you have a reward ratio of 1 on approximately half the positions and 2.2 on the other half. So overall you booked somewhere around 1.6 1.7 in this. Right? This is your proper strategy. This is the bread butter strategy. Here,
36:08 we had complete logic to catch the reversal that we caught. The reasons were, look how much manipulation happened here. What I was telling you about is manipulation. You see, in this part, when we take trades only on divergence, then most of the people give up right here. Cannot even hold the position. Correct. Right? But when we took the trade, it was after the breakout. So we did not have to get stuck in this dilemma that where will the price go? we got this. Right? So this is your blood birder strategy. Now the question that will arise here is can we trade it in options ? You can do it in stocks, you can do it in indices. Right? You can do it in commodity. So the first answer is yes, you can do it in everything. It's as simple as that. why can you do it? Understand that. Because like many people say that no, you can do it in this ? Can't do this in this. The second question
36:54 comes, can you do it on this time frame? Ca n't do it on this time frame. These two most logical comments will come below. Ok? But those who have been watching for so long, I will have to tell them the answer to this question. I will tell them in this video. The rest of the people will comment and go away. Is it or not? Ok ? So look, now I will ask you a small question Ansh, forget this for a while, I am asking a basic logic and whatever part I will highlight now, you have to see only that part, now assume that you are the viewer. Okay, you assume it this way and tell me, you can only see this part on this board and nothing else, how much of this part, this part right, apart from this you cannot see anything else, right now it is clear on this chart, just by looking at this candlestick, tell me what is its time frame of the chart, how to find out this? Can't tell.
37:41 No. That's correct. No. By looking at the candle sticks you cannot tell which time frame it is on. Correct. This whole concept is not based on candle sticks. For us, whether it is for 1 minute, 5 minutes, 15 minutes, 1 day or a week, what difference does it make? If a concept is working on 1 minute chart then it will also work on 1 month chart. So stop asking this question. On what time frame will it work? Choose the time frame you are most comfortable with; 1 minute chart is very fast. I can't tolerate it. Do it in 5 minutes. If you can tolerate it for 15 minutes, do it for 15 minutes. Right? It will work everywhere. When people say that this thing will work in 1 minute and not in 5 minutes. He has often memorized things.
38:26 This is what I say. What time frame do you use it on? I usually do it for 1 minute because I am used to it. I will do it in 5 minutes. And when I felt like the market was bearish right now. The overall trend was bearish. At such times, I use the daily chart for stock selection. Ok? To short the market. To select which stocks are being manipulated. Divergence is forming. I also go and check the daily chart. That's how I use it. So if you do it now for 1 minute then it is possible that within a day you may get three setups, four or two. Right? Some day, not even one may be made. It may also happen that when will this happen or on which day the chances of your stop loss happening are higher. Whenever you see price action like this of inside bar. What kind of setup is the inside bar, if the day's chart is like this, suppose one day a long
39:11 candlestick is formed. The next day's candlestick forms an inside bar. So the next day, often no strategy works. Why doesn’t she do it ? Because on this day also the market often remains sideways in the first half. So she remains completely sideways in that half and in the remaining half she tries to get out of this range. It's about breakout, right? So in this situation any of your strategies is often of little use. So what can you do in such a situation ? Avoid any strategy or trading that gives you directional trading. Direction trading means that which works for you on the direction. Plus, on such days, your options premiums will not increase. Ok? Like right now the market is moving completely sideways for the last eight days. What happens in such a situation is
39:58 that your option price will go up. The price of the option will not increase. If you are a buyer. Correct. So people say sir this does not work in option buying. Brother, whether anything will work or not in option buying depends on the momentum of the market. If you want to do options, you can do option selling, it will work double with it. By the time the price reaches there the option will have doubled and fallen. Right? Theta will also be in your support. So you can do option selling that day. You can hedge it. Make a spread that day. When you feel there is no momentum. How to make the spread inside it? Spread. Your spread sir is very basic. You are basically doing it like option selling. You do any OTM sale. Right? Correct. Let's say you called. Ok? So you should buy some more far OTM.
