🔴 Live | Learn to trade using CPR indicator | Ft. @NiftyTechnicalsbyAK

Welcome to the Session

Introduction of the Guest

• The host introduces Ahmed Ali Khan, an expert with over 14 years of experience in the stock market, known for his work on CPR and PAMA indicators.

• The audience is welcomed warmly, confirming audio and video clarity before proceeding with the session.

Audience Engagement

• The host engages with participants by asking where they are joining from, highlighting a diverse audience from various Indian states.

• Participants introduce themselves, creating a sense of community and connection among attendees.

Understanding Swing Trading

Participant Insights

• The host queries how many participants engage in swing trading, gathering insights into their trading practices.

• Attendees share their methods for swing trading, including the use of indicators and price action strategies.

Importance of Stock Selection

• Emphasis is placed on stock selection as a critical aspect of successful swing trading; understanding which stocks to trade is essential.

• The discussion highlights that while intraday trading can focus on indices like Nifty or Bank Nifty, swing trading requires careful consideration of individual stocks.

Criteria for Stock Selection

Defining Strategy

• The host stresses the need for a clear strategy when selecting stocks; without it, effective decision-making becomes challenging.

• A variety of stocks are mentioned as examples (e.g., HCG, RBL Bank), illustrating the complexity involved in choosing which ones to trade based on defined strategies.

Stock Selection and Trading Strategies

Understanding Stock Selection Criteria

• The speaker emphasizes the importance of selecting stocks based on specific criteria, particularly focusing on moving averages (50 EMA and 100 EMA). Buying decisions are made when these averages are breached upwards.

• The discussion highlights that while indicators like RSI and MACD can be useful, they should not dictate stock selection. A clear strategy must be defined first.

Indicators Used in Trading

• The speaker mentions using two main indicators alongside price action: Central Pivot Range (CPR) and Pivotal Exponential Moving Averages (PEMA). CPR is utilized for weekly and monthly analysis rather than daily.

• Monthly CPR is represented by green dotted lines, while weekly CPR is shown with maroon dotted lines. These help identify potential trading opportunities in swing trading.

Utilizing PEMA for Trend Analysis

• PEMA consists of three EMAs: 13, 34, and 55. It helps traders understand the direction of the trend—whether it favors buying or selling.

• To plot PEMA on TradingView, users need to search for "PEMA" in the indicator section and set the parameters accordingly.

Identifying Buying Opportunities

• In an uptrend, buying should occur at value areas where buyers are present. Price movements typically do not go straight up; they often retrace before continuing upward.

• The speaker illustrates this concept using a chart of NHPC, indicating multiple points where buying opportunities align with PEMA signals.

Analyzing Market Movements with PEMA

• When price retraces during an uptrend, identifying support levels through PEMA can indicate potential buying opportunities if the price bounces back from these levels.

• If a downtrend begins as indicated by a downward slope in PEMA, it suggests selling opportunities may arise.

Importance of Combining Indicators

• While PEMA provides valuable trend information, it should be combined with other indicators like monthly and weekly CPR for comprehensive market analysis.

• The speaker notes that although trends can guide decisions, additional confirmation from other indicators enhances reliability.

Plotting CPR Effectively

• For effective plotting of CPR on TradingView, users can refer to instructional videos available on the speaker's channel to ensure proper setup.

• Understanding how to calculate previous day’s high, low, and close is essential for utilizing CPR effectively without needing to memorize complex formulas.

This structured overview captures key insights from the transcript regarding stock selection strategies using various technical indicators.

Understanding Daily, Weekly, and Monthly CPR in Trading

Daily CPR Calculation

• The daily Central Pivot Range (CPR) is calculated based on the previous day's high, low, and close prices. This helps traders understand today's potential price movements.

Weekly and Monthly CPR Insights

• To determine the weekly CPR, one must consider the previous week's high, low, and close values. Similarly, for monthly analysis, the last month's data is essential to plot this month's CPR.

Yearly CPR Considerations

• For yearly analysis of CPR, traders should look at last year's high, low, and close values to calculate the current year's pivot points effectively. This aids in identifying support and resistance levels for trading decisions.

Relationship Between CP Levels

• The relationship between different CP levels can indicate market trends; if this month's CPR is above last month's level, it suggests an uptrend in stock prices. Conversely, if it's below last month’s level, a bearish trend may be indicated.

Stock Analysis Using CPR

• Analyzing stocks like PNB shows that if both weekly and monthly CP levels are rising together with price movement above these levels indicates a bullish trend; otherwise, sideways movement may occur without significant changes.

Addressing Doubts in Trading Strategies

• Traders are encouraged to ask questions regarding any doubts about integrating various indicators like PEEMA (Pivot Exponential Moving Average) into their trading strategies for better entry points based on support from weekly or monthly CPR levels.

