1. What is cash flow?
Cash flow means you put in a certain amount of trade and you move it out. Like in daily cash flow you put in your capital for trading in the day and flush it out at the end of the same day. You may get multiple trades in the period in the name of cash flow.
2. My wick is going in the zone just by 5 paise. Should I use this zone?
If the wick of the candle has entered the zone even by a 5 paisa amount, the zone will not remain fresh. If it just touches the proximal line then too you can’t assume it to be fresh, look out for another zone nearby. Always stick to fresh zones!
3. How much in the past should we go?
Try to find a zone in GTF/MTF by going back to 150 candles as it is the sweet spot. Now in MTF you can take an exception to search out the entire region covered between the Demand and Supply Zone in GTF.
4. How many zones should I mark in the chart?
Mark at least two fresh zones on each side, so in case one gets breached you have another in live markets. Doing analysis in live markets is not recommended. Maximum and possible analysis should be done in Off Hours.
5. There is a fresh zone developed in the live markets. Should I use that?
Yes, you need to use that fresh and newly formed zone into account too. Don’t ignore that.
6. Should I be trailing my trade in this strategy?
In the long term, trailing doesn’t give you much profit, but if you really want to trail, do it with *MA20 or Fibonacci levels.
7. In my intraday trade my target hasn’t been reached yet but it's 3 PM. What should I do?
If you have shorted then you need to square it off before market closing, otherwise, be prepared for a penalty from NSE. If you have bought you can extend the trade to the next day by converting it to delivery.
8. There is no corresponding supply zone/demand zone in GTF. What should I do?
If you find only a demand zone in GTF assume it to be low on curve. If you find only a supply zone assume it is high on the curve.
9. There is no corresponding supply zone/demand zone in MTF. What should I do?
If you can't find both the demand and supply zone in MTF, then you can't trade.
If GTF and ITF tell you to short a supply zone is needed in MTF.
If GTF and ITF tell you to long, a demand zone is needed in MTF.
You must be able to find your Entry price in MTF after GTF and ITF analysis. Your stop loss will be determined by ATR when you take entry. So consider the difference between your entry price and SL as one unit and then mark your target as twice this difference in Intraday and thrice in the higher timeframe, above or below as per long or short respectively.
10. There is no base candle but the leg out is explosive. What should I do?
If there is no base candle between leg in an leg out, then you can assume the green or red candle as a base one. Although this is subjective, you need to drop in a mail to support@goelasf.in with the chart screenshot. Mind you; you can also take a base candle and assume it is a coloured one and assume it be a leg in.
11. There is a base candle just after the leg out candle in the zone. What score should I give?
If the candle after leg out is base or of opposite colour than leg out, then give a score of 1 out of 2, in the strength portion of MTF.
12. I missed my entry and now the price has gone into the zone. Should I take the trade?
If you missed your entry it’s better to leave the trade and go for another. There are many opportunities in front of you. Don’t get stuck into the emotions. Better use a Stop-loss order than a Normal order to avoid missing entries.
13. At 9:15 my target has been breached by the wick of the candle. What should I do?
If the 9:15 candle breaches your target marked on a fresh zone of past, no issue, use the same target as it is due to high volatility at the time. But if it breaches your supply zone and hits the stop loss, no need to enter again. Mind you, this is only for 9:15 candle.
14. When should you place you SL?
When markets are not volatile you can place your SL as soon as you get entry. On the contrary if the markets are volatile use 1.5 times ATR as SL and place it after the entry candle has given a close. Use that final value of ATR.
Position Sizer Issue:
We get it. You may be thinking that how can someone buy more shares than the amount we have, and position sizer is telling us wrong. The point you've to focus upon is say you have a capital of 10k and you put the risk at 2%. It means that, you are okay with loosing 200Rs if the trade goes wrong. Now what the position sizer does is it takes the loss over one share (SL% multiplied by Share Price) and divides the loss you can bear by it. So essentially you get the maximum number of shares you can trade with bearing the loss.
Coming to the point how you can buy more than the amount you have is due to the fact that when you do Intraday you are given margin/leverage (extra money by your broker- by default) so you can trade with the higher amount. You just have to close that trade/position on the same day. There are no extra charges. If you don't want to trade extra, simply trade with the amount you have i.e. divide your amount by your share price.