INTRADAY TRADING IN STOCKS Halan Manoj Kumar

USING PIVOTS. www.theindianpivotboss.com

@scorpiomanojfrm

Trading Disclaimer

All TRADING involves high risk and YOU can LOSE a substantial amount of money, no matter what
method you use. past performance is not necessarily indicative of future results.

The contents of these slides are intended For Educational Use Only – Not To Be Utilized As Trading
@scorpiomanojFRM - [email protected] - Advice.
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 • I am not a SEBI registered advisor.
• I am a part time trader.
• I am working at a Bank abroad as a Financial Risk Manager.
• I have been trading the markets on a very serious note since the last 8 years, of course on a part time basis.
• I haven’t yet moved towards full time on account of family related commitments and issues.
• I predominantly use pivots for my trading decisions. I mostly trade Bank nifty on an intraday basis.
• Frank Ochoa’s `Secrets of Pivot Boss’ was the eye-opener for me. I am also a member of Frank Ochoa’s Pivot Masters program.
• I have tweaked the concepts to align with Indian Markets .
• This is an attempt to teach my experiences of trading stocks to other traders.
• The concepts are not Holy Grail. Hence these concepts should be accompanied with proper Risk Management.

WHO AM I?
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 • Stock Selection method
• Stock Trading method
• Tools
• Setup in Amibroker.
AGENDA

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 • Concept behind stock selection method is
Contraction – Expansion theory.
• Contraction – Expansion phenomenon is
assessed by Daily Range method (DR).
• DR for 1 day is defined as the difference
between high and low of the day. DR for 2 days
is defined as the difference between high and
I) STOCK low of 2 day period…. And so on and so forth.
We will be using 1 day DR which is henceforth
referred as DR.
SELECTION • Average DR (ADR) is defined as the 10 day EMA
METHOD of DR.
• If DR is less than 0.65 times of ADR on any
particular day, then the probability of trending
day increases the next day.
• Hence the previous day, scan for all FnO stocks
in Amibroker for the above condition to get a
list of stocks.

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 • Long Rule :
• Breakout of Camarilla R4.
• Aggressive Stop – 50% of R3 and R4.
• Conservative Stop – R3
• Leave few points for false moves while placing stops.
• Maintain proper position sizing based on risk appetite.
• Short Rule :
• Breakdown of Camarilla S4.
• Aggressive Stop – 50% of S3 and S4.
• Conservative Stop – S3
• Leave few points for false moves while placing stops.
• Maintain proper position sizing based on risk appetite.

II) STOCK • Targets can be defined after Camarilla R4 / S4 breakout /

breakdown happens.
• Once Camarilla R4 breakout happens you will be knowing the

TRADING most likely low of the day.

•
•
First target = Most likely low + 50% of ADR
Second target = Most likely low + 75% of ADR
•

METHOD
Third target = Most likely low + 100% of ADR
• Fourth target = Most likely low + 125% of ADR.

• Once Camarilla S4 breakdown happens you will be knowing the

most likely high of the day.
• First target = Most likely high - 50% of ADR
• Second target = Most likely high - 75% of ADR
• Third target = Most likely high - 100% of ADR
• Fourth target = Most likely high - 125% of ADR.
• If targets are close to the entry level do not take the trade Take
the trade only if the risk reward is greater than 1 : 1.
• You can also use other pivot based targets like Weekly Floor Pivot
/ Monthly Floor pivot / Virgin floor pivot / PWH / PWL / PMH /
PML if it is in the vicinity.

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III) EXAMPLES

This is a scan output of 28/05/2020 evening in daily time frame.

These are the stocks where DR is less than 0.65 times the ADR.
6th column is sorted from lowest to highest based on the ratio
between DR and 0.65XADR. 8th to 11th columns are the levels to
be added or subtracted from the likely low or likely high after
@scorpiomanojFRM - Cam R4 breakout / S4- breakdown.
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III) EXAMPLES
(Contd…/-)
First Stock in the Scan – Amararaja batteries gave no entry point.
Second stock in the Scan – Mannapuram gave an entry point above the high of the breakout candle at 123.5.
Once the breakout happened, the most likely low is 118.05.
For the addons refer the scan output posted in the previous slide.
So first target = 118.05 + 4.19 = 122.24
Second target = 118.05 + 4.83 = 122.88
Third target = 118.05 + 6.44 = 124.49
Fourth target = 118.05 + 8.05 = 126.10
Risk = Entry point – Stop = 123.50 - 121.15 = 2.35
First and second target are not meaningful considering the entry level. Third target gives a less than 1:1 RR. 4 th
target gives -a 2.60
@scorpiomanojFRM reward meaning RR is 2.60/2.35
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III) EXAMPLES
(Contd…/-)
UPL is one of the stocks in the scan

Details in the image.

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 • Amibroker is required for this strategy as scanning
can be done only in Amibroker.
• Amibroker program attached. Run exploration
with timeframe daily in the exploration settings.
Once done, sort them from lowest to highest as
per the heading `RATIO CONT’.
• The price chart should have Central pivot / Cam
R3 / R4 / S3 / S4 at the minimum. Others are
IV) TOOLS AND optional. So you can disable all other parameters
except these minimum if you trade this strategy.
The main AFL which was originally provided can
SETUP be used. The attached AFL `DR_Strategy’ is for
exploration. You can also plot them in daily chart
to see visually the daily range.
• One disadvantage is you need to keep a watch of
atleast 10 stocks to look for breakouts /
breakdowns. But it is worth watching as it is a
high probability setup.
• Do not forget risk management as Anything Can
Happen. Only way to safeguard is adopting
proper Risk Management.

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www.theindianpivotboss.com
CONTACT
DETAILS
[email protected]

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