In this video, we dive into the story of a 23-year-old who made crores by analyzing candlestick patterns in trading. We explore how this individual used this simple yet effective method to generate significant wealth, and discuss the potential benefits and drawbacks of using technical analysis in trading.
Mr Sthitapragyan Pati discusses how to identify the bullish and bearish candlestick patterns when looking at the charts and trading with them. He discusses his trading setup and where to set stop-loss levels when trading with the candlestick patterns. He explains that a bullish candle is a candle whose close is near the high, and a bearish candle is a candle whose close is near the low.
If the length of the candle is more than 0.3%-0.4% of the asset value, we will ignore the candle as the stop loss will become too big, and the target will be more bigger, which might not be achieved on an intraday basis.
His trading strategy includes selling weekly expiry, NIFTY ATM CE or PE, depending upon the candlestick setup. The stop loss has to be kept on the spot chart, and the target has to be set at 1.5 times the stop loss value. He also discusses the position sizing criteria, which should be such that we don't lose more than 1% of our capital on a single trade.
Watch the video to understand further the profitable trading strategy used by Mr Sthitapragyan Pati with the help of candlestick charts and his intraday trading strategy and to uncover the secrets behind this young trader's success and gain insights into the world of candlestick pattern analysis.