All language subtitles for 1. Type 02 Strategy

Hello, traders hope you're doing well and this session will be discussing about Type two strategy,

which is also called Micro Trend Traders.

This is my most favorite strategy.

Almost 90 to 95 percent of the trade I and my team do is based on type two strategy.

There are two main reasons I use the strategy the most.

The first reason is consistency.

I can confidently tell you the strategy is the most reliable I have ever come across my team and I have

tested the strategy with so many charts and we have noticed that this has given consistent results.

The second reason is it's very frequent type two strategy.

I can easily find five to six training opportunity every day.

When I show you some example, you will be surprised to see how frequently we find opportunities using

Type two strategy.

So let's start off first.

I'll be showing you the difference between Type one strategy and Type two strategy so that it's easy

for you to understand.

Please pay attention to this, because it's going to be very helpful for you so that you do not get

confused between type one and type two strategy.

Traders, do you remember what happens in Type one strategy and type one strategy?

We need three confirmation in total to consider it as a type one strategy, the first confirmation as

the stock has to make an uptrend or a downtrend.

In this example, we will consider that the stock is making an uptrend just like this.

And the second confirmation as the stock has to retreat and act as a third support level traders, let's

consider this as a retracement.

OK, if I draw a support line and show it to you, we can see that the retracement is acting as the

third support.

This is my first support.

This is my second support.

And this is my third support.

That's my second confirmation.

So the third confirmation is at the third support.

We have to get a reversal pattern, which is here.

Once we get all these three confirmation, it's considered as a type one strategy.

Traders hope this is clear to.

Now, let's discuss about type two strategy.

In Type two strategy, we need to confirmation, so let's look into it now.

The first confirmation, the stock has to make an upturn or a downturn.

Let's say the stock is making an uptrend like this after the uptrend.

Let's say the stock retraced up to this level or a small retracement like this, then we consider it

as type two strategy traders.

Can you see the difference between type one and type two strategy and type two strategy?

The stock need not retrace up to the support level.

A small retracement is enough after the small retracement.

So what we do is we draw a trend line like this.

Or like this, and then we wait for a breakup, let's say we go to break, what kind of letters?

Then we enter the street.

We will enter at the height of the blackout candle.

When the candle opens, Stop-Loss will be at the low of the record candle traders.

We will not blindly enter the street just because we go to break out.

There are certain things which we need to pay attention to.

The first and the most important thing which we need to pay attention to in Type two strategy is that

the breakout candle has to have volume confirmation only if the volume confirmation is there.

We will consider type two strategy.

If there is no volume confirmation, we will not enter the.

I just gave you an overview of type two strategy with the help of drawings, but in actual live market,

how does Stepto strategy look?

How to calculate break out, how to check volume?

All this we will be discussing one by one so that you can understand it better.

Once I show you all the examples, it will be so easy for you to understand and you will be able to

easily find trading opportunities.

OK, so now let's go to the line market and we will see type two strategy in line market.

We are in the labor market, so let's check Eminem, Mahindra and Mahindra.

OK.

All right.

Please watch closely.

This became my law.

This became my high.

This became my Hielo.

And this became my.

Gita's if you watch my previous, we do, you know, that low, high, Hielo and High High gives us

an uptrend, correct.

So uptrend is confirmed.

Second thing that we need is a retracement.

So if I draw a trend line like this.

With maximum number of tuchis.

Like this here, I get a breakout out.

This is the Precourt candle.

Before we discuss about the breakout, Kendall, let us understand how to draw a trend line, because

I know a lot of you are confused with that, there is no right or wrong way to draw a trend line.

But the only thing that we need to keep in mind when we draw a trend line, it has to have a maximum

number of touches, body to body like this or week to week collectors.

It doesn't matter.

But when I draw a trend line like this.

I'm getting the maximum number of tuchis.

So this is one, two, three, four, five, six, seven, eight touches.

So if I draw a trend line, there are so many touches that means the market is respecting the trend

line that gives us confidence to trust that trend line.

This trend line is also called the micro trend, because a moment like this and small micro trend and

here we have got a breakout with volume confirmation.

