Module 2 Technical Analysis

Chapter 20

Supplementary Notes 1

806

SN-Cartoon

Average Directional Index (ADX)

About:
The Average Directional Index (ADX), Minus Directional Indicator (-DI) and Plus Directional Indicator (+DI) represent a group of directional movement indicators that form a trading system developed by Welles Wilder. The Average Directional Index (ADX) measures trend strength without regard to trend direction. The other two indicators, Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI), complement ADX by defining trend direction. Used together, chartists can determine both the direction and strength of the trend. Source: stockcharts.com

What should you know?

  1. ADX system has three components – ADX, +DI, and -DI
  2. ADX is used to measure the strength/weakness of the trend and not the actual direction
  3. ADX above 25 indicates that the present trend is strong, ADX below 20 suggest that the trend lacks strength. ADX between 20 and 25 is a grey area
  4. A buy signal is generated when ADX is 25 and the +DI crosses over –DI
  5. A sell signal is generated when ADX is 25 and the –DI crosses over +DI
  6. Once the buy or sell signal is generated, take the trade by defining the stop loss
  7. The stop loss is usually the low of the signal candle (for buy signals) and the high of the signal candles ( for short signals)
  8. The trade stays valid till the stoploss is breached (even if the +DI and –DI reverses the crossover)
  9. The default look back period for ADX is 14 days

On Kite:
Load the ADX indicator from studies. Kite gives you an option to change the look back period, by default the look back period is set

Image 1_ADX

You can customize the color of all the three components of the ADX system. Click on ‘create’ to load the indicator –

Image 2_ADX_loaded

By default the ADX indicator is loaded below the instrument. The black line represents ADX, ensure it is above 25 while looking for the crossovers.

Alligator Indicator

About:
An indicator designed to signal a trend absence, formation and direction. Bill Williams saw the alligator’s behavior as an allegory of the market’s one: the resting phase is turning into the price-hunting as the alligator awakes so that to come back to sleep after the feeding is over. The longer the alligator is sleeping the hungrier it gets and the stronger the market move will be. Source: infimarkets.com

What should you know?

  1. The Alligator indicator is overlaid on the price chart
  2. The indicator is made up of three simple moving averages – 13, 8, and 5 period averages are used
  3. The 13 period MA refers to the Alligator’s jaw, 8 period MA refers to the Alligator’s teeth, and the 5 period MA refers to the Alligator’s lips
  4. By default 13 MA is colored blue, 8 MA is colored red, and 5 MA is colored green
  5. A buy signal is generated when the following condition is satisfied –
    1. All three MA’s are separated
    2. The price is above the 5MA, 5MA is above 8MA, and 8MA is above 13 MA
    3. Once the above condition is satisfied, it means that the asset is trending up
    4. When the uptrend is established, it is upto the trader to identify a good entry point within this trend
  6. A sell signal is generated when the following condition is satisfied –
    1. All three MA’s are separated
    2. The price is below the 5MA, 5MA is below 8MA, and 8MA is below 13 MA
    3. Once the above condition is satisfied, it means that the asset is trending down
    4. When the downtrend is established, it is upto the trader to identify a good entry point within this trend
  7. Periods when the 13, 8, and 5 MA are intervened (or moving flat) is considered a ‘no trader’ zone and therefore the trader is advised to stay out of markets

On Kite:
Load the Alligator indicator from the studies. As you can see the default values of the moving averages are loaded i.e 13, 8, and 5.

Image 3_Aligator_load

As you can see, the indicator input also loads the ‘offset’ values for each MA. These offset values are also loaded by default values. Offsetting or displacing the moving average reduces the number of whipsaws in the average. Needless to say that you can change the default values for moving average and offset to any value that you deem appropriate. Further you can even customize the color of each indicator to your preference.

Here is the snapshot of how the indicator looks when the indicator is overlaid on the chart. Do notice there are 2 instances when the sell condition is satisfied (highlighted in red) and 1 instance when the buy condition is satisfied (highlighted in blue).

Image 4_aligator overlay

Aroon

About:
Developed by Tushar Chande in 1995, Aroon is an indicator system that determines whether a stock is trending or not and how strong the trend is. “Aroon” means “Dawn’s Early Light” in Sanskrit. Chande chose this name because the indicators are designed to reveal the beginning of a new trend. The Aroon indicators measure the number of periods since price recorded an x-day high or low. There are two separate indicators: Aroon-Up and Aroon-Down.

A 25-day Aroon-Up measures the number of days since a 25-day high. A 25-day Aroon-Down measures the number of days since a 25-day low. In this sense, the Aroon indicators are quite different from typical momentum oscillators, which focus on price relative to time. Aroon is unique because it focuses on time relative to price. Chartists can use the Aroon indicators to spot emerging trends, identify consolidations, define correction periods and anticipate reversals. Source: stockcharts.com

What should you know?

  1. The indicator measures the number of days since last high or low is made, hence the indicator is a measure of time relative to the price
  2. Aroon consists of two component – Aroon up and Aroon Down
  3. The default value for Aroon is 25 days. Aroon up measures the number of days since the last 25 day high occurred and Aroon down measures the number of days since the last 25 days low has occurred
  4. Both Aroon up and Aroon down are plotted side by side
  5. Aroon Up/Down is lower bound to zero and upper bound to 100
  6. A buy is generated when Aroon up is above 50 and Aroon low is below 30
  7. A sell is generated when Aroon down is above 50 and Aroon up is below 30

On Kite:
Here is the snapshot of the indicator when loaded from studies –

Image 5_aroon load

As you can see the default period is 14, feel free to change this to any number you wish. 14 here represent the ‘number of days’. Do remember if the period is 14, the Aroon measures the number of days since the stock made 14 days high/low.

Image 6_Aroon applied

As you can see both Aroon up and Aroon Down are plotted.

Aroon Oscillator

Aroon Oscillator is an extension of the Aroon indicator. The Aroon Oscillator measures the difference between the Aroon up and Aroon down and plots the difference in the form of an oscillator. The oscillator swings between -100 to +100, with the ‘0’ level as the center point.

The snapshot below shows the Aroon Oscillator loaded on to the chart –

Image 7_Aroon Osc

A reading above zero means that Aroon-Up is greater than Aroon-Down, which implies that prices are making new highs more recently than new lows. Conversely, readings below zero indicate that Aroon-Down is greater than Aroon-Up. This implies that prices are recording new lows more recently than new highs.

As you can see, the Aroon Oscillator is either going to be positive or negative the vast majority of the time. This makes interpretation straight-forward. Time and price favor an uptrend when the indicator is positive and a downtrend when the indicator is negative. A positive or negative threshold can be used to define the strength of the trend. For example, a surge above +50 would reflect a strong upside move, while a plunge below -50 would indicate a strong downside move. Source: stockcharts.com

Average True Range

About:
Developed by J. Welles Wilder, the Average True Range (ATR) is an indicator that measures volatility. As with most of his indicators, Wilder designed ATR with commodities and daily prices in mind. Commodities are frequently more volatile than stocks. They were are often subject to gaps and limit moves, which occur when a commodity opens up or down its maximum allowed move for the session. A volatility formula based only on the high-low range would fail to capture volatility from gap or limit moves. Wilder created Average True Range to capture this “missing” volatility. It is important to remember that ATR does not provide an indication of price direction, just volatility. Source: stockcharts.com

What should you know?

  1. Average True Range (ATR) is an extension of True Range concept
  2. ATR is not upper or lower bound, hence can take any value
  3. ATR is stock price specific, hence for Stock 1 ATR can be in the range of 1.2 and Stock 2 ATR could be in the range of 150
  4. ATR attempts to measure the volatility situation and not really the direction of the prices
  5. ATR is used to identify stop loss as well
  6. If the ATR of a stock is 48, then it means that on average the stock is likely to move 48 points either ways up or down. You can add this to the current day’s range to estimate the day’s range. For example the stock price is 1320, then the stock is likely to trade between 1320 – 48 = 1272 and 1320 + 48 = 1368
  7. If the ATR for the next day decreases to say 40, then it means that the volatility is decreasing, and so is the expected range for the day
  8. It is best to use ATR to identify the volatility based SL while trading. Assume you have initiated a long trade on the stock at 1325, then your SL should be at least 1272 or below since the ATR is 48
  9. Likewise if you have initiated a short at 1320, then your stoploss should be at least 1368 or above
  10. If these SL levels are outside your risk to reward appetite, the its best to avoid such trade.

On Kite:
As you can see, the default value of ATR is 14, which means to say that the system calculates the ATR for the last 14 days. Of course you can change this to any value to wish. Here is the snapshot –

Image 8_ATR_load

Once you load the chart, ATR is plotted below the price chart as seen below –

Image 9_ATR_create

So the next time you place a stoploss make sure you check the ATR value to see if stoploss level is relevant. You may also want to read more about volatility and its application (including volatility based SL) – Click Here

Average True Range Band

The ATR bands are an extension of the ATR concept. The idea is to plot an envelope around the stock price to evaluate if the stock prices are behaving “normally” or trending in a particular direction. In order to do this, the ATR band calculates the upper and lower band.

What should you know?

  1. The ATR band calculates and plots the upper and lower envelope around the stock price
  2. To begin with a moving average of stock price is calculated
  3. The ATR value is added to the moving average value, and this forms the upper envelop
  4. The ATR value is subtracted to the moving average value, and this forms the lower envelop
  5. If the stock price penetrates either the upper or lower envelop, then the expectation is that the stock price will continue to move in the same direction. For example if the stock price has penetrated above the upper envelop, the expectation is that the stock will continue to move higher
  6. You can even use the ATR bands as an alternate to the Bollinger Band trading system. You can read more about the Bollinger Band (section 15.2)

On Kite:
When you load the ATR band from studies, you will be prompted for few inputs –

Image 10_ATRB_load

Period refers to the MA time frame; the default value is 5 days. You can change this to whichever time frame that you deem suitable. We would suggest you ignore ‘shift’ parameter. For the ‘field’ option select ‘close’, this means to say that you are plotting the MA values on the closing prices. The rest of the options are mainly aesthetic features, feel free to explore them. Once you click create, you will see the ATR bands plotted on the chart.

Image 11_ATRbands_created

Super trend

Before understanding the supertrend indicator, understanding the ATR is necessary as super trend employs ATR values to calculate the indicator values. The supertrend indicator is plotted over the price chart of the stock or the index. The indicator line changes its color between green and red based on the price moment in the underlying. Super trend does not predict the direction, rather once the direction is established it will guide you to initiate a position and suggests you to stay in the position till the trend sustains.

What should you know?

  1. When plotted, the supertrend indicator appears like a alternating green and red continuous line
  2. A buy signal is generated when the stock/index price turns greater than the indicator value. At this stage, the indicator color turn green and you can also see a crossover of the price versus the indicator (price greater than indicator value)
  3. Once the long position has been established, the trader is advised to hold the position till the price closes below the green line. So in a sense the green line helps as a trailing stoploss for the long position
  4. A sell signal is generated when the stock/index price turns lesser than the indicator value. At this stage, the indicator color turn red and you can also see a crossover of the price versus the indicator (price lesser than indicator value)
  5. The sell signal can be used to initiate a fresh short or exit long. Although waiting for the sell signal to exit the existing long position can sometime lead to taking a loss. So the trader should use his discretion here
  6. Once the short position has been established, the trader is advised to hold the position till the price closes below the green line. So in a sense the red line helps as a trailing stoploss for the short position
  7. Supertrend is basically used to identify a trend therefore it works best in a trending market
  8. The supertrend indicator when compared to a regular Moving Average trading system generates fewer false signals, for this reason the super trend indicator is preferred over a Moving Average trading system

On Kite:
When you select Supertrend indicator from the list of studies you will be prompted for two inputs – Period and Multiplier.

Image 12_supertrend load

Period refers to the ATR number of days. The default value on Kite is 7, which means to say that the system will calculate the ATR value for the last 7 days. You can input any value you deem suitable.

The multiplier refers to a value by which the ATR will get multiplied. The default value on Kite is 3, so whatever is the value of ATR, it will get multiplied by 3. Multiplier is a crucial input for Super trend. If the multiplier value is too high, then lesser number of signals are generated. Likewise if the multiplier value is too small, then the frequency of signals increase, hence chances of generating false trading signals are quite high. I would suggest you keep this value between 3 and 4.

Once the indicator is plotted, this is how it appears on the chart –

Image 13_supertrend_create

Notice how the indicator changes the color as the price moves. Also, whenever the buy/sell signal is generated green and red arrows are generated (respectively) prompting the trader to go long or short on the stock.

Volume weighted average price (VWAP)

VWAP is one of the one of the simplest indicators to use. It works on the principle of averaging the traded price in terms of volume traded. Let me give you an example of to help you understand this better.

Here is how Infy traded between 14:30 and 14:35 on 2nd Nov 2016 –

image-14_vwap

The data is quite simple to understand, for example, at 14:32, 2475 shares were traded, it made a high of 983.95, low of 983, and closed the minute at 983.1.

Now, we use this data and compute the VWAP price. In order to do this, we calculate the following –

  1. Typical price = which is the average price of High, Low, and close
  2. Volume Price (VP) = we get this by multiplying the typical price with its volume
  3. Total VP = This is a cumulative number, which is got by adding the current VP to the previous VP
  4. Total volume = This is again a cumulative number, which is got by adding the current volume to the previous volume
  5. VWAP = We get this VWAP number by dividing the Total VP by Total Volume. The resulting number indicates the average traded price, weighted by volume.

Let’s do the math on Infy data –

image-15_vwap

As you see, the VWAP is a dynamic number, changing based on how the trades flow in.

How to use the VWAP?

  1. VWAP is an intraday indicator, use it on minute charts. Often when you plot this, you will notice a jump at 9:15 AM, when compared to previous day’s data. Ignore this jump as it means nothing
  2. VWAP is an average and like any indicators employing averages, this too lags the current market price
  3. VWAP is used for 2 main reasons – to get a sense of intraday direction and to get a sense of the efficiency of order execution
  4. If the current price is below VWAP, then the general opinion is that the intraday trend is down
  5. If the current price is above VWAP, then the general opinion is that the stock is trending higher
  6. If the VWAP lies in between the high and low, then the expectation is that the stock will remain volatile
  7. If you intend to short a stock, then it is considered an efficient fill if you short the stock at a price higher than VWAP
  8. Likewise, if you intend to go long on a stock, then it is considered an efficient fill if you go long at a price lower than VWAP

On Kite:

Open the chart of your preference and select VWAP from the studies drop down –

image-16_vwap

Note, VWAP can be applied only on intraday time frame and cannot be applied on EOD data.

Once you select the time frame (1 min, 5 mins, 10 mins etc), the engine calculates the VWAP and plots it on the chart as an overlay.

image-17_vwap

You can now visualize the VWAP and the current market price and plan your trades accordingly.

 

806 comments

  1. Adam says:

    In the supertrend example, if we would have waited for crossovers to exit, we would have suffered losses(or at least would have lost most of our profits) so is there a better exiting strategy?

    • Karthik Rangappa says:

      Maybe in this case, but generally speaking the indicator allows you to capture a chunk of the trend. Larger the trend, higher the number of points you can capture.

      • sathish says:

        Changing the components colour is possible?In above screenshots green,red widely used how can i on kite?

        • Karthik Rangappa says:

          You can explore the themes in Kite and select colours based on your preference.

          • Devashish says:

            Supertrend in Zerodha works on close basis. Is there a possiblity of introducing Supertrend on HIgh/ Low basis ? Since stops etc ultimately get triggered on levels determined by actual high/ lows and not close

            thanks

          • Karthik Rangappa says:

            Not sure if this can be done, Devashish. The indicators come from 3rd party sources and I believe they are hard coded. Let me check this though.

