Introducing Auto- Support/Resistance Intraday Scans Himanshu Patil email : [email protected] twitter : himanshugpatil Copyright © 2009-2015 Proseon Technologies May not be reproduced without permission
Introducing Auto-Support/Resistance
Intraday Scans
Himanshu Patil email : [email protected] twitter : himanshugpatil
Copyright © 2009-2015 Proseon Technologies May not be
reproduced without permission
Importance of various tools
Support, Resistance & Trendlines Technical Indicators Japanese Candlesticks
MORE IMPORTANT
LESS IMPORTANT
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Auto-Support/Resistance (Auto-SR)
What we had before– Daily and EOD Auto-SR scans– Auto-SR drawn in all timeframes
What we have just introduced in the new Beta– Auto-SR scans now supported in all timeframes
(down to 1-min)– Scan supported for Partial candles also (makes
finding breakouts much timely even for intraday traders)
– EOD timeframe is Daily timeframe updated at EOD
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Partial/Full Candle Scans What are partial and full candles? E.g., 5-min timeframe chart:
– At 10:17 am, the last candle contains only 2 minutes of data, hence we call it partial
– The candle will become “full” only at 10:20 am. Till now all scans were full candle
based, except Daily for which we had EOD and Daily timeframe scans (updated every 1 min)
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Partial/Full Candle Scans All timeframe scans can be updated
– Every 1-min (i.e. for partial candle)– At every full candle
E.g., 3-min timeframe scan can update– every 1 min (Partial Candle)– every 3-min (Full Candle)
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Scan Alerts are generated on partial or full candle– Either first time in a partial candle– At end of every full candle (just like in
Investar 5.1 today)
Partial/Full Scan Alerts
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Partial/Full Scan Alerts E.g., 5-min timeframe
– Set support/resistance breakout scan alert at 10:10 am
– Breakout happens at 10:17 am– If update frequency is:
1-min (partial candle), scan alert will be generated at 10:17 am
5-min (full candle), scan alert will be generated at 10:20 am
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Determining the Strength of a Trendline or
Support/Resistance How many peaks or troughs does it touch?– The more the touches, the stronger it is.
At what angle is the trendline?– The flatter the trendline the stronger it is.
Volume accompanied by trendline break?– The stronger the volume, stronger is the
trendline. How recent are the touches on the
trendline?– The more recent the touches the stronger it is.
How long is the trendline?– The longer it is, the stronger it is.Copyright © 2009-2015 Proseon
Technologies May not be reproduced without permission
Using Resistance & Support for Buying
Resistance
Support
Break of Resistance Close to Support
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At start of new uptrend In a sideways trend
Using Resistance & Support for Selling
Support
Resistance
Break of Support Close to Resistance
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At start of new downtrend In a sideways trend
Auto-Support/Resistance Investar automatically draws the
automatic support/resistance levels and rates them based on:– No of touches– Recency– Length
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Auto-SR Top 20 %ile - Very Strong
Support/Resistance Next 20 %ile - Strong Support/Resistance and so on…
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Tips for using Auto-SR Keep the default settings – scans are done
using the default settings Make sure your chart duration has the
number of bars that you have selected in Tools->Options. E.g., if you have 240, then you should have at least a one year duration.
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Risk/Reward Ratio 1:3 is a good risk reward ratio. Risk: maximum loss you can have. Reward: maximum profit you can
have.– long trades:
Profit = (nearest resistance – close) Risk = Stop Loss (LT: 10%, ST: 5%, Intra:
0.5%)– short trades:
Profit = (close – nearest support) Risk = Stop Loss (LT: 10%, ST: 5%, Intra:
0.5%)
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Stop Loss Strategies Stop Losses are put based on type of
trader:– Long-Term Trader: 10%– Short-Term Trader: 5%– Intraday Trader: 0.5%
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What timeframes to use? Long-Term Traders (Holding Period > 6 mos)
– Use Daily and Weekly charts. Short-Term Trader (few days < Holding Period <
3 wks)– Use Daily and 1-hr charts
Intra-Day Trader (Holding Period < 1 day)– Use 1-hr and 15-min OR– 30-min and 5-min OR– 15-min and 3-min
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Auto-Support/Resistance Scans
Crossing Support/Resistance Support/Resistance Breakouts High Risk/Reward Ratio (Risk/Reward ratio
> 3) Near Support or Resistance (within 0.5% of
support or resistance)
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Interesting Composite Scans High Volume Breakout:
– Strong Resistance Breakouts– Volume Gainers
Buying with a High Risk/Reward Ratio– Near Strong Support– High Risk/Reward Ratio – for buying
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How can I get this feature? Its in Investar Beta Investar Beta can run
simultaneously with Investar 5.1
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Future WebinarsSupport/Resistance Strategies
(TBD)Basics of Technical Analysis (16th
Jan)
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Support/Resistance Strategies
Support/Resistance Strategies (28th Jan, 2016 – Sign up here) – Pivot Levels– Gap Up/Gap Down– Fibonacci Retracements– Auto-Support/Resistance
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Liked Auto-Support/Resistance?
Follow us on twitter:@himanshugpatil@investarindia Tweet with hashtag #AutoSR
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