TP GRID A-K / TP GRID L -Z TURNING POINTS GRID is based on simple idea and my experience of using it profitably for some time now. This can be used by day trader/Positional trader and an investor by referring to the relevant time frame. It can also be used for Mechanical Trading.
Effective today, I will be updating this Grid daily and hope that the readers of the blog will find it useful. I am sure, a person referring it daily will know the basis of its preparation and hence should not be construed as a great discovery. In any case I discuss it in my workshops. The important part for you will be:
1. To believe that these are not just some numbers to confuse/impress the reader. You can test it as paper trades till such time you are convinced about its utility.
2. If it passes your due diligence test, put it to profitable use. And there lies the smartness.
I will be using Spot prices for FNO stocks and Nifty Future/Bank Nifty Future so that it can be useful to wider audience, Those trading the same items in FNO should suitably adjust the price difference between cash and future price.
Given below is the methodology of how to use the TURNING POINT GRID.
Abbreviations used : Current Market Price – CMP, market – any stock or index
1. Generally speaking when CMP is above C and/or D and/or G market can be considered bullish and upward push will be more. Converesly, if CMP is below C and/or D and/or G market can be considered bearish and downward push will be more.
2. Initiate buy trade when CMP moves above H & L. Converesly, initiate sell trade when CMP moves below H & L .
3. C, G, K & O should be used as support/resistance levels.
4. A – B, E – F, I – J, M – N should be used as support/resistance levels.
5. D, H and L will also act as good support/resistance points.
6. If L is lower than H, your Stop Loss must have triggered. That's what the Stop Loss is meant for. Now buy that scrip only when CMP is higher than H & L.
7. When CMP is lower than L, but higher than H, aggresive traders can trail it with tight Stop Loss. Real weakness will come when CMP is below H & L both. As per the system you can go short at that time – of course with a STOP LOSS.
8. Never concentrate on one stock, however much you may like it. Depending on the size of your trading portfolio, one should not exceed 5 to 10 stocks. As a rule of thumb you can even keep 10% of your trading portfolio.
9. As no system is 100% perfect, use of Stop Loss is inevitable. The stop loss % should vary between 1 to 3 % depending on individual risk profile and trade duration.
10. Once you are in a successful trade, you can either trail the profit or square off your position profitably at the support/resistance points referred in 4 above or the moment you are happy with the profit.
I do not claim that this is the final method for successful trading. I am sure there will be many systems better than the one given above and hence I will not respond to any communication on the merits/demerits of the same. In case you do not find it profitable - simply ignore it and keep searching for the
MASTER KEY. However, If you find it profitable do tell me and also share it with your friends.
Please feel free to write to me at
turningpoints.in@gmail.com, if you need any further clarification for putting it to profitable use.
With Best Wishes for profitable trading,
Ketan Asher.
WORDS OF WISDOM
You can break the rules and get away with it.
Eventually, the rules break you for not respecting them.
