All language subtitles for 2. Common Mistakes to Avoid in Type 01 strategy

Hello, traders, in the previous session, we discussed about two price action strategies.

One was for uptrend.

The other one was put down.

Hope you watch that video if you haven't watched that video.

I request you to watch that video first before you watch this one as this is a continuation of that

previous video.

In this session, we will be discussing three topics, the first one we will be discussing about common

mistakes, which you need to avoid while doing one strategy.

Second, we will be discussing about intraday routes, which is very important if you are doing intraday.

Finally, we will be seeing some example for type one strategy on what timeframe?

OK, so let's get started with the first topic for the common mistakes and type one strategy, which

you need to avoid.

Traders, I will explain about common mistake with the help of drawings so that you can understand it

in a better way, once you understand this, you will be able to relate this in the labor market.

And this will help you avoid entering trades with false prickled.

We will be discussing about five common mistakes, which you need to avoid in Type one strategy.

These mistakes is same for both uptrend and downtrend.

Let us start off with first common mistake, which you need to avoid.

Please pay attention on the screen as I will be explaining it to you with the help of drawing.

In the previous lecture, we got an order to consider type one strategy, we need three confirmation,

the first confirmation as the stock has to be in uptrend or downtrend.

Second, we need at least three touches in the support of the resistance level.

And thirdly, we need to get a reversal pattern and the support of the resistance level, correct?

Please remember this as we move forward with this topic, so let us see the first example.

I'm drawing a support line.

And the stock is an option.

This is my law.

This is my hi, this is my Hielo.

And this is my.

At this level, my appointment is confirmed, correct?

Let us say that you are getting a reversal pattern at this level.

Uptrends confirmed a reversal pattern is confirmed and we are getting a reversal pattern at the third

support line, please see this my first support.

This is my second support.

And this is my third support line.

So now all the three confirmation we have got, can we enter the trade here as type one strategy, traders

observe closely, think and decide, will you enter the trade?

You.

The answer is we should not enter, why we should not enter, did you notice this wing is smaller than

this wing.

So when there is a difference between the first wing and the second swing, we need to be conscious

before we enter the trade.

Let's see.

The difference between the first wing and the second swing is 18 to 20 percent.

Then you can accept the trade.

Even if it is twenty to twenty two percent difference, you can accept the trade.

But if it is more than that, you have to avoid that.

Why we need to avoid that.

I will explain that to you now.

Traders in Type one strategy, we need similar swing in the market to Intertrade.

Let's see, the market made similar swings like this.

And I got a reversal pattern here.

I can easily enter the trade because the swings are similar.

Even if there is 18 to 20 percent difference between the first swing and the second swing, we can still

enter the trade.

But in a certain situation, you can notice that the difference between the first swing and second swing

might be more at that time.

We should not enter the trade.

Our expectation was for the market to make a swing like this, and at this level we get a reversal pattern

so that we can set a target to this.

Or does this kind of target could have been easily achieved as this was a profit booking area?

But the market made a swing like this because of this, what happened is a profit booking area has been

already covered by the buyers.

We were expecting to take a profit at this level, but the big players came.

They made a bigger swing, took all the profit and then pushed the market down.

So if we decide to enter the market after this big swing.

That is a possibility for the market to not achieve our target and give us a very less risk to reward

ratio at this kind of situation, it is better that we avoid that trade.

Traders please remember a reward for the risk, which we take for the trade has to always be more.

When you win a trade, you have to win more, and when you lose a trade, you have to lose less.

And one more reason can be that because the stock made a big upswing, the accumulation has already

ended.

A lot of accumulation might have taken place during the big swing.

So once the accumulation is done, that is a possibility for the market to retrace and go down.

So it is better that we avoid the trade.

So this was the first mistake.

Second mistake.

Let's say that you see a reversal pattern at this level.

Will you enter the trade?

If you watch closely, you will know this is a pattern.

The green candle has not broken the high or the low of the previous red candle.

So what do you think?

Can we just enter this trade?

Because we got a reversal pattern.

We should absolutely not enter this trade.

We will see why we should not enter.

No.

Let us say the market is an option.

And we get a reversal pattern here.

And this kind of situation, we can enter because in type one strategy, the reversal pattern has to

be in the support line only then the reversal pattern has a value they have discussed about all the

reversal pattern in the previous lecture.

I suggest you to watch that video, as we have discussed, about all reversal patterns in that we do.

If you get a reversal pattern here, here, here, here or here.

It does not have any value.

The reversal pattern has to be in the support soon.

See, this is a trend line which acts as a support zone.

If you get any reversal pattern here, then you can enter the trade.

If you get a reversal pattern anywhere else, it doesn't have any value.