40:44 You can say bye to two calls. Please take a call. A little distance away. Right? Ok ? What will happen to him? Your margin will seem less. It will cost less money. If there is a sudden big bump in the market then in that case your risk will be reduced because if this position goes into loss then it will go into profit. Right? And because this is for OTM. Its value will always be low. Suppose whatever you sold, you sold it at ₹100 and whatever you bought, you bought it at ₹40. Now this 40 also became zero. If this 100 also goes to zero, then you get a benefit of ₹60, right? Correct. This is called spread. So you make the spread. Do option selling. Get equity done. In intraday stocks, if you trade Nifty, buy futures, sell futures, it works everywhere but you have to
41:30 understand the market because to trade options you have to learn some skill sets, you have to understand Theta, you have to understand option Greeks, you have to understand timing, you have to understand expiry, if you match all these things with it then it will work for you, if you close your eyes and make the setup, and go straightaway and buy the option, then you may incur loss, so keep these things in mind, but as always I will recommend you again that if any strategy is working well for me. It is working well for Ansh. It may not necessarily work well for you. You'll have to find that out yourself. And there's only one way to find out. Try at least 100 to 150 trades on paper or do a back test. Try paper trading live for 10-15 days. If you feel that win win rate is coming good for you. Your results are coming out well. Only then follow that strategy. Otherwise, take this as a
42:15 lesson and adopt another strategy that is working for you. Correct. Never invest money blindly on any strategy. More likely you will suffer loss. Got it. Well sir there is one streak. Isn't it? Many times there is a winning streak. There is also a losing streak. So what happens is that it has been four days and five days and there is only loss. There is only loss. So, in your experience, how long has the losing streak lasted using this strategy ? Never. I do not have such a week that if I took more than five trades in it, all five had stop losses. Of this strategy. Yes. This has never happened to me till date. Ok. I have even done 15-15 trades in a week through this. Ok. And and in this I am telling you about the three conditions which you have mentioned. One is overbought oversold. Apart from this, divergence
43:02 due to market structure shift in overbought oversold situation. Right? Apart from this you should not have used anything else. You have experience or something else, now see the scene, experience is such a thing which you cannot remove. I can't even keep it aside. So if I have used it personally then it has definitely been there. I can't tell you that I would have removed it. It's not like that. It would be wrong to say that I kept it aside and then checked it. I didn't. Ok. But people like me, I make videos on my channel and this was the first strategy that I meant if I posted the first strategy on my YouTube channel, then I posted this strategy on 5th September 2024, which was Teachers Day. That thing today when we are recording this. It's been almost 9 months. Ok? And I am telling you at least I have more than 1000 comments on YouTube from people who are using this strategy. And they are
43:49 happy. I am not making any promise to you that it is profitable or not. This is not the case, they are happy. Everyone else is intelligent. Got it. Got it. By adding any other indicator etc. to this, this is the complete knowledge of this strategy. I mean there is nothing to increase the accuracy, to increase the accuracy you can experience as I said, you were telling that there is divergence there. You will basically learn those correct things only through practice. That’s your screen time. Got it. As you grow. In this strategy, I have not left anything extra that I have. Got it. Got it. There is such a market situation in which as you described, inside bar occurs. This is how I work in a sideways market. So you can think that it works in trending because within intraday some small movement takes place. It comes anyway. Got it. But
44:34 then if one has to do swing trade or BTST then at that time do not use the strategy for BTST. Why don't you do it? There is a reason for that too. Ok? Because what happens in BTST? You basically want to use the opening gap or the opening which is gap down, basically gap up or gap down. Correct. Correct. So in that thing, this salary, this strategy can tell you wrongly because if this strategy will give you the setup for BTST, then it will give it after 3:00 PM. Ok right and as per intraday, I consider the market closes at 3:00 pm. Right? So now if you are planning according to the setup of next half an hour of BTST then it may deceive you. Because what is there is that there is actually no strength in the price. You have to keep this in mind. But then as you said, you know you can use it on every time frame.
45:20 So let's say if I'm using that on ourley. Perfect, then that is BTST or two, then your scalping is done. You can absolutely use it. Your swing scalping is done. If you hold it for two-three days then you can do it. There is no problem in that. Alright sir this I can't wait to actually get back to the strategy and start making money. It will take some time to start making money. But still it was an absolutely great pleasure learning this from the Master himself. And you guys tell me how did you like this strategy? And you guys should also do a back test. And what are its results ? What is the winning rate and losing rate, tell us all this in the comments. Along with this, if you have any doubts, please let us know in the comment section and I think Sir will personally help us in the comments and will make you sure perfect. And for more content like this By The Way I Want To Learn Some More Strategies With You. So please stay
46:05 with us. We are going to learn more similar strategies from you today. You will continue to get their videos in future. But if you want to learn something specific let us know in the comments section below. If you have any doubts then ask that also. And we will meet you with the next such informative content. Till then keep learning and keep trading with upsearch. Like, Comment, Share this video with all your trader friends. And I'll see you the next one. Till then subscribe. B bye.