    • limesh mishra says:

      hey adam
      a would suggest you just take a target of 0.5 rs thats it and trade multiple times rather than trying to generate a big profit from a single trade

  2. Vipul Karde says:

    I think Super Trend is the best indicator or what I would say as super Profit machine. We should see first identify the 30 min Super Trend Signal – whether buy or sell and then see 5 min Super Trend signal line to enter the trade as per the 30 min Signal. Eg. if 30 min signal is in sell mode (red line above), then in 5 min mode take every sell signal that comes with stoploss of 5 min signal line. I have minted tons with this strategy hence sharing. Karthik Sir can elaborate further if there are any chinks in this strategy. Alternatively you may combine any longer term time frame to judge primary trend and take decision as per shorter time frame supertrend eg. 1 hr – 10 mins 🙂 Thank you

    • Khyati Verdhan says:

      Hi vipul
      Your strategy is good and works well in trending and low volatile market but in range bound market with high volatility it sometime fails. So I feel if we combine it with some other indicators like donchain channel, SMI, the result would be far more better.

    • Karthik Rangappa says:

      Vipul, if the strategy is working fine with you, then best not to tamper with it 🙂

    • ShreyaDR says:

      Vipul, do you mean keep on averaging >>if 30 min signal is in sell mode (red line above), then in 5 min mode take every sell signal that comes with stoploss of 5 min signal line>>

      • Vipul Karde says:

        First of all thanks to Karthik sir for his guidance & khyatiji for appraisal. What i meant by this strategy was take every long term signal i.e buy or sell signal on 30 min chart. In case of 5 min duration enter and exit as per 5 min chart signal. Please dont average especially in case of options it may not work due to decay in premiums. I normally believe in booking timely profits hence not encouraging average stuff.. all the best. 🙂

        • Karthik Rangappa says:

          Just to add – averaging on your losing trade is not advisable at all. On the other hand, one should look at averaging on winners.

        • Dileep says:

          What happens when Sell signal appears in 5 mins chart after you have entered into trade looking at buy signal in both 30 mins and then 5 mins. Are you going to square off buy trade or keep it open until new signal appears in 30 mins chart?

          • Karthik Rangappa says:

            You should go with the primary time frame – if the decision was based on 30 mins, then its best to stick to the 30 mins time frame.

          • Dileep says:

            I have tried it but failed badly. lost 27490 in a single trade. It does not give signal in correct direction. nothing is guaranteed.

          • Karthik Rangappa says:

            Absolutely, nothing is a guarantee. The only thing that comes close is constant learning and improvisation.

          • Vipul Karde says:

            Felt sorry for the losses that you incurred. See basically my ideology is take all the primary time frame & trend signal & in case you have missed it then switch to lower timeframe and take the signals equivalent to primary time frame. Hope not confusing ! Also you should have defined risk taking & risk management discipline planned in advance only before trade entry.
            As Karthik Sir mentioned that in the market you might be equipped by numerous tools, but dont take anything for granted & guaranteed. Proper Trade Discipline & Stoploss would always save the skin. Nevertheless you can always cover up your losses. Don’t be disheartened. 🙂

          • Dileep says:

            What I have observed over a period of time, what signal Supertrend gives after 10-15 minutes, the same signal appears in Parabolic SAR 10-15 minutes before. SO you will certainly get much better price than Supertrend. So far, PSAR has been the best indicator ever I have come across.

          • Dileep says:

            As far as accuracy is concerned, Both Supertrend and PSAR will give same accuracy. But you can catch more points in PSAR.

        • ShreyaDR says:

          Vipul, when you say “timely profit” and since you trade intraday, can you pls. explain your strategy, with the help of charts ( flashback feature from Q)? how & when you book ur profit or how & when you book ur losses?

          • Shiva nand Mishra says:

            Sir what is PSAR which is like super trend indicator.
            Please reply

          • Karthik Rangappa says:

            Parabolic SAR or PSAR is a series of dots placed above and below the price of the stock, indicating buy and sell trades. This is a momentum indicator. It is much less complicated compared to a supertrend.

    • Gaurav says:

      Try to use Heikin Ashi chart and then use your strategy. Test this on some previous data, and tell if it gives better signals.

    • Sutharsan Shanmugasundaram says:

      Vipul – while using 5 mins time frame, do you close out each day before 3:30 PM ? Because I think overnight position could be very dangerous for short time frames.

    • chandramouli says:

      Mr. Vipul, could you please elaborate the logic of identifying the signal on 30 min time frame and then placing a stop loss on the 5 min candle

    • anand says:

      I did not understand how to use supertrend signal .
      how long to wait for going long on the stock if signal shows green crossover .
      what should be target and stoploss when using supertrend signal .

      • Karthik Rangappa says:

        Anand, have discussed supertrend in detail in the note including all the questions you’ve asked. Suggest you give it another read, thanks.

    • Raviraj says:

      What is the target

    • Anish says:

      Thank you Vipul for this strategy.

  3. Lijoo says:

    Sir, What is SMI & Donchain Channel ?. Is it available in pi an in kite ?. Can you elaborate both ?.

    DL 0071

  4. Khyati Verdhan says:

    Hi kartik
    Thanks for this supplement notes on indicators. It is very useful and knowledge gaining too. Will you give such description on other indicators and chart pattern on kite, it would be very helpful. Also. Kite app can also contain all features of web based platform??

  5. ShreyaDR says:

    gr8 article. Can you please explain types of charts & its utilization too? i.e. heiken Ashi, point & figure, range bars, Renko etc.

  6. Khyati Verdhan says:

    Hi kartik,
    I am little confused. Please clear my doubt.
    In kite, if I place a buy order with no trigger price then it buys at market price but if we give trigger price then buy when price reaches that price. Also if I want to buy at higher price than CMP but only when CMP reaches that price what should I do???
    Is This concept applicable in case of placing stop loss. Can I need to place separate order for stoploss

  7. Sainudheen says:

    Sir, Which is the best period and Multiplier number for Checking Current Super trend for intraday trading, and for positional trading which is the best period and Multiplier number.
    Thank you

  8. Sainudheen says:

    Thanks sir

  9. Khyati Verdhan says:

    When kite app would launch???

  10. Khyati Verdhan says:

    Hi kartik
    What will be expire date of these contract. Is its trading same as nifty

  11. Suresh kumar says:

    Hello.. Is the supertend indicator enabled in the pi software.. How to enable the same..

  12. aehsan4004 says:

    i need some indicator to use for making short-term equity CNC trades ( i will hold at the max 10 days only , not more ) ….. which one is best ?

  13. Khyati Verdhan says:

    Hi kartik
    I very much like kite beta. Its very better than previous mobile app

  14. Sainudheen says:

    Sir, which is the most reliable and accurate indicater according to you, Thanks

    • Karthik Rangappa says:

      Each one is different and varies across time frame. However I do have a greater conviction in simple moving averages.

      • Shrenik says:

        Hi Karthik,

        I use EMA crossovers for positional trading and most of the time I see that my profits are eroded by half upon exit. Though its a winning trade, but I see there is some scope for improvisation.
        Any way of getting either a stop loss or a trailing stop loss while trading with EMA Crossovers?

        Thanks
        Shrenik

        • Karthik Rangappa says:

          Yup, you can always enter the trade based on EMA crossover and once the trade starts moving in your direction, start trailing it…your exit will be far better this way.

          • Shrenik says:

            Hi Karthik,
            Your assurance adds confidence. 🙂

            Any particular way/method to trail the stop loss ?

            Thanks
            Shrenik

          • Karthik Rangappa says:

            No particular way as such. The best way is to increase the trail by 0.5% for every 1% move in your direction.

  15. Sainudheen says:

    Sir , Simple Moving Average can i take time frame of 5 days and 35 days crossover for intraday trading , or something better than this according to you for intraday trade sir . Thanks

  16. Sainudheen says:

    Sir, Supertrent indicater gives late buy and sell signal , as compare to MACD and ADX , do we need to change the Period or multiplier or Can we use defalut (7,3) combinations.
    Thanks sir

    • Karthik Rangappa says:

      Works extremely well when the markets are trending. If the markets are flat, irrespective of which momentum indicator you use, you will get wrong signals.

  17. Sainudheen says:

    Sir, Which is the best candle to refer Heikin-Ashi or Normal Candlesticks patterns.
    Thanks

  18. Dileep says:

    are you aware of problem with KITE? We can not modify the order. Not quanity. Not type. So I just cancel the order and place new one. But this is definitely a bug.

    • Karthik Rangappa says:

      Kite works like a charm, you can easily place and modify orders. Please have a word with our support team to figure out how.

  19. atul.bhagat says:

    Dear Karthik Sir
    When a buy signal is generated by a supertrend indicator should we immediately go long at the market price or should we wait for the close of the candle (eg in a 5 min intraday chart) .Also how to determine the stoploss for a buy/sell signal generated by supertrend indicator.

    • Karthik Rangappa says:

      I’d personally prefer to wait for the close of the candle. As far as SL is concerned, I’d suggest you trail it as you would be locking in profits as and when the stock/index moves in your favor.

  20. K R ANAND says:

    Dear Kartik, thanks a lot for your precious efforts. I would just want to know which other indicators should I add with Supertrend so as to escape false signals (or at least minimize it) generated in the flat market.

    • Karthik Rangappa says:

      I find two indicators useful to identify trends – simple moving averages and ADX. Also, you can use support and resistance to know if the markets are flat or trending. For example the markets between 3rd to 17th March was kind of sideways b/w 7400 to 7550…and you can identify this with simple S&R on daily charts.

  21. K R ANAND says:

    Thanks Kartik

  22. Alok says:

    Sir,
    Is Pivots points mentioned in kite are same support and resistance.
    According to you which pivot is better standard or fibonoci
    Thanks
    Alok

    • Karthik Rangappa says:

      Pivot method is a way of identifying S&R, its not the same as like plotting it on graph. Both are good, really depends on the market situation.

  23. Alok says:

    Sir,
    According to your vast experience how many minutes candle one should look for intraday trading(Both for price action candlesticks and 9 by 21 SMA)
    Thanks
    Alok

  24. Alok says:

    Sir,
    I have read so many books of famous writers on Stock market, but the way you had explained is marvelous. Thanks for sharing your knowledge. Could you pl. explain the breakout strategy and how to calculate entry and exit levels(targets) .
    Thanks
    Alok

  25. Sainudheen says:

    Sir,
    I have a doubt on Stop loss, Sir how to set a stop loss on particular stock while day trading ,
    Can you please explain with an examples,
    Sir which indicater can provide SL , Can i take pivot point support as SL .
    Thanks

  26. R Raman says:

    Great explanations.. Looking forward to the day when other indicators will be added – especially MACD and MACD Histo – and how that can be used with MA crossovers for a simple strategy….
    Thanks!

  27. Dileep says:

    i have a doubt over timeframe of 30 minutes chart. You are closing 9:15am tick at 9:30 not 9:45. but when i refer to same chart later, it shows 9:15, 9:45 correctly which is wrong. 9:15 tick must close on 9:45 not 9:30 otherwise whole chart goes wrong. You can nifty chart for example tomorrow to verify my point.

    • Karthik Rangappa says:

      Where are you seeing this Dileep? If you are with Zerodha then both Kite and Pi will reflect closing at 9:45 AM for the the 30 mins chart.

  28. Dileep says:

    please do not disclose personal details and trade details to 3rd party in any situation.
    is it possible to add sl and target 1 2 3 on supertrend chart when it generate new signal. that will help a lot.

    • Karthik Rangappa says:

      Not sure, as these indicators come as a standard package.

      • Dileep says:

        I have also mentioned about personal details and trade details since it was compromised recently. Someone from Hyderabad “Sri Mahalakshmi Enterprises” and R.SATHYANARAYANA AND B.RAMANI IYER – these people have obtained my address and trade details from your call center or some sources. They have even mentioned I have traded in forex. How come these confidential gone out? You need to enhance IT security and compliances. Those are fraudsters and I am one of the victim. I recommend Zerodha should send a circular to all customers so that nobody else become victim. They are working for some broker in chennai. They will try to harm other brokers and businesses.

        • Karthik Rangappa says:

          Dileep, we are curious to know more about this, can you please mail me your phone number? my email id is karthik.r at zerodha dot com. Thanks.

  29. Alok says:

    Sir,
    Could you pls explain how to pre determine whether it is continuation pattern or reversal pattern, as sometimes its just small pullback.

    Thanks
    Alok

    • Karthik Rangappa says:

      It would be hard to do this, the only way to figure this out is by experience. However, sometimes volumes give some information…for example a pullback if associated with low volumes can indicate a possible reversal.

  30. Alok says:

    Sir,
    This has been found that in some cases after candlestick hike for any stock followed by hammer , reversal starts, is this related with volume because as per price action inverted hammer should follow uptrend for reversal and vice versa

    Thanks
    Alok

  31. civils.aditya says:

    Hello Karthik,

    Last year, I started new after reading Varsity and earned few bucks. I traded NIFTY NFO Intraday. Similar to some other stories, I lost much more than I earned. Mostly because:
    1) I wasn’t able to make a clear analysis of market
    2) Didn’t have any strategy (like hedging)
    3) Lack of clarity and a desire to earn led me to getting emotional with market
    4) Emotions took a hold and I lost huge sums
    And finally had to give up.

    I’m in software industry right now with 8.5 years of experience but really want to get into trading, now sensibly and slowly.

    Could you please guide me how can I approach towards analysing the market.
    I’m starting the Varsity again but that’s just technical analysis, I also want to learn analysing the market based on the news we get from the markets. How can I do that.
    Also, with your experience, do you have any honest suggestion for me?
    I want to honestly start again. Looking forward for your reply.
    Thank you.

    -Aditya

    • Karthik Rangappa says:

      Please take my advice – concentrate on your software profession as you have valuable experience of nearly 9 years. Dont get into active trading. Start investing small amounts for long term duration, once you are comfortable with this move towards making overnight short term bets. My guess is it will take you few years to get to this stage.

      • civils.aditya says:

        Thank you Karthik…
        Regarding Investing, what do you suggest should be my starting point.

        • Karthik Rangappa says:

          Analyse the business, analyse the financial statements, develop an investment conviction …and the finally go ahead and invest. Invest with a long term perspective and nothing short term.

  32. tanmoy says:

    Hi Karthik, I don’t see chapter 19 (Final checklist)

  33. Sainudheen says:

    Sir,
    Candlestick pattern do we need to check 1 day candle or can we check 5 minutes candle and take a decision on that, for intraday trading.
    which is the best time frame candle for doing intraday trading.
    Thanks

    • Karthik Rangappa says:

      If you are trading intraday then I’d suggest you use 5 or 10 mins candle. However I do know intraday traders who trade based on EOD candle. I guess this depends on your trading style.

  34. ganesh jagdale says:

    when will your module no 10 (strategies) release
    waiting for so long

    • Karthik Rangappa says:

      Thanks for your patience Ganesh. We are working on Module 8 now, we are working in the same sequence. So I guess you need to wait a little longer 🙂

  35. alok says:

    dear sir,
    I am following the supertrend of your kite for buy and sell stock , kindly suggest me which indicator would you suggest in tranding market

  36. JAGADEESH212 says:

    Super trend working cool!!

  37. JAGADEESH212 says:

    karthik wen can we expect module 8 ,9 &10 completely??? eagerly waiting for it!!

  38. BHUPESH UPADHYAY says:

    Nice and very informative module on technical analysis done with all chapters in 2 days weekend leave. 🙂
    one question that OI analysis and PCR for nifty not come under technical analysis?

