1-Hour FREE Masterclass: Advanced Price Action Trading | The Playbook That Can Change Everything

0:00The first question is : Price Action ,

0:02Smart Money Concepts , and you used

0:04another term , ICT .

0:05What exactly is the difference between

0:07the three ? No matter how much you learn

0:09, how many books you read , or what you

0:11write down , can you execute it when

0:13you're in the market ? If you can't ,

0:14then you have 100 orders within you . At

0:16the end of the day , none of this is

0:18going to work . The crowd — crowd buying

0:20— where does the crowd come in ? The

0:22crowd comes in at the tops and the

0:23bottoms , correct ?

0:24Right , at the bottom , things start

0:25looking cheap to them , and at the top ,

0:27things start looking expensive , so they

0:30either play reversals or buy more out

0:32of greed , so they always take action

0:33there and get trapped . That is exactly

0:36what they identify and where they

0:37initiate . That is why they are called

0:39smart — Smart Money . See , the job of

0:42Smart Money is to fleece the common

0:44person . And to gain fills . That is the

0:47main matter . This happens in Price

0:49Action too . But here , more importance

0:51is given to how institutions , who have

0:53more money , will work compared to a

0:55normal retail trader . So their job is :

0:57when will the big money come in ? Hi

1:06friends , welcome to Dhan . Friends , we

1:08recently held a masterclass on Price

1:10Action with Mukul Sir . We received many

1:12comments on that masterclass asking for

1:14an advanced version , and that was a

1:16Price Action masterclass . Friends , in

1:18today's masterclass , we have taken time

1:20again from Mukul Sir , and in today's

1:22discussion , we are going to talk about

1:24Price Action . Rather , I would say ,

1:26about advanced Price Action . If a

1:28beginner or any trader knows Price

1:30Action , how do they move to the

1:33advanced level ? What are the topics

1:35involved ? What are the new levels of

1:36problems ? What problems occur in

1:38scaling ? We are going to discuss all

1:40these things here today . And most

1:41importantly , we are going to talk about

1:44SMC concepts today . How do Smart Money

1:46Concepts work ? What are the pros and

1:48what are the cons ? We will demystify it

1:50. We are going to have all these

1:52discussions today here with Mukul

1:53Chaudhary Sir . So I welcome you , Mukul

1:55Sir . Thank you so much for giving us

1:58your precious time again , and I welcome

2:00you to this masterclass .

2:01Thank you .

2:02Thank you , Himanshu Ji , and thank you ,

2:03Dhan , for inviting me .

2:04Yes . So today , we are going to talk

2:07about price action .

2:08Yes . Beyond just basic price action ,

2:11since people loved your previous price

2:15action masterclass and many requested

2:18an advanced version , we’ve taken your

2:22time for this .

2:24So today , let's demystify price action

2:26here . You have always been very honest

2:28about the pros and cons of anything .

2:31How risk is more inherent compared to

2:32reward and how one should think about

2:34it . Hmm .

2:36Price action , advanced price action ,

2:38and we were talking off-camera that if

2:39you could also discuss SMC concepts ,

2:41that would be generous of you .

2:44Okay , see , if you study the history of

2:47price , you will learn about Dow , Dow

2:50Theory .

2:52Then you will learn about Wyckoff , how

2:55he gradually mixed volume and price ,

2:58and then his students took it further ,

3:01and then it started combining in Forex ,

3:03leading to Smart Money Concepts . ICT

3:06started appearing , and so on . All these

3:09things started emerging . But the main

3:10objective of mentioning this is that

3:12unless you keep things simple , if you

3:14start memorizing things , If you start

3:16mugging them up , then you will bring

3:18that CBSE mindset everywhere , thinking

3:20you can just memorize and enter the

3:22market to repeat the same things . It

3:24doesn't work like that . It is very

3:26important to read the price , to

3:27understand what the price is trying to

3:28tell you at that moment . What is the

3:30price trying to identify ? If you do

3:33that and you see some sort of traps , or

3:35if you see an opposite opportunity

3:37available there , then you can play it .

3:41And indicators and such things always

3:43just supplement price action . Price

3:45action is supreme .

3:46If you don't know how to read it , no

3:49type of indicator will help you . Right ?

3:51No matter how good a strategy you

3:53create . If you cannot read the price ,

3:55you will have problems . First question :

3:57Price action and Smart Money Concepts .

4:00And you used another word , ICT .

4:02What is the exact difference between

4:03the three ? Or are they all three

4:04branches of the same tree ? How do you

4:06see all these things ? So price action ,

4:08ICT , Smart Money are all the same .

4:11There have just been a few tweaks . ICT

4:13focuses mainly on Forex .

4:16So , within that , we have our forex

4:18sessions .

4:18We

4:19Like the Asia session , London session ,

4:21New York session . Inside these , there

4:24are kill zones . Kill means when Asia

4:26and London meet , like Asia closes at

4:292:30 .

4:30London opens around 1:30 . 1:30 . So the

4:32gap in between , in the Asia close and

4:34London , they call those kill zones . At

4:37this time , the market does liquidity

4:39sweeps . Meaning it makes the price

4:42change . Right ? And there is a liquidity

4:45gap there . Liquidity sweeps happen .

4:48This means the market always tries to

4:49take liquidity . Where does it get the

4:52best fills ? Where the easiest prices

4:55are available . So price always goes

4:57there . So it goes into these zones . And

4:59that's why ICT became famous .

5:01Right ? Because they are talking

5:02specifically about forex .

5:04Alright .

5:05The concept is price action only .

5:06It’s just what they did is ... They

5:07added the concept of order blocks to it

5:09. Like we talk about smart money . Order

5:11blocks . Fair Value Gaps , or FVG . Fair

5:14Value Gaps . Right ? And then you have

5:16order blocks .

5:17Okay ? Change of character . What is

5:19change of character ? For example , if we

5:22talk about Dow theory , higher high ,

5:24higher low , higher high , higher low is

5:26being formed , it means the market is

5:28going up , correct ?

5:29Now if a lower high is formed here

5:30suddenly ,

5:31Or a lower low is formed , then the

5:32character that the market had until now

5:34has changed .

5:35What was going on has changed .

5:36So that is that scene .

5:37The CHOCh place .

5:37Yes , right , so that became CHOCh , what

5:40we call " CHoCH " .

5:41Break of structure , what is that ? Like

5:44generally , the market is making a

5:46higher high and higher low ; now it has

5:48made a high here and a low here . Now ,

5:51as soon as it breaks this high , a break

5:52of structure is happening . The market

5:54is going straight . Now if it reverses

5:55from here , it becomes CHOCh , which is

5:57what I told you .

5:58So the concept is the same . It is just

6:00a play on words . Right ? So if you think

6:02that by learning smart money you will

6:04become profitable . Price action is old .

6:06It doesn't work , or let's say ICT works

6:09. Then that is a very common thought .

6:10In today’s date , all the people who

6:12are trading , especially those who

6:14entered the market after 2020

6:16Those who have been around for a while

6:17have been following price action .

6:18But since 2020 , these two terms have

6:20become famous , and because of this ,

6:22many people feel that if they learn SMC

6:23, they will become very profitable .

6:25Price action is perhaps not as

6:26profitable .

6:27For that matter , ICT , what are your

6:29thoughts on this ?

6:29I feel that with ICT , you just sound

6:32more educated . It makes it seem like

6:35you know more .

6:36But at the end of the day , execution

6:38matters .

6:38Okay ?

6:39No matter how much you learn , how many

6:41books you read , or what you write down ,

6:43when you go into the market , can you

6:44execute ?

6:45If you can’t , you have a hundred

6:46fears within you .

6:48So , at the end of the day , none of this

6:49is going to help .

6:50There are many native traders in India

6:53who have been working on stocks for 20

6:55years , locked in a room .

6:57There are many such people . Right ? Are

6:59they profitable ?

6:59Yes , they are profitable and make a lot

7:01of money . Even when my CA introduced me

7:05to an uncle , he was 50 plus years old .

7:09He was working in MCX . Not

7:10international gold , in MCX . Right ? He

7:13was working in that . He works in gold

7:14and crude oil .

7:15He easily earns over 30 – 40 crore a

7:18year .

7:19Big , big , big man . Right ? It’s not a

7:21small thing . And the guy is using

7:23indicators . He uses indicators heavily .

7:24So where is the difference ? Who is the

7:25alpha ? He is the alpha himself because

7:27his execution is on the next level . I

7:28saw his charts , and I didn't understand

7:30them .

7:30The guy had applied eight indicators .

7:32Everything was applied , and he was

7:33using some old software . Amibroker ,

7:35MetaStock , he was using all of that .

7:38Nothing like today’s latest

7:39TradingView was visible on his screen .

7:41So , the point is that it depends on

7:44what works . Our objective today is to

7:46read the price so our reading is good ,

7:48so we can then go to the execution part

7:50and improve our execution . So you can

7:52do anything . So , price action , SMC , ICT

7:54, broadly all three are similar .

7:56They are similar . It’s similar , just

7:58some minor tweaks here and there .

7:59Right ? They have explained support and

8:01resistance a bit more broadly in

8:03something . Like order blocks , for

8:04instance . Right ? That two or three

8:06range candles are forming or something

8:08is happening , or for example , the

8:09market is falling continuously . Right ?

