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00:00Now let's understand in the second stage of the video let's understand what are all first of all
00:06an important level or reference level or important zone area which I'll be more
00:13giving importance or I'll be focusing. I'll be writing it down one by one okay so you will get
00:18better understanding first of all before the market opening. Let's understand simple levels
00:24okay in the first stage of PROC understanding the price action simple levels I'll be tracking is
00:31from previous trading session or any other trading session prior trading session before the market
00:39opening okay. The common things are these ones previous days IE low okay this is number one
00:47and the next very important is weekly IE and low. These are the two visual reference level
00:57weekly in sense it's Monday to Friday. Monday to Friday trading session that means previous week
01:05IE and low I'll be considering there is nothing called expiry to expiry weekly expiry to weekly
01:10expiry no Monday to Friday. These are very common previous days IE low previous weeks IE
01:17look and then moving on what are all the other important level once the market open okay once
01:28the market open what are all the data points or key points which I'll be checking here is here comes
01:34where the price is opening. Now it comes to where the price is opening it's look very simple key
01:42price is making a gap up gap down this statement is not is an incomplete statement where the price is
01:50opening means when I speak about where the price is opening
01:54outside yesterday's range or the price is opening inside yesterday's range this is point number one okay
02:11that means I will take it in a there are two three stages going on price this is a let's say this is
02:18previous day's range okay this is previous day where I and low is already marked now my main focus is
02:28whether price is opening outside yesterday's range outside previous days I or outside previous days
02:34or whether price is opening inside previous days range now inside pre outside the range that is fine
02:42now when it comes to this price is opening inside the range try to understand the basic logic what is
02:52happening or in terms of the activity compare to the outside range to inside range for example price is
03:01opening inside range now my main focus is whether midpoint this is midpoint of previous days range how to
03:08calculate midpoint I minus low divide by 2 you will get a value you can just minus this value with the I okay for example those who are not much aware about midpoint simple let's say bank nifty's I is 40,000 and bank nifty's low is 39,500 okay
03:36okay so difference is 500 points I'll be just dividing it by 2 now minus I value I is 40,000 minus 40,000 so now 39,750 is my midpoint 39,750 is my midpoint for previous trading session
03:55now if the price is opening inside the range my main focus is after the opening
04:01whether price is after the opening initial few minutes 5 10 15 minutes after that if price starts
04:21trading more in between above and below the midpoint of yesterday's range that means try to understand
04:29there is no major change which has happened in the price action which has happened in the market
04:35from the previous days close to the today's market activity that means chances of market to stay sideways
04:44is more when the previous day range itself is a smaller range when the previous day range itself is a smaller range
04:52then and more prices trading in between the midpoint of the range that means there is no major change
04:59so market or a chart is telling us if you are a directional trader an option buyer your first focus should
05:05be you have to wait for a few minute and understand what is happening in terms of the price action
05:12no point in just jumping in in this balanced market and
05:18waiting for the momentum with the trade because what happens generally in this kind of sideways market
05:24suddenly one candle up or down no spike will come if you are in this trade no point in getting trapped
05:30get your stop loss and in those spikes okay first of all let's say in terms of the opening i'll tell you
05:37what is the opening i'm speaking about uh probably i'll use a 15 minute time frame so the chart might look
05:43smaller okay so just look at this scenario here what is happening here this is let's say we'll take a
05:49different example previous days i previous days low okay market is opening here so midpoint is somewhere
05:56coming around sorry
06:00midpoint will be coming around this levels okay so what is happening here price is making this is the
06:07close and open is almost equal price is making a flattish opening but it is not rotating in between
06:15the midpoint it is staying above the midpoint that means there is a possibility that the market can
06:21give a directional move i'm not telling it will give it can give a directional move again depend on the
06:27current trading session price action we need to check on a five minute time frame but simple information
06:33this is the midpoint price is more not rotating around the midpoint it's trading more above the midpoint
06:39that means a good chance the market can give a direction so we can focus here move but on the
06:45same way you can look at this this trading session look at this trading session this is previous day's
06:54high previous day's low and midpoint is somewhere here market is opening outside the range that whenever
07:00markets are opening outside the range that means whenever markets are opening outside the range
07:07that means you need to understand one important factor that there has been some change compared to the
07:13previous trading session and market can give us an opportunity market has a better chance to give us an
07:22opportunity to trade now if i'm in this stage at the market opening my main focus will be in this area only
07:29because this is where more price going into sideways mode by any chance previous day's high price is
07:36opening outside previous day's high if price buyers are failing to push up try to understand price is