  39. Ahmed a memon says:

    Sir I m little familiar to the stock market…but new to the technical analysis..I m really happy and surprised that I m understanding this tough subject very easily…I like to play only option trading…can you explain which candlestick or other analysis pattern is suitable for me?

  40. ASHOK KUMAR jANARDHAN says:

    Can we add an indicator on another indicator e.g. a Moving Average on RSI?

  41. Alok says:

    Hello Sir
    How do you rate big brokerage houses giving call on different stock each and every day. Do their call overrule/impacts technical analysis
    Thanks
    Alok

  42. Alok says:

    Sir,
    Future and options both are derivative so i guess spot price derives them, but between future and option who quickly changes followed by other

    Thanks
    Alok

  43. SaikiranGarapati says:

    Can i Buy shares in NSE and same can be sell in BSE in Intraday? I called you are call center executive,he told me we can do it for intraday. When i inquire out side,my friends are saying it is not possible..

    Please let me know which one is correct.If it can be done, How? You are executive advised me to add the same script in Market watch for both stock exchanges NSE and BSE..While buying, Buy it from NSE and While selling select it from BSE and sell the same quantity…and the price difference is our profit…Is that true?

    Please let me know…

  44. Alok says:

    Hello
    I have one confusion that how volume is calculated, is it same as number of quantity because for example 1 qty of eicher motor is more than 200 qty of ashok leyland, money infused in market is more in eicher but qty is showing more for ashok, so how this volume is calculated.

    Thanks
    Alok

    • Karthik Rangappa says:

      I buy 100 share of a company and someone sells those 100 share to me, then volume is 100.

      • Alok says:

        Hi,
        I’m aware of 100 qty buy and sell makes 100 vol. But my question is in comparison of 2 stocks, one which is having low price like ashokley but high qty , while another is having high price like eicher motor but low qty. So while calculating pre market volume what needs to be considered , which is having higher volume.

        • Karthik Rangappa says:

          You could convert both to Rupee value (value traded) to assess which is attracting more money. Value traded = Volume * price.

  45. papinder says:

    Hi, Karthik sir,

    First of all thank you , for your great insight and inputs.

    i wanted to test SUPERTREND indicator with 5 and 21 days moving average crossover any leads how to go ahead with it.

    thankyou in advance

  46. papinder says:

    Can i get the AFL code for SUPERTREND so that i can test it myself. regards

  47. saurabh says:

    sir what is your view on elliott wave does it help or it is confusing

  48. Sainudheen says:

    Dear Sir,
    I would like to know that ADX based trading what would be the SL can i give , Both buy & Sell ?

    • Karthik Rangappa says:

      ADX indicates the strength of a trend, not a great tool to identify points to place your stops!

      • Mrs. Shetty says:

        Can every chart that we open give the ticking time of the market on top.
        selection of the scrip of 2nd/3rd list does open in case we want to view chart of other scrip for quick view in popped out charts, we have to go to original charts .
        can you incorporate these suggestions.
        thanks

        • Karthik Rangappa says:

          Are you are talking about the charts in Kite?

          • Mrs. Shetty says:

            yes.
            The timing of net and that of mkt is different by 1.5 to minutes. so every chart should idealy having timing in hr,min,sec.
            as rgdsd my first point .. v see many charts and with many time frames and this is possible in kites due to popping out features. But on these charts is there:
            1) any key to open market depth.
            2) any function keys to place orders or buy or sell.
            3) any function keys or shortcut key to view our mtm or position.
            4) while changing the scrip name in d dropbox that appears, only the list no. 1 appears, and if v mention the scrip from list no. 2 or 3, it is not accepting or does not show in the dropdown window. It should ideally show if i hv the scrip in my match list from 1 to 5 anywhere.
            I hope you will into these points.
            thanks for responding immdly.

          • Karthik Rangappa says:

            Will pass the message to the developer team. Meanwhile, please do have a loo at this – lots of shortcut keys and more here – https://kite.trade/docs/kite/

  49. Abhilash says:

    Hi karthik. Please I have a requirement on Pivot points from your technical team. I want to refer the values of 3 days pivot points with a time frame of 1 Hour. But if I take 1 hour time frame on Kite I can see a unique pivot values for the past 4 days. Till 15 Min chart we can see the different values but not 30 minutes and 1 Hour. Please inform this to your technical team.

  50. rockstar says:

    i read about adx ,but i dont find it pi..is it not there in pi???when can we expect it if it is not there?

  51. Uday thaker says:

    Karthik sir, thanks for your valuable advice on our various queries. Sir, though I will be the new to chart based investments.Sir, can I follow supertrend indicators for medium to long term investments in large as well as mid cap shares?

  52. CHAITANYA KALE says:

    Market Guru,
    My request is teach us ICHIMOKU indicator on varsity

  53. Sainudheen says:

    Sir,
    ATR is useful for choosing correct Stop loss and understanding the Volatility , How can i take correct SL by using ATR , Can you explain and give one example , Thanks

  54. Vidhyapathy says:

    Hi Team,

    Kindly let me know how add new study in zerodha

    Thanks,
    VP

  55. Tejvir Singh says:

    Sir,
    Your work is so great as you / zerodha team also cannot think what a best work you have done by providing good knowledge in simple way on technical analysis. It is very difficult to say greatness of your work in few words. It is useful for enlighten thousands who was in dark. भद्र पुरुष ही महान कार्य करते हैं । Thanks a lot.
    Sorry for taking your valuable time to ask – one should take average of 10 days volume for a share from BSE and NSE both or from a single exchange is sufficient.

  56. susmitha says:

    dear sir,in kite ,in the list of charts,ther is one by name VOLUME CANDLE.can you please explain how its different from regular candles.how can we use them for trading decisions..thank you

    • Karthik Rangappa says:

      Volume candle combines the volume + price action in a single candle. Fatter the candle, the higher the volume for the day and vice versa.

  57. sainudheen says:

    Sir,
    What is Volume Weighted Average Price , and what is the use of it ,Kinldy explain Sir ?

  58. RITUKANT MAURYA says:

    Thanks for adding VWAP in the chart. Its such a powerful indicator for intraday trader. it is my humble request to please add preset order in kite in which script is pre selected including order type, Stoploss etc and only one click order get places.

  59. Venkat Reddy says:

    I am a existing client of zerodha and my request is teach us ICHIMOKU indicator.
    Please send reply to my mail also.

  60. muniraj says:

    HI IN KITE HOW TO ORDER PADDING ORDER AND STOP LOSS ORDER IN KITE CHART

  61. abhishek kumar sah says:

    what is the significance of time frame in the renko chart, lets say i plot a 5 point brick, for every 5 point movement it will form a brick irrespective of the time frame, so where’s the catch?

  62. abhishek kumar sah says:

    how good is renko chart with the combination of super trend indicator for trading?

  63. Varun says:

    It would be great if standard deviations bands could be added to the VWAP.

  64. avinash says:

    sir how can i get supertrend alert in kite

  65. tarun says:

    karthik sir, is it better to perform technical analysis on the candlestick chart of index or the futures candlestick chart of index. like banknifty index chart or 29dec2016 BANKNIFTY FUTURES CHART

  66. raoge says:

    Dear karthik,
    Thanks for detailed explanation of the super trend and other indicators. I am new to Zerodha as opened account recently.
    Today I noticed that Supertrend chart is showing different in Kite & Pi application.
    For example Nse equity stock- Auropharma the Supertrend Sell (Red) occurred at 11:45 hrs in Pi where as it is showing at 14:30 in Kite.
    While the settings for both are same at 14-3. Why kite is not showing same as Pi? This has misguided me as I am using Kite very easily compared to Pi which takes lot of time for refreshing. Please is it possible to make the settings in both application same or the user should have option to use whichever he likes. I would have uploaded the screen shot but I donot know how to do it here.
    Thanks.

  67. aehsan4004 says:

    which indicator should be used with STOCHASTIC OSCILLATOR to eliminate whipsaws ?

  68. tarun says:

    karthik sir, i want to ask that according to you the combination of a lagging and leading indicator such as MACD and stochastic will help in taking decision or not? because i read in an article that it is very accurate in trending markets.

    • Karthik Rangappa says:

      Nothing is accurate Tarun. These tools are there just to help you support your decisions making process, over dependence on these can actually get counter productive.

  69. raoge says:

    Dear Karthik, I am awaiting for ur reply on Supertrend indicator query which I posted on 10 jan 2017.

  70. Sampath says:

    Thanks Karthik for valuable Info… i am a user of PI, and am trying to write a script across MACD,ADX and SUPERTrend indicators but am not able to find ‘keyword code’ for SuperTrend Indicator ( checked even in Tradescript manual).. Pls help

  71. Rao says:

    Dear karthik,
    I am reposting my query as u missed it.
    Thanks for detailed explanation of the super trend and other indicators. I am new to Zerodha as opened account recently.
    Today on 09-01-2017 I noticed that Supertrend chart is showing different in Kite & Pi application.
    For example Nse equity stock- Auropharma the Supertrend Sell (Red) occurred at 11:45 hrs in Pi where as it is showing at 14:30 in Kite.
    While the settings for both are same at 14-3. Why kite is not showing same as Pi? This has misguided me as I am using Kite very easily compared to Pi which takes lot of time for refreshing. Please is it possible to make the settings in both application same or the user should have option to use whichever he likes.
    Thanks.

  72. RITA KODAPE says:

    When adding ON BALANCE VOLUME indicator on KITE ,It is not showing values of OBV indicator.

  73. G V S Reddy says:

    Hi friends. What level to cross in ADX to consider trending market and level to drop below to find non trending market? Because different people will tell different levels like 22, 25, 30, 40. Getting confused. Thanks.

    • Karthik Rangappa says:

      Just an opinion – each person has his or her own preference, its best you set up trades and optimize them to what suits you.

  74. Ruchit says:

    Yeah so first of all,let me tell ya that this whole thing you guys created is totally most admirable.I’m sure this step of yours will help people losing their most of money! Now-I do have a question to ask you out,
    You see there are two major or main stock exchanges in INDIA as BSE & NSE,and the whole wonderful world trades in that.Means-people from different places and with different point of views does exchange their money and therefore the price gets updated every second,then how come NSE & BSE gives same outcome of price of every single stock everyday?!

  75. Pratish says:

    Karthik Sir, awesome work on all these modules. I am a new user of Pi and have 2 basic questions.
    1) can we import the scrips added in marketwatch from kite to pi?
    2) is there a way to apply the study done on one scrip to all my scrips in marketwatch.
    Many thanks in advance.

    • Karthik Rangappa says:

      1) No, they both are two different eco systems.

      2) Save as template should work. although I need to double confirm this. Meanwhile, please feel free to touch base with our support to clarify this.

  76. fazlur rehman says:

    sir, in Pi platform, price does not change in order window according to the market price as in kite. pls rectify it .

  77. Shrikant Sharma says:

    As I see, the Pitchfork tool is not available on Pi . Any plans to introduce it it ? Also, can I draw pitchforks on different time frame charts of say, 50 scrips and SAVE all of them in Kite ?Will they load the same when I re-login ? Thanks..

  78. James says:

    Respected Sir,

    A person X is full time scalp trader.

    Situation 1 –

    A person X bets its 20,000 on, say, JSWSTEEL at 10:10AM @185.50. At 10:25AM, X books profit @186.10, making about 62/- (~0.3%). Similarly, it trades again to make profit of, say, 70/- (~0.3%) at 10:50AM-11:05AM. Trading 3-6 times a day, X makes about 1% return.

    At the end of the month, X makes about 10-12% returns with scalping as X trades only 12-15 days a month.

    Situation 2 –

    A person X utilizes margins given by brokers for intraday trades up to 10 times. In this way, X is able to make about 10% returns a day (not 1%) as its 20,000/- can now buy stocks worth 2,00,000/-. At the end of the month, X is able to make about 90-100% returns (as compared to its 20,000/- amount) as X trades only 10-12 days a month with more care.

    Question 1 – Are above situations possible in real world? Please elaborate why, why not, which situation, to how much level & so on? (As per me, these situations must be common)

    Question 2 – If yes, what person X need to do to be such a successful trader as it is in above situations? Or, is it too difficult for a full time trader to be like X.

    Question 3 – How above situation/s, or person X, can be modified/improved to make it a common practice?

    Question 3 – What is your advice to me if I really aspire to be like person X?

    (I have started intraday trading 2 years back & have nice experience of being severely lashed down. I terminated my trading a/c. Later I learned how to really trade in market & its relevant basics. I have been following markets for about 1.5 years. I found Zerodha Varsity 6 months ago. It took me last 3 months to go through Module 1 & 2 thoroughly along with its relevant application & practice in real world. I am about to move on to module 3 & think to go through all module in same way before I can confidently start full time scalp trading like X.)

    Question 5 – After how many modules, can I be perfectly ready for real world scalp trading with real money & should have full confidence of being equipped with almost all required knowledge for scalping? (I think after half of module 4. Obviously, I will keep on finishing the rest side by side.)

    I want to start with 1 trade a day that too by considering it like a swing way.

    Lots of thanks in advance!!

    • Karthik Rangappa says:

      James, both the situations are possible…but let me tell you it’s not easy, especially situation 2!

      The trick is to achieve consistency in your trades. Even the top hedge funds in the world fail to achieve this consistency. They say in trading, 20% is strategy and 80% is risk management. So there is lot more going on than just margins and strategy. Keep at it and I hope you find success. God luck.

  79. James says:

    Respected Sir,
    Thanks for your kind attention !!!
    _
    My presumption was same. I’ll wait for the risk management module of varsity & will practice on that to perfect myself.
    _
    I would be glad to know the answer to question 5 as well. Also, Is Varsity content (along with practice) enough to achieve that consistency?
    _
    Thanxxx again !!!

    • Karthik Rangappa says:

      Sure James.

      As far I know, the contents here should give you a good start…but please do read up and start exploring newer dimensions of trading and investing.

  80. James says:

    One more thing …
    _
    In addition to question 5, please tell, as per your experience, how much return is possible (common in real world) in Situation 2?
    _
    Right now, I am preparing myself to achieve 40-50% returns every month in Situation 2. Is it ok? Isn’t my expectation more unreal (I guess not, your experience/advice =?)?
    _
    Thanxx for all 3 answers in advance !!!

    • Karthik Rangappa says:

      Q5 – Module on TA and Futures should be good for scalping.

      Cannot comment on returns, James. But sorry to sound discouraging, please do not be under the illusion that you will be able to generate a return like 50% every month…and please do not quite your job to do this full time. I myself don’t know anyone who is able to smash such numbers month after month.

      Good luck.

  81. James says:

    Respected Sir,
    .
    Thanks for honest answers of my queries !!
    Not quitting job so soon (obviously) not at least until I start achieving consistent desired returns.
    .
    Varsity content is really very helpful & elaborate. This is something that is not available easily at one place. Sometimes, I can’t believe varsity is offering it for free 🙂
    .
    Thanks a lot for such a good quality educational content !!!

  82. trader2017 says:

    How should i combine different indicators with candlesticks and chart patterns? is there is particular thing that needs to be kept in mind before combining indicators/candles/chart patters in order to optimize the desired outcome?

    • Karthik Rangappa says:

      Give chart patterns higher priority, the trade idea should originate from candlestick patterns. Look at indicators just as a reconfirmation to the trade setup. I personally do not prefer relying too much on indicators.

  83. Rachit Jain says:

    Sir, can I create a custom indicator in kite, Like I have to create a indicator which shows the value of (Total Buy Qty/Total Sell Qty) cumulatively, like we have ATR, VWAP etc.,
    Please Guide
    thanx

  84. archanam says:

    Hello Sir,

    I am checking pi software but I see chart and Chart tool option in menu is disabled for me.

