Introducing Auto Support/Resistance-based intraday scans

Introducing Auto-Support/Resistance

Intraday Scans

Himanshu Patiltwitter : himanshugpatil

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Importance of various tools

Support, Resistance & Trendlines Technical Indicators Japanese Candlesticks

MORE IMPORTANT

LESS IMPORTANT


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


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 minutesof 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 andDaily timeframe scans (updated every 1min)


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)


Scan Alerts are generated on partial or fullcandle– Either first time in a partial candle– At end of every full candle (just like in

Investar 5.1 today)

Partial/Full Scan Alerts


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


Determining the Strength of aTrendline 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.


Using Resistance & Support forBuying

Resistance

Support

Break of Resistance Close to Support


At start of new uptrend In a sideways trend

Using Resistance & Support forSelling

Support

Resistance

Break of Support Close to Resistance


At start of new downtrend In a sideways trend

Auto-Support/Resistance

Investar automatically draws theautomatic support/resistance levels andrates them based on:– No of touches– Recency– Length


Auto-SR

Top 20 %ile - Very Strong Support/Resistance Next 20 %ile - Strong Support/Resistance and so on…


Tips for using Auto-SR

Keep the default settings – scans are done usingthe default settings

Make sure your chart duration has the numberof bars that you have selected in Tools->Options. E.g., if you have 240, then you shouldhave at least a one year duration.


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%)


Stop Loss Strategies

Stop Losses are put based on type oftrader:– Long-Term Trader: 10%– Short-Term Trader: 5%– Intraday Trader: 0.5%


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


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)


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


How can I get this feature?

Its in Investar Beta Investar Beta can run simultaneously

with Investar 5.1


Future Webinars

Support/Resistance Strategies (TBD)Basics of Technical Analysis (16th Jan)


Support/Resistance Strategies

Support/Resistance Strategies (28th

Jan, 2016 – Sign up here)– Pivot Levels– Gap Up/Gap Down– Fibonacci Retracements– Auto-Support/Resistance


Liked Auto-Support/Resistance?

Follow us on twitter:@himanshugpatil@investarindia Tweet with hashtag #AutoSR


THANK YOU

Thank You for Attending!


Introducing Auto Support/Resistance-based intraday scans

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