Inside Bar Trading strategy (Part 2) | Learn how to trade Inside Bar | Vibhor Varshney

Summary

In this video, the speaker expresses gratitude for the overwhelming support received for their 'inside bar' trading video. They delve into a detailed analysis of setting stop losses (SL), take-profit points (T1, T2), and trailing SL for intraday and positional trading strategies. The speaker also demonstrates practical applications with examples from the stock market, including backtesting on various time frames and stocks, emphasizing the importance of risk-reward management and partial profit booking to secure gains.

Takeaways

• 🎉 The speaker expresses gratitude for the support received after posting an 'inside bar' video, which received over 1000 likes, indicating a high level of interest from the audience.
• 📈 The video aims to provide a detailed analysis on how to calculate Stop Loss (SL), Take Profit 1 (T1), Take Profit 2 (T2), and trailing SL, addressing common queries from various platforms.
• 📊 The speaker emphasizes the importance of watching the first part of the video series before proceeding with this one, as it covers foundational concepts necessary for understanding the subsequent content.
• 📝 The script discusses the practical application of the inside bar pattern, including entry criteria and how to manage trades with specific examples from the Bank Nifty (BN) and other stocks.
• 📉 The importance of focusing on the trader's chosen time frame (e.g., daily, weekly, 15-minute) for analysis is highlighted, as different time frames serve different trading strategies.
• 📍 The speaker clarifies that the Stop Loss should be set below the low of the 'mother candle' in a bullish scenario and above the high in a bearish scenario, with a buffer for slippage.
• 🎯 The concept of Risk to Reward ratio is introduced, with the speaker recommending 1:2R or 1:3R as favorable ratios for setting take profit targets.
• 📝 The script includes a backtesting segment to demonstrate the effectiveness of the inside bar pattern and the strategies discussed, using examples from various stocks.
• 🚀 The speaker introduces the concept of trailing Stop Loss, explaining how to adjust the SL as the market moves in a favorable direction to lock in profits and protect against reversals.
• 📈 The video includes a live demonstration of the 15-minute chart analysis, emphasizing its use for intraday trading with no carryover to the next day.
• 📝 The speaker concludes by encouraging viewers to share the video, subscribe to the channel, and engage with the content to learn more about trading strategies based on price action.

Q & A

What was the main reason for the video creator's gratitude towards the viewers?

The video creator was grateful for the love and support received after posting an 'inside bar' video, which unexpectedly got a lot of positive feedback, including more than 1000 likes, marking the first time such a response was received on their video.

What were the common queries the creator received from viewers?

The creator received numerous queries on social media platforms like Twitter, Telegram, and WhatsApp, as well as in YouTube comments, regarding the placement of Stop Loss (SL), Take Profit 1 (T1), Take Profit 2 (T2), and how to calculate them.

What is the significance of the 'inside bar' pattern discussed in the video?

The 'inside bar' pattern is a valid and invalid pattern used for trading strategies. It provides entry points for trades and is used to analyze market movements, as demonstrated in the video with examples from the Bank Nifty (BN) and other stocks.

What is the recommended risk-reward ratio for the trading strategy discussed?

The recommended risk-reward ratio for the trading strategy discussed in the video is 1:2R or 1:3R, which means for every point of risk, the potential reward is two or three times greater, respectively.

How should viewers approach the learning material if they haven't seen the first part of the video?

If viewers haven't seen the first part of the video, they should stop the current video and watch the first part before continuing. The first part covers most of the concepts necessary to understand the second part effectively.

What is the entry criteria for a trade based on the 'inside bar' pattern?

The entry criteria for a trade based on the 'inside bar' pattern is a breakout or breakdown. For a long entry, the market should close above the high of the 'inside bar', and for a short entry, it should close below the low.

How should the Stop Loss (SL) be set for a trade based on the 'inside bar' pattern?

For a long entry based on the 'inside bar' pattern, the Stop Loss (SL) should be set at the low of the 'inside bar' or slightly below it for a buffer. For a short entry, the SL should be set above the high of the 'inside bar', with a buffer of 1-4 points.

What is the purpose of the 15-minute (15M) screener mentioned in the video?

The 15-minute (15M) screener is used to analyze intraday trading patterns and to demonstrate how the 'inside bar' pattern works in a shorter time frame. It helps viewers understand the practical application of the trading strategy within a day.

How does the video creator handle the trailing Stop Loss (SL) in a trade?

The video creator suggests trailing the Stop Loss (SL) to the cost price once the first target (T1) is met, and booking 60% of the profits. This allows the remaining 40% to ride the potential further momentum with no risk to the initial investment.

What is the importance of booking partial profits in a trade?

Booking partial profits is important to secure gains and protect against sudden market reversals that could wipe out all profits. It also allows traders to use the earned amount for new breakout opportunities.

How can viewers access the screener mentioned in the video for further analysis?

The screener mentioned in the video for further analysis can be found in the video description, where viewers can filter and explore various stocks to apply the trading strategy discussed.