    How to enable that ?

    Please help. Thanks

  85. Vasanth says:

    For smaller/intraday trend identification, ADX is working fine in 5 & 15 mins timeframe.But Adx is not working/not increasing in higher time frames like 30mins, 1 hour and 1 day. Pls suggest ur view. I used to follow only SMA 21x50x100x200 for trend identification and it’s working fine in higher time frames.in addition to this kindly suggest for better evaluation.

    • Karthik Rangappa says:

      As long as it works, it works 🙂

      Remember, a certain indicator with a certain parameter may work for a certain stock. The same may not apply for another stock. The trick is to calibrate and fine tune (to figure out what works and what does not work) it across your watch list.

  86. vinay504 says:

    First of all, I would like to say I learned a lot with your blogs. thanks for sharing valuable information. my question is that Which one is you would suggest using as I am new to this cover order or bracket order? I am starting with an initial capital of 5K rupees. and also can we modify stop loss on both?

    • Karthik Rangappa says:

      If you are starting with 5K, I’d suggest you execute few simple EQ trades before getting into BO and CO.

      • Koushik ghosh says:

        What do you mean by EQ trades?Actually am also planning to start with 5k

        • Karthik Rangappa says:

          Remember, there is is the EQ segment and the derivative segment. Any trade in the spot market or equity market is referred to as EQ trade. When you trade in EQ you can either do an intraday trade or you can take delivery of the stock and hold it overnight.

  87. ALOO says:

    Hello, if I enter a trade as per Supertrend buy/sell call its almost sure that if I wait till the line colour to change it’ll lead to a loss or no profit. So, how am I supposed to set a decent target once trade is initiated?

    Also, what could be taken as a better stoploss instead of supertrend line? Because if a closer target is set then the supertrend line stoploss wud b pretty far making RRR bad..

    • Karthik Rangappa says:

      You need to start calibrating your trades to identify which parameters suits which stock. It is hard to use the same set of parameters across all the stocks. So start tweaking the numbers and see which supertrend parameter works for which stock.

      • ALOO says:

        Ty fr the info, I checked several 5min intraday charts and EOD charts and found that long call from supertrend indicator are almost giving 80-90% or even more correct signals and hence giving a profit. So, is it worth trading as per the indicator only?

        • Karthik Rangappa says:

          No indicator alone cannot lead you to take a trading decision.

          • ALOO says:

            I know we cannot trade solely based on an indicator but what could be the reason of high profit chance if someone would’ve went according to Supertrend calls?

            Also, is 3 as multiplier fine for intraday 5min? Or it should be below or aboce that

          • Karthik Rangappa says:

            You have to calibrate these variables for each stock Aloo.

  88. Shrikant Sharma says:

    Dear Karthik,
    1.) Which Indicator in your opinion is the best Momentum indicator on a 5 min chart for day trading which I can confirm on a 15 min time frame also ?Kindly also mention any tweaked parameters if they work better than default values on 5 min chart.
    2) The technical analysis is based on a premise that a human being with his knowledge, emotions,fear and greed will repeat the actions which his predecessors have been doing in the past and it reflects in the Chart patterns and various Technial analyses that have been employed in the market. Now with more and more Computers and Robots taking upon the trading each day, the human element will be eliminated.Does that mean that the analyses and trading methodologies which are being employed today will become redundant /obsolete in the near future ? If so , how can a mortal human being who doesn’t have access to Trading Robots/ Algorithms keep abreast with them ?
    Thanks.

    • Karthik Rangappa says:

      1) I like it simple, so I’d always prefer moving averages. Try the 21×9 mins tweak on 5 mins chart
      2) I’d agree. Eventually we all have to find our edge and stick to it. However, the silver-lining is that most of the good algos operate in the micro-milli time frame. So in a sense larger time frame trader without the knowledge of coding still have some space to breath.

  89. Shrikant Sharma says:

    Dear Karthik,
    Just two more things I forgot to ask was that (1) On the stochastic indicator on Kite, only the time period can be changed , colours of fast and slow can be changed and overbought + oversold values along with colours can be changed.I wanted to ask that what are the default settings of %K and %D on this indicator? Also, what is the default smoothing value?
    (2) Correct me on this one :-
    a) RSI(14) = RSI of 14 days on a daily chart = RSI of the last 14 Hourly candles on a hourly chart = RSI of the last 14 Five-minute-bars on a 5 minute chart and like wise….

  90. Ayush says:

    Sir,
    How can we choose best indicator for us?
    Why so many indicators? Can’t we rely on 2 or 3 indicators?
    It is confusing too

    • Ayush says:

      How one can can use more than 2/3 indicators at a time, wouldn’t it be difficult and confusing

    • Karthik Rangappa says:

      It really depends on your trading temperament. I like to keep my charts clutter free…this helps me focus on price action as opposed to what indicators are suggesting. I just overlay moving averages (1 or 2) on the charts.

  91. Manish Agarwal says:

    VWAP: In the section – How to use the VWAP?

    Point# 5 says IF CMP > than VWAP then the trend is on the positive side/higher. Contrary to this point# 8 suggests going long if the CMP VWAP.

    • Manish Agarwal says:

      RE-TYPING as my message got truncated: ON VWAP:
      VWAP: In the section – How to use the VWAP?
      Point# 5 says IF CMP > than VWAP then the trend is on the positive side/higher. Contrary to this point# 8 suggests going long if the CMP VWAP.

      • Manish Agarwal says:

        RE-TYPING #2 as my message got truncated: ON VWAP:
        VWAP: In the section – How to use the VWAP?
        Point# 5 says IF CMP is higher than VWAP then the trend is on the positive side/higher. Contrary to this point# 8 suggests going long if the CMP less than VWAP.
        As per my understanding, one should go long when CMP higher than VWAP.

    • Karthik Rangappa says:

      Not sure if point 8 is suggesting that.

  92. rajesh.katariya89 says:

    how to do BTST/STBT, i m a beginner. please suggest the time frame of trading as i had already learned that intraday is surely not the thing to do right now.

    • Karthik Rangappa says:

      If you are stating now, I’d suggest you look at doing equity investing – i.e holding positions overnight. Once you are comfortable doing this, then maybe you can try short term swing trading before BTST trades.

  93. KP SRIKANTH says:

    how to use pivot points indicator in zerodha kite

  94. srikanth kp says:

    Do we have any co relation tools between sectors or stocks??
    any sites for nse and bse

  95. Ajay says:

    Hi Sir,
    Default supertrend parameters is Period;7,Multiplier:3 .will it work for all time frames(1day,1month and 1 week)?
    For intraday 5 mins ,10mins and 15 mins chart ,if we want to use super trend what are the preferable parameters ?

    • Karthik Rangappa says:

      You need to back test this on stocks. It may work for stock 1 but may not work on stock 2. There is no ‘one shoe fits all’ kind of thing in markets.

      • manish agrawal says:

        Hi I am using Kite and I want some guidance on Supertrend parameters? I want to know if I am looking at 15 min candle of a stock and if I put 15 in the supertrend period parameter as well then what it means? Does it mean that supertrend line is plotted based on close price of last 15 candles of 15 min each? or Last 15 candles of 1 min each?

        • manish agrawal says:

          Another question about time intervals: I have seen on Kite that the first 15 min candle time shows as 9:15 am, however, some other softwares show as 9:30. However the number of candles are 25 in kite and other software. So for intraday purposes, if I have to see the first 15 min candle then, should it be from 9 to 9: 15 or 9:15 to 9:30?

          • Karthik Rangappa says:

            Although the candle starts ticking at 9:15, the completion of the formation of the candle is at 9:30, which is 15 mins past the open.

        • Karthik Rangappa says:

          It means it is looking at 15 mins candle of last how many ever data period you are looking at.

  96. Shyam says:

    Hi Kartik,

    After going through TA module,I have started tracking mini crude oil may futures chart since last week. I see that sell signal is visible in 5 min chart while this is not visible in 15 min chart. Why so? Though both the charts are showing that the trend is on lowerside. Indeed oil prices have been pounded badly since last week.
    2. What time frame chart is suitable for trading in crude futures?

    Regards,
    Shyam

    • Karthik Rangappa says:

      This is because you are looking at two different timeframes. I;d be comfortable looking at 10mins chart or any timeframe higher than that.

      • Shyam says:

        Hi Kartik,

        What shd one do if there is a buy signal in 5 min chart and sell signal in 30 min chart ?

        • Karthik Rangappa says:

          You need to stick to a time frame and take action according to that time frame. Do not cross reference the buy/sell signals across time frames.

  97. Shyam says:

    Hi Kartik,

    Just wanted your help as I didnt know who to approach . I use metastock s/w for analysing the charts. I want to know how to use scanners…I mean suppose if 50 MA cossed 200 MA in any stocks or if the prices are above 50 day MA and 200 MA it gets highlighted easily . I tried asking the vendor but I am afraid it has not helped. Also tried googling . Would appreciate if you could point at the right direction.

    2. Also do you have any screening system in kite?

    Regards,
    Shyam

    • Karthik Rangappa says:

      1) I used to use Metastock around 8 years ago, and I seem to have forgotten the layout and technicalities. So I’m afraid, I wont be of much help here.
      2) No.

  98. krajasha says:

    i joined in zerodha on sep 2016. As of now I am doing only on equity cash segment and also i got winners certificate too in 60 days challenge. Can i get fundamental and technical analysis training to improve my trading and investing skills.

  99. Vinod Kedare says:

    Hi Karthik,
    First of all thanks for uploading all the trading research material in such a simplified manner, its good to re-learn again,
    However my question is totally different (rather a suggestion)
    1. I have 10-15 friends who are interested to trade in the stock markets but they can’t do so because of their working hours,
    2. Is it possible, in Zerodha firm, that I log-in from a single “sub-broker” id and trade for them-on their behalf?
    3. Logging-in from each individual id is quite time consuming and by the time I will do it the ground situations changes a lot.
    4. I had also spoken to one of your representatives regarding this, but they said its not available.
    5. Can this be made possible?
    6. Asking you because found your brokerage rates, support to be the best (even helping in taxation arena)
    7. Am sure, if you get a solution to this, lot of people who cannot trade would able to do so.

    Sorry for the lengthy span of the question, but I guess it would be mutually beneficial

    Thanks
    Vinod Kedare

    • Karthik Rangappa says:

      Thanks for the kind words Vinod. I understand your concern, but our risk managment policies will not permit what you are asking for. Besides, this is also not permitted by SEBI.

      • Vinod Kedare says:

        Thanks for your reply buddy, if it ain’t legally permitted then no use,
        However I will open an account with Zerodha and will get all my 10-15 friends registered with you at the earliest.
        But there is something like Auto-Trader (Proportionate Trading) provided by foreign brokerages in Forex trading – something similiar to your Open Trade
        I guess if that comes under permissible rules, it can be extended in your brokerage aswell, and my problem would be solved partially.
        Thanks anyways
        Looking forwarding for good trading experience through your brokerage ( Last month I got 10% returns)
        Thank You

  100. Kushan Joshi says:

    Hello Karthik,
    I have a query regarding a trading strategy that I use for day trading.
    What I do is, use the VWAP indicator on 5 minute charts. Then I wait for the stocks’ price to fall to the lowest that it has been in the last two days, or allow it to rise to the highest that it has been in the last two days. I then take a long or a short position accordingly. I have been using this method for a few days now and have booked considerable profits except for when the price begins to consolidate.
    I wanted to know if you see any drawbacks in this strategy.

    Also, I should say what an awesome job you have been doing with these modules. It has helped me a lot.

    Thank You

    • Karthik Rangappa says:

      Sure. It sounds good here, but frankly you will have to backtest your strategy to make sure its working under all possible use cases.

  101. sainudheen says:

    Sir,
    Head and shoulder pattern and double bottom , here we tend to make mistake like in head and shoulder tend to take a position in Support level (double bottom) but as per head and shoulder it will break and go down further…
    But in double bottom it is an opportunity to buy ….
    i just want to know like how to avoid that mistake and what is the difference between those two. …
    Kindly explain…
    Thanks

    • Karthik Rangappa says:

      I guess the only ways to learn how to avoid is to learn by trading. Eventually, experience will teach you which pattern to trade and which ones to avoid.

  102. hesham says:

    is there any institutions are availabe to study regarding the technical annalysis for shorterm courses

  103. sunil devre says:

    Is there any way to find morning star candle stick pattern from numbers of stocks rather then checking chart of all the stocks.

  104. Ram says:

    Can we do codify in the Kite tool to detect the patterns in the chart?

  105. NAS says:

    As per your experience, Which chart patterns are more reliable to enter a trade?

    • Karthik Rangappa says:

      Its hard to circle in on patterns…you just have to go with the flow. However, I do have a soft corner for doji/spinning top based chart patterns 🙂

  106. Nas says:

    Thank you Karthikji….

  107. shabaz says:

    sir,
    is there any way to find resistance levels at all time highs?
    as it is not possible to predict resistance levels than how can the analysts find resistance levels in all time highs.

  108. KUMAR MAYANK says:

    Hello Karthik sir

    I am talking about day trading in nifty futures only.
    Well we learnt a lot in this module. Now it is easy to analyse the pattern, trends etc in middle of the chart but its very difficult to take a stand near right edge of the chart where future is uncertain. As far as candle stick pattern and volume are concerned they are reliable but indicators are not so much useful. By the time they show a reversal or a new trend a large chunk of points has already gone.
    I hope you got my point. Please advise me how to use these indicators or to do day trading for that matter.

    Thanks

    • Karthik Rangappa says:

      Weel, this is in fact the whole point of TA. You need to get to a position where you will be able to take a position looking at the right side of the chart. This takes time and patience and will have happen over many trading hours and studying charts. Good luck.

  109. somnath says:

    Period refers to the ATR number of days. The default value on Kite is 7, which means to say that the system will calculate the ATR value for the last 7 days. You can input any value you deem suitable.

    The multiplier refers to a value by which the ATR will get multiplied. The default value on Kite is 3, so whatever is the value of ATR, it will get multiplied by 3. Multiplier is a crucial input for Super trend. If the multiplier value is too high, then lesser number of signals are generated. Likewise if the multiplier value is too small, then the frequency of signals increase, hence chances of generating false trading signals are quite high. I would suggest you keep this value between 3 and 4.

    Suppose ATR for X stock is 40 and multiplier is 3.Then 40 X 3 =120 what does this value indicate(ATR x MULTIPLIER).I STILL DONT UNDERSTAND WHAT VALUES TO BE PUT ON FOR PERIOD AND MULTIPLIER FOR INTRADAY TRADING AND FOR LONG TERM TRADING? WILL BE GRATEFUL TO U IF U PROVIDE MORE FOCUSS AND GUIDANCE ON IT?

    • Karthik Rangappa says:

      Hi Som, I’d suggest you stick to default values to begin with till you get comfortable with the indicator.

  110. somnath says:

    if ATR get multiplied by multiplier then how can it help me to either sell or buy the stock.

  111. somnath says:

    thank u karthik for reply.

    Just to clarify more for intraday and longterm which of these following indiacators work well –
    Period Multiplier
    1) 7 3 long term or intraday
    2) 7 4 long term or intraday
    3) 10 3 long term or intraday
    4) 10 4 long term or intraday
    Can u please suggest as per ur preference 1 to 4
    If there are other values to suggest please suggest as per ur experience with supertrend indiactor?

  112. Jay says:

    ATR that we get from Kite is different than that of Pi. I downloaded OHLC data from Pi and used it to calculate ATR for different periods of my choice. The ATRs were calculated using the simple average of the true ranges of previous periods, which was matching with data from Pi, but not with Kite.
    Can someone please clarify how ATR is calculated on Kite? Mainly, what are the weights assigned to true range from previous periods?

