COURSE CONTENTS

SESSION 1
 INTRODUCTION OF PIVOT POINTS & CPR & PRICE ACTION
• Basics of pivot points, CPR and price action
• Secrets of CPR and pivot points in day trading
• Price action basics & powerful candlestick pattens in Day Trading
• How to prepare and mark important levels on the chart for Day Trading

SESSION 2
 MY 15 DAY TRADING PATTERNS AND MY STRATEGIES
• My15 day trading patterns and it’s strategies with chart examples
• Most Powerful moving averages and how to use it in day trading
• Using options in day trading
SESSION 3
 RISK MANAGEMNT & POSITION SIZING
• Why Risk - Reward is Holy grail in Trading
• How to do Position sizing in Day trading.
• 5 rules of Risk management
• What is Trading journal and why it is must for all day Traders.

SESSION 4
 TRADING PSYCHOLOGY
• Importance of trading psychology in trading
• Powerful methods to control emotions during trading.
• Session close & Wrap up
Copyright © 2019 by Vikram Prabhu www.pivotcall.com All rights reserved.
No part of this presentation materials may be reproduced or transmitted or shared in any form or
by any means, electronic or mechanical, without written permission from the presenter.
Start with these three books…
 SESSION 1
INTRODUCTION OF PIVOT POINTS & CPR & PRICE ACTION
Basics and secrets of Pivots and CPR in Day Trading
a) Pivots - Nothing but support/Resistance levels on your chart.
b) Pivots mark boundaries on your chart where price likely to have support/resistance which offers you
frame work to trade on…

CENTRAL PIVOT
CPR (central pivot range)

CPR
Types of Pivots
Pivots are many types,
Traditional(Standard)
Fibonacci pivots
Woodies Pivots
Camarilla Pivots
But I use, only Standard(Traditional) Pivots.

Daily pivots are more powerful than weekly or monthly pivots (I use only daily & weekly pivots on my
chart, I stopped using monthly pivots now)
Daily CPR more powerful than weekly or monthly CPR(I use only daily CPR, not weekly/monthly CPR)
Market generally trades between S2 and R2 pivots (most of the time, not always) very rarely go
beyond R3/R4/S3/S4 etc
a) Pivots-Purely derived by price….Pivots are pure leading indicator, not lagging indicators un like
MACD, RSI, Super Trend or Stochastic etc…..
b) Pivots are stagnant on chart, it is same for 5 min/15min/30 min or1 hour TF.
c)More wider the CPR, more difficult for price to penetrate, so wider CPR has more powerful
than narrow width CPR

Don’t go Long here (CPR Likely to acts as Resistance)

Don’t Short here (CPR Likely to act as support)

d) If CPR is too narrow its easy for price to penetrate and narrow CPR has high rate of
trending days (most often but not always)
e )Virgin CPR is one of the most powerful CPR
Virgin CPR is stronger when its new(5-6 days), it becomes weaker and weaker as it becomes old.
Virgin CPR generally works best at Opening session compared to late afternoon session.
Types and Formula of Pivot Points

Pivot point (PP) = (previous High + previous Low + previous Close) / 3

(R1) = (2 x PP) – Low
(S1) = (2 x PP) – High
(R2) = PP + (High – Low)
(S2) = PP – (High – Low)
(R3) = High + 2(PP – Low)
(S3) = Low – 2(High – PP)
Same calculation for daily/ weekly/monthly/yearly pivots.
CPR Formula
Formula for CPR (central pivot range)
Pivot= (High + Low+ Close)/3
BCPR=(High + Low)/2
TCPR = (Pivot – BCPR)+ Pivot
(some time BCPR(Bottom CPR) can be above TCPR(Top CPR) and vice versa)

To learn more on Pivots and CPR read “ secrets of pivot boss” or “The Logical Trader”
Introduction of Price Action

What is Price action in Trading?

Price action is a method where a Trader makes a decision based on actual price action by candle by
candle movement on the chart, not based on any lagging indicators like RSI/Bollinger
bands/MACD/Stochastic etc.