8:11Now a green candle has formed . So the

8:13last red candle , right ? If we mark its

8:15high and low , then an order block is

8:17formed there . Right ? When the market

8:19breaks it . So concepts have been

8:20created like this . Okay ? So that is the

8:23thing . So can you shed some light on

8:25some of the concepts that you feel are

8:27the most important in SMC and are very

8:29good from a beginner's point of view ?

8:31Yes , look , I will tell you . First of

8:33all , if we talk about SMC concepts . The

8:36main concept of smart money is where

8:38smart money comes in . We leave out

8:39operators and all those things . We

8:41don't know who the operator is .

8:42Operators are people with thousands of

8:43crores . They won't call you to inform

8:45you . And they don't know how much

8:47capital you have , whether it's Ramesh

8:49or whoever , that he has this much

8:51capital , he is going to buy here , and

8:53we will hunt his stop loss and then we

8:56will grab it . It won't happen like that

8:58, you are trading in two , four , or five

8:59lots , right ?

9:00Those people are trading in thousands

9:02of lots .

9:03So it doesn't matter to them , and the

9:06retail volume is hardly 5-10 % .

9:09Right ? It doesn't even matter that much

9:10.

9:10But where is the game ? The game is , uh ,

9:14the herd , the crowd , the crowd buying .

9:18Where does the crowd come in ? The crowd

9:19comes in at tops and bottoms .

9:20Correct .

9:21Right ? At the bottom , things start

9:22looking cheap to them . At the top ,

9:23things start looking expensive to them .

9:25So they either play reversals or buy

9:27more out of greed . So they always take

9:29action there .

9:30And that is where they get trapped .

9:32This is exactly what they identify .

9:33Right ? And they initiate there . That's

9:36why they are called smart . Smart money ,

9:38I gave you a small example . Smart money

9:40works on the basic concept that they

9:43use the crowd's fear to execute their

9:46trades .

9:46So this is your smart money .

9:48Okay ? Any terms that a beginner must

9:51know for smart money ?

9:52So there are three terms : previous day

9:54high , previous day low , and previous

9:56day close . The entire market runs on

9:58these three terms for intraday trading .

10:01Increase the time frame a little bit .

10:02So , previous week high , previous week

10:04low , previous week close . If you want

10:07to increase it further . Previous month

10:08high , previous month low , meaning month

10:10high , month low , month close . As you

10:12keep increasing the time frame , keep

10:14changing the time frames around these

10:17three areas . This is exactly where the

10:19most liquidity is available . You mean

10:21to say the most action happens here .

10:22Yes . For example , if today there is a

10:26laptop . A MacBook . Let's say it was

10:28launched at 90,000 . Demand suddenly

10:30increased a lot . Supply decreased , so

10:32the value suddenly went to 1,19,000 .

10:34Right ? A little more of the same

10:35happened . It went to 1,20,000 . Now , the

10:38potential buyers who wanted to buy it

10:40but had less money . What did they do ? "

10:42Let's buy it later . " " No worries . " So ,

10:44slowly , what does the price do ? It

10:47comes back down to take liquidity .

10:48So , suppose the price became 83,000 on

10:51a Flipkart sale .

10:52Now , even the one who didn't have money

10:54at that time knows that the item worth

10:561,19,000 is available for 83,000 . There

10:58is no better value than this . He starts

10:59seeing the value . So , he comes there .

11:02So , these are value zones . Liquidity

11:04where price comes to check the value .

11:07Where maybe stop losses are present .

11:09Okay ?

11:09Stop losses are below these areas .

11:11Where there is a lot of liquidity . For

11:12example , we are currently trading in 10

11:15lots , 20 lots , 50 lots .

11:17Those people are trading in thousands

11:19of lots .

11:20They need fills . And if I need a fill ,

11:22if today in the market I want to buy

11:2410,000 MacBooks .

11:26I won't get them all at once .

11:27Correct .

11:28I will have to place a large order . I

11:29need liquidity , meaning you know , it

11:31needs liquidity .

11:32So , what will I have to do for this

11:34large order ? I will do some research ,

11:36and when they find out that someone

11:37wants to buy such a large lot , they

11:39will try to give me better prices . They

11:41might even match internet prices for me

11:43, seeing that it's a good order , a cash

11:45order . There is nothing better than

11:46this . So , they will entertain it . So ,

11:48in the market as well , be it wicks or

11:51tops , there is liquidity where stop

11:54losses are placed . When the price

11:56reaches those levels , it triggers stop

11:59losses , large orders get filled , and

12:01the price moves sharply .

12:03So , these are your liquidity sweeps and

12:05gaps . These are very common concepts ,

12:08because see , the goal of smart money is

12:10to trap the average person .

12:12And to gain fills . This is the main

12:14matter . It happens in price action too .

12:16But here , more emphasis is placed on

12:19how institutions with large capital

12:21operate compared to a normal retail

12:23trader .

12:24Hmm .

12:25Right ? So their job is to figure out

12:26when the big money will come in . Big

12:27money will come in at better fill

12:29prices . It won't chase .

12:30Because they know their average would

12:33go up , and if it does , even if they end

12:35up slightly underwater , the losses

12:37would be massive .

12:38And anyway , their own buying would

12:40automatically push the prices up . That

12:42too , they would have large positions .

12:44But the issue is also that if they fill

12:46everything at once , other major

12:48institutions tracking them would know .

12:51Because always keep in mind , all large

12:53institutions always check the tape .

12:56These are their strategies . Like , if

12:58someone needs to take 10,000 in

12:59quantity . For example .

13:01They never put it all at once . If they

13:03do , they will appear on the ticker .

13:04Once on the ticker , other institutions

13:06playing the opposite side will find out

13:07. Now , suppose there are 50 big hedge

13:09funds and institutions like Bank of

13:11America and Goldman Sachs . Not everyone

13:14will be buying . Some will buy , some

13:16will sell , some are rivals , so they

13:18track each other's positions . So they

13:20never put it all at once . That is why

13:22they wait for liquidity . On liquidity ,

13:24they get good fills . Like people

13:25generally say , you get the best entries

13:27below the VWAP . You get them because

13:29you are trading below the average price

13:32.

13:32So you don't attract much attention .

13:33You attract attention at the top .

13:35Right ? That is why they do not chase .

13:37They always wait for the average . You

13:39used two terms : liquidity sweep and

13:41liquidity gap .

13:42What is the difference between the two ?

13:43Look , you don't give much importance to

13:45a gap sweep . We consider it like this .

13:47For example , there is a price . The

13:49price went up and got rejected . Okay ?

13:52Made a wick , made something , it got

13:54rejected . There will be stops above

13:57that rejection . Because someone bought

14:00at that top . The market cut them off .

14:02Now that the market has come down ,

14:03there are stop losses above that top .

14:05Hmm .

14:06The market triggers those stop losses

14:08sooner or later .

14:09Okay ?

14:10Right ? So , liquidity is available above

14:12. Liquidity is always available at such

14:14extreme ends . Or it is found at the

14:15previous day high , previous day low ,

14:17and previous day close . So these are

14:20relevant , like I told you about the

14:22previous month , week , and day . You will

14:25find liquidity above and below all

14:27three of these . Okay .

14:28These are the relevant zones . So , if

14:30you ever in the market , like you draw

14:33trend lines . You drew a trend line . The

14:35market is giving a breakout above the

14:36trend line . So , what have we read in

14:38books until now ? That we buy above the

14:40trend line .

14:40Right ? You must have seen many times

14:41that after buying at the trend line ,

14:43the market suddenly comes down .

14:44Correct .

14:44It has come to grab liquidity . Because

14:46whoever bought , their stop loss would

14:48be just below the trend line . So , many

14:50times the market grabs liquidity below

14:52this trend line and then moves up . That

14:53is why what have I always told you ?

14:54Pullback . The objective of pullback

14:57trading is that we get liquidity and we

14:59enter when an average retail trader's

15:01stop loss is hit , and then we plan our

15:03entry . When they are scared , they won't

15:05enter now .

15:06When will they enter ? When we exit ,

15:08when a big candle forms ; so our

15:10objective is that where they were

15:12planning to enter , they shouldn't . And

15:14where they enter , we should exit . So ,

15:16just like how institutions work . We try

15:18to follow their footprints . Like this

15:21is also called footprint charting . Like

15:24you have read candles , Heikin Ashi .

15:26There are footprint charts like that

15:27too . In that , orders come in all the

15:29time . It shows you how many orders are

15:31on the bid . How many orders are on the

15:32ask . How much is being filled on the

15:33bid . How much is being filled on the

15:35ask . How many stacked orders are there .

15:37Meaning , how many people sold at once

15:40at the top . So , stacking happens . So ,

15:42through all this , you start to realize

15:43that smart money is coming in somewhere

15:45. That is the best way to watch smart

15:47money . But if we talk in normal

15:49candlestick terms , then these are all

15:50the terms I just mentioned to you .

15:53Order blocks , FVG , fair value gaps .

15:56What is their main objective ? To find

15:58imbalances . For example , if a large

16:00candle appears suddenly , what does that

16:01mean ? An imbalance has occurred . What

16:03does imbalance mean ? That there are no

16:04sellers , only buyers .