Utilizing Scanners for Stock Selection

• Given the vast number of stocks available for trading daily, using scanners can help identify which stocks meet specific criteria based on their alignment with weekly/monthly CPR structures before making buy decisions. A new swing trading program has been launched to assist with this process by providing strategies and screeners tailored for effective stock selection.

Importance of Retesting Levels Before Buying

• It’s crucial not to enter trades prematurely; waiting for price action to retest key moving averages (like PEEMA) after breaking through resistance can provide more reliable entry signals when combined with supportive indicators such as weekly CPR levels turning green during upward trends.

By following these guidelines around calculating and interpreting various types of Central Pivot Ranges (CPR), traders can enhance their decision-making processes significantly while navigating market fluctuations effectively.

Understanding PEEMA and Trading Strategies

Key Insights on PEEMA and Market Movements

• The support line is crucial; a strong upward movement following a breach of the previous moving average (PEEMA) indicates market strength. Until the lower pivot of PEEMA is broken, this strength remains intact.

• If the PEEMA is too wide, it may signal caution. A tighter, more stacked configuration suggests better trading opportunities.

• For analysis prior to one month, users can utilize TradingView to access historical CPR data that isn't available on some platforms.

• Linking accounts on TradingView allows for seamless trading directly from charts, enhancing user experience by eliminating issues with missing data.

Candle Color Significance in Trading

• The color of candles (red or green) in relation to PEEMA indicates buying or selling signals. Green candles stacked upwards suggest strength and potential buying opportunities, while red candles indicate resistance.

• In swing trading, it's advisable to seek buying opportunities only when prices are above PEEMA and it shows green; otherwise, selling options should be considered.

Utilizing Additional Indicators

• Traders can incorporate additional indicators like 8, 13, 34, and 55 moving averages for more aggressive strategies. These settings provide quicker movements but require careful management.

• While using multiple indicators can enhance results in swing trading, excessive mixing may lead to contradictions and missed opportunities.

Experimentation with Time Frames

• Users are encouraged to experiment with different time frames (daily vs weekly), as well as volume indicators for breakout confirmations which can signal buying opportunities.

• It's important not to overcomplicate strategies by mixing too many indicators at once; simplicity often yields clearer insights into market conditions.

Application of Strategies in Intraday Trading

• Although primarily designed for swing trading, these strategies can also be applied intraday with appropriate skill levels.

• An example from the pharma sector illustrates how monthly CPR lines help identify buying opportunities during intraday trades when price movements align favorably with PEEMA.

Stop Loss Considerations

• When entering trades near PEEMA on a daily timeframe for swings, identifying nearest support levels is critical for setting stop losses effectively.

Trading Strategies and Stop Loss Management

Swing Trading Insights

• The speaker discusses the importance of having a solid support level (CPR) when considering swing trades, suggesting a buy at 263 with a stop loss set at 235, which is 30 points below.

• A valid stop loss is emphasized; if the price drops below 247, the speaker plans to exit temporarily. Resistance levels around 284 and 290 are identified as potential targets for profit-taking.

Profit Booking and Trade Management

• The speaker prefers to trail stop losses as prices rise, indicating that if a breakout occurs from current levels, they will adjust their stop loss accordingly to secure profits.

• If price action shows signs of fatigue at higher levels, the speaker intends to book profits fully rather than risk losing gains.

Audience Engagement and Learning Resources

• The speaker encourages viewers who have lingering doubts to rewatch the video for clarity on strategies discussed. They also promote an educational course designed to deepen understanding of CPR and trading strategies.

• A question about whether CPR-based strategies will be covered in the course is addressed; multiple strategies involving EMA indicators are mentioned as part of the curriculum.

Strategy Implementation Details

• Various strategies using PEMAs and EMAs are shared, highlighting how stocks can move based on these indicators. Specific setups for swing trading using two EMAs are also discussed.

• Caution is advised regarding stocks showing large movements; traders should avoid entering positions after significant candles unless retracement occurs.

Risk Management Techniques

• The speaker shares personal preferences for EMA settings (13, 34, or even 15), emphasizing flexibility in choosing indicators that yield better results based on individual experiences.

• For swing trades, maintaining a risk-reward ratio of 1:3 is recommended. Adjustments can be made if trailing stops lead to favorable outcomes without compromising potential gains.

Conclusion and Community Interaction

• Gratitude is expressed towards participants for their engagement during the session. The importance of community interaction in learning trading concepts like CPR and PEMA is highlighted.

• Viewers are encouraged to check out additional resources offered by the instructor for further learning opportunities related to trading strategies discussed in this session.