Price action and patterns keep repeating because it is crated by human beings, and we all are
creators of habits and emotions, so they say patterns repeats again and again.
POWERFUL CANDLESTICK PATTERNS IN DAY TRADING

 Candle sticks are one of the best way of analyze price on charts.

 It will tell you dominance of Buyers and Sellers.

 Two important components in Candlesticks are Body and Wicks.

 Candlesticks are important only at the right location(Important)

Powerful candle stick patterns in Day Trading
How to prepare your chart before market open

Analysis based on multiple timeframes

1)Mark previous day high/low(PDH/PDL), previous day turning points (Refer only 5 min TF).
2)Mark if any remarkable supply/demand zone from previous few sessions (Timeframe can be any like 5
min to 30 min)
3)Mark important previous swing highs/lows and GAPS on daily TF.(Refer only Daily TF)
4)If you trade only Index(like me) then better have both Nifty & Bank Nifty in one screen(split screen)
because both these index moves in tandem(most of the time, not always).
Most of the time either nifty follows Bank Nifty or Bank Nifty follows Nifty(Vice versa)

(Finally remember If there are any Events/News in the market then all these levels may not work,
because whenever there is News/Events, market just moves based on the news and will be very
volatile, so keep a track of news/events through any news based apps)
How to prepare and mark important levels on the chart
SUPPLY AND DEMAND ZONES
SWING HIGHS AND SWING LOWS
GAPS
GAP BORDERS AS SUPPORT/RESISTANCS
Nifty & Bank Nifty moves in tandem (most of the time, not always)
 SESSION -2

15 DAY TRADING PATTERNS & STRATEGIES

Important points to remember about my 15 day trading patterns

➢ These 15 day trading patterns are not holy grails patterns, just it is high probability patterns (no
guarantee that every time it works, so SL is a must)

➢ Trading itself is a probability, not certainty. Trading is not exact science, so SL(Stop Loss) is a
must In each and every trade you take.

➢ It is highly recommended to start with a paper trading for few days until you feel confident
and get consistency in trading with these15 day trading patterns.
Platforms for Paper Trading

SENSIBULL – Paper Trading in Index options (Nifty/Bank Nifty)

MONEYBHAI – Paper Trading in Stocks.

TRADINGVIEW- Paper Trading in Index future(Nifty/Bank Nifty) and stocks.

 MY 15 DAY TRADING PATTERNS & STRATEGIES
Pattern names (name is not important but memorizing the pattern is important)
All patterns are on 5 minutes time frame.

OD (OPEN DRIVE) – Bullish/bearish pattern (based on first candle and PDH/PDL)

ODR(OD REJECTION) – Bearish pattern (based on first candle and PDH)
PPT(PIVOT PRESSURE TRADE) – Bullish/bearish pattern (based on first candle and CPR)
EVENING STAR – Bearish pattern (based on PDH)
MORNING STAR – Bullish pattern (based on PDL)
VIRGIN CPR RVRSL – Bullish/bearish pattern (based on Virgin CPR)
RCR (RED CANDLE RETRACEMENT) – Bearish pattern (based on Days first Bearish candle)
GCR(GREEN CANDLE RETRACEMENT) – Bullish pattern (based on Days first Bullish candle)
GAP UP REJECTION – bearish pattern (based on gap ups)
 MY 15 DAY TRADING PATTERNS & STRATEGIES

CPR BO(CENTRAL PIVOT RANGE BREAKOUT) – Bullish/bearish pattern (based on CPR)

GAP DOWN REJECTION – Bullish pattern (based on gap downs)
M RVRSL – Bearish pattern (based on current days high)
W RVRSL - Bullish pattern (based on current days low)
RCBO (RED CANDLE BREK OUT) – Bullish pattern (based on Days first Bearish candle)
GCBO(GREEN CANDLE BREAK OUT) – Bearish pattern (based on Days first Bullish candle)
15 DAY TRADING PATTERNS
pivotcall.com
Powerful method of using moving averages in Day Trading

Most important moving averages - 8EMA,20 EMA - on smaller time frame like 5 min

8 EMA- Only after breakouts, preferably mid to late afternoon breakouts, helps in riding the
winner(most often, not always), let your winners run until candle closes above 8 EMA.