16:05Right ? So it means there is some trap

16:07on the upside . Where would the best

16:09order be ? If it comes near the 50 % level

16:11of the market , we could find value

16:12there . So , these become fair value gaps

16:14. Where a gap is left behind , the

16:16market comes back to test it . So , these

16:19are the concepts we form which we use

16:21for trading , and through them , we start

16:24to better understand price feel and

16:26things .

16:28So , if a beginner wants to master one

16:31thing :

16:32Price action , SMC , or ICT ?

16:34Although you said all three are broadly

16:36the same .

16:37But if I want to start doing something

16:38in this . If I want to start studying .

16:41If I have to study in any way . Whether

16:42by watching videos or reading books .

16:44What should be focused on first ?

16:46Decision points .

16:47Which I just told you about : previous

16:49day high , previous day low , previous

16:50day close . Along with this , there are

16:52big round numbers . Like in Nifty , it

16:54could be 28,000 , 27,000 , 26,000 , or

16:5825,500 .

16:59When you go to these 500 or 5500 levels

17:02, these are the major big round numbers

17:04. Although 28,100 is also a big round

17:07number , and 280 , 300 , 400 are as well ,

17:09including anything in terms of 100s or

17:121000s . But the most value is given to

17:14the 500 and 1000 levels . So you

17:16understand , like 9,000 , 9,500 , 10,000 ,

17:1910,500 and so on . But since prices have

17:21increased , there is some movement at

17:22the 10,000 mark as well .

17:23Right ?

17:24So you can define them in these terms .

17:26We call these decision points when we

17:28combine them all .

17:28Okay ? So those are the previous month's

17:31high , low , and close , plus previous

17:32week's , previous day's , and along with

17:34these , the big round numbers . Depending

17:36on which time frame you are working on .

17:38If you are doing intraday trading , then

17:39the previous day's [ levels ] .

17:40The previous day's will work , plus

17:42these 100 ones will work .

17:43Yes . Yes . Yes . Now , for instance , if

17:46you do swing trading ,

17:47then what can you do for swing trading ?

17:49You can plan for the month . For example

17:52, we are looking at the VCP pattern ,

17:54the Volatility Contraction Pattern . We

17:57are seeing that the market broke down

17:58and now the volume is gradually

17:59decreasing . Now it has started moving

18:01upward .

18:01So , what did we do ? We marked the

18:03levels of the previous month . Who knows

18:04, maybe all this is happening near

18:06those levels .

18:07And the market is grabbing liquidity

18:09there and then trying to go up , or

18:11sweeping and then trying to go up . If

18:13the market is doing something like that

18:15,

18:15then what will we do ? We will start

18:16planning our buying there . So , these

18:18all make it easier for us to take

18:20decisions ,

18:21that something is happening here . It is

18:22an important area . So , what do you

18:23generally say ? There is a saying , you

18:25must know , " Let the trade come to you . "

18:27Hmm .

18:28Let the trade come to these points .

18:30Correct .

18:30So , that is what happens . So , you get

18:32liquidity here , and even if the stop

18:33loss hits , it will be small . So , you

18:35remain comparatively safe when you work

18:38this way , and you are not chasing . That

18:40is the most important thing . So Mukul

18:42ji , let's look at a strategy , and along

18:44with the strategy , if you could show

18:46these things to me and our viewers on

18:48the charts — how these things are

18:50tested , viewed , or studied — we would

18:52all get a broader idea . Okay , let's go

18:55to the charts .

18:56Okay , right now you can see the Bajaj

18:59Finance chart in front of you . Now ,

19:01this is the Bajaj Finance chart . Now , I

19:02need to know two or three things here .

19:03Whenever , for example , I have to take a

19:05decision on this day . This is one way .

19:07Okay ? This is a method . Now , if I have

19:09to take a decision , what will I do ? I

19:11will go to the chart of September 30th

19:12and there I will first mark three

19:14important things . First of all , I am

19:16talking about day trading . If I am

19:17planning day trading .

19:18Correct .

19:19So I marked the previous day's high .

19:21You can see , above this high is the

19:22previous day's high . I marked the

19:25previous day's low and I marked the

19:27previous day's close . Okay ? Is it clear

19:30? Now , I had mentioned another term to

19:33you here : Big Round Number .

19:34Right ?

19:35What are we doing right now ? We are

19:36using Bajaj Finance . So , Bajaj Finance

19:39is hardly trading near 1000 . So , 1000

19:42is a big , big round number , yeah .

19:43Is that okay ? Now , what will the next

19:45round number be ? 1000 , 2000 will be

19:47very big round numbers . I mean , you

19:50understand that the resistance there is

19:52going to be very high . And at 1500 , 500

19:54, 500 , there will be a lot of

19:55resistance . The ones in between are

19:57also important , but not as important as

19:591000 is .

20:00So , these big numbers will also be very

20:02helpful and work for swing trading .

20:03Just note this on TV sometime ; if , for

20:06example , the price closes at 995 ,

20:09then they always use terms like , " The

20:11price closed a tad below 1000. "

20:13Right ?

20:14Or , " a little above 1000. "

20:16Right .

20:16So , when the price comes around , these

20:18round numbers have a great value .

20:21Okay .

20:22So , we need to take advantage of them ;

20:25we will mark a big round number here ,

20:28so you can see I have marked these

20:30areas , I will mark 1000 . Okay , I have

20:37marked it . Now , you note one thing .

20:42Whenever these three come together ,

20:44meaning any three come together —

20:46Previous Day High , Big Round Number ,

20:48and Previous Day Close . They form a set

20:52.

20:52They form a set . A set . So , whenever

20:54these three come together and are close

20:56by , not too far . Like you see , 998 ,

20:591000 are all nearby . Hardly within four

21:02points , the whole level is covered .

21:04Now , we call this combination of three

21:06a " Barbed Wire . " You've seen barbed

21:08wire , right , used for fencing ?

21:09Right ?

21:10What is its purpose ? So that no one can

21:11cross it .

21:12Correct .

21:12So what did you get ? You got a

21:15resistance .

21:16So , this is a smart money concept . Now ,

21:18why did this become your resistance ?

21:20Now , we have done the marking .

21:21If the market opened above this , it

21:22would have acted as support from here .

21:24Yes , it would act as support .

21:25Okay .

21:25Alright ? Now , if you look here , see

21:28what the price did near this zone ; the

21:30market went up and immediately came

21:32down , you can see it's a big candle ,

21:34this is a big candle , and after that ,

21:36see , the market didn't have the courage

21:38to go above it ; it went up but then

21:40failed .

21:40Correct .

21:41Why , because three numbers are together

21:43now . These three zones are together .

21:45Until the price crosses above this zone

21:46, we are not going anywhere .

21:47So , as long as the price stays below

21:50this , it's a sell-on-rise game .

21:51Whenever you get a chance , plan a

21:53sell-on-rise .

21:54Okay ? Now , what is this number at the

21:56bottom ? This bottom one is the previous

21:57day's low . We have marked this as well .

21:59Now , the market hasn't opened here .

22:01Where did the market open ? You can

22:03figure it out . The market tried to hit

22:05a high inside the zone here , but it

22:06came down completely .

22:07Hmm .

22:08Okay ? Now , this stop loss will

22:09obviously become large for us . If you

22:11look , six or seven points are nothing

22:13in this . You can trade by reducing your

22:14quantity .

22:15But we want it even smaller . So , you

22:16can see what the price is doing . When

22:18the price is going down , you can plan a

22:19trade here . And where will you take the

22:21stop loss ? You can take the stop loss

22:22here .

22:23Correct . Okay ? And you can plan your

22:25trade using ATR in this . For example ,

22:28if ATR — like I give an example — many

22:31people ask how much stop loss to put ?

22:34What to do ? So , just look at the ATR .

22:36If you look at the ATR here , it is two

22:38or 2.5 . Keep the ATR at three . So , your

22:41stop loss will be of three to four

22:42points . Okay ? Your target will be three

22:44to four points .

22:45Okay ?

22:45Minimum 1 : 1 , after that you can trail .

22:48Totally up to you .

22:48Right ? So , our strategy that you

22:50discussed with us in the Advanced

22:51Scalping Masterclass will also work

22:53here . You can do that in this . You can

22:55do that too . Basically , it's that in

22:57any strategy , if I apply a moving

22:59average here . If I apply , for example ,

23:01a 10-20 moving average here . Look , the

23:03moving average is also working here now

23:05. A crossover is happening .

23:06We were talking about price action .

23:09We have marked the area . We found a

23:11resistance area . Where barbed wire has

23:13been formed . Meaning , a fencing has

23:14been created . The price will not go

23:15above that . As long as the price

23:16doesn't go above it , what will we do ?

23:17We will sit quietly . Right ? We will

23:19only plan for shorts . That's it .

23:20Whenever we get the opportunity . So now

23:22you can see here as long as the price

23:23stays below , what is the price doing ?

23:25The price kept revolving right here .

23:26The price has stayed below the previous

23:27day's low the whole day .

23:28Right ?

23:29Okay ? Now , like , I’ll remove all of

23:31this now .

23:32It cannot be a coincidence .

23:34Yes . Right ? Now look at the price here .

