DAY 1: Introduction to Trading & Markets

1. The Story of Trading (History & Purpose)

Trading has existed for thousands of years — before stock exchanges, people were already
trading rice, spices, gold, and livestock.

• In the 1600s, Japanese rice traders invented the candlestick system to track rice
prices — the same candlesticks you’ll use today.

• In 1637, during Tulip Mania in the Netherlands, tulips became so valuable that one
flower could buy a house. Prices crashed → first recorded market bubble.

• In the 1700s, London & Amsterdam had stock exchanges, where company shares
were traded.

• In the 1900s, Wall Street grew into the financial capital of the world.

• In the 2000s, online trading platforms opened trading to anyone with a computer.

• In 2009, Bitcoin introduced crypto trading, which is now 24/7 and the most volatile
market.

Trading exists because people want to:

• Speculate: Profit from price movement.

• Hedge: Protect against risk (airlines buy oil futures to hedge fuel costs).

• Invest: Grow money long-term.

2. What is Trading, Really?

At its core:

Trading = Buying and selling an asset to profit from price changes.

• If you buy low and sell high → profit.

• If you sell high and buy low (short selling) → profit.

Example 1 (Stocks):

• Buy Reliance shares at ₹2000.

 • Sell them at ₹2200.

• Profit = ₹200/share.

Example 2 (Crypto):

• Buy Bitcoin at $20,000.

• Sell at $21,000.

• Profit = $1,000 per BTC.

Example 3 (Forex):

• Buy EUR/USD at 1.1000 (1 Euro = 1.10 USD).

• Sell at 1.1200.

• Profit = 200 “pips” (units of forex movement).

3. Difference Between Trading & Investing

• Investing = Long-term wealth building.

o Time horizon: Years/decades.

o Focus: Fundamentals (company performance, economic growth, blockchain

adoption).

o Example: Buying Infosys in 2005, holding till 2025.

• Trading = Short-term profit from price changes.

o Time horizon: Seconds → weeks.

o Focus: Technical analysis (charts, candlesticks, trends).

o Example: Buying Bitcoin at $20,000 and selling it two days later at $21,000.

Key Difference:

• An investor asks: “Will this be valuable in 10 years?”

• A trader asks: “Where will the price go in the next few hours/days?”

4. Why Do Prices Move? (The Heart of Trading)

Prices are not random. They move because of supply and demand.

• If more people buy → demand > supply → price goes UP.

• If more people sell → supply > demand → price goes DOWN.

But what influences supply & demand?

1. News/Events:

o Positive → price rises (Tesla announcing record earnings).

o Negative → price falls (Government banning crypto).

2. Economic Data:

o Interest rates, inflation, GDP affect stock/forex markets.

3. Market Psychology:

o Fear → people sell.

o Greed → people buy.

4. Institutions (Smart Money):

o Banks, hedge funds, market makers move billions → they control trends.

o Retail traders (like us) follow, not fight them.

Real Example:

• In March 2020 (COVID crash):

o Stocks & crypto crashed because of panic selling.

o Later, when governments printed money → markets bounced (demand came

back).

5. Types of Markets You Can Trade

1. Stocks (Equities):

o Ownership in a company (TCS, Infosys, Apple).

o Moved by company earnings & economy.

2. Crypto:
 o Bitcoin, Ethereum, thousands of altcoins.

o Trades 24/7.

o High volatility (fast moves).

3. Forex (Foreign Exchange):

o Currencies (USD/INR, EUR/USD).

o World’s largest market (trillions traded daily).

4. Commodities:

o Gold, oil, silver, natural gas.

o Influenced by global supply/demand.

5. Indices:

o Groups of stocks (NIFTY50, S&P500, Dow Jones).

o Show overall market health.

6. Types of Traders

1. Scalper

o Holds trades: Seconds–minutes.

o Many small profits.

o Needs focus & speed.

2. Day Trader

o Opens & closes trades within the day.

o No overnight risk.

o Example: Buy NIFTY in morning, sell in afternoon.