    Thank you,
    Jay

    • Karthik Rangappa says:

      Hmm, possible due to two different charting libraries and two different (not drastically though) formulas used.

  113. amit chawla says:

    How can we apply ichimoku charts on Pi?

  114. Soujanya B M says:

    1. Please update with using Heikin Ashi charts
    2. I am not able to find EMA, kindly let me know how to add to chart
    3. Whether weighted close is same as Weighted Average Price?

    Regards,
    Soujanya

  115. T A RAMA KRISHNA REDDY says:

    Hi karthik sir,is it possible to earn RS 1000 per day from stock market consistently with a capital of RS 50000 by selecting a good trade a day?just one trade a day and no over trading. Is it easy and possible please suggest me?

    • Karthik Rangappa says:

      We are talking about 2% daily return or about 504% return for a year. A very very very tough task if you were to ask me.

  116. Jugal B says:

    Sir, do you think stochastic is a good tool to practice charting? If yes could you please explain it along with the other indicators?

    • Karthik Rangappa says:

      I tend to depend more on candlestick patterns rather than indicators…so generally speaking, I look at very few indicators. Most of the times, I restrict to just the moving averages.

  117. selva says:

    hi sir,
    every educational tool provided here is awesome, and i’m looking for contents about zigzag. can’t find it. is it available?

    • Karthik Rangappa says:

      Thanks for the kind words Selva. Yes, the ZZ is not available. Maybe I will add it one of these days.

  118. ZQ0852 says:

    Dear sir,
    I did not get the point no.8 in ADX:
    “The trade stays valid till the stoploss is breached (even if the +DI and –DI reverses the crossover)”

    Say I go long when the +DI crosses the -DI, after few candles the -DI crosses over the +DI then as per rule the sell signal is generated then How can the the first trade (based on the buy signal) be valid ?

    Regards

    • Karthik Rangappa says:

      ADX just confirms the trend, it’s best used in conjunction with a trading system where the signal to buy and sell originates. Depending purely on ADX is not a great idea.

  119. ZQ0852 says:

    Dear sir,
    thanks for becoming our guide in the jungle of stock market, I have few doubts :-
    1.) Say, I have identified a stock and S&R levels and other related research, finally I am bullish on the same, and as per our general convention the first resistance point should be our target, now, what I want to know is that Is there any way to determine or predict the period it will take to hit the target??
    (Source of doubt: Generally we hear from analyst and experts that ये 4 से 5 महीने का टाइम फ्रेम ह, इसका 6 महीने का होल्डिंग पीरियड ह etc etc.)

    2.) The market depth generally shows top 5 ask and bid price, if the total number of qty for sell is say 3000(top five), now if I place a market order for 5000 share to buy then the remaining 2000 shares will be fullfilled from upper side or lower side .
    How the large qty market orders affect the price?
    Secondly, which one we should prefer market order or limit order?

    3.)I am little bit confused about pre and post market orders , the kheechdi that cooks up during 9 to 9:15 , and , moreover who can and should place pre and post market orders and their merits and demerits.

    Regards

  120. ZQ0852 says:

    Dear sir,
    I did not get the VWAP, I have point wise doubts:-
    1.-Is not the points 4 ,8 and 5,7 are contradictory to each other.
    I mean in point 4 you say the if the price is below vwap then the stock is in downtrend , but in point 8 you say if you want to go long the stock it is efficient to long at a price lower than vwap, मतलब कोई स्टॉक downtrend में हैं तो भला उसको buy क्यों करेंगा ??

    SAME DOUBTS FOR OTHER TWO POINTS, IT WILL HELPFUL IF YOU COULD ELABORATE EACH POINT WITH THE HELP OF CHARTS.

    REGARDS

    • Karthik Rangappa says:

      The assumption is that you are trading based on another system and you are looking at VWAP only for the sake of efficiency of the fill.

  121. Dr. Abhijeet Kumar says:

    Sir, I am an orthopaedic surgeon with keen interest in stocks..

    Q no. 1:- Please guide me how to follow the trend using ADX indicator, Should I keep the trade on till the ADX is rising and exit as soon as it reverses?

    Q no 2 :- If the candlestick has already crossed the SMA but still my supertrend is in sell region, should I initiate a long position of should wait till supertrend indicator says buy?

    Q no. 3 :- May also use the slope of supertrend itself to follow the trend, as I have seen that steeper the slope better moving is the trend, and whenever it goes flat, a moment of indecisiveness comes in; should I stick with this methodology or please give your kind suggestions..

    • Karthik Rangappa says:

      Doc,

      1) ADX is best used to gauge the strength of the momentum. The decision to buy or sell has to originate from somewhere else…ADX is only complementary to that system
      2) I’d rely more on candlesticks
      3) Slope again points to the momentum. You may as well look at MAs.

      • Dr. Abhijeet Kumar says:

        Its like if I start trade by using MACD and supertrend, and then remain in trade using ADX? as it keeps on growing I shall keep my long/short positions intact and whnever it goes down I will quit as it will show the losing trend? isnt it ?

  122. Arun mendiratta says:

    karthik,
    I can see there is some technical error in dis module as the comments page is same irrespective of different chapters i.e support & resistance chapter, volume chapter comments page are all same…..
    plz resolve dis issue soon

  123. Sourav Sen says:

    Sir What intraday chart time frame do you mostly prefer for mcx nickel copper etc.etc.and today I saw alligator is it good can trade to depend on it..

  124. Sourav Sen says:

    And today I saw doji appear in uptrend but still market is moving high why? actually what doji does and how can I predict what next candlestick should be bullish or bearish..

    • Karthik Rangappa says:

      Well, patterns are only predictive in nature, they do not guarantee movement in any particular direction.

  125. Sourav Sen says:

    And what is the indicators to see volume in chart

  126. Sibhi says:

    Karthik, may I know the conditions for abnormal candle

  127. Sourav Sen says:

    Sir please tell me some about your trading strategies, time frame, indicators and entry and exit, risk to reward ratio.. Please sir.

  128. Sourav Sen says:

    Ok Sir thank you.? but sir my last question is what moving average setting do you mostly prefer in 15 minutes chart.. Exponential, double exponential or triple exponential.. What is the most accurate one..

  129. Abhijeet Kumar says:

    Hello Sir,
    First of all, Thanks a lot for all your efforts you have put in for Varsity. This is very helpful.
    I am not able to clearly decide on Support and Resistance level, Can you let me know any more parameters which I consider to get more affirmation on S/R levels.

    Thanks once again for all the efforts.

  130. ZB4376 says:

    Yesterday’s AMBUJACEM chart showed a bullish engulfing pattern. I entered CNC trade at 266.5 with a stop loss of 258 as suggested by ‘the lower of the two rule’. Today the stock closed at 272.10 and I am planning for a BTST trade.
    My SL-M order cancelled automatically at 4pm by Kite. So probably I will need to place a new AMO SL-M for tomorrow . My question is that for the new SL-M order should I stay with the 266.5 suggested by earlier rule or should I increase it to the low of today’s green candle (264)?

    • Karthik Rangappa says:

      You can certainly alter the SL to suit your convenience. But do make sure there is a logic behind what you do.

  131. Sanjay says:

    It is very difficult to differentiate between paper umbrella and spinning top.

    Can you please help me to find out the best way to differentiate between both ?

    • Karthik Rangappa says:

      Spinning top has a wafer thin body and short shadows, paper umbrella, on the other hand, has a small body, short upper shadow, and a long lower shadow.

  132. RAJESH.R says:

    Lot of things to study, it is very useful to beginners like me, Today i learn lot of thinks, thanks Zerodha team to develop such a study material.

  133. Arun Lal Mendiratta says:

    Karthik, just a QN pop up in my mind…..can I buy shares in delivery (CNC) by not entering the quantity of shares I want to buy but the amount of money I want to invest in a company???
    For ex rs 25k at cmp in a company instead of the QN of shares …

  134. Roshan says:

    Hi Karthik,

    ADX indicator is missing in PI in the study option. Could you please check and confirm.
    I am using latest version v1.0.0.6 update on 7/17/2017

  135. Roshan says:

    Also, any plan to include Relative strength Comparison(RSC) indicator. I think it is available only in Metastock.

  136. boopathi says:

    hi,

    is ADX indicator available in pi?

  137. keerthan kumar says:

    Hi, Karthik!
    Thanks for the wonderful material!
    Is candlestick pattern analysis is good for someone looking to hold the position for 1month to 3 months?
    which is an ideal time frame to be selected? If not which technique to be used for analysis.

    Please reply

    Regards
    keerthan

    • Karthik Rangappa says:

      I’d suggest it’s best suited for trades under 4-6 weeks. Although, I’ve noticed the beginning of a long and sustained momentum runs based single candlesticks patterns.

  138. Saurabh Rehan says:

    Sorry investing.com

  139. Sahil Jain says:

    Hey this is Sahil ,
    I am interested more in commodity so, Can I start commodity module after this or I have to follow the sequence of module .

  140. Sharad says:

    Sir,
    Which one is the best between RSI, William%R and Stochastic indicator to identify overbought and oversold zones?

  141. Sanket says:

    Is there any TDI (Traders Dynamic Indicator) in Kite.

  142. Shashank Shetty says:

    Is VWAP indicator available on Pi? If not is there anyway we can get the same on Pi? Thank you

  143. Gautam bhardwaj says:

    Can you suggest few books or website for technical analysis education

  144. sunil kotian says:

    helo sir

    fibonacci tool is not found…its a very good tool.pls do something about that

  145. Ash says:

    1. What should be the time spacing (5m, 15m or 30m, 1D etc.) when using different indicators mentioned here?
    2. What should be the period(1D, 5D, 1M etc) since for example some indicators are for 14 days, then if we select 1 year period for the stock price, is it okay? How does it work? The indicator will still show for 14 day period only? Or should we change this 14 days to 365 days?
    3. Should all these like the super trend be used along with the other 6 point check list like candlestick pattern volume etc or on its own?

    Thanks,
    Ash

    • Karthik Rangappa says:

      1) Depends on your trading temperament – ideally, it should be the same frequency as your price chart
      2)Yes, that should be ok
      3) Yes

  146. suresh says:

    hi sir,
    please tell me if i should invest in stocks which are at 52 weeks high if they are just increasing after long time(1-2 month) and volume is satisfactory.?
    how should i interpret it? as an uptrend or just a noise in market?

  147. Anoop says:

    Hi Karthik,
    I have noticed that the VWAP value which I calculate manually does not match with the one collecting from Nest Trader. For example please find the INFY SEP FUT data which I have collected from nest trader on Sept 9th, 15min interval. the first column is the Vwap value from ZT and the last column is the wvap value calculated manually using above method. Can you please let me know why there is a difference?

    Vwap Value Open Rate Close Rate High Rate Low Rate Date Time Differential Vol Cumulative Vol VWAP Manual
    901.87 902.00 904.35 904.70 898.50 07-Sep-2017 09:30:00 545500 545500 902.52
    903.44 904.40 903.05 904.75 902.00 07-Sep-2017 09:45:00 222500 768000 902.73
    903.34 903.05 903.50 904.20 902.50 07-Sep-2017 10:00:00 213500 981500 902.88
    902.22 903.50 901.70 903.50 901.60 07-Sep-2017 10:15:00 157500 1139000 902.79
    901.20 901.70 900.95 902.00 900.20 07-Sep-2017 10:30:00 96000 1235000 902.66
    899.73 900.95 898.00 901.60 897.55 07-Sep-2017 10:45:00 208500 1443500 902.14
    898.53 898.00 898.15 899.35 897.80 07-Sep-2017 11:00:00 93500 1537000 901.91
    898.52 898.15 898.80 899.70 897.65 07-Sep-2017 11:15:00 77500 1614500 901.76
    898.62 898.80 898.00 899.05 897.90 07-Sep-2017 11:30:00 69500 1684000 901.62
    898.86 898.00 899.30 899.30 898.00 07-Sep-2017 11:45:00 52500 1736500 901.53
    899.00 899.30 898.75 899.45 898.75 07-Sep-2017 12:00:00 23000 1759500 901.50
    897.96 898.75 898.65 899.10 897.05 07-Sep-2017 12:15:00 108500 1868000 901.31
    898.42 898.65 898.00 899.30 897.90 07-Sep-2017 12:30:00 59500 1927500 901.22
    898.20 898.00 897.70 898.50 897.60 07-Sep-2017 12:45:00 36500 1964000 901.16
    898.44 897.70 898.35 899.05 897.70 07-Sep-2017 13:00:00 44000 2008000 901.10
    898.33 898.35 898.30 898.50 898.05 07-Sep-2017 13:15:00 30000 2038000 901.06
    898.26 898.30 898.30 898.45 898.00 07-Sep-2017 13:30:00 39500 2077500 901.01
    898.33 898.30 898.40 898.65 898.05 07-Sep-2017 13:45:00 49000 2126500 900.94
    898.18 898.40 898.00 898.80 897.25 07-Sep-2017 14:00:00 115000 2241500 900.79
    898.16 898.00 898.25 898.50 897.75 07-Sep-2017 14:15:00 43500 2285000 900.74
    898.73 898.25 898.95 899.00 898.25 07-Sep-2017 14:30:00 65000 2350000 900.69
    898.75 898.95 899.20 899.25 898.10 07-Sep-2017 14:45:00 64500 2414500 900.64
    898.87 899.20 898.70 899.25 898.50 07-Sep-2017 15:00:00 46000 2460500 900.61
    900.07 898.70 900.40 901.20 898.60 07-Sep-2017 15:15:00 324000 2784500 900.54
    900.06 900.40 899.55 900.80 899.05 07-Sep-2017 15:30:00 268000 3052500 900.48

  148. Dipayan Dey says:

    Supertrend indicator cannot be used in expert advisor in Pi trading system. That’s why i moved to amibroker. There are meny AFL regarding supertrend . I also coded mine . But there is some differences in signals. We know that olivier seban developed supertrend, but u try it on ami there are no one to authorise or to verify. So it will be so helpful if u guys provide original engineered Supertrend in AFL for ami. It will be okey if its in TradeScript but i assume it will be very hard. Thank u.

  149. Nishat says:

    How to assure that a positive supertrend crossover is true or false. What other indicators can increase the degree of surety.
    Regards

  150. Brahma Reddy says:

    Can I use the same check list for trading nifty futures.Is is it good sir?

  151. Manda Brahma Reddy says:

    Sir,Please suggest the check list for nifty intraday trading to catch atleast ten point movement.I will take it as thum rule.Thank you

  152. chandra says:

    hi!
    on 26.Aug.2017,
    You have replied to one Sunil,, that FIBONACCI, is available on kite.
    However, it is NOT available, despite my intense searching through kite charts.(So, this makes me to ask
    the same question:- “How can you help me, to get FIBONACCI chart onto my kite??)
    I shall be grateful, for your answer ,which would enable me to really have FIBONACCI chart.(instead of the same cliche answer).
    Also,I would like to place on record,my highest appreciation for your peerless & exemplary efforts in your,VARSITY. Your BEACON of KNOWLEDGE ,has LIGHTED up ,the candles of the market!!! thanks & regards

    • Karthik Rangappa says:

      Hhaha, thanks for the kind words, Chandra! I hope you will continue to like Varsity!

      To find fibonacci, click on Draw (right-hand top), this will open up the drawing tools (on your left-hand side), in the drop-down, click on Fibonacci and use it 🙂

  153. Narasimha says:

    Iam new to zerodha.Yeterday I start my first trade in zerodha.Iam a scalper and did minute to minute trades with nifty and bank nifty.My profit was 2298.I felt very happy.But today i got mail from zerodha.Taxes were very high and actually iam in a loss of 928..:(.Pls help me sir.

