Concealed Fibo Trading

In past one week, I have seen some strange behavior for low cap stocks, around fibo levels and discovered a nice way to trap around 1% of my capital daily. Although i have been working over it for past 7 months but touched right string only in past week. so far i have done paper trades, from Monday I will begin real trades. I have started this thread to incorporate all my trades for future learning purpose.
I will post trades and reasons for the trade so that readers too get benefitted.
I have done much labor and seen every qualified stock daily for 10 times so its obvious that there will be different perceptions between me & you all.
Huge share of credit to Mr. Raj (HealthRaj) as he always motivated me (and all) to have unique system and then sticking to that system as well.
Second big share to Mrs. Khushi (khushi00) for her stubborn suppport on counter trades against trend.
She always insisted to have reverse trades in low cap stocks as we can never trap in-trend trades in small cap as we'll never get right price.
We can never guess a major trend in small cap exactly as its always started by big players, but we can enter at some falls(if trend is up) and rises(if trend is down) for trapping a small profit of 1%
Its easy as normal range of such stocks is around more than 8%.
There is no easy trading at all so you all have to do your share of homework.
Visual inspection is ultimate truth of trading, No system can generate 100% profit at 100% times.
In last, I will share 80% Knowledge transfer, if it pinches you then keep away from this thread.

Looking forward for some good stuff

About 1600+ stocks are traded in NSE daily.
among these only 200 are stocks which are traded daily with high volumes.
rest are the stocks which are hyped for particular day or particular week atmost
Big players use their smart money to create a trend in small cap stock (without news), trend may be upside and downside.
then when money of normal investors start pouring in then they gradually withdraw their funds and we people trapped in.
Now what I observed that when a small cap rose or falls much in a day then still some money is left for next day which can easily give 1% of profit next day.
this even happened in some good stocks as well like unionbank.
condition is that there must be recent spurt in volumes in past days.
Its very important, as the way money pours in, the same way it goes out and we have to enter the moment when it starts going out.
I do visual interpretation and pick stocks manually but khushi mam is preparing a logic to find out such stocks (with limited rights)
leave that for now, as i am doing manually so i will advice for the same.
one thing is very important that although i used the word volumes but in reality the thing is traded value which i look.
A 2000 rupee share with 100 volume, is same as 30 rupee share with 6600 volume.
so see huge difference of volumes.....
I always measure money and not volumes.
criteria is simple.... as my buy value is rs.100000 so for 2000 rupee share i see its volumes around 50 and for 30rs share i will see its volumes around 3300.
In simple rule NEVER go for a scrip whose yesterday traded value is less than 400 Lakhs, if you want to trade scrip today. (A must Rule)
So for investment of rs.100000, we ll look for profit of rs.1000 in a day which comes out to be around rs.18000 per month after deducting charges.

We must have amibroker (Free or paid, doesn't matter)
You can work over other TA software but I have ami so i ll post images of same.
Daily download bhavcopy from nse website or you can also use this Link
Download CSV copy and filter stocks which have traded value more than 400 lakhs
these are the stocks which we ll trade today as this link ll always give bhavcopy of prev. day
now time interval for chart setup....?
5 mins is perfect
why?
If you go through screens of maximum No. of traders then u'll see 5 min interval chart is most common setup.
failure or success of our system is not in how smartly we decide trade but its in how smartly we fool other traders
sorry to say but whenever a trade is initiated then one is wrong & one is right so we have to choose moment when others r selling for us to buy
means others r bearish only then we can get a right price to buy and vice versa
So 5 mins is best.
then comes trend decider.....?
again we'll choose a widespread simplest indicator for trend thats 200 EMA
If its rising constantly.... mind it constantly then up trend and vice versa
Levels to buy and sell are fibo levels
stick to these levels, never trade when price is between levels
Always trade at levels 78%, 61%, 50%, 38% and 23%
If time is above around 10.45am then only buy at 38 and 23 and sell only at 78 and 61 but before around 10.45am then we can buy n sell at all five levels
avoid 0% and 100%
the candle on which u r buying must be a red candle and for selling, candle must be green.
Always trade at end of candle like if u want to initiate trade at second candle of day which starts at 9.20 and ends at 9.25 then try to trade at around 9.24am.
But Never Never trade on 1st candle of Day thats till 9.20am
sooner i ll share trades live but after around 1 week..... till then i will post charts at night.

Expecting to see some charts from yourside as well so that contribution can be made wereever needed.

my first contestant to qualify thursday trade was: VENUSREM
have a look on its volume spurt



Now have a look on its chart





Next choice is NDTV

see its value spurt from 300 lakhs to 3000 lakhs on thursday
now its chart:

Nice Start .... Ajeet

A quote to complement your thoughts

Sometimes we have to play the role of a fool to fool the fool who thinks he is fooling you.

This stock hardly goes over 150 lakhs but was trading above 1000 lakhs for past one week and on thursday it crossed 4000 lakhs

Never initiate a high value trade at one go
Like if you want to trade rs.100000 then buy or sell shares of value rs.10000 at one time and repeat same order 10 times at limit or market order

What I understand from your above few posts is.....

Stock Selection

1) Small cap stock
2) Spurt in traded value: Yesterday's traded value is more than 400 Lakhs (which means average traded value is less than 400 Lakhs for past few days).


Setup

1) 5-min chart.
2) 200-EMA on 5-min chart.
3) Fib levels (23, 38, 61, 78) of yesterday's high and low


Stop Loss

1) For buy, entry candle low after completion of candle.
2) For sell, entry candle high after completion of candle.


Entry

General Condition

Look at 200-EMA for direction of trend.
If 200-EMA is rising, we are going to buy.
If 200-EMA is falling, we are going to sell.

Method #1 (before 10:45)

Buy or sell at all fib levels except 0% and 100%.


Method #2 (After 10:45)

Buy only at 23% and 38% fib levels.

Sell only at 61% and 78% fib levels.


Target

1%

Answered......