So if I draw a line here.

For the scandal, you can clearly see that there is volume, how we calculate volume as the volume of

the scandal has to be more than the previous scandal.

See, this is the previous scandal.

The volume of the previous scandal is lower than the breakout scandal.

Volume plays an important role when we're working on type two strategy.

OK, if you watch closely, the volume of the breakout scandal is higher than the previous scandal.

The previous candle is green, red, anything we don't care.

Only thing that we pay attention to is the volume of the breakout candle has to be more than the previous

candle.

All these candles before that, we don't care.

Only the scandal, which is before the breakout candle, has to be lesser than the breakout candle.

How much less are 10 percent?

20 percent.

We don't get the breakout candle.

Volume has to be more than the previous candle.

That's what matters to us.

So this is a breakout.

Our entry will be at the height of the breakout candle when the next candle opens.

OK, so this is our entry I Stop-Loss will be at the low of the breakout candle, which is this.

Right.

This is the breakout candle with volume confirmation, so I Stop-Loss will be this.

And our target will be previous swing.

What is the previous one?

This is a previous Twinky.

This is the first type of target.

OK.

So if I calculate that is to reward ratio.

That is to reward ratio for the straighteners two point one.

This was a target, the scandal was a target, so we achieved a target at this level.

So two point one is to reward ratio is good, right?

If you're not happy with the first type of target, then we keep the second type of target.

This one, this was that or this one.

This was our previous target if we take the risk to reward ratio.

It is five point six, which is very good risk to reward ratio.

This kind of revelation can be achieved on a daily timeframe, but very difficult when you're trading

on a longer time frame, like when you're doing intra day, it's difficult to achieve five percent risk

to the world.

So we will be calculating when we calculate the orders to reward ratio.

So this was the first example of Type two strategy in Type two strategy.

First, the stock has to make an uptrend or a downtrend.

Then we draw a trend line with more number of catches and then we check if the breakout candidate is

giving us volume.

Then we enter at the height of the next candle.

Our first type of target will be previous in case the risk reward ratio is not good with the first type

of target.

Then we go with the second type of target, which is this or this.

The next example is Hindustan.

Unilever.

Let's see if we can find a type two strategy trend here.

See, this is my law.

This became my high.

To speak in my Hielo.

And this became my correct.

Uptrend is confirmed, so we have got the first confirmation.

If production line like this.

One, two, three, four, five, Duchesse one is left, that's fine, but we have got maximum number

of touches, so this is a good breakout.

And the breakout is giving us what volume confirmation if I draw a line here.

So this is volume confirmation.

The breakout candle volume is more than the previous candle.

We do not care about the color of the previous candle or we do not care about any of this candle.

The candle is higher than this.

That's all we care about.

OK, so we have got the second confirmation as well.

The first confirmation, iStock made an apparent second confirmation.

We got a breakout.

We have got volume confirmation for our entry will be at the height of the record scandal when the next

scandal opens.

So this will be our entry, right?

This is our entry, so as soon as we get the stakeout, the next scandal opens and we will see what

is the high of the scandal, the high of the blackout.

Scandalous.

You can see it here.

It is two one nine four, so the next scandal, when the price comes to two one nine four.

We will enter the trade, OK, so I Stop-Loss will be at the low of the breakout, Kendall.

With my of placea.

This is a stop loss and our target will be previous Winkie.

So what is swing in this?

This was the previous week, so we will keep that.

Here, if you're not getting properties to reward ratio, then we give the second type of target, which

is.

The previous winner of the previous week, so this was the previous week before that, what was the

previous wing?

Hate this one.

So this will be a second type of target.

Let's check the ratio of the previous wing as of now.

So entry is this right?

Stop-Loss losses here.

Our target is Twinky.

If you check the risk to reward ratio of two point one eight, which is good, right, you're getting

double the money.

What do you invest in?

So it's a very good risk to reward ratio.

But if you consider the second type of target.

It is for.

But most of the time it can be achieved, but when you're already getting a risk to reward ratio of

two point five, you're which is very good.