23:39Now you will mark this . What is this

23:42for the price ? Previous day's low . That

23:45became the previous day's high . And

23:471000 is also right here .

23:50Okay ? You can see that 1000 is also

23:51there . It also became the previous

23:53day's high . And

23:54Here is the previous day's close . Now

23:56there is no barbed wire .

23:57Because there are only two wires here .

23:59For a barbed wire , three things are

24:00needed . One needs a background number

24:02and two any decision points . Sometimes

24:04they will form below , sometimes above .

24:06And if the price opens around them , for

24:08example , let me give you a small

24:09example .

24:11Like this price here . Okay ? Now , before

24:15the market opens , we marked it . We see

24:17the barbed wire is forming here with

24:19three , and the price opens right here .

24:22This area will act as support .

24:24Right ?

24:24Chances are that initially , this area

24:26will not break .

24:27When these three align , the area

24:29doesn't break .

24:30Okay ?

24:31Right ? The market bounces from here .

24:33And then what will the market do ? It

24:35goes to the next decision point .

24:37To check if there is acceptance there

24:40or not . As you can see in the previous

24:42day , the market was rejected from here

24:44and where did it go ? It went to this

24:46decision point .

24:47Right ?

24:48It will always do that because look at

24:50what happens in the market ? A high is

24:53set , a low is set , and a close is set .

24:54What is a close ? Buyers and sellers

24:56shake hands . Saying , " Let's end today's

24:58fight here . " " We will talk tomorrow . "

24:59Now , when we talk tomorrow , when will

25:01we talk ? " Hey , you took it up to the

25:03high . " " You took it down to the low . " So

25:05you expanded it . Today , I will try to

25:07go there and fight . I lost in the

25:08middle here . Today the buyer lost . The

25:10seller won . So I will take it lower and

25:12higher . I will challenge him there . And

25:14I will put him in an uncomfortable

25:15position . That is its job . That is why

25:17highs and lows are important . And that

25:19is where you find the most liquidity .

25:21What do people do ? As soon as it

25:23crosses the high , people start buying .

25:24Hmm .

25:25A trap forms there , so the market

25:27reverses , and if a ' bar wire ' forms ,

25:29it's even better . So , this small smart

25:32money concept will help you a lot , and

25:34we have the ATR enabled . This way , you

25:37will know your stop loss . Whatever you

25:38need to use , and ATR has some default

25:40settings . You don't need to change any

25:42separate settings at all . It is a

25:43setting of 14 . I think default .

25:45Yes , yes .

25:4514 , no need to do anything . Just leave

25:48it , it will keep running on its own .

25:50Because all the hedge funds and people

25:52who test strategies , they all use 14

25:54there . No 7 , 6 , 5 , nothing ; 14 is the

25:57default , so it's the best and works

25:58well . So that's the thing . This is how

26:00you will find out . These are the

26:02concepts of advanced price action . Yes .

26:04And what else can you add to this ? You

26:06can add ' break of structure ' into this .

26:08Right ? Now , for example , what can you

26:10do with a break of structure ? Like ,

26:12look at what the price is doing here .

26:14Let me clear all of this once . So , look

26:17, I'll show you one thing here . What

26:19will we do now ? Like , we have marked

26:21the previous day's close here . Okay ?

26:24And I mark this level . Marked the

26:27previous day's low . And I have marked

26:29previous day's high . We have marked

26:31this . Now let's look at this day . On

26:33this day , you can see what the price

26:35did in the morning . The price has given

26:38a decent move . I mean , you are seeing a

26:41Doji . It's a strong Doji . There is

26:42rejection . Everything is happening .

26:43Yes .

26:44Now I want a direction . I need

26:45something so the market gives me a

26:47direction where I can trade . I look for

26:49a trap , or do something . So , I see one

26:51thing here , if I mark 50 % of this zone ,

26:55one second . So , 50 % comes somewhere

26:59around here . Hmm .

27:01Okay ? If I just mark ... you see this

27:03wick . If I mark 50 % of this wick , it

27:05comes here . So we do 50 % of the wick . 50

27:08% of the entire candle ?

27:08No , no , I am doing the wick because

27:09there is a rejection on the wick . I am

27:11just counting the rejection . I need to

27:12count the rejection for the morning . I

27:14just need to know which zone I can use

27:16if I have to short or do something .

27:18I need to know this . Okay ? Now , if you

27:20look here , what is the price doing ? The

27:22price is getting rejected right from

27:23here .

27:23Hmm .

27:24All the big round numbers are above

27:26this . So there is no other decision

27:29point nearby . Therefore , no boundary is

27:31being created right now . Okay ?

27:32Everything is working individually . Now

27:34, if I take an example , there was a

27:36rejection from here . Look here , a

27:38pretty decent one has formed . A bearish

27:40engulfing has formed . But I cannot take

27:41a short trade here . The reason being ,

27:42this black line is coming . What is this

27:44black line ? This black line is our

27:45previous day's low . Low . So , near the

27:47previous day's low , I will wait for it

27:49to break before taking a trade there . I

27:51won't take it before that . There's no

27:52point . And if you look here , if you see

27:55here , what has the price done here ? It

27:57has formed a wick here too . And it had

27:59formed a wick in the morning as well .

28:01Do you see the second one I am marking ?

28:03This means that rejections are

28:05happening here . And what is the price

28:07doing ? Look , the price has taken a

28:09bounce from here again . Now , what am I

28:11noting here ? I am observing this . Hit a

28:14low here . Look at this zone here . The

28:18price has hit a low here . It has hit a

28:21higher low here . Do you see a lower

28:23high here ? This is a high . This is a

28:25lower high . It is hitting a higher low .

28:27And it is making a higher low here .

28:29Okay ? Slowly , the price is trying to

28:31give a sign that something opposite

28:33might happen . Okay ? Look here , what is

28:36the price doing here ? The price hit a

28:39lower high again here . Then the price

28:42hit a higher low here . As soon as this

28:44breaks , what happens ? Change of

28:46character . The price suddenly broke the

28:49nearest high , the lower high that was

28:52forming . So now , what can you do here ?

28:54You can plan your buy . And where is

28:56this zone forming ? Near the previous

28:58day's close . So now , how have we

29:01involved it with decision points and

29:03created an area where we are buying ?

29:07Don't you think that because of the

29:09prices we see on the right side , they

29:11might be biasing us ? I mean , in real

29:13life , we must be seeing many such

29:14things . Whenever you plan , you will do

29:16it near the previous day high , previous

29:18day low , or previous day close with a

29:21small stop loss , okay ? And I will give

29:23you a simple trick that whenever you

29:26plan , what should your list be ? I mean ,

29:29I will give you a list of how you

29:31should do it whenever you plan a trade .

29:33Let me remove all this once , okay ? Then

29:36it will be easier for you . Let's write

29:39it here . See , whenever you are planning

29:42a trade , your first step is to mark the

29:45decision points . Okay ? You marked these

29:50. After that , your change of character ,

29:58CHoCH . Near the decision point . If you

30:05get this , you are basically getting a

30:07reversal .

30:08Okay ?

30:08Right ? This means a reversal . You are

30:12getting a reversal . Whenever this

30:13happens from here , you can check it

30:15anytime . Whenever you get a change of

30:17character near the previous day low ,

30:20you will get a reversal . Previous day

30:22high , or once you get a buyer as we

30:24discussed , you will get a reversal . An

30:26M pattern is formed . A W pattern is

30:28formed . All this will be formed . Will

30:29the change of character only happen

30:31when higher highs and higher lows are

30:32formed , or as you said , it kept making

30:34lower lows and lower highs ? It kept

30:35making higher lows continuously . So , if

30:37it forms continuously , should we expect

30:39a change of character , or can we expect

30:40a CHoCH even if just one is formed ?

30:42It happens on the very first one .

30:43Okay ?

30:44Look , the market is going down from the

30:46top . The market is going up from the

30:47bottom . What is being formed ? A

30:49triangle pattern .

30:49Whenever a breakout happens , what

30:51occurs ? The character changes .

30:52Okay ?

30:53Right ? This is what it means . Now ,

30:54where are we sitting ? Near the previous

30:56day low .

30:57We

30:57So here , the chances of a pullback are

30:59low .

30:59Okay ? Because we are already at the

31:01bottom . So here , and the trade that is

31:03coming is also coming after a pullback .

31:06The one we were just talking about is

31:07coming after a pullback . So we can plan

31:10here . We don't have any problem here .

31:12Because we will get a small stop loss

31:14here . We won't get a big stop loss . We

31:15are not chasing . We are not buying at

31:17the top . We are planning after a

31:19pullback at the low .

31:20We can guess any day using the replay

31:22function . It doesn't matter if the

31:24trade is right or wrong .

31:26But how a trader should think is what

31:27matters . If we hide some data and look

31:30at it

31:30Yes , let's try it .

31:31Should we do it once ?

31:32Okay .

31:33So , what should we do with this one ? We

31:36will check the 25th from here .

31:38Currently , we are on the 24th .

31:40So , we have turned on the replay

31:41function around 3:00 PM on September

31:4324th .

31:43Yes . Now we won't see the future part .

31:45We don't know .

31:46Right ?