    • Karthik Rangappa says:

      Well, taxes are a reality and no one can avoid it. Maybe you are over trading. Take fewer trades with high conviction. Focus on profitability and not really on ‘number of trades’.

  154. Soby says:

    Hi,

    I actually encountered this website when i was searching some topics related to Options. I was so impressed by the lucid explanation that i devoted time to read other chapters as well. Took my learning a notch higher when i decided to open a trading account with Zerodha, hoping to apply the same. Finally i have some good material that i could relate to.
    To cut a long story short, great work team! Cheers!

  155. Varun Joshi says:

    Hi! Kartik,

    I have been tracking markets for last 10 years, i opened and closed lot of demat account with several brokers but “Zerodha” is different amongst all of them. Thank you for your kind support and guidance.

    I also want to ask that if I want to go ahead and learn technical analysis in depth please recommend a good institute or professional who can teach.

  156. Brahma Reddy says:

    Sir,Iam following a trading strategy and it is working quite well.But,main problem is that Iam unable to ride on winners for long time.Example,if a trend is working in my favor,then Iam getting out of positions with less profit because of the fear of ‘trend reversal’.But actually the trend is continuing.I loose tons due to this sir.Even trailing stop loss is not working,because my stop loss hits and trend continues…”Cut your looses and let your profit run!!!”…Iam doing the first one correctly,but unable to let my profits run.Please suggest me a a way to solve my problem.Which indicators or others I have to use???

  157. pratik says:

    Sir, if i want to enhance technical analysis knowledge then can you refer any course for same?
    And whether supertrend indicator can be get applied to mid term holding to long term holding ?

  158. Pranay Arya says:

    Hey I just completed the Technical Analysis module. Just want a suggestion.

    Should I start using this knowledge and start short term trading or should I complete all the modules and then start my quest.

    • Karthik Rangappa says:

      I’d suggest you start with identifying short-term opportunities using TA. This will help you as and when you learn other topics.

  159. Abudhar al Hassan says:

    Hi Kartik,
    Could you please help me with the following…
    1. Could you suggest any indicator which would help in determining whether the trend is moving sideways? Other than ADX that is.
    2. Could you explain briefly about the Elder Ray Index as it is plotted on Kite? I have an idea from whatever I read on other sites but there the bull and bear powers were plotted separately and its kinda difficult to understand while looking at the way its plotted on Kite. I know writing an article on it would be tough but even if you could tell the basic interpretation (in accordance with how it’s plotted on kite), it would do. Thanks in advance.
    ~Abudhar al Hassan.

    • Karthik Rangappa says:

      1) If Moving average or MACD flattens out, then it means the markets are flat
      2) Will try and put up a note on this sometime soon.

      • Abudhar al Hassan says:

        Thanks Kartik. Appreciate it.

        Just one more thing…supposing I open positions in FnO segment and I intend to hold it for a couple of days. Right now, since we don’t have a GTC or similar order I have to login everyday and place a fresh stop-loss order when the market opens. What if I place the stop-loss order for the open position(s) as an AMO order after 4pm current day and before 9am the next day? Will it be considered as a fresh order and be executed or the exchange would understand that it is actually a stop-loss order for the open position that I am holding.
        The reason I am asking is because it’s easier to place the stop-loss order in d evening or night rather than every morning when you are in a rush for other works. Please let me know. Thanks.
        ~ Abudhar al Hassan.

  160. ssingh says:

    is in market any leading indicator
    and how to use for trading

  161. Ulhas says:

    I want to take VWAP in seperate window like rsi or macd or willams%r.
    I want to seperate it from candles.
    Is there any idea to do this?
    If not will you please consider it as customer requirement. How many days will it take to do this. Are you updating customers requirement in software?
    Thank you,
    regards,

    • Karthik Rangappa says:

      We are always eager to hear our customer’s feedback/requirement. VWAP is certainly high on priority. Unfortunately, I cannot comment on timelines involved.

  162. Ulhas says:

    Dear sir,
    Please add open interest & vwap value (which is available with you) in DEPTH view. These are essential for customers.

  163. uvs says:

    Mr. Karthik,

    Thanks for your content regarding trading. It is helping alot of beginners like me in understanding stock market in a better way than ever before. I really appreciate you and your team at zerodha for making it possible for everyone.

    Here comes my query.

    1. I have completed technical analysis module and i decided to put all the knowledge on the real time stocks. But, when i started analysing the chart, i was unable to replicate what has learnt in the module and couldn’t able to identify patterns and predict what is going to happen. Guide me how to put everything that i learnt in the practise or provide any other additional study material which gives practical implementation guide.

    2. Even though you suggested newbies to not to try intraday but my mind is putting a lot of pressure on my thought process to move against the waves and learn the stuff from the risk. Now comes this tricky part. I want to learn yet not to fail disastrously(little failing and learning is okay though but not too much). Tell me how to have a plan for this.

    3. Initially i’m planning to invest 5000 as a part of learning process and expecting 100 INR as an overall profit for a day. Kindly tell me how i can achieve this target with an intraday strategy.

    4.
    a. Tell me how to choose different stocks for the portfolio or regular intraday stocks and how to bet money based on trends.
    b. Help in finding patterns easily with the help of predicting indicators.
    c. What are the basic parameters, indicators, patterns, trends, identifications that i should know everyday (not taking much time) to get min of profits?
    d. Im always getting confused with stoploss, stoploss-m and other advanced options while placing an order either buy or sell.

    Thanks in advance.

    • Karthik Rangappa says:

      1) When you look at the chart, concentrate only on the last 2-3 candles. Look at what pattern they are forming, then look for the associated prior trend, the look for support and resistance. Do this for 50 charts for 2 months continuously. I’m sure this will set you on the right path

      2) I dont know how this can be done safely :). The harder you fall, the stronger you raise, provided you willing to learn from mistakes.

      3) Nothing can substitute practice

      4) Have explained this in the previous chapter

      I’d suggest you reread the chapters on candlestick patterns.

  164. Ulhas says:

    Sir, Thanks for promt reply.
    As I observed that some times VWAP value shows 2 digit & some time 4 digit in charts. (56.15) & (56.1348) Why it is like this?

    • Karthik Rangappa says:

      Ah, need to check this. But for all practical purpose, you don’t have to go to 4th decimal, unless you are trading currencies.

  165. Ulhas says:

    sir,
    It is very very important in commodity for me. As this is available with you, need to only show seperately & also in DEPTH area.

  166. Rk says:

    Hello sir..
    I’m fresher in Zerodha… Would you like to help me out to know which indicators should be used in which range to make profit…

  167. Aslam Randhanpara says:

    Sir,
    Can you please suggest the books for technical analysis? and the all indicators analysis and how can we use it for our trading purpose? what are the possible combination that we can fit in the scanner for some trading systems?

    • Karthik Rangappa says:

      Aslam, I’m assuming you have read through all the content in the TA mule here. In case you are looking for more, I’d suggest you pick up this book called ‘The Japanese Candlestick Charting Techniques’, by Steve Nison.

  168. Ulhas says:

    karthik sir,
    I think I attached wrong aadhar no to my account. This happned as I am handling many accounts. So I want to confirm aadhar no. This is also not visible at q zerodha. Is it possible to delete current attached aadhar no? If so I will again update correct no. I try to call support but no response. How to solve this issue? please do the needful. why it is not visible in q zerodha account.
    regards,
    khupase

  169. Sarthak Laddha says:

    What are your views on HDIL… Breakout from triple bottom on huge volume today?
    What target to expect?

    • Karthik Rangappa says:

      Yes, that looks like a sweet breakout 🙂
      A 5-8 buck rally looks possible in the short term. I’m basing this on the content discussed in the Support & Resistance chapter. Good luck.

  170. Ulhas says:

    kartik sir,
    I wrote in previous message that support team is not responding & also not solving problem, so I comment here.
    Yet it is pending.

  171. sainudheen says:

    sir,

    Is it Atr stops and super trent are same calculations ?

    Thanks

  172. Sarthak Laddha says:

    Hello Sir,
    How’s John J Murphy – TA of the financial market book?
    Or any specific book you want to recommend?

  173. ranjith kumar says:

    thanks sir,
    fibbanaci retracemnt pattern are not avl in this..
    any idea about this fibbanaci pattern…..

  174. Deepak says:

    Hi ,

    I have started my Zerodha account and I got my client id and password. But now I am getting frequent mail asking (Power of attorney ) POA document physically signed and it is mentioned that it is required to sell the shares from my demat account.On the other hand on the POA document, it is written ‘voluntary’.Can you give some clarification on this .

    Deepak

    • Karthik Rangappa says:

      Let me check up on the usage of the term ‘Voluntary’. However, you need to sign a POA for debiting shares from the DEMAT account, so this is really required.

  175. Ulhas says:

    karthik sir,
    why bracket order facility is not in commodity?

  176. Amit Gupta says:

    Hi Team,

    Do we not have Camarilla pivots in Kite charts?

  177. Sarthak Laddha says:

    Hello Sir,
    I am a CA Final Student and started trading 2 months ago, learned everything about TA from you and Steve nison and John j murphy’s book.. Lately i have been developing a huge interest in capital markets and I want a job in AMC’s / Investment banks.. For that which course would be better.. CFA or CMT?
    This question is not related to any of the concept discussed in the module… I am asking it here because i don’t have any other medium to discuss with you.
    Thank You

  178. Jay Patel says:

    I am not able to install PI on my laptop. May be i am referring wrong download link. Can anybody provide me link to download Zerodha PI !

  179. Aditya Jain says:

    I have seen Traders Giving Targets. But I don’t know on what basis the Targets Are Given. Is their any Indicator Giving Targets.

    • Karthik Rangappa says:

      Usually, the S&R plays an important role in here, Aditya.

      • Aditya Jain says:

        Ya! That’s I understood. But what If a stock has never Reached a point but The Traders are giving Target of that point.
        Than How they managed to give such a Target where the stock has never reached.

  180. Arjun says:

    How can I add VWAP on PI.
    Please help

  181. vinu ashok says:

    Hi
    am an active option trader
    what happens if i am able to make huge return on options :
    i.e. say started with 5000 rs multiplied 5 times to 25000
    25000 to 75000
    75000 to 150000
    150000 to 750000
    750000 to 3000000
    3000000 to 15000000

    here in above illustration i could make 1.5 crore with investment of 5000 rs , i just illustrated round figures for you to get an idea, whereas the actuals are having losses also , i just drawn the end result.
    i was doing paper trading this since many months

    this happens in bank nifty weekly options and just assume that i traded like the above in 2-3 months time and what would be my tax treatment, any issues i will face etc.

    pls explain will i enter into any kind of trouble if i execute trades like above

    regards
    ashok

  182. Rajesh says:

    Whether we can place stoploss for Cash and carry? If yes kindly reply sir how can I place… Here stoploss & target available only for intraday..(in zerodha kite)

    Hoping for reply
    Thank you

    • Rajesh, you can place a stoploss and target for both CNC(Cash and Carry) and MIS(Intraday). However, the orders will be valid only for a day, it will get cancelled(if not completed) at the end of the day.

      • Rajesh says:

        Meaning you have to update/edit stoploss regularly each day for same order
        Am i right?
        I want to do positional and swing trading….

      • Rajesh says:

        Meaning you have to update/edit stoploss regularly every day for same order
        Am i right?
        In cash and carry whether order can be carried forward for some days or it is valid for only one day?
        Confusing..
        I want to do positional and swing trading….
        Kindly solve my issue
        Thank you

  183. Harshad says:

    I saw the “valuation Line” as indicator in Kite3.0..can someone elaborate what is it exactly. how is it supposed to be used.
    Also I noticed one anomaly…the valuation lines’ value changes as you zoom in/out in the page!! that shudn’t be happening right?
    kindly elaborate on this

    • Karthik Rangappa says:

      I’m not sure about the valuation line, maybe I should do some reading up on this.

      • Harshad says:

        Hello Karthik,
        Any updates on this…

        • Karthik Rangappa says:

          This looks like a simple standard deviation plot – very similar to the Bollinger bands.

          • Harshad says:

            Yeah, but why are values constantly changing?….shouldn’t the values be static….i.e values change even when I zoom in/out of the page. Because of this “ever changing” nature it becomes very confusing when I try & understand ..& perhaps look for a trade setup.
            Kindly help on this.

          • Karthik Rangappa says:

            The values changes because when you zoom in and zoom out, more data points are loaded, hence they change. However, let me check this once again!

  184. Raju says:

    Thanks for the excellent module…
    1) whether we can use Bracket order for market order placement since we can define take profit and trailing stop loss only in BO, it’s not available in cover order
    2) I want to do intraday trading… When the moment I press MIS will it use only margin amount or Total amount blocked as seen in Cash and carry(suppose if SBIN is trading at 260 margins required for 10 stocks is 760.. will only 760 blocked or 2600 blocked?
    3) I heard that Call and trade(Rs 20 ) are charging for intraday trading? Isn’t it true? Will intraday trading come under Call and trade?
    4) Kindly make a video on All order placements, it is confusing ?
    Kindly reply

    • 1. You can place a market order with BO by entering you buy price higher than the LTP. This will trigger a market order.
      2. Only the margin will be blocked for MIS orders
      3. Call & Trade charges are charged for intraday orders not squared off only. If you square off your order before 3.20 PM, this charges won’t be levied.
      4. Check out our demo at 2.30 PM and 6.30 PM to get used to Kite (Order placement is clearly explained

      • Raju says:

        Thank you, sir…
        I missed the demo… Is there any link? kindly provide me…

      • Raju says:

        Please reply to this doubts also…
        1) I failed to square off before 3.20 due to some power issues or technical issues for intraday trading, what happens to buy and sell orders(leaving Call and trade charges)? If I was in profit by that time, will profit be given? Nowhere/No one has it is mentioned/explained…
        2) I heard intraday can be converted to CNC(cash and carry) trade if we have sufficient amount, but I didn’t find any option in Order window(in zerodha kite/zerodha pi) for conversion to CNC… Kindly reply where it is available…
        3) Sometimes Bears are continuous.. Will we can hold Sell order for some days for positional/swing trading?( I practiced in money bhai it’s completely different from that)

        Kindly reply me, sir…
        Thank you

        • 1. If you don’t square off, our system will square off the position with a market order.
          2. Check this screenshot on where you can find the conversion option.
          3. In Equity, you cannot hold a short position. You can however, do the same in a Futures trade

          • Crea says:

            If we were in profit during at the time of Autosquare off… Will profit is added, or Loss?
            In money bhai (practice site) there is Loss calculated i.e… if we buy a stock they are autosquaring with Low price of the day.. Its end up in loss…
            Kindly reply

  185. Raju says:

    Sir, please reply me..
    In zerodha s youtube channel.. They are not giving reply..

    1)If we place MIS order(Regular)… we can place stop loss by clicking on exit order button… But how can we place Target?
    Can we place two exit orders (one for stop loss and one for Target ) for one MIS order?
    2)Whether we have to cancel Stoploss order if target hits or it will be auto-cancelled?