I don't see any reason for us to be greedy here.

So we will not give the second type of target.

OK, so this was our second example.

Now let's see one or two examples of downtrend type two and then we will see some examples of intraday

timeframe, like two minutes, three minutes or five minutes.

Let's see one example for Tom Tintype two.

I choose this company as an example.

This became my high.

The screen Kandal.

This became my law.

This red candle became my Louhi.

And this green candle became my local career downtrends, confirmed high, low, low by local if I draw

a trend line with maximum number of patches.

I've got to break out with volume confirmation.

This red candle is given a breakout with volume confirmation.

All right, so our entry will be rare at the low of the red candle when the next candle opens.

So this will be our entry.

Stop-Loss will be at the height of the breakout Kandal.

So this is a stop loss.

This is our entry and our target will be previous Windlab.

So this was the previous Findlaw, right?

So let me take a short position and see what happens.

So are properties here, right?

Stop losses here.

If I see the risk to reward ratio is one point five, which is decent, not a problem, but if you're

not happy with the first type of target, you have to choose second type of target to set, second type

of target.

We will see what was the lower swing then the swing.

So this was lower than the swing.

So here we will keep second type of target.

So in second type of target, we are getting a risk to reward ratio of two point seven, which is very

good.

This could have given a very good result for us, so this was one example for downtrend type like this,

you can find so many breakouts all the time.

There is in the same example itself, I can see one more Bricktown.

So let's remove all this.

This became my high.

This became my law.

This weekend, my Luhya.

And this became my local.

Another breakdown.

So if I draw a trend line with maximum number of judges, I've got one, two, three, four, four touches

and then a breakout display code with volume confirmation.

Right.

So what will be an entry and entry will be at the low of this rate breakout candidate when the next

candle opens.

So our entry will come here.

What will be a surplus?

A surplus will be at the height of the record.

Candy, what will be the target?

Our target will be.

Previous to what was a previous wing, this this was the previous wingding, right, but this previous

wing is very small, so we will consider next previs wing.

So if I go back dated and check, this was a previous Findlaw, so this will be our target.

OK, but if I chikara ratio for this, let's see what happens.

What was that entry, an entry was the right.

Stop-Loss losses here.

So what is the problem?

A risk to reward ratio is very less what is the point of taking a trade when we're getting so much less

reward?

Right.

We will keep a privacy then this this was a privacy swingler then, so now we will zoom and considered

this as our target.

And here also we're getting a risk to reward ratio of less than one, which I will personally not trade.

So let's see, what was the previous being lower than this?

This was the previous Swingler, right.

So if I bring it down here.

The story is one point four four, so I'll just zoom out and show you this.

So from your recorded so low, but this kind of one point for restoration can be achieved, right?

So that is why we are taking this risk.

So this will be a target, just as I hope you have understood, downtrend type two examples which have

shown to you.

OK, now let's see some examples how to trade with type two strategy on intraday.

OK, before that, it's very important that, you know, the rules of enshrouding, which we have already

shared in this lecture, I suggest you to go back and watch that and then report those examples which

will be showing to you.

That is when you will get more clarity while trading on intraday, because some of the things which

I had discussed and the intraday rules we do, I will be mentioning that there should not be getting

confused.

So watch that video first and then you come back to this and what some examples of Type two strategy

on intraday, how to trade with intraday traders.

If you watch the intraday rules, we do know that there are two important rules.

The first rule is we should keep a buffer to a stop loss because big players can come and if they make

a balcatta, it might hit stop.

So when you're working on one minute, two minutes, three minutes, four minutes, five minutes, you

have to go to your stop loss, OK?

Second thing was we will not consider privacy data if you are working on a longer time frame.

So we are working on one minute, two minutes, three minutes, four minutes, five minutes, up to

10 minutes.

You should not consider previous data.

So what it means is today, the data's August 28, OK, when I'm working on intraday, whatever happened

yesterday or the day before yesterday or anything before that, it doesn't matter to me.

Only thing that matters to me is I will use this data only to set my target.