31:46So , what is most probable ? The previous

31:48day high has already formed here . Right

31:50? The previous day high has formed here

31:52. Okay ? The previous day low has also

31:56formed . We will check the previous day

31:57close as soon as it closes . We are

31:59doing this in Bajaj Finance .

32:00Right ?

32:00And there is no big round number nearby

32:03. Neither 1100 nor 1000 .

32:05Right ? So we are not going to get any

32:08big barrier here .

32:09We will only get different zones . So ,

32:11what could the price probably do ? The

32:12price could do two or three things .

32:14Either the price will bounce from here

32:15and go down ,

32:17or it will drop from right here , or it

32:19will gap down and move up from here .

32:22Right ? These are the possible concepts

32:24that I see . Why ? Because what has the

32:26price done on this day ? It went up ,

32:28came down , then went up , and now it is

32:29moving around here . So there are

32:30chances that it might go up and down

32:32for another day because there is no

32:33trend .

32:33Exactly . Right ?

32:35So , because we always have to look to

32:36the left . If there is a trend , then

32:38there's a chance I will plan to buy on

32:39the first dip .

32:40If it's a downtrend , I will plan to

32:42sell on the first pullback .

32:43This will be my main objective . Right ?

32:46So now , what will we do ? We will turn

32:48on the market replay here . Right ? Now ,

32:53what happened here ? The next day has

32:55opened . A big candle has opened here .

32:57Okay ? So , we clearly have three levels

32:59now . Correct . Right ? Now , two things

33:01will happen . Either price will hover

33:05here like this and then break structure

33:08, then we will plan buying and keep a

33:10target up to here . Okay ? What will be

33:13the second thing ? We will plan price ,

33:15we will plan selling . Whatever the plan

33:16is . Buying or selling .

33:17Right now , I am telling you about

33:18selling . When will we plan selling ?

33:20What will the price do ? If it forms an

33:21M-pattern from here , then we will sell

33:23because it is failing at the top .

33:25Failing above what ? It is failing above

33:27the previous day's close .

33:28Correct .

33:28Where both buyers and sellers shook

33:30hands , saying , okay , let's end today's

33:31battle here . Now , from here the next

33:33day , the seller dominated again .

33:34Hmm .

33:35So , it means the buyer has no strength

33:36today .

33:36So , the buyer is losing today . So ,

33:38there are chances that the market might

33:39test the previous day's low again . Okay

33:41?

33:42So , what will we do ? We will mark this

33:45as okay done . Okay ? Now , the first

33:47candle has arrived here . Okay ? Okay ?

33:49The first candle has arrived . A

33:50rejection has come . Now , what will we

33:52do ? We will keep an eye on this zone .

33:55There has been a rejection near this

33:56zone . If we get a second attempt and

33:59the price moves down again , we can plan

34:01a sell . We can do it here too . We can

34:03also plan a sell with half the quantity

34:04here . Right ? But I would say wait for a

34:07dip . Wait for a rise , because the

34:09market is still open , so you will have

34:10a little more assurance . Well , Mukul ji

34:12, don't you feel like doing it here ?

34:13For example , you are looking at a 5 -

34:15minute chart .

34:15Hmm .

34:16And here you saw a rejection came .

34:17Don't you feel like going to the 1 -

34:19minute chart to check the change of

34:21character and short sell there ?

34:22Because I have seen this problem in

34:24many people .

34:25That monkey mindset of jumping from one

34:27time frame to another , has this never

34:29happened to you ?

34:31It happens to everyone in the initial

34:32period . It's normal . Right ? They are

34:34not wrong in that because they want to

34:37take a trade .

34:38They are not wrong around here . But yes

34:40, even if you are doing it on a 1 -

34:41minute timeframe , you have to keep one

34:44thing in mind . The high that has been

34:45formed , what can you do ? I will give

34:47you an example . Like the Power Scalper .

34:50Okay ? Put Bajaj Finance here . Set it up

34:52right here . Let's say you set a 5 -

34:54minute timeframe here . Sorry , set a 5 -

34:58minute timeframe here . Okay ? Now , if

35:00you want to trade , for example , if your

35:02trade is forming anywhere . You have to

35:03plan your trade . Okay ? What can you do

35:05near this zone ? You can pull up a 1 -

35:07minute options chart . If you trade in

35:09options for this . Or you can set a 1 -

35:12minute option chart here for that . What

35:15do you call it ? For the index , for the

35:17index . Okay ? If you want to set it , or

35:19you can even set up both call and put .

35:20So you will know live what is happening

35:22. The main objective here is that , as

35:25you just mentioned , if we go to 1

35:26minute and find an M pattern or

35:28something , we should take a trade on

35:30that . You can do that too . There is

35:31nothing wrong with that .

35:32But our main objective is that if we

35:34don't understand the price action on

35:35the 5 - minute chart , we won't be able to

35:36do it on the 1 - minute chart .

35:38Right ? Now , as I told you here , this

35:41zone , here is the resistance . Okay ? And

35:45this is definitely there . If the price

35:48cannot cross this in the second attempt

35:50, then what will we do ?

35:51And 126 If it comes below it .

35:54Yes , so we can plan a short sell there .

35:55We can short sell .

35:56Right ?

35:57So we can plan here as well . We can

35:59enter here too because whenever this

36:00type of pattern forms in the morning ,

36:01there are generally chances that the

36:02market will reject here . So what can we

36:04do ? Let's say we have to work with four

36:06lots .

36:07So what will we do here ? Let's say we

36:09work with two lots here . We sell 50 % of

36:12the quantity here . Okay ? We sold it

36:15here . Now , for the rest , we will wait a

36:16little to see if we get an opportunity ,

36:18then we will work on it . Oh , sorry .

36:22Okay ? What happened now ? What has

36:26formed here ? An M pattern has formed .

36:27Right ?

36:28Okay ? So , what can we do ? We can sell

36:31two more here . Now , our stop loss will

36:35be , let's say , above this .

36:39Above this rectangle .

36:40Yes , above the rectangle . We will

36:41always keep a buffer just above it .

36:43Never exactly at the level . Suppose the

36:45top of the rectangle is , let's say , 36 .

36:47You take 37 or 37.5 , always keep a

36:49little extra , maybe a rupee or so .

36:51Sometimes the market goes there to

36:53check and then comes back down .

36:54Okay , I have a question here .

36:55Hmm .

36:56My stop loss is forming at 1039 .

36:59Hmm .

36:59And my stop loss is forming at 1099 .

37:04Or let's assume my exact stop loss is ,

37:06say . It comes out to be 1098 .

37:08Right ? Now , adding the buffer , it

37:10becomes 1099 or 1099.50 .

37:12Now , there is also an important level

37:14of 1100 , a round number , right there .

37:16So , should I keep the stop loss at 1100

37:17point something ? Because then I would

37:19be moving very far from my actual stop

37:21loss .

37:21See , if there is a bar wire there .

37:23Hmm .

37:24If it's just two-three points , try to

37:26keep it above the bar wire .

37:27Right ?

37:28The stop loss . Right now , there is

37:29nothing here .

37:30Here , there are only the levels we have

37:31marked . But if there were a round

37:32number here , then ?

37:33If there were a round number , then

37:34above the round number .

37:35Above it . Reduce the quantity , since

37:37the stop loss would be very far away .

37:39No , if there was a round number nearby ,

37:41for example , suppose we aren't near

37:421030 , but near 1099.5 . Around there .

37:47Yes , something like that , or if we were

37:49near 95 .

37:49Right ? Then what would we do ? We would

37:51place our stop loss above 1100 .

37:54But we would reduce the quantity .

37:55We would lower the quantity .

37:56Right ? For example , the wick is coming

37:58up to , say , 1098 .

37:59Right ? 1100 is above , background is

38:021100.50 , 1100 ... yes , keep it one rupee

38:04above that , put it at 1101 or whatever

38:06it is , and you're sorted . So that's how

38:08it works , right ? Now , if you look here ,

38:10what will we do ? We will leave it for

38:12now . Right , the price will keep moving

38:14back and forth because it's an

38:16important level ; the price won't easily

38:17break through it .

38:18Right , it will either go down or keep

38:20hovering right here , and our important

38:22target now will be this decision point .

38:23The decision point below .

38:24You can target one decision point from

38:27another , right ?

38:28So , I’ve gained around ₹ 6 , yes .

38:30Now , what can you do here ? You can cut

38:32half . You should cut half here . Leave

38:34the other half . For example , now you

38:36can move your stop loss to cost-to-cost

38:38. You feel it might go down further .

38:40Let it go . So , this way , you are

38:43learning to trail as well .

38:45And you are also booking profit and

38:46taking it home . It is just a small ,

38:48simple strategy . In this same thing , I

38:49just explained the change of character

38:50to you . I explained the break of

38:52structure . In this , you can add FVG . In

38:55this , you can add order blocks , which

38:56are support and resistance . So , that is

38:58how your Smart Money Concept is formed .

39:00And as we talked about candles last

39:02time . We talked about the 50 % of the

39:04candle . So , like this candle here , this

39:08big candle , if we mark it here . Right ?

39:13Its 50 % comes to around here . Right ? So ,

39:18you can consider that this area , this

39:22specific area , is now your decision

39:26point here , and that 50 % of the first

39:29big candle is also here . Right ?