    Kindly reply me sir…

    • 1. Yes, you can place both stop-loss and target order for one MIS position.
      2. You have to cancel one of the order if the other one is executed. You can alternately use Bracket Order where the other order is cancelled automatically

  186. Crea says:

    If we were in profit during at the time of Autosquare off(3.20pm).. Will profit is added, or Loss(low of the day is calculated)?
    I just started trading in zerodha… But in my area Power cut is from 2-3.30pm.. Incoming summer it will be maybe more…
    Kindly reply me, sir

  187. Padma says:

    Suppose Stock price is at Rs 150.20 .. I decided to place MIS buy Limit order at 151.70 and stop loss at 150.70 and Target price of 153.20… Which order is executed first? Either Buy order or stop loss order?
    I am confused about it… How can we place predetermined orders? Is it possible in MIS(Regular)?
    Kindly reply me, sir

  188. venu says:

    Sir, please reply me…
    Here for bracket and cover order, there is more margin when compared to regular intraday… Suppose I placed RS 2 a stop-loss for 100 stocks took cover order, the margin required is 800… Will you take entire margin amount or Amount deducted by stop-loss(i.e., is 100*2 =200)
    I am confused.. kindly reply me, sir

  189. Nisar says:

    Hi Karthik,

    You are doing great job man. Please help me to clear some doubt. I m trying with three super trend in crude oil with 10 minute chart and I feel it is working fine. Right now I am watching it, after so many bad trades.

    Question is the what is best time frame for stock market 5 min is not reliable and 10 min is too late. My view is that if we can add
    macd or adx or any other indicator and use 5 min chart will be very good, please share your view.

    I m trying my hand in algo trading also do u know if we can buy successful trading setup which someone already using it in
    streak.

    Regards
    Nisar

    • Karthik Rangappa says:

      For the streak bit, you wil have to contact their support.

      I personally would not like to use an indicator over an indicator. That may kind of complicate the whole business. I agree 10mins feels delayed, but as a trade off, you have looking at a slightly more stable chart. Shorter the time frame, like 5 mins, lower is the stability.

  190. Rajesh says:

    Here in Zerodha … I bought 100 stocks at market order it got executed in 5 different orders… There are edit and exit option for each order separately… But I want to close my position all at once… Isn’t possible to close all 100 at once?
    Plz reply

  191. Amarnath says:

    I wanted to place a buy order of a script and at the time of placing order, I wanted to give two conditions. Let me explain. Say I wanted to buy Ashok Leyland in between 137 to 137.50. While I place this order, I also want to tell the system that when Ashok Leyland will reach 150.00 it should be sold out automatically, and I also want to add that, If Ashok Leyland comes down to 130.00 it should be squared off to prevent my loss. And I want to place this order with for Good till date option. Say today on 27th Feb I place this order and I till the computer that this order with all its condition to remain valid till 7th of March.
    My question to you, is this possible in any broker’s software?

  192. Kuldeep BB says:

    Please add Super Trend alert. It will be very helpful for options trading.

    Thanks&Regards,
    Kuldeep BB

  193. Mahesh says:

    Loving it. thanks to you sir.
    When can we say there is an uptrend or downtrend?
    If I am using day candles, how many continuous previous blue/red candles represent uptrend/downtrend?
    If there are many continuous blue/red candles and then 1 or 2 red/blue candles then again 2 or 3 blue/red candles can we still consider it as uptrend/downtrend?

    • Karthik Rangappa says:

      Mahesh, I’d look for at least 10-15 trading session, contributing to at least 5-8% movement in price. This percentage figure can be much higher for stocks.

  194. rajesh says:

    I am using REGULAR order for MIS…We can edit profit and stop loss in it …
    whether there is any chance of editing take profit and stop loss in BO after executed?
    One more I am confused when I type margins for BO or CO… Suppose if I place an order for 100 quantity at Rs 100 and stop loss at 96
    Their margin displayed as 480 .. Will if stop loss hits Rs 400 deducted or whole 480 deducted?
    Kindly reply me, sir, I am confused with it?

  195. Rajesh says:

    Please clarify this doubt too sir..
    1) Until now I am placing market orders it is getting executed in different orders separately…
    But I never tried Limit order(Thinking order not executed)… But I want to try this… what happens if there are fewer buyers/sellers for the order at that price? will order gets executed?
    Suppose if want to place a BUY order for 500 quantity at Rs 100… But sellers at that price are only 150… Will 150 be executed or it executes only when complete 500 available? Kindly reply sir I want to use BO from now?
    2) Can we close BO and CO orders before Target / stop loss hits?

    • 1. While using Limit orders, if sellers are not available for the whole quantity, your order will be partially executed and the order will remain open for the rest of the quantity.
      2. Yes, BO/CO can be exited before either Stoploss or Target is hit. You can click on pending SL or Target order in the orderbook and click on the exit button

      • rajesh says:

        Thanks sir..
        What is the difference between trigger price in Nrml MIS and CO? In cover order, there is range mentioned?
        will order not executed if we don’t place trigger price specified by zerodha?

  196. chidambaram says:

    HI Sir,
    If we enter a long trade and if the candle low coincide with in and around S&R level and if Close- ATR value differs from SL.then
    1.If (close- ATR) value is below the candle (pattern) low,what should be selected as SL(candle low or Close-ATR value)?
    2.If (close-ATR) value is above the candle low then what can be set as SL?

  197. Rajesh says:

    What is the difference between trigger price in Nrml MIS and CO? In cover order, there is range mentioned?
    will order not executed if we don’t place trigger price specified by zerodha?
    kindly reply me, sir

    • Trigger price is when your stop-loss order gets triggered and becomes an active order. The stop-loss(market) order is the same for all three products, NRML, MIS and CO but since CO is a leveraged product, the stop-loss needs to be in the range and orders placed beyond this will not go through

  198. Venugopal says:

    I am not a regular trader/investor…
    Is there any option of alert message available in zerodha? becoz its difficult to place stop loss daily for my order…( in Zerodha stop loss is valid for one day only)
    Alert message to the phone that your order is crossing etc. It will be good if there is an alert message…
    If available kindly say where can I find it in kite chart? if no kindly think about… It will be extremely helpful for people who are doing jobs like me…
    Reply me, sir

  199. ulhas says:

    Dear sir,
    Before more than three months on (3 Dec 2017) below request was send. Till date it is not updated. Will it update? In general after how many days you are releasing updated version as par past experience.

    Please add vwap value (which is available with you) in DEPTH view. This is essential for customers.
    with best regards,
    ulhas khupase

    • Ulhas, VWAP data is available in Kite 3 in the market depth and below the charts. It is shown as Average Price. Check this screenshot

      • ulhas says:

        Dear sir,
        This is required on mobile which is not avaible now.Need to shift screen very time.
        pl check.
        Thanks
        ulhas

      • Ulhas says:

        Dear sir,
        There were many request to update software by adding features. But it is too late.
        Need also icon to move chart towards left & right. There was also request of adding vwap with 4 digit accuracy at any time frame. It is now available only for 1 min chart & need to zoom. Request of adding alert is pending from many days.
        This all required in mobile app.
        Please request to take follow up with developer team.

        regards,
        Ulhas

      • Ulhas says:

        sir,
        This is required on kite on mobile.
        why we can not see VWAP chart separately like rsi,stoch,macd.
        Need to see VWAP separately , will help better to take decisions.
        Also need value of ATP in 4 digit like (245.7845). As this is available on chart but not at depth. please do this in depth also.

        Regards,
        ulhas

        • 1. VWAP is a price indicator, hence it is formed as an overlay over the stock price chart(Just like moving averages). RSI and others have their own values and are displayed separately.
          2. The Kite mobile app update will have the VWAP in the market depth too.

          • Ulhas says:

            Dear sir,
            VWAP value is not available in mobile app but it is in desktop.

            It is only 2 digit accuracy but need 4 digit.

            It is available with you but not providing.

            VWAP with 4 digit is available on chart only for 1 minute timeframe.

            regards,
            Ulhas

      • Ulhas says:

        Dear sir,
        Charts on mobile must be continues update in the back process of mobile. Need to update in your software.
        Need to release which is updated & tested till today.

        regards,
        Ulhas

  200. shweta says:

    I would like to know what should be strategy for intra trading? which indicator should we use for intra trading out of so many . I really appreciate your effort of sharing your knowledge in simple words but still am confused about the strategy during live market. Using supertrend and macd they are time lag indicators they may indicate the signal too late .Which indicator or what should be strategy to action on time if not with little delay and what should be the time frame as well. Plz if you could solve my queries.

    • Karthik Rangappa says:

      Shweta, you can use any of the candlestick pattern for trading intraday. Indicators are best used as a supplementary tool. Yes, these are lagging indicators and it won’t help you identify the exact entry and exit points. However, the point here is to capture a part of the trend and not really the entire trend.

      • shweta says:

        Thank you for replying. What should be time frame of the chart & indicator . And if we talk about your experience which indicator is best among the list .

        • Karthik Rangappa says:

          I’m not a big fan of indicators, Shweta. For intraday I prefer 10 or 15 mins charts, otherwise the EOD chart.

  201. padmasree says:

    I am not kyc registered.. whether i am able to open paperless trading and demat account ? Does zerodha provide e kyc process also? Kindly reply me sir..

  202. Anagha says:

    In supertrend what should be the default settings, Day or Hour or 30 min to get best results?

  203. Adishwar says:

    Hi Karthik! I have a doubt on stock splits.
    When I see some line charts in Google I see some sharp price drops of good quality midcap stocks to half. When I search for date of stocks split of that particular stock the date mention there is irrelevant.
    So can you please explain me stock split with an example?

  204. Girish says:

    Karthik Sir,
    How r u ?

    How to set ADX for weekly chart ?

  205. Tarun kumar says:

    Hi karthik

    I tried back testing the code I wrote in zerodha pi but the software didnt give me any result
    There wasnt any error message either.
    Even when i ran a simple code like volume>100000; the software didnt return value. can you kindly
    guide me through to resolve this issue?

    • Karthik Rangappa says:

      Tarun, I’d suggest you reach out to – [email protected]

      • Tarun kumar says:

        Thank you karthik. another query. Is there an option to get the alerts created on expert advisor on mail or on my kite account?
        The thing I can use only kite when I am in office(cant download on office pc. against the rules). And there are no such features on kite.
        so if there could be an option to get the alerts on gmail , that would help me a lot!
        kindly bring in this feature

  206. Tarun says:

    Thank you Karthik, hope the wait is short

  207. padmasree says:

    what is the difference between Limit Bracket order and SL Bracket order as both showing same expect trigger price..
    Can we use SL bracket order for placing orders like normal bracket orders or it can be used only for placing stoploss?
    Kindly reply me sir

    • 1. Bracket order, in general, comes with a stop-loss and target order after the position is entered. Limit and Stoploss BO orders only differ in the way you enter the trade. In Limit BO, you can enter the buy price below the market price and the order is executed if the price falls to that level. In SL BO, you can enter a higher trigger price and if the stock hits that price, your order is executed

      2. No, you cannot. The cover order comes with its own stop-loss order that goes becomes open once the entry order is executed

  208. padmasree says:

    I placed a buy cover order.. Can i placed a regular stoploss sell order for that cover order? or i have to place/exit as cover order only… Kindly reply me sir.. I am confused about it

  209. Tarak says:

    Hi Karthik
    I am trying to understand VWAP in kite(Android Version). What is the start point of weighing the trading prices in kite(Andoroid version).Is it start of a day or is it start of whatever option is opted in the screen- eg ( 1 day, 5 day or 1 month).It doesn’t appear for 1 year.
    Tarak

  210. creat lea says:

    First of all thanks for providing a good quality material, its easy to understand

    I want to open online account through aadhar based.. I saw account opening process in zerodha youtube channel..
    In some other youtube channels say you must be a kyc verfied before opening online account opening but you have not mentioned it. i am not kyc verified
    Do kyc verification automatically processed by zerodha (as KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.)
    if not how can I get kyc verfied or where should i go to get verified.. please provide me a link sir.. I am new to this kyc process, heared but i dont know the process
    Kindly reply me sir
    Hoping for response
    Thank you

  211. Angayerkanni says:

    Dear Karthik sir,
    We need HMA colour change option is useful for all our subscribers.
    Please try to add at earliest possible.
    At present I am using Kite mobile app.
    Thanks,
    Angayerkanni

  212. Angayerkanni says:

    Dear sir,
    Using RENKO options of application only start from 1 minute and it erase privious printed boxes.
    If you include tick by tick facility it helps know correct position to enter buy and sell stock better way.
    Can your team can add this.
    Thanks,
    Angayerkanni

  213. Vinayak says:

    1. Is there any indicator in Pi, which shows Fractals as aligator in Kite.
    2. How to change color of -DI line to Red for Directional Movement System in Pi

  214. Gautam says:

    Hi team,

    1) How to change date format in chart as per my convenient format.
    2) How to change scroll of mouse forward/backward(vise versa) to expand/decreasing chart as per my convenient.

    • Karthik Rangappa says:

      1) I’m afraid, date format cannot be changed
      2) You can use the zoom option (with + & – symbol) to zoom into the required chart area. This is available at the bottom center of the chart in Kite.

  215. Gautam says:

    Dear Team,

    There are lot of space available on Top tool bar, that space can be utilized for adding more tool on the display for each parameter. Same as in Investing.com Like:
    1min – 5Min- 30Min-1Day……
    Chart Type, Renko, Candle, etc

  216. Gautam says:

    Dear Team,

    Most of the tools are added in 1 single dropdown. Please split each tools on the Top Tool bar. So that people could use tool by selecting from the tool bar.

  217. Shrenik Shah says:

    What should be the time frame for Volume Weighted Average Price for intraday purpose?
    Normally what time frame you prefer?

  218. Abhishek V says:

    With your guidance i have learnt technical analysis and have tasted both profit and loss in intraday upto Rs.3000.00 when genuine trade was there. I know how to earn profit and how to avoid losses in intraday now with ur help. Will u please guide me if this profit can be increased to more than Rs.3000.00 to let us say 5000, 10000 and more than that (of course , it can be done only if genuine trade is there). I request you to pl give me a straight answer, not a diplomatic one.

    Thnx.

    • Karthik Rangappa says:

      Abhishek, my help will be to the extent of giving you the answers (which I think is right) when you post your queries here. So feel free to continue posting your queries here.

      Good luck and stay profitable 🙂

  219. Abhishek V says:

    One more small doubt. I hope u will be able to clarify. Is is really possible to be profitable after deduction of applicable charges in intraday? I have been observing that applicable charges are always eating way the profits and are invariably more than profits. The charges are to the tune of at nearly Rs.1,000.00 , if one trades with capital of Rs.20,000.00 intraday. Or should I say that intraday is profitable only if one earns more than Rs.3,000.00 intraday. I have been trading for the past 5 months nearly. Maybe, I am overtrading. Does that mean that I have to improvise my trading skills and make as fewer and refined and correct moves as possible? I am now of the opinion that trading with a capital of Rs.1,00,000.00 and making profit of at least Rs.3,000.00 at one instance only will enable one to take home some amount after deduction of applicable charges. Pl correct me if i am wrong.
    Thnx.

    • Karthik Rangappa says:

      Rs.1000 as charges is quite high, Abhishek. Either you are over trading or paying more brokerage. If you are paying more brokerage, then maybe you should consider shifting to Zerodha – https://zerodha.com/?ref=varsity

      From my experience, keeping Rupee targets never really works in the longer term. You will fall under pressures and end up taking irrational trades. Stick to strategies and trade according to what the strategy demands.

  220. rr says:

    kindly reply this sir..
    1)you are saying brokerage of 20rs or low for intraday order executed but in zerodha brokerage calculator it showing as 40rs..
    Is this 20rs additional than that calculator?(intraday)
    2) suppose if square off by clicking x mark(market price) in a trade other than what i fixed target/stoploss.. will additional 20rs are charged for this type of orders?

    • Karthik Rangappa says:

      1) 20 per executed order.
      2) Yes, like I mentioned, its 20 for buy and 20 for sell.

      • rr says:

        thanks for reply..
        is 20 a fixed ? if i do with less no.of shares , will the brokerge be lower? How do you calculate , I mean percentage?