So that was the second mistake.

So let's see, common mistake number three.

Let us say the market made a trend like this.

And at this level, let's see, I'm getting a reversal pattern, can I enter the courtroom?

I can also see an uptrend here.

See, this is my law.

This is my Hielo.

Hi.

And I'm getting a reversal pattern here, right?

So can I enter the strip?

The answer is absolutely not.

You should not enter the street, why we should not enter the street.

If you remember, we discussed that you need to get a reversal pattern at the support line.

In this example, we have got a reversal pattern below the support line.

The actual way of getting a reversal pattern is at this level on top of the support line.

Only then it has value.

So next time you trade, you need to make sure that the reversal pattern is that the support or resistance

level or interest not enter the trade.

That is a high probability for the market to go down.

That is why we should not enter.

So let's discuss about common mistake number four.

Let's say the market is making low a high and low volume like this.

And you'll get a reversal pattern here, can you enter the trade, the reversal pattern is that the

support zone, can you enter?

Their stock is also making low, high, Hielo and high.

So uptrend Trindall is getting confirmed here and you're getting a reversal.

Pratham you.

Dancers who should not enter the parade later should not enter the street, any idea?

The main reason is because there is less statues in the support zone.

See, this is the first touch in the support zone.

And when the stock retreated to the top, touching the second spot on the stock market, an uptrend.

Because there is no touchers at this level, the importance of the support line has reduced, even though

I get a reversal pattern here, till I will wait for a better trend to enter the trade as more number

of touches in the support line gives me more stronger confirmation to enter the trade zone.

Type one strategy, if there are less touches in the support zone, you have to better with the trade.

So that was the fourth common mistake.

Now let's discuss about fifth final common mistake, which we need to avoid.

Let's say the stock is making an uptrend like this.

Can we enter the state?

What do you think, traders, Tantalus, we should not enter.

Why?

We should not enter.

Traders interpreted strategy.

The stock has to make comments, swings.

When it makes common swings like this.

We can enter the trip.

If you see this example, there is no common swing and the stock is moving upward rapidly, that too

at 75 to 80 degree angle.

So it is better to avoid this kind of trade.

We will wait for common swings to happen.

Then we will enter the.

Traders, these were the very common mistakes which you need to avoid while working on Type one strategy.

Traders let us quickly recap the five common mistakes.

First, common mistake.

Similar second common mistake reversal pattern has value only at the support or resistance level.

Reversal pattern below to support or about the resistance level should not be considered.

Foot mistake, there should be more touches in the support trend line only than the support line gets

stronger and has more value.

Fifth point, you should be entering trade only when there is common swing's.

Whenever you're working on Type one strategy, please avoid all these common mistakes so that you get

good results while trading, you can find a lot of trading opportunities even in introducing the type

one strategy.

But if you're doing intraday, it is important that you know the rules for intraday well trading.

So let's discuss about intraday rules now that are two important intraday rules.

The first rule is we will not be considering previous data if we are working on an over time frame.

Like one minute to minute, three minutes, four minutes, five minutes, 10 minutes check.

We will not be considering the previous data previous the previous week, previous month.

All the data is not important for us.

Only data that is important for us is the current, this data.

We will use previous data only for setting a target that is a risk to reward ratio after discussing

with the scandal.

I will show you some examples so that you can understand it better.

OK, let's see.

Rule number two.

The rule number two is you need to keep buffer and stop loss if you are trading in one minute to minute,

three minute, four minute and five minute time frame.

So now we will be seeing one or two examples in what time frame for type one strategy.

And I will show you how to apply this intraday rule while trading on an over time frame or while doing

intraday.

Our first example is Asian paint, three minutes time frame.

OK, so traders watch closely, this is my law, this is my.

This is my Hielo.

And this is my high, I know the stock has risen to resistance level traders, I will draw trimline

INTUITY, OK, this is my law.

This is my high.

This is my Hielo.

This is my hire.

Now, the stock is at least up to this level, if I draw a support line here, see how well the market

has respected this level.

We have got a good amount of touches here.

That means the market is respecting this level.

At the 3rd support zone, we are getting a reversal pattern.

Traders, can you guess this reversal pattern we had discussed about this reversal pattern in the last

lecture?

Traders watch closely.

A red candle is formed and inside that candle, a green candle is formed without breaking the high or

the low of the previous red candle.

So it is a bullish mother baby candle pattern of entry will be at the height of the green candle when

the next candle opens.

And we discussed in the last lecture that we need to keep Stop-Loss at the low of the red candle.

So we will keep our stop at the law of the red candle.

That is what we had discussed in the previous lecture.

Correct.