07:43opening above previous day's high above previous day's high the territory was more buyers show interest
07:49why because on the bank net it will show gap up opening 200 points 300 points 400 points 500
07:57points gap up opening the positive number will blindly attract trader will blindly attract and
08:04bullish trader to jump in for a buy side a long side a bullish side trade whenever price is opening
08:11below previous day's lows that means the number will be negative 200 points down 300 points down 500 points
08:17down and etc so this negative number will just try to attract more short side trader more bearish trader to plan and
08:25plan and downside trade so here again comes the two possibilities this is what now i want to explain
08:34i and previous days low simple reference level trying to understand there is one basic concept
08:42price opening and trading outside previous days i but
08:47struggling to sustain struggling to move up for example same date 24th right i will i will take an
08:55open a five minute time frame open a five minute time frame look at this action all around 24th is the
09:05morning market it has opened this is previous day's eye okay somewhere here the previous day's eye is
09:13here now what are all the key points i need to check here after the opening that is
09:18this will be moving on slowly what is the key point i need to check
09:25first my main focus is last time when the price was trading at the same zone who were in control this
09:33is my first question probably i'll be asking to myself last time when the price was trading in the same
09:41zone who were trying to take control of the market whether bullish traders or bearish traders were trying to
09:48take control if i'm checking this 40 200 level around 4200 level just look at this action what was
09:55happened same this is previous days and this is the eye of that day previous day beyond that market has
10:02opened what has happened price came down pullback aggressive download came in that means this is
10:08and territory for the sellers sellers were more control of the price in this zone where the price is now
10:17trading the example which we are checking here that means one point to note we cannot underestimate
10:25these bearish traders we need to understand first minimum i'll be checking whether these sellers are
10:34coming or not whether they are going to come dominate the price reverse the price back down or not how can
10:41we understand simple sir these are sellers okay if the market even goes sideways they can come and
10:47dominate the price so who's left over buyers so my main focus will be to check what buyers are doing
10:55i'll be not interested to see what sellers are doing initially later on to understand the price action
11:01i'll be going on to check sellers activity but before that to identify whether these strong sellers are
11:07coming in again or not first of all we need to check whether buyers are getting weaker if the buyers
11:14are getting weaker try to understand this is basic price action rule if the buyers are getting weaker who
11:20is left over sellers so they will automatically try to dominate the market if the sellers are getting
11:27weaker who is left over buyers they will automatically try to dominate the market what i call this as one of the
11:33the golden rule i call this one of the golden rule of price action trading which is very underrated or very
11:43much avoided activity because what our human mind is telling us to focus on patterns focus on candlesticks
11:51focus on indicators and what is happening this is happening that is happening double bottom triple bottom
11:58and someone in social media have told this told that no you are distracted most traders are distracted
12:04the main reason for loss is the distraction better focus on the chart and one more main problem is
12:13sometime what happens now our inner instincts will tell us market will fall market will rise try to
12:18understand what we think doesn't matter what chart is showing us what the zone is showing us how the price is
12:25reacting that is where the direction will come that is how the market will move what we think we might
12:32think anything i can think market will go down you might think market will go up there is no rule
12:38ki it has to be followed in the same way now this is where my information is very clear these sellers are
12:46there sellers can come now very simple nearest what is the reference level forget about all other levels and as
12:52the stage goes as the session goes as the video goes i'll be including few more reference level but at
12:59current stage let's as i mentioned this is the first stage of the learning i'll be going with a simple
13:06approach starting with the foundation level of understanding the price once the foundation is strong enough
13:13automatically whatever key level or zone or area i'm adding on it will become more easy for you to
13:20understand under your brain will automatically accept it immediately here what is happening
13:28first candle price is trying to reject from the previous dsi so now try to understand one factor here
13:33remember higher level sellers not only at one level okay they are not only at one level they are
13:41spreaded i will tell you how they are spreaded this is the market opened here okay aggressively
13:48crossed which level has been crossed aggressively trying to understand i will tell you this was
13:54previous trading session low it has aggressively crossed okay again came down a small quick upside
14:01move price exactly rejected from the same zone previous days low prices again trying to reject i have
14:08mentioned you one thing price more trading below previous days low it is more familiar more favorable for the
14:15sellers okay because more favorable for the sellers price is more trading above previous days high when
14:22i say more trading it has to sustain clearly below it not just 10-15 minutes price is trading and then
14:28reversing back up no it has to sustain and give a downside follow through by any chance like this
14:34by any chance like this if the price is making a pullback after a down no pullback it has to act as a