39:33Now , if the price cannot sustain near

39:34this zone .

39:35Right ? Then it will act as resistance

39:37and the price will go lower , and if it

39:38sustains here , it will act as support

39:40and the price will move up .

39:41It will move towards the upper decision

39:42point . Yes , that is how it’s going to

39:43be . But we cannot trade there right now

39:45because we have already taken the trade

39:46.

39:46And this is not an important decision

39:48point . It is the 50 % of the candle ,

39:51which we can add like a stop loss or if

39:55we need to make changes to our position

39:58. Like we just exited two lots . Why did

40:00we exit ? Because we saw this area .

40:01Right ? So we closed the deal . We closed

40:03half of the position . Half is still

40:05kept . Right ? So , let's see further .

40:07What does it do next ? So , if we move it

40:10forward . Right ? This is very important

40:15because from this we will know . Like if

40:16you look here , what is the price doing ?

40:18The price has formed higher highs and

40:19higher lows here . Meaning it gave a

40:21positive change of character once .

40:22It did this , did this , and what is the

40:24price doing here ? It is doing some sort

40:27of character change .

40:28Right ?

40:28Fair enough ? So there's a chance that

40:30our stop loss placed here will get hit .

40:32If we have booked partial profit so far

40:34and left the rest .

40:35Yes , left the rest .

40:37Now why can't we buy here ? Because this

40:39is where the resistance is .

40:40Yeah .

40:41Okay ? So if we want to buy , let the

40:43price go here , wait , and then go up

40:45because this area is also resistance .

40:48So this entire area is going to provide

40:50resistance , so we can't buy , we'll get

40:52stuck badly . And now if you look from

40:54here , how many points ? 1023 to 1027 ,

40:56hardly four points , there's no room . So

40:58when there's no room , why should we

41:00trade here ?

41:00Understand ? So we'll skip this , we

41:03won't trade . Okay , so we'll continue

41:05with what we have . These decision

41:07points are what you have to decide on

41:10at that moment .

41:11In the middle of the market , that , hey ,

41:12I've exited two . Two are still running .

41:14I have moved my stop loss to cost . What

41:16should be the next step now ? A change

41:17of character is happening , but there

41:19are decision points above . These will

41:21cause trouble . They won't let the price

41:23go up . So let's do one thing , let's

41:24skip it . Let what's running , continue .

41:26Let the SL get hit . We won't reverse

41:28right now .

41:29But at such a time , if the market goes

41:31back up , if it goes there .

41:32Can I short again after booking profit

41:34in the short position ? Can I short

41:36again above ?

41:37Yes , you can short again above . What do

41:38I need to look for if there is a

41:39rejection again ? Should we move forward

41:41?

41:41Yes , let's see .

41:49Okay ? Price came back down .

41:51So I'll book my full profit here . Yes ,

41:53book the full profit . Why ? Because it

41:55has reached the day low .

41:56Fair enough ? You can book out here . If

41:58not , then you can bring your stop loss

42:01to the important area at 1022 . Trail it

42:04. If you feel , as it's 12:15 now .

42:07Yeah .

42:07You think , no , it can fall further .

42:09Then I'll do one thing . I'll bring the

42:10stop loss here . I'll bring it to 1022 .

42:12I'll keep trailing it . Until the price

42:14does something . Right ? As soon as it

42:17reaches this upper level , I will cut it

42:18.

42:19But Mughal ji , the problem is exactly

42:21what you said , that if we feel

42:22something here —

42:24Well , we can feel anything . How do you

42:26manage this ?

42:27You cut half , right ?

42:28Okay .

42:29We are doing this half for the " feeling

42:30" part .

42:31I see . Because look , sir , when you are

42:34in the market , as you said , thoughts do

42:36come up .

42:37Hmm .

42:38Think of it like , I need to book half

42:40because I have to pay my office rent .

42:43Like , look at this area where your

42:44arrow is , where you covered half your

42:46position again .

42:48From then until approximately 12:15 or

42:5012:30 , when the actual big fall of the

42:52day happened in two candles —

42:54In between , I could have felt many

42:56things .

42:56Yes .

42:57In such cases , a beginner is very

42:59likely to get trapped here because they

43:01see a change of character . They might

43:03even buy here . Hmm .

43:04They might feel it could go up from

43:06here , so maybe I should book the

43:07remaining position . I could have booked

43:09that too .

43:09Apart from this , there is that one

43:11candle where the spike went up to the

43:13higher level . I could have re-initiated

43:16there .

43:16How do you manage all these thoughts ?

43:18You have to create your own playbook .

43:20What is a playbook ? You have to give

43:21priority to things . Who am I going to

43:23prioritize first ? For example , first I

43:25have to prioritize the decision points .

43:26I have marked them . If the decision

43:28point is right above and the change of

43:30character is happening below it , then

43:31do nothing . Let it cross the decision

43:34point , then I will plan . And there

43:36should be space above the decision

43:38point for it to move . It shouldn't be

43:39that there is resistance sitting right

43:40above . Then there is no point . Like

43:42today , there is resistance sitting

43:43above the decision point . So here , I

43:44only see a short opportunity . Even if

43:46it goes up , I will short it again . And

43:48if it's 2:00 PM already , then there's

43:49no point in trading . After that , the

43:51game is off for me .

43:52Right ? That's what it means . Now , here ,

43:55for Bajaj Finance ... Should I short sell

44:01Bajaj Finance in cash , or in options —

44:03as in buy a put , sell a call , or short

44:06the futures ? What should I do ?

44:08You can do anything in this , whatever

44:10you like , as much as your pocket allows

44:11, you can do that . The same thing , if

44:13you want to do it on a larger time

44:16frame , let's say a daily time frame or

44:18an hourly time frame , you can do that

44:20too in futures , options , and now

44:22there's even a facility in cash , which

44:25you would be better at explaining . Yes ,

44:27I think , should I , let me just ask you

44:29a question regarding that .

44:31Another thought that is coming to my

44:33mind is that

44:34you are doing this on a 5 - minute chart .

44:35But I noticed you saying that you

44:37mentioned that monthly charts and

44:39weekly charts also have their decision

44:41points . Hmm .

44:41So , by looking at that , can I also

44:43short sell for the long term in this ?

44:44Can I buy for the long term as well ?

44:45Yes , you can .

44:46Can we see an example of that ?

44:47Uh , it won't show up in the replay

44:49function . Let's open a normal chart .

44:51Yes , please . Okay . So , we do this work

44:53on a normal chart . Let's open a

44:54one-hour chart . Alright ? One-hour chart

44:57.

44:57Good , before we move on to the swing

44:59part of it . We can use this same price

45:01action for swing trading . But before

45:03that , if you had worked in options for

45:04intraday , then which option would you

45:06have traded ?

45:07In-the-money .

45:08How much in-the-money ?

45:09I mean , if it's at 1000 ,

45:12then I think you could get 990 in this .

45:14990 or 950 .

45:15I mean , what delta should we keep

45:16approximately ?

45:160.55 to 0.6 . That much you get .

45:18Around 0.5 to 0.6 , slightly

45:20in-the-money . At-the-money to

45:21in-the-money . Close-to-money kind of

45:24options .

45:24Yes , yes , exactly . Okay , okay .

45:26We should always work in-the-money for

45:29options . It depends on you . If you want

45:31deep in-the-money , there's no real

45:33benefit to that . Just doing it slightly

45:35in-the-money is enough .

45:36What is the reason for that ?

45:37The reason being , sometimes the pricing

45:39of an option is very high .

45:41So , there's no point in that . If you

45:44take an option that is 500 points

45:45in-the-money , where you could get an

45:47option for 200 rupees , you would be

45:48paying 800 or 600 rupees for the same

45:50thing . So , your margin is getting

45:51blocked .

45:52Right ?

45:52So , there's nothing like that . Even

45:53with the 200 one , yours shouldn't break

45:55. Yours shouldn't decay . It won't

45:57happen with the 800 one either . So it's

45:58not worth it because the money you are

46:01investing should give you some sort of

46:03return , and you should benefit from it .

46:05Correct , correct .

46:06So that's the thing .

46:07Perfect . Let's look at it for a swing

46:08trade once .

46:09Okay ? For example , if I show you here ,

46:14if we talk about the weekly . Right ?

46:18Like , let's talk about the weekly . So I

46:20will say I'll have to show you on old

46:24charts now . Like if we talk about Feb

46:273rd , Feb 3rd , 2025 . Okay ? So what do I

46:31do on Feb 3rd ? I mark the high here .

46:35Right ? Its low and close . Okay ? I have

46:40marked this .

46:41Okay ?

46:42Now notice one thing . Is there anything

46:45here ? It's way over there . It’s quite

46:51far . Very far .

46:51So it’s not there , and is there

46:52anything on the downside ?

46:53But there is 800 below , right ? We have

46:55800 .

46:56Here it is .

46:58Okay , so there are no three wires . Yes ,

47:00a triple wire didn't form anywhere ,

47:02it's only two every time , right ? So

47:03there is no resistance available right

47:05now . This means the market could give a

47:07good move . So now , if we go to Feb 3rd

47:11and come to the 1 - hour chart , and let's

47:14do one thing , what we do is , we are

47:17here on the 25th .