        • Karthik Rangappa says:

          Yes, it is, in fact, Rs.20 or 0.01%, whichever is lower. You can check the tariff sheet here – https://zerodha.com/charges

          • rr says:

            Thanks for replying
            0.02% calculated as this way..
            suppose I buy 10 shares of xyz at 300…. 300* 10*0.02 + additional zerodha brokerage charge which shown in zerodha calculator
            sell 10 shares of xyz at 304….. 304* 10*0.02 + additional zerodha brokerage charge(brokerage calculator)
            It means charges are levied twice for one order.. am I right?
            plz reply this… I want to start with low budget first and then I want to increase my amount (practised a lot in virtual trading).. want to practice some days in real trading first..

          • Buy and Sell are separate orders
            You will be charged:
            a. Buy- 300*0.01%*10 shares= ₹0.3
            b. Sell- 304*0.01%*10 shares= ₹0.31
            I believe you would have found the same values in the brokerage calculator.

          • rr says:

            ya.. I too found same values..
            I think there are no extra hidden charges
            Thank you

          • Karthik Rangappa says:

            Good luck!

  221. Jagannath says:

    Hi Mr Karthik,

    It is really very insightful by reading your material on TA. Please keep it up and provide some more TA strategies. Also why can’t you lower your brokerage from Rs 20/- per trade to say 5 or 10 per trade? Axis Direct is offering for Rs 10/- per F&O trade only and that too Zero for intra-day trading. As most of the budding traders told above, transaction cost is eating into the profits made in intra-day trade/positional trade.

    • Karthik Rangappa says:

      Jagannath, we offer the lowest brokerage. Did you know the brokerage for equity delivery is already 0. It cannot go lower than that. Also, as a budding trader your focus should be on capturing the trend, not really about brokerage costs 🙂

  222. RAJESH says:

    Thank you for providing quality material…
    Kindly clear my doubts..
    1)Your pivot point calculation is different from others.. I tried all available calulations, it didn’t matched your calculations.. Kindly say how you r calculationing?(intraday)
    2) I mostly use norml intraday.. place target and stoploss after executing order…. Isn’t possible to move stoploss above the order (what I mean, is it possible to move stoploss in to profit)
    suppose i place a order at 1000 with target of 1015 and stoploss of 994, stock moved to 1007.. Isn’t possible to move stoploss to 1003.. so that i can end up in profit if stock moves down.. i never tried thinking about fines (zerodha charges for improper quantity , margins etc.).. I know it is possible in BO orders as it has trailing stoploss.. but what about normal intraday orders..
    Kindly reply sir..

  223. anitha says:

    Yes your pivot point calculation is different from others.. Kindly reply me what formula zerodha pi uses?
    I tried O+H+L+C/4, H+L+C/3 it didn’t match them.

    • Sreeni says:

      The Pivot Points formula on Pi:

      Pivot point § = (H + L + C) / 3
      First support level (S1) = (2 * P) – H
      Second support level (S2) = P – (H – L)
      Third support level (S3) = Low – 2(High – PP)
      First resistance level (R1) = (2 * P) – L
      Second resistance level (R2) = P + (H – L)
      Third resistance level (R3) = High + 2(PP – Low)

      There are different ways to calculate pivot points (so both ways are correct), As both kite and pi is powered by different charting engines and hence they differ.

  224. Satya says:

    Hi Karthik,

    What is the best way to adjust options “iron condor” strategy if the market is moving in one direction? please clarify me with examples.

    Thanks in advance
    Satya.

    • Karthik Rangappa says:

      If you are talking about a hegde, then you will have to note the direction of the market and initiate a futures position to match your P&L.

  225. shyam says:

    I happened to see some videos on you tube on Elliot waves. Seems complicated but interesting.
    Any plans of including this study here in varsity? Ne books or materials that you could suggest?

  226. Abudhar al Hassan says:

    https://drive.google.com/open?id=1seDuZ83fR6KQhL3oIjzjRXxQ1NqVtBU_

    Hey Karthik,
    Need your insight on this. Please have a look at the screenshot above, which is a 15mins SILVERMIC chart on which I took an intraday trade yesterday. Allow me to explain my approach…

    *. Had constructed price action zones based on my readings from varsity, and the lower zone is actually a major support zone if you look back in the chart, not showing in the screenshot though.
    *. CMP was at the lower zone, and so was the stochastic and I was bullish on it because the zone was time tested and not broken, at least not recently.
    *. The A candle formed. A hammer if I am not mistaken. There was a volume spike above average level, D, right beneath it. So a hammer after a downtrend at a support level with a volume spike indicates a reversal, but I waited for confirmation.
    *. The doji right after A suggested indecision, so I went ahead and placed a SL-BUY order at the high of the doji, which was hit by the bullish marubozu candle B (not exactly a marubozu though).
    *. So blue line is where I bought and the red line was my SL which is right below the low of the hammer (with a buffer of 1-2 ticks).
    The green line was my target as it was the next immediate price action zone, above. Also, I kinda felt that the price is ranging between the two zones. The R:R was 2.6 and was very satisfying for an intraday trade.

    Now, I had a lot of conviction on this trade and you would see it did pan out, but only after hitting my SL. So my questions on this are…
    a) Is my approach right? Did I miss something? Should I have waited for more confirmations?
    b) Had you been in my place, how would have you approached this trade? Would you have taken the trade? If yes, then where would you have taken the trade?
    c) What other factors would you look for here? Do we need to look at any non-technical parameters before initiating a commodity intraday trade such as this?

    As always, your insight would be highly appreciated.

    Thanks & Regards,
    Abudhar al Hassan.

    • Karthik Rangappa says:

      Interesting 🙂

      I would have initiated the trade just like the way you did and probably I’d be lying if I said I’d not be tempted to get out of the trade at candle c. But here is the thing, a 70 point move over a 40K odd priced stock/commodity is too small a price. It can get taken in a tick. Hence, what I’ve have done differently is to choose a stoploss which cannot be taken away by regular swings. I guess you should see this video for better understanding – https://www.youtube.com/watch?v=IrSZBgFCf00&t=1s

      • Abudhar al Hassan says:

        Hey Karthik,
        I am glad you posted the video. Had seen this long back and actually had some queries..
        1. Let’s say we have calculated the absolute daily volatility value of a particular equity in 15mins interval to say, Rs. 5/-. Now does this mean that the price of the shares would fluctuate +-5 from the CMP or from the O/C/H/L of the day or from the O/C/H/L of the candle that’s being formed?
        2. If we placed volatility-based SLs and Targets, the R:R would always be 1:1 right? Is that advisable?
        3. Can we just use the built-in ATR study of Kite to determine the volatility at any interval and skip the whole volatility calculation part (the way you’d mentioned in the video)? Or they are two different things?
        4. This is off-topic. When we know that we are trading a range, then is it alright to ignore waiting for above-average volume spikes when price reaches the upper or lower level of the range and just take a trade based on a recognizable pattern/candle forming at either of the levels?
        5. Would you say that a resistance level which has turned to a support or vice versa is a more reliable/stronger price action zone than the S&R that we would plot otherwise?
        As always, your insight is highly valued. 🙂

        Thanks,
        Abudhar al Hassan.

        • Karthik Rangappa says:

          1) You are comparing two things here – daily volatility versus 15 mins volatility. Both could be different hence you need to convert daily vol to 15 mins vol. I’m really not sure how effective this would be. Anyway, to answer your question, its on EOD OHLC.
          2) Use Vol to set up the SL, not target simply because it would be a 1:1 RR
          3) Yes, you can use ATR
          4) Yes, you can take leads from your gut, but I’d suggest you look at evidence to back the thesis
          5) Agreed, tested S&R is always more reliable

          Good luck.

          • Abudhar al Hassan says:

            Hey Karthik,
            Thanks for responding. I have an issue though. I know this is not your department but I am unable to get any response from the Zerodha support team. They have opened a ticket and all but I can’t see their response at my end. The thing is, when I look at the SILVERMICAUG2018 chart, I see today’s candle (daily time frame) at a certain place but when I select continuous data from the display menu, the candle redraws itself (again in the same daily time frame) at a different place. Had send the screenshots to the support team but, as I said, either they haven’t responded yet or I am unable to view their replies…I am posting the links to the charts here. If you could kindly look into this or kindly let me know whom to contact so as to escalate the matter, it would be of great help.
            Thanks.

            https://drive.google.com/open?id=1QS1AgT_5OTcxdhY-u5R-0-jxkUVvRi7D
            https://drive.google.com/open?id=1Ht2kDfoNUdR__KPxJNFyBr7Mf9-bvka3

            ~Abudhar al Hassan.

          • Hassan, I believe Arockiya from our charting team has resolved your query over the phone.

  227. Abudhar al Hassan says:

    Hey Karthik,
    Is there a way I can share the screenshot of a chart with you? Wanted your insight on a trade I took. Tried uploading the file to my drive and sharing the link here but guess the forum doesn’t allow links in the comments. Any other way to share a screen shot with you? Thanks.

    Abudhar al Hassan.

  228. vinay says:

    Hi Karthik

    Why vwap is not in pi? Why is it so difficuilt to put it in pi? or have you guys stopped working on Pi. I see there are no updates on pi for long time now?

    • Karthik Rangappa says:

      Pi use a 3rd party charting engine, Vinay. So the inclusion should happen from their end. I’ll check if this can be done soon. Thanks.

  229. SHyam says:

    Supposing in bank nifty i am using super trend .what shd be the period and multiplier. I am using 15 min chart.

    SHd i keep the default (7,3) or shd i change this for generating more signals?

  230. SHyam says:

    can we use average trading range for banknifty and nifty index? or is this applicable only for stocks?

  231. SHyam says:

    I was checking ATR for ACC. It was 9. Current stock price is 1339. Does that mean it will move in range between 1348 or 1330?

    When I checked the charts in kite there was a 40 point movement in this stock on 29th. AM i interpreting this wrongly?

  232. Abudhar al Hassan says:

    Hey Karthik,
    I am facing some issues on Kite. I tried contacting support with screenshots and all but all I got was a ticket opened, which is probably automated I guess. This is the second time I am posting about this. The first time I did with links to the screenshot the forum
    didn’t accept the comment.
    Now to the issue…I was looking at SILVERMICAUG2018 contract (default daily time frame, non-continuous data) and yesterday and today’s candle at a specific position but when I chose for continuous data of the same contract on the same time frame, the candles just shift their positions. \the OCHL all gets redrawn and at different levels thus making it difficult to take a trading decision. I am currently short on this contract and I am unable to decide on my target. I am not posting the links to the charts else the comment will not be posted.
    Could you please look into this? I know this is not your department but then I am not getting any response from the support time…all I have is a ticket no.: 20180702577545. Any help would be highly appreciated! Thanks.

    ~Abudhar al Hassan.

  233. Madhuri Devi says:

    Hi Karthik!
    You have produced such good content; Kudos to you. Now, where can I find detailed information on every tool (i.e. drawing tools and indicators).

    Thanks and regards

    • Karthik Rangappa says:

      Thanks, Madhuri. Most of the important indicators are already covered in this chapter. Is there anything, in particular, you are looking at?

  234. venu says:

    I want to open an account with zerodha
    Kindly reply me, sir, No one is replying

    1) I am an intraday trader. Is it required to have a demat account? As intraday shares are squared off on the same day itself, moreover it won’t go into demat account.
    2) I am prepared to open an account through online… on last we have to sign and send demat form, within 7days..what will happen? If it is not reached within 7days, will the account be fortified?
    Hoping for reply

  235. venu says:

    How long it will take to get active account,if I open account through online? Is it possible to start trading(intraday) immediately after opening an account? or I have to wait till my demat account is linked ? How can I know whether demat account is linked to my trading account or not? will I recieve any confirmation message?

    • Once you e-Sign the application after filling the relevant information and documents, your account will be verified within 24 working hours. You will be able to trade from the next day after the verification is complete

  236. Chanu says:

    What are requirements/conditions for Margin Trading?

    • Karthik Rangappa says:

      You need to ensure you have the required margin amount before trading. You also need to be aware of the risk you are taking while trading on Margins.

  237. Chanu says:

    SINCE I’M NEW TO TRADING, I’M LEARNING CHART IN INVESTING.COM WEBSITE. OVER THEIR WHY ADX IS SHOWING SINGLE LINE IN INVESTING.COM WEBSITE? I ALSO SAW SETTING BUT NO OPTION! WHAT SINGLE LINE SPECIFIES ?

  238. raju says:

    Yesterday I opened zerodha account, today I got login credentials
    There you people asked login security five questions
    How can I stick to two questions of my choice? It keeps on changing every time when I log in
    Kindly reply me, sir,

    • Karthik Rangappa says:

      2 out of the 5 questions will randomly pop up at the time of login in. This is how 2-factor authentication works. Unfortunately, you cannot keep 2 questions constant.

      • raju says:

        I practised in my friends zerodha account… Their security questions are fixed to two only… Is there any option for changing the answers…As a swing trader we occasionally open account, It’s somewhat difficult for me to remember…

        Today is an exchange mock trading day. You may receive live ticks and your orders may go through. These are dummy transactions and are wiped automatically the next day.
        I am seeing occasionally these message during weekend days… what is this? Is it a practice one? whether we can place orders?

  239. Senthil Kumar N says:

    Hi Karthik – I just finished getting to know the Introduction & TA and I must say that this is one of the best insight to stock market and I’m going to share this on FB for others to know.. Blow away by your simple explanations, Kudos..

    One clarification from my side while reading through this sentence (Total VP = This is a cumulative number, which is got by adding the current VP to the previous VP) – I’m unable to identify the previous VP , can you clarify pls.

    Best,
    Senthil

    • Karthik Rangappa says:

      Thanks for helping us spread the word, Senthil. We all need to do our bit in helping the Indian Capital Markets to develop 🙂

      VP = Volume * Price

      So the current Volume * Price data gets added to the previous Volume * Price and a cumulative number is generated. See the table, it has the calculation.

      • Senthil Kumar N says:

        Thanks sir.. In chapter you have mentioned for most of the TA to look at the candle stick pattern at 3:20pm while the market closes at 3:30pm, is it really possible to do a intraday trade within that 10 mins time interval (or) Am I missing something in here..?

        • Karthik Rangappa says:

          These are not for intraday trades, you look at whats panning out and take a positional trade.

          • Senthil Kumar N says:

            Looks like some confusion, what i meant is the timing of 3:20 pm is mentioned in candle stick patterns from module 5 to module 10..

          • Karthik Rangappa says:

            Yes, at 3:20 PM you take a call on how the price action is panning out and decide if you want to initiate a trade or not. You should also be in a position to identify the candlestick pattern.

  240. rajesh says:

    I never used any sub-brokers link/or any other link in the account opening process… I myself directly opened from zerodha account opening page…
    This is the message I received
    Dear Rajesh Reddy – Br
    Thanks for initiating the account opening process at Zerodha. We have received your PoA declaration today and will get back to you soon with the status.

    Do get in touch with your Sales Manager – Deepa ([email protected]), mobile: 9176812020 or call us back on 080-49132020 in case of any further queries.

    Lastly, we appreciate your valuable feedback, please do let us know about your account opening experience by writing to [email protected] and [email protected].

    Why I received bse2nse.com?
    These idiots literally torched me with their calls and messages…
    Let more know details about it
    I trust zerodha a lot, never lose the trust of customers by encouraging this kind of activities
    Will you reply to me?

  241. rajesh says:

    Can we trust zerodha?
    why I received a message from zerodha with a bse2nse message attached? even though I opened an account directly
    Kindly reply me

  242. Praveen says:

    Nice info. very informtive

  243. Nitesh says:

    First of all thank you v