14:40resistance and reject rejecting immediately or it might take some time that is different thing but
14:46this zone has to act as a resistance okay once the price is crossing and this is very important and
14:53try to understand one more factor from morning price is clearly trading staying below the vwap volume weighted
15:00average price i think in the last video i mentioned about more price is trying to stay trade below the vwap
15:09more the sellers can any time dominate to push the price down more it is trading staying above the vwap more
15:16the chance buyers can try to dominate and push the price up again depending on how the price is trading
15:22above the vwap how it is trading below the vwap this is what i personally take it as my one of the second
15:30golden rule in terms of intraday trading right so this is the rule going on so i'll be moving the chart here
15:37we're just looking at this now trying to understand that this is after market session things might look
15:43very easy key sir after the fall you are telling this happened that happened okay trying to understand
15:48this is a theoretical what i can say a practical learning concept learning okay basically i'm
15:55continuously staying connected with you traders in the live market live live understanding can
16:00message me on the live okay you will get better understanding but to understand learn the concept
16:05this is the session i have done it for the aftermarket kind of a scenario now let's go on to
16:10the chart simple previous days i what is happening now when i when i when i speak about previous days i i
16:16need to not forget about the weekly iron law i need to check where is the weekly iron rule that is very
16:21very important in the foundation stage of learning 24th is the date of the chart that means simple 24th is
16:28a tuesday so that means last week monday to friday 16 to 20 what is the iron low i need to mark
16:38right to understand 16 to 20 iron low i need to mark so 16th i is this here is the level of 16th i
16:4716th weekly i is here 16 to 20 voila weekly low will be here weekly i weekly low is here so price is
16:56still way far away the weekly i weekly low is not near to this current tradable level currently price
17:03is trading here it is not near to it's still far away so no problem if it is near i need to give
17:08importance to those level also that means one thing is clear for me what i will be doing here is
17:15even at this stage i am seeing that is the sellers are there at different level rejecting pullback
17:20rejection aggressively my initial plan will be just because price is rejecting from previous days i
17:27i will be never planning a bullish trade immediately i will tell you why the buyers who are trying to
17:36come and the sellers who are already dominated the price in the same zone minimum there is a chance of
17:43fight there is a chance of small fight to happen between buyers and seller that means either price
17:50will go sideways or it will be slightly volatile before giving any directional up or down okay so
17:57that is the reason what as a trader we need to do is what is happening just see the activity around
18:04here that is more important price is trying to reject here but the rejection is not so strong
18:10candle the year you see this two three candles is a normal candle suddenly one bullish candle is
18:15coming what we need to understand what will be a common retail trader will be doing it and what
18:24i will be doing or you will be doing that is important if you are doing the same thing what retailers
18:29will do they would have seen 10 days back the price at previous days i rejecting from previous days i
18:36bullish candle formation price would have went up now they will expect expect the same thing just
18:43because they have seen the pattern and they will be jumping in to take a bullish trade this is where
18:50what i will do is i know that higher level sellers can come again everything runs in the game of
18:56probability trading entirely goes in the work of probability right so in this case what i will be doing is
19:04price is rejecting my main focus is i will be immediately marking the midpoint i will be
19:10immediately my low midpoint of this bullish candle my main focus is if these buyers are really
19:19stronger here i am not using volume any other thing simple understanding of foundation understanding
19:25what is happening here okay so in this case if i want you can i can also plot volumes will be there
19:32obviously opening opening first 15 20 minutes of action volumes will be there okay and try to
19:38understand these volumes of color which has been seen if the candle color is green it will be showing
19:43a green bar the candle color is red it will be showing a red bar so no point in getting influenced
19:49by these kind of candle colors okay now let's go back to the plane chart and understanding what's
19:55happening here my main focus is i know as the higher level sellers are there they can come they can try to
20:01dominate so first i need to say whether they are coming or not whether they are trying to defend
20:07the position or not how can i understand price is trying to reject here i have a clear understanding
20:13by this time retail traders above the scandal they would have started taking a bullish trade blindly
20:19without looking what is the zone where is the level how the markets are reacting and which
20:24no on the market is reacting okay without seeing this traders retailers will just jump in for a bullish trade
20:30okay what is the main focus of me is i have been not jumping in bullish trade as i mentioned
20:35that this sellers can come right so my main focus is the midpoint the bullish candle midpoint if the
20:42bulls are really stronger they will be trying to stay more the price above the midpoint but look at this what
20:50has happened is next candle what forget about all other action next candle look at the price beginning
20:56here price is slowly
21:05price is slowly trying to
21:11price is slowly trying to come down here this is a small small small down move but still the midpoint is