The first thing is previous data only to set a target and stop losses.

And second, we need to give Buffer to stop loss when we're working on a longer time frame.

So let's say that they begin to.

Twenty eight of August.

The day started here, right?

This became my law.

To speak in my high.

This became my Hielo and this became my height to screen Candlebark in my right.

So if I draw a straight line like this with maximum number of touches, right, I get a breakout.

This breakout is giving me volume confirmation.

So the volume is more than the previous candle.

Right.

The Prekop candle volume is higher than the previous candle.

So this is a clear breakout with volume confirmation right now are entry.

Where will it be at entry will be at the height of the breakout candle I.

Stop-Loss will be at the low of the breakout candle.

But if you're working on it today, the rule is we have to give Buffer.

So Buffer will be here or here.

We can.

This will be our buffer previous data and our target will be revisiting what is our previous high.

This is a previous Twinky, right, so we will keep this as a.

So forgive this hashtag target.

And I come back here, check my desk to reward ratio, that is to reward ratio is one point three,

which is good, right?

So in the same data itself, if I consider.

Different religious law.

And right here, if I draw a train line.

I'm getting a break out.

Right, if you just Putera ratio and check.

And we will be here prickled with volume confirmation.

All right.

So with the buffer.

Surplus previous VENKI, which is one point forty nine good rest of the world.

All right.

So we can enter the street traders.

Let's see how the market reacts when we use a title strategy in stocks which are abroad.

For example, I'm using Facebook in cooperation and I'm using three minutes time frame.

OK, let us see how it works.

So this is my high.

This is Milo.

This is my Lobi.

This one is my lobolo.

Downtrend is confirmed right now, what we have to do, we need to draw a trend line and wait for breakout

with volume confirmation.

And next, we got a breakout, the breakout was with volume confirmation, right, so an entry will

be at the low of the breakout, Kendall, when the next scandal opens.

So we have got a new Kendall, right?

Entry would be your.

This will be our entry, what will be a stop loss?

Stop-Loss will be high of the breakout country.

That's what we have learned.

But if you're working on it today, we need to give before, correct.

So buffer up to this.

This is a Stop-Loss and Tristesse stop loss.

Is this what will be our target?

Our target will be previous swing low.

What was previous swing low here?

This was previous Swingler, correct?

This will be the first type of target.

So our first type of target.

If I put this to reward ratio calculator and see we're getting a reward of zero point seven two, which

is not great.

All right.

So in this case, we can put a second type of target.

A second type of target was previous Windlab.

What was the previous to include in this?

This one, right?

So if I draw a trend line for this.

So if I keep second type of target like this.

Let's see what happens.

The stock touched our first type of target.

It went down.

It achieved a second type of target.

And the market went up.

So what happens after to achieve our target?

We do not care all this future information is not needed for us because our entry was here, our target

was second type of target, which is here.

A stop loss was here.

It came.

It achieved our target and it's given us profit one point zero.

It is a good risk to reward ratio if even if I push a little more, don't let us.

And then if you see the risk to reward ratio.

It will be even more.

One point four five, which can be easily achieved on lower timeframe, right?

So this is how the strategy works.

It doesn't matter if you're staying in India, you're staying in the US or you're staying in Canada.

It doesn't matter.

All the strategies which I am teaching you as universal.

All the stock market happens with candlestick patterns only, right?

So obviously the methods, what we do, it works internationally throughout the world.

I put the strategy in replay mode and showed you so that you get an understanding as to how we calculate

breakout, where will be our entry, where will be our stop loss and how the market responded to our

strategy.

Jurors in this video, we have seen two strategies, which is uptrend type two and downtrend type two.

We have seen for higher timeframe and lower timeframe as well.

Traders, there are some common mistakes which people do when they're working on Type two strategy.

So we have a separate video for that.

I suggest you to watch that video and then implement type two strategy in your actual market so that

you do not end up doing the same mistakes which other people have done.

OK, so we need to learn from common mistakes so that we don't do that mistake in the future.

Hope this topic is clear to you.

I'll see you in the next lecture.