47:20February 2025 , yes , we come here . So

47:24you can see that around Feb 3rd , we had

47:27marked all these areas . Let me check

47:31once .

47:32Yes , we had marked these areas ahead .

47:34From Feb 3rd , it's the 3rd .

47:36It must have been the 7th Feb candle ,

47:37right ? Three , four , from Feb 3rd .

47:39To the 7th .

47:41Yes . These must be the candles up to

47:43here .

47:43Let me move this down a bit .

47:46Okay ? So you can see we have marked all

47:48these areas .

47:49Correct . Now what do we need to note ?

47:52For example , if I feel like I want to

47:55short sell or do something like that .

47:58Okay ? I feel like the market might

47:59break or something could happen . Then

48:01you can see here . What is the price

48:03doing here ? It's forming an M pattern .

48:06I'd like to take a minute here to talk

48:08to my viewers ; Mr. Mogul is explaining

48:10that if you want to do short selling .

48:13But a question might come to many of

48:15our minds : can't we only short sell

48:16stocks for intraday ? So let me tell you

48:18, no . Now you can also short sell

48:21stocks for multiple days . There is a

48:23unique feature on Dhan which is SLBM ,

48:25Securities Lending and Borrowing

48:27Mechanism . Through this , you can borrow

48:30shares . You can borrow shares , sell

48:32them , and we will pre-define the period

48:34for as long as you want . We decide how

48:36many days we are borrowing the shares

48:38for . So you can keep your shares

48:39short-sold for as many days as you like

48:40. For example , if we are talking about

48:42Bajaj Finance here . Bajaj Finance has

48:44futures available . But let's assume you

48:46are talking about a smaller company .

48:47Let's say AJ Logistics or any such

48:49company that doesn't have F & O . Now , if

48:51you are expecting a downside in such a

48:53stock and you feel it could go down by

48:5610 , 15 , or 20 % hypothetically , you can

48:58go to your Dhan web . You will see the '

49:01Rent Stocks ' option . From there , you

49:03can not only rent out your shares . You

49:05can also borrow them and sell them

49:07there . For the next month , 15 days , or

49:1020 days , you have to pay a nominal

49:12interest cost to the lender , which is a

49:14very small amount , and then your share

49:16will continue to go down . You can book

49:20your profit after 10 , 15 , or 20 days

49:22and exit from there . So that was the

49:23story of short selling . Now , if you

49:26want to increase your returns on the

49:27buy side , MTF is another wonderful

49:29feature through which , if you

49:30understand your risk appetite and know

49:32how to manage risk , you can hold shares

49:34for multiple days by paying a nominal

49:36cost through the Margin Trading

49:38Facility . Where you only have to pay 1 /

49:414th or 1 / 3rd or some such amount . And

49:44the rest of the money will be funded by

49:46Dhan . And then you can hold this share

49:48for as long as you want . Interest is

49:49charged on a per-day basis . However ,

49:51the annualized rates will be visible on

49:53your screen now . So , by paying this

49:55interest , you can hold it for as long

49:57as you wish . Now let's move forward

49:59from here . Sorry for taking your time ,

50:00Mukul ji . So please tell me how to

50:03short sell this .

50:04Yes . So you can see here , what is the

50:06price doing ? The price gave a breakout .

50:08Which we talked about .

50:09Around the 3rd of Feb , which we marked .

50:11The price broke out above this zone and

50:13then the price came down here . Right ?

50:16An M-pattern has formed here . So , what

50:18can we do ? We can plan a short around

50:21this zone . Right ? I am noticing one

50:25thing that you are very small

50:26M-patterns and N-patterns

50:28are able to notice . Hmm .

50:30This is a very important thing for a

50:31beginner .

50:32Very much .

50:32You must know these two patterns .

50:35Double top , double bottom .

50:38Okay .

50:39Right ? And there is a hybrid pattern

50:41between them which we call the

50:42N-pattern . Which means the price went

50:44up . Gave a pullback , then back up .

50:46So you can buy at its top . Here you can

50:48sell on this side and in this W-pattern

50:51, you can also buy here . Now , there are

50:53many variants in this W-pattern too .

50:55Smart money talks about it . In this , a

50:58W-pattern is formed like this in which

51:00the previous low is swept and the price

51:03then goes up .

51:04And the same happens in the M-pattern .

51:06M-pattern formed , price went up , a

51:08sweep happened , and then what does the

51:10price do ? It goes down .

51:12Right ? So the M-pattern's higher low

51:15that was broken , we short sell below

51:17that .

51:18Yes , short sell .

51:19So in this way , if you look here , the

51:21price went up and came down . A proper

51:23M-pattern is forming here .

51:24Right ? Sell here , stop loss above this

51:27high .

51:28And what will your targets generally be

51:30? This range , because we are inside a

51:31range . Either the range low or you can

51:33keep it here too . So if you look from

51:35here , you got a target from 866 to

51:38almost 847 . If you hold a little longer

51:40, you got a target up to 830 . Correct .

51:42So this is one way . So we can use

51:44decision points like this .

51:46So this is a proper area where you can

51:49plan your short selling or longs , or

51:51whatever it is . You can add your

51:53systems to this . For example , you can

51:55add moving averages , or if you want to

51:57know whether a stock is trending or not

51:59, you can add moving averages . Right ?

52:02Now , you can also plan your trades

52:03based on moving averages . If you feel

52:05like you want to trade , like over here .

52:07If you feel that the price is trending

52:09here , near this zone , then if you want

52:12to plan it here , you can plan it . Look

52:14at it by applying decision points here .

52:16What is happening at the weekly highs

52:17and lows at that time ? If you find some

52:19support nearby , or a big round number ,

52:21or something , then it becomes like a

52:23cherry on the cake .

52:24So , should I use the weekly chart to

52:26trade on the hourly chart ?

52:27Yes .

52:27And by using the monthly chart , should

52:28I go for daily ...

52:29No , you can even do it on a 15 - minute

52:30chart .

52:3115 minutes , yes , or even on 5 minutes .

52:33But I want us to , if we are short

52:34selling and planning for two to four

52:35days . For example , if we stay on a

52:38higher timeframe , it would be better ,

52:40our viewpoint will be clearer , that's

52:42all . So , should a beginner start with

52:45the monthly , weekly , or daily ? Start

52:47with the daily , because on the daily

52:48you will be able to easily mark the

52:49candles every day . You will have to

52:52work a bit harder on the weekly , then

52:53switch to weekly , then monthly , because

52:55if you ever notice , if you mark on

52:56weekly or monthly for investing , you

52:58get very good fills .

53:00So that is something very , very good

53:03that can give you very good fills . Is

53:07there anything else important that you

53:09think a beginner ... Honestly speaking ,

53:10the strategy you have explained is very

53:12...

53:14It's not that a beginner will have a

53:15lot of trouble understanding it . I

53:16think they will be able to understand

53:18it very easily .

53:18Where can we go wrong ?

53:20We can go wrong when you look for

53:21trades everywhere . Let's talk about

53:22this . Let's talk about November 20th .

53:25For example , you can see here what the

53:27price is doing . The price is trending .

53:29So if you notice one thing here , what

53:31did the price do ? The price made a high

53:35. Right ? The price made a low . And what

53:39did the price do ? The price gave a loss

53:42here . Right ? Is there any big round

53:44number near it ? No , there isn't . There

53:46is no big round number . Then ,

53:47eventually , the background number comes

53:48down again . Around here , somewhere , it

53:50will appear . Right ? So , it's not

53:51showing up anywhere nearby . Okay ? So ,

53:53now I want to know this . Like , the next

53:56day , this day became a trend day . Right

53:58? Now , what mistake do people make ?

54:00They learn all these concepts , yet they

54:02still do BTST or something else . So ,

54:04don't do these things . Stay consistent

54:06with one concept . Until something

54:08changes . Until something is different .

54:10Don't trade . Like , if you look here ,

54:12what did the price do ? The price made

54:15some sort of wick again here . You can

54:18see it . Right ? This is 50 % . As long as

54:20the price stays below this , the market

54:22will remain down . What happened here ?

54:25As soon as the price gave this move ,

54:27you plan a short here .

54:28Place your stop-loss just above it .

54:31That's it . Because this area is

54:32resistance , but it's way too high . So ,

54:34we don't need to go above that . We can

54:36just place our stop-loss near the wick

54:37or at the top of the wick . And we will

54:39get our simple target . And the mistakes

54:42people are making , which I notice in

54:43price action , what do they do ? They

54:46start mixing things up . They feel

54:48support and resistance mean nothing .

54:49Order blocks are everything .

54:51Hmm .

54:51So , if you do that , it's not going to

54:53work . There are some minor differences .

54:56But first , master support and

54:57resistance . On that basis , look at the

55:00change of character and these higher

55:02highs and higher lows ; the whole game

55:03is about higher highs and higher lows .

55:05Pick anything you want . You want to

55:07pick ICT . SMC . Price action . Do

55:10whatever you want . Your game changes at

55:12higher highs and higher lows . These are

55:14just variants within that . Change of

55:15character , this and that , these are all

55:17variants . Right ? So , they are nothing

55:19different . They repeat again and again ,

55:21they keep going . So , don't think that

55:23what you are doing is useless , and what

55:26is being taught in SMC , ICT , or similar

55:28copied concepts is something else . Okay

55:30? Is this something different ? There is

55:31nothing different like that . It’s all

55:33price reading . You have to understand

55:34the price . So , add a decision point to

55:36it so that at least you understand the

55:38boundaries , that these are the trade's

55:40boundaries .

