Mastering Intraday and Swing Trading with Parkavi and Tamilini
Stock Selection
Parkavi: Tamilini, the first step in our trading strategy is to select stocks. We'll pick from the top gainers and losers on the NSE, focusing on Nifty or F&O stocks only. Let's check today's top gainers and losers on the NSE website.
Tamilini: Got it, Parkavi! I'll note down the top gainers and losers.
Identifying the Trend
Parkavi: Now, we need to identify the trend for each stock. Look for patterns that indicate whether the stock is in an uptrend or downtrend. This will help us decide our trading strategy.
Tamilini: I see. So, if the stock is in an uptrend, we look for buying opportunities, and if it's in a downtrend, we look for selling opportunities.
Finding Fibonacci Values
Parkavi: Next, we'll find the Fibonacci values using the Fibonacci calculator on the Parkavi Finance website. Enter the high and low values of the stock to get the Fibonacci retracement levels.
Tamilini: Done! I have the Fibonacci levels. But, Parkavi, what exactly are these Fibonacci levels?
Parkavi: Great question, Tamilini! Fibonacci levels are based on the Fibonacci sequence, a series of numbers where each number is the sum of the two preceding ones. In trading, we use Fibonacci retracement levels to identify potential support and resistance levels. The key levels are 23.6%, 38.2%, 50%, 61.8%, and 100%.
Tamilini: Ah, I see. So, these levels help us predict where the price might reverse or continue its trend.
Parkavi: Exactly! And remember, the 61.8% level is often called the "golden ratio." It's like the golden ticket in Willy Wonka's factory, but for traders!
Tamilini: Got it, Parkavi! So, if I find the golden ratio, do I get a lifetime supply of chocolate?
Parkavi: If only! But you might get some sweet profits instead.
Drawing Previous Day High & Low
Parkavi: For intraday trading, draw the previous day's high and low on the chart. If the price breaks the golden ratio level, we'll consider it for swing trading.
Tamilini: Understood. I'll mark the levels on the chart.
Risk Management
Parkavi: Risk management is crucial. For entry, wait for a confirmation candle. Set your stop-loss below the previous swing low for long positions and above the previous swing high for short positions. For exit, target the next Fibonacci level or a strong resistance zone.
Tamilini: Thanks, Parkavi! I'll make sure to follow these steps carefully.
Conclusion
Tamilini: This strategy makes a lot of sense. I'm excited to start trading with these steps!
Parkavi: Great! Remember, practice and discipline are key. Happy trading, Tamilini!
Tamilini: Hey Parkavi, why did the Fibonacci trader bring a ladder to the stock market?
Parkavi: I don't know, why?
Tamilini: Because they heard the market was going to new heights and wanted to reach the golden ratio!
Learn how to master intraday and swing trading with this step-by-step guide. Discover stock selection, trend identification, Fibonacci levels, and risk
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