20 EMA for following trends on trending day, preferably enter on first retracement to 20 EMA
plus if there is a some pivot as support/resistance or even PDH/PDL as resistance then high
probability trade(both on uptrend and downtrend day)
Powerful method of using moving averages in Day Trading

20 EMA also powerful on 5 min time frame as well as larger time frame like daily chart.

Most of the time if market is in up trend or downtrend and when it comes and touches 20 EMA on
daily time frame large moves or big bounce takes place in Intraday(Most often, not always)

As per my experience 20 EMA is most powerful compared to any EMA on larger as well as smaller timeframe.
8 EMA- Only after breakouts, preferably mid to late afternoon breakouts, helps in riding the winner, let
your winners run until candle closes below 8 EMA.
8 EMA- Only after breakouts, preferably mid to late afternoon breakouts, helps in riding the winner, let
your winners run until candle closes below 8 EMA.

8 EMA
Following trend on 20 EMA retracement (on 5 min TF)
Following trend on 20 EMA retracement (on 5 min TF)
Using options for Day Trading

Future VS Options.
Options are cheaper than Futures(due to additional costs)
But keeping a proper SL is a problem in Options (due to Option Greeks like Vega/Theta/Delta factors).

Option Buying VS Selling Options

Options selling better than (for taking directional trade) buying options most of the time.

Because 2 ways to earn money in option selling, compared to one way in option buying.

By selling options, one can make money even price is not moving in ones direction and market stays
sideways due to Theta effect in OTM options (especially on expiry day or near to expiry) and stays at
same place.
So, Option sellers have an edge over option Buyers in trading.
Buy option (CALLS/PUTS) when one is very bullish/bearish (breakout kind of trades) .
For slightly bullish or bearish market or sideways market option selling would be better.

For selling options(same week expiry)

ATM or Slightly OTM options better for Theta advantage (same week expiry, most of the time)

For buying options(same week expiry)

ATM is better on well before expiry like Friday, Monday and Tuesday….
Near expiry or expiry days (like Wednesday or Thursday) better to buy slightly ITM options(same week
expiry) because premium erosion in OTM will be faster.

(But selection of strike price also depends on volatility, option premium prices and other factors, so
sometimes selecting option strike sometime varies from whatever mentioned above)
Buying OTM options near to expiry can be losers game but sometime can be jack pot also.
Option buying works best only whenever you are expecting a big move on one side.

To gain knowledge on options basics one can go through Zerodha varsity from google.
Or Sensibull channel on YouTube also a good platform to learn basics of options.

NOTE – OPTION SELLING IS VERY RISKY,LOSS CAN BE UNLIMITED IN OPTION SELLING, SO

OPTION SELLING IS ONLY FOR PROFESSIONALS WHO HAVE OPTIONS KNOLWEDGE AND
KNOWS HOW TO MANAGE RISK.
Option buying sometime can be jackpot
HUGH MOVEMENT IN UDERLYING CAN LEAD TO BIG MOVE IN OPTIONS
 SESSION -3

Risk management & Position Sizing

One of the most famous book ever written on Trading.

This book contains Interviews with top traders of the world.

Every Trader has different strategies, there is no magic strategy or

magic indicator, only reason they are successful because of good
understanding of Risk Management and discipline in trading.

Risk Management is as equally important as having a winning

strategy.
Why Risk Reward is Holy grail in Trading

➢ Risk Management is probably only ”holy grail” when it comes to trading.

➢ One can be a profitable trader even with a win rate of 50%(1:2 RR), 40%(1:3 RR)

➢ Risk Reward is more important in Trading to stay profitable.

Return on 50% Win Rate
Return on 40% Win Rate
Position Sizing in Trading
Position sizing is knowing how many shares/lots you have to buy before taking a trade.