55:41If you have losses for two or three

55:43days in a row ,

55:44then that must be emotionally draining

55:45for you as well . Yes .

55:47Because you put in effort all day , you

55:48derive prices .

55:49You must also be marking these

55:51important decision points in at least

55:5250 to 100 stocks .

55:54How do you manage this period ? I stop

55:57trading .

55:58Okay .

55:59Generally , whenever I have such losses

56:00or something happens , I stop trading .

56:02And what do I do ? I don't trade for two

56:04or three days . Then I do a little

56:05research . I look at what mistake I made

56:07. It is very important to know if it

56:08was a mistake or if they were genuine

56:09losses . But the problem in the meantime

56:11is that the good days when I wasn't

56:13trading passed by . But they will come

56:15back again . I have seen that the market

56:17repeats itself . Your capital will not

56:18come back . That is the problem .

56:20So it is better to let it go . You

56:23should come back after taking a little

56:25pullback , you know ?

56:27Hmm .

56:28Right ? Then you will do better . If you

56:30keep chasing things , your money will

56:32also be gone . Your mental peace will

56:34also be gone . There is no benefit to

56:35that . So it is better that we avoid it .

56:37Leave it be .

56:38Have you ever noticed ? If you remember

56:41your journey , how did you infuse

56:43capital ? I am asking because we have a

56:45new trader .

56:46How much capital should they bring ,

56:48when should they increase it , when

56:50should they decrease it , or should they

56:51even do it at all ?

56:53How much income should they expect , if

56:55you can shed some light on this based

56:56on your experience ?

56:57Okay , if we are talking specifically

56:59about this strategy , if we are talking

57:02about price action related things on

57:04how to go about it , I would say don't

57:06do this in Nifty or Bank Nifty right

57:08now ; because there are lot sizes ,

57:10Futures and Options , decay , and many

57:12things . Take four or five stocks and

57:13move forward . Today , in the entire

57:14class , we only focused on Bajaj Finance

57:15.

57:16We can also do it on Reliance . We can

57:17also do it on HDFC . We can do it on

57:19whichever stock you name . We can also

57:21do it on the index . We can also do this

57:23in MCX . By the way , how many stocks do

57:24you track in a day ?

57:25I mainly work in Nifty only . My main

57:28work is in Nifty .

57:29So that is like 90 % of my work .

57:31And if I have to trade in stocks , I

57:33keep doing research a day in advance .

57:36And I keep marking the stocks . I always

57:37keep watching which sector is rotating .

57:39Rotation is very important for me .

57:41Which sector is the money flowing into

57:42at this time ? Like recently , money was

57:45flowing into all the , uh , rail-related

57:47stocks , right , all the railway stocks

57:49were seeing money flow .

57:51Because the budget is coming up now .

57:52Then that stopped for a bit , and now it

57:54will start going into sugar stocks .

57:55It had started flowing into IT , right ?

57:59So , you will start seeing this rotation

58:00, so you must always keep in mind that

58:02if you are buying , you should buy in

58:03those stocks where the rotation is

58:05happening or going on , basically .

58:07Do you trade in the leaders in this , or

58:09the laggards ?

58:10No , always the leaders , because

58:12that’s not your job . You are not

58:14doing 10 - year investing .

58:16But if the leaders started moving , they

58:18have already gone out of my reach .

58:19Pullback .

58:20Okay .

58:21That’s the best because the leader

58:22will run . The leader has to lead . Now ,

58:26the simple thing is that I cannot

58:28expect Coforge to do the job of TCS or

58:32Infosys .

58:33Or I cannot expect Titan to do the work

58:36of Reliance .

58:37Right ? So , when the leaders lead , they

58:40also give the best money on pullbacks .

58:43All the others act as supplements , if

58:45you are holding them , but you have to

58:47be in the leaders . And the problem with

58:50laggards is that if you keep thinking

58:51it will run now , it will run now , then

58:53you are just hoping .

58:55So we don't have to do that . We must

58:58always ensure that we work only within

58:59the leaders , and you can use the small

59:01patterns I told you ; you can apply

59:03order blocks in it , or if you want to

59:05apply FVG , apply FVG , that is totally

59:06up to you .

59:08One last question : What are the common

59:10price traps that a retail trader might

59:12face ? I mean , what are those price

59:13traps ? Price action traps .

59:15Okay ?

59:16For those following price action , where

59:18are the places they could get trapped ?

59:21Even for someone who knows price action

59:22. For example , someone like you .

59:23Okay ? I would say market regime , this

59:26is the word : market regime . It means

59:29that the market that was there in 2022 .

59:31Hmm .

59:32That market is not for 2025 . Now , for

59:34instance , if you check historically ,

59:382017 , 2013 , 2015 , 2019 — like 2019 was

59:41a very bad market for the auto sector .

59:45Sales were not happening at that time .

59:46Hmm .

59:47Right , I even got discounts on my car

59:48at that time , but if I go today , no one

59:50will offer me a discount .

59:51Because today it's trending ; take Tata ,

59:53take Mahindra , take whatever you want .

59:55Everything is selling today , selling

59:57very well ; even Skoda and others are

59:58selling well , so the point is that you

1:00:00need to understand which phase you are

1:00:01in . Like 2021 was a trending phase . I

1:00:05mean , 2020 was a trending phase because

1:00:07the market was going up from the bottom

1:00:08. Now you can't have the same

1:00:09expectations that 2025 will give you

1:00:11that too .

1:00:11Correct .

1:00:12Right ? And 2024 happened . Our elections

1:00:15.

1:00:15Right ? There was a rally before the

1:00:16elections and after the elections .

1:00:18There was a drop on election day , and

1:00:19then a rally took off from there . After

1:00:21that , in 2023 , Modi ji spoke about

1:00:23Public Sector Enterprises and the

1:00:25defense sectors . So all those stocks

1:00:29went up .

1:00:30So a momentum came , because when a

1:00:31leader speaks , it creates trust , so

1:00:33people start buying . So a flow , a money

1:00:35flow , starts to come in . Now you cannot

1:00:37expect that same flow anymore .

1:00:38So you have to understand that price

1:00:40action is all well and good . But if you

1:00:42are in the wrong place . If you are

1:00:44doing price action in , let's say , some

1:00:46JP Associate .

1:00:47It will not work . There is no point at

1:00:49all . If there is no story behind it ,

1:00:50what is the benefit ? Why struggle so

1:00:52much then ? Can we say that in places

1:00:53where there are institutional

1:00:55footprints , this price action and SMC

1:00:57will work better ?

1:00:58Yes .

1:00:59Because they go where there is

1:01:00stability .

1:01:01Hmm .

1:01:01At one time , interest rates were very

1:01:03high in Argentina .

1:01:04Hmm .

1:01:05They were over 20-30 % .

1:01:06But was a common man going there to

1:01:09invest money ? No.

1:01:11When Argentina needed vaccines , the US

1:01:13even said that you would have to lease

1:01:16us some of your defense equipment or

1:01:18locations in exchange for medicines .

1:01:21And all these things . Why ? Because

1:01:22there was no stability in that country .

1:01:25And in countries where there is

1:01:27stability , FD returns are hardly 0.5 ,

1:01:291.2 , 1.5 , 1.6 , etc. So all these things

1:01:32also matter a lot .

1:01:34Perfect . So it was actually a very

1:01:37enlightening session , Mukul ji . I have

1:01:39learned a lot of things . There are many

1:01:42things beyond price action . We used

1:01:44both SMC and price action together . It

1:01:46was wonderful ; the way you explained it

1:01:48was a very interesting concept . And

1:01:50here I would like to tell my viewers

1:01:52that personally speaking , I have asked

1:01:54all the questions that were in my mind ,

1:01:56and I have also asked everything that

1:01:58could possibly be asked on your behalf .

1:02:01But if you have any questions in your

1:02:03mind regarding this entire strategy ,

1:02:05SMC , or ICT , or if you want a proper

1:02:07masterclass on SMC , ICT , or another

1:02:09advanced price action masterclass , then

1:02:12do write it in the comments , and on

1:02:14your behalf , I will request Mukul ji to

1:02:16sit with us again and discuss all these

1:02:18concepts with us once more . Whether it

1:02:22is SMC concepts or ICT . Today , Mukul

1:02:25sir has given us a small idea , but I am

1:02:27very , very sure that there is a lot

1:02:29more treasure in his vault . So , Mukul

1:02:30ji ! I hope we get a chance to take your

1:02:33time again , and it depends on how our

1:02:34viewers ' comments turn out on this

1:02:36video . And please make sure , friends ,

1:02:38to like this video before leaving , and

1:02:40if you haven't subscribed to the

1:02:41channel , do it right now . And download

1:02:43the Dhan app right now ! See you in the

1:02:44next video . Bye-bye , take care of

1:02:46yourself .

1:02:47Investments in the securities market

1:02:49are subject to market risks . Read all

1:02:51the related documents carefully before

1:02:53investing .