But while working on intra day, we have to follow intraday rules.

There are two rules that we discussed in that.

One rule was we should not consider previous data if we are working on.

The second rule was we need to go the to a stop loss.

Why we ask you to keep buffer and lower timeframes, because let's say and Hitchon, a client with a

thousand two thousand crores, wanted to enter a trade.

So if they enter a trade and place that order, a big candle will be formed.

That time it might hit a stop loss.

To avoid that, we will give some buffer when we are working on intraday.

So for this trade, I will give a bit of buffer and place my stop loss here, somewhere close to the

higher giallo.

So let me check the ratio for the straight by considering the highest the target here is the target

because at has previous Twinky seulement the target, the previous green candle, which made high is

the target, the scandal, the screen.

So let hear this to reward ratio, that is to reward ratio for the status one point one five, which

is kind of OK.

This was the first type of target.

But if you're not happy with that, we will choose second type of target.

So what will be a second type of target?

We will check.

What was the previous wing height for second type of target.

We will see what was a previous swing high before the high.

If I look at this, I can see this was the previous Twinky, so I can consider this as my second type

of target, but you might ask me why am I using previous data for intraday?

If you go back and check the intraday rule number one, we have clearly mentioned that we will not lose

previous data for intraday.

We will use previous data only for setting a target.

That is what we are doing here.

So if I said second type of target and see the risk to reward, we are getting a very good risk to reward

ratio so we can consider second type of target instead of the first type of target.

So if I get a good rest to Revelation, the first type of target, we will consider that or else we

will choose the second type of target like this.

Traitors, please remember, we should not be canceling the previous data.

That means we don't care what the market was yesterday, day before yesterday, last week.

We don't care.

This line, which I do right now, is just to show you that you have to consider the data after the

slam, not before the slam, because the previous data.

But we will just use the previous data to set a target.

Let's see a second example, I say here, bank, three minute time frame.

Shredder's is my law.

This is my high.

This is my Hielo.

And this is my high, and at the third support, I'm getting a reversal pattern, I will draw a support

line and show it to you.

See, I've got good pictures in the support line, and it is from the low, high, high, low and high

subtrend is confirmed.

I will zoom in to.

And at this level, I'm getting a reversal pattern, traders, can you guess to reverse a pattern here,

a red candle and a green dorji and a green candle is breaking the red candles.

Look, this is blistery candle I want.

So this is the kind of.

And she will be at the height of the green candle when the next candle opens, so this will be my entry.

And this will be my Stop-Loss, correct, but because it is in today, I have to give a bit of buffer

to my Stop-Loss staff to the buffer.

This will be my Stop-Loss.

And the target will be previous.

So this will be my target if I'm not getting good relation with my first target.

This will be my second type of target.

But in this trade, I will choose first type of target, because I know the ratio is going to be good.

So let us check the risk to reward ratio for the strain so the risk to reward is close to two point

five, which is very good when you're doing intraday trading.

So we will use first type of target.

But if you're not getting good risk to reward ratio, we can keep second type of target.

But if you see the second type of target, it is too high.

If I calculate in check, it is more than six percent.

Right.

So it is better to avoid when it is still seven percent less to really show, because in intraday it

is difficult to achieve.

If the rest of the world issues two three up to four risk to reward ratio, you can go ahead.

So let me set first type of target for the street traders.

If you see a target got achieved within just two or three candles.

This does not happen always.

But if your calculation is correct, the market will reward you very well.

Traders know we have seen examples for both higher timeframe and lower timeframe for Type one strategy.

But I suggest you are not to trade in one minute timeframe because it is less reliable.

Traders hope you found us useful.

What you have learned in these four sessions is just twenty five percent that are still a lot more for

us to cover at the end of this lecture series.

I am very sure that you will start looking at the market in a completely different angle.

My main intention to start this lecture series is to educate people and help them achieve the financial

goals, especially during this covid-19 pandemic.

A lot of people are losing the job and they're figuring out a way to make their living in a rush of

achieving this.

A lot of people are trying to find easy ways to make money quickly, to get a formal education degree

and find a job.

People study for three to six years, but when it comes to trading, people want quick solution that

rely on tips.

This is the reason 95 percent of the people lose their money.

But the well-educated make consistent profit in the stock market with proper education and controlling

your emotions.

You can be one among those five percent profit makers.

This is our goal to educate people.

In our upcoming lectures, we will be discussing about four different price action strategies, common

chat patterns, which will help you increase your reward.

And we will be discussing about how to control your emotion of losing.

If you have any doubts related to a lecture, I would be more than happy to answer them for you.

All you need to do is just ask traders.

I hope to see you in the next lecture.

Until then, bye.

Have a great day.