How to calculate position sizing?

a)Calculate your total trading capital first
b)Determine your risk per trade (1%)

Example,
Capital = 2 lakhs, Risk per trade (1%) = 2k, maximum loss= 2k (if SL hits)
It should be 2k in every trade.
Position Sizing in Trading
Formula for right position sizing,
% Risk per trade x Capital
Risk per trade(SL)

Suppose Bank nifty future at 30200, and you want to go long and want to buy Bank Nifty
future
Entry = 30200
SL = 30160 (40 points risk)
Target = 30280(80 points reward)
(R:R = 1:2)

Formula
1% X 2,00,000 = 2000 = You have to buy 50 units (2 lots of BN)
40 40
5 Rules of Risk Management
1)The 1% Rule
(Risk not more than 1% of your capital in each trade)

2)Have a SL(stop loss) in each and every trade(should be in the system, not a mental stop loss)
(maximum SL, 1% of your capital)

3)Never average to your losing position.

(Never add to your losing position hoping that it will turn around)

4)Have a daily limit loss of say max. 2% of your total capital.

(Have a daily limit on your losses, if risk is 1% per trade, if you took 2 trades and both hits your SL, you are done for the day, no
more trades for the day)

5)Have a Strict Risk Reward ratio of around 1:2 per trade.

(More than win rate focus on Risk Reward, If risk reward is 1:2 and your win at least 50% of the time, you are guaranteed
to be a profitable trader)
Preparing and maintaining Trading Journal

A trading journal is a complete record of all your trading activity over time. It consists of 2
things, first, writing down the results of all your trades, second, saving the chart with your
entry/exit marked on it.
Record-keeping is the key to success in every profession or skill; if you want to improve, you
have to record your trades.

Without having a Trading journal you will never be able to analyze it and remember why you
took that trade, unless you have maintained records of all trades.

Trading journal is the one which differentiates Professional traders from amateurs.

And most importantly, it will make you a very systematic trader and once started, you will
enjoy doing it.
Trading journal format
 SESSION -4

TRADING PSYCHOLOGY
Importance of Trading Psychology in Trading

20%

50% 30%

Strategy Risk Manegment Trading Psychology

Successful Trading comprises of 3 parts, in that 50% of Trading success comes from Trading Psychology, not
strategy.
Successful traders are not successful because of some magic indicator but because of right mindset and
discipline.
Many new Traders constantly search for “Holy grail strategy” that can give winning trades all the time,
does it Exist??......NO
Powerful methods to control emotion during Trading

 Have strict Discipline

Trade according to entry/exit rules, never on your emotions…
Focus on following the rules, not on outcome of the trade…
Avoid……
Revenge Trading - (Exit once SL hits, don’t keep fighting with market)
FOMO(Fear of Missing Out)- (if you miss one, another one will come)
Over Trading- (Have strict rule of around 1-2 Trades per day)

 Remind your self, Trading is probability

Trading is probability, any strategy can have loosing streak(4-5 or more) or winning
streak(4-5 or more)
you don’t need to be right each and every time, on the long run you need to be right only 50% of
the time with 1:2 risk reward trade to stay profitable.
 Powerful ways to control emotion during Trading
 Have confidence
Have confidence in your strategy.
Stick to one strategy and master it, don’t jump from one strategy to another strategy.
There is no holy grail strategy, any strategy can fails sometime and hit SL.

 Have Patience, Not FOMO

Wait patiently for right set up, only trade when there is high probability set up/pattern.
When you are in doubt, do nothing, don’t force a trade, don’t have compulsion to trade each day.
(good trader is the one who also knows when not to trade)
Day trader doesn’t mean one has to be constantly trading the entire day taking 10 -15 trades….

 Self Analysis
Do a self analysis on your personality – Ask yourself what’s your weakness ? Are you an impatient
person? Are you a short tempered? Are you Egoistic person? Are you Revengeful?
If answer is YES to anyone of them then work on it, because your personality reflects in your trading.
Highly Recommended Trading Psychology Book
THANK YOU & GOOD LUCK