21:16point is respected now look at this the aggressive push towards downside with a bearishness clearly
21:24price rejecting and reversing back clearly below the previous day side closing below the previous day side
21:29now you need to understand two factors this is how it will help you to
21:35focus on your trading plan your trading here it is very clear key what is happening
21:42sellers sellers sellers are showing the real picture here you can see the weakness from the buyers if
21:49the buyers were so strong after this rejection they would have sustained above evap and they would have
21:54slowly pushed the price up but no price rejected back down so here we have i have made two decisions one
22:01not planning a bullish trade jumping immediately and point number two is to see what's happening what the
22:07sellers are the buyers are getting weaker minimum first what is the activity who's weaker opposite
22:13trader will try to take control if the buyers are weaker opposite sellers will automatically try to
22:18take the control of the market very simple right so price rejecting back down clearly straight in direct
22:26in this is where the sellers are getting ready to push the price down now try to understand one more thing
22:32if i zoom out the chart remember where is the price going price is going inside previous day's range
22:38so in this zone what has happened price rejected pullback rejection down rejection
22:44price in the zone also who has dominated sellers so there is no major player to disturb the price
22:50to from moving down there is no major disturbance until probably i could say this zone this is the zone
22:57from which again price rejected if i am asked me probably till this zone no major player to disturb
23:03if the price from here continue to fall down that means from this point till this point almost 80 to
23:11100 points no major disturbance is there that means the price will easily sail down towards downside
23:17because here the sellers are there who have yesterday also rejected from higher level those sellers
23:24are there to drag the price towards downside so once this is clear this is where i will take this as my
23:32opportunity to just follow these traders follow this sellers follow the big players follow the momentum
23:41simplest foundation level of price understanding with simple previous days high and you understand so these
23:51these are all the things which runs back of my mind whenever i sit in front of the trading session
23:58live in front of me if i see the markets tradable opportunity is there now try to understand
24:05my main focus is to focus on high probability trade opportunity my main focus is to focus on
24:12high probability trade opportunity to make use of it this is how it works
24:17it might be looking simple now in the after market but these are all the data points which has to run
24:23back of the mind in your own mind in your smart brain you have to work on this everything back of
24:30our mind to understand even with this as i'm just not using anything else i'm just what i'm doing here is
24:37i'm just as i mentioned this is the start of this complete course previous day i previous day slow
24:43weekly high weekly low this is where the simple thing with the help of where is the price is
24:48opening i need to understand the activity of the price so automatically as i mentioned if the price
24:56more trading near the midpoint of the range until the range is not wider it's a small range candle or a
25:03non-trending day now aggressively if the market is making one-sided move that is different concept
25:08i'll explain to you by this trading session okay if the price is trading a non-trending day it's not
25:14non-trending day when i'm speaking this full day it was like lower i lower low higher i higher low if
25:20that is the case that is different concept if that is not happening if the price is trading more near the
25:27midpoint of the trading session automatically what i'll be checking is the price is more rotating around
25:33this is where for a directional trader for an option buyer there is no major work just simply relax don't
25:42get stuck in this balanced market what i call this as a no trade zone let the price expand out for try to
25:48understand whether it is a false breakout or not that is my main work look at this action here this is a
25:58clear kind of and slowly steadily price made a downside trending day so now on this trading session how
26:04many trade opportunity i would have you would have taken this might be your question now i'll be not
26:10discussing here because once i go into entry point automatically you and your mind will not give
26:17important to the process process of understanding the price because what our human mind most traders do is
26:25run behind entry where can we enter where can we enter where can we enter this strategy that strategy
26:31no first focus on the process process of understanding the charge once we understand the process very
26:40clearly no matter whatever the market conditions are you are i will be more comfortable to trade on any
26:48given market conditions but once this foundation of process should be so strong so strong that before
26:58focusing on entry you'll be focusing on to understand who is in control of the market because once we
27:04understand this then only we can go in the same direction where the chart is telling us the price can move
27:12then only we can take a trade trade entry and then the last end result is the profit or loss profit and
27:20loss is the end result sir first present is the understanding what is happening by the foundation
27:25process of buyers and sellers so that we can go in favor of the direction then comes the trade entry
27:31then comes the outcome profit or loss this is nice cycle which runs after every trade this is all the back of
27:39the mind it has to process it might take time for you because you are if this concept is new for you
27:46might take some time but automatically as you go practice it for let's say 15 days 20 days or one month
27:53it will become start becoming easier
28:04you
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