3. Swing Trader

o Holds trades for days–weeks.

o Uses daily or 4H charts.

o Example: Buy BTC Monday, sell Friday.

 4. Position Trader / Investor

o Holds trades for months–years.

o Relies on fundamentals.

You and your group need to decide which style suits you.

7. Who Are You Competing Against?

• Retail traders (us): trade small amounts.

• Institutions: hedge funds, banks, market makers → trade billions.

• Market makers: provide liquidity but also manipulate short-term moves.

Reality Check:

90% of retail traders lose money because they trade without knowledge, risk management,
or discipline.

That’s why you are building this foundation step by step.

8. Common Beginner Mistakes

Thinking trading is gambling.

Trading without stop-loss.
Following “tips” instead of analysis.
Risking too much in one trade.
Switching strategies every week.

Day 1 Recap

✔ Trading = buying/selling for profit.

✔ Difference between trading & investing.
✔ Prices move due to supply/demand, news, psychology, institutions.
✔ Markets: stocks, crypto, forex, commodities, indices.
✔ Types of traders: scalper, day, swing, position.
✔ You compete against big institutions.
✔ Avoid beginner mistakes.
Day 1 Quiz (Self-Test)

1. What’s the difference between a trader & an investor?

2. Why do prices move in markets?

3. Name 3 things that affect demand & supply.

4. If Reliance goes from ₹2000 to ₹2100, what’s your profit if you bought 10 shares?

5. Name the 4 main types of traders.

6. Which market is the largest in the world?

DAY 2: Trading Platforms & Tools

1. Why Do We Need Trading Platforms?

Imagine you want to travel:

• Google Maps = shows you the best route.

• Uber Driver = actually drives you.

In trading:

• Charting Platform (like TradingView) = shows you price movement, patterns, and
indicators (like Google Maps).

• Broker (like Zerodha, Binance, Bybit) = actually executes your trades (like the Uber
driver).

Without charts, you’re blind. Without brokers, you can’t actually buy or sell. You need
both.

2. Brokers (Execution Platforms)

A broker connects you to the financial market.

Examples:

• India Stocks: Zerodha (Kite), Upstox, Groww.

• US Stocks: Interactive Brokers, Robinhood.

• Crypto: Binance, Bybit, Coinbase.

 • Forex: IC Markets, Oanda, Pepperstone.

Key Functions of a Broker:

1. Provides you an account to trade.

2. Executes your buy/sell orders.

3. Shows account balance, margin, leverage.

4. Charges fees/commissions (important!).

Beginners’ mistake: Ignoring broker fees.

• If you scalp (many trades daily), high fees will kill profits.

• Always check broker’s commission + spread before choosing.

3. Charting Platform (TradingView)

What is TradingView?

TradingView is the world’s most popular charting software.

• Free & paid versions.

• Used for Stocks, Crypto, Forex, Indices.

• Social platform → traders share charts & ideas.

Step-by-Step: How to Use TradingView (For Beginners)

Step 1: Sign Up

• Go to TradingView.com.

• Create free account.

Step 2: Open a Chart

• Search asset: BTCUSDT (Bitcoin), RELIANCE, NIFTY, EURUSD.

• Click on it → chart opens.

Step 3: Choose Timeframe

• Top bar → Select:

 o 1m (1 minute candles) → scalpers.

o 15m/1H (minutes/hours) → day traders.

o 4H/1D (4-hour/daily) → swing traders.

• Rule: Higher timeframe shows trend, lower timeframe shows entries.

Step 4: Add Drawing Tools

• Left panel → tools like:

o Horizontal Line: draw support/resistance.

o Trendline: mark trends.

o Rectangle: highlight zones.

Step 5: Add Indicators

• Top bar → Indicators.

• Popular:

o Moving Averages (trend).

o RSI (momentum).

o MACD (trend + momentum).

• Don’t overload → max 2–3 indicators at first.

4. Order Types (Ultra-Detailed)

This is how you place trades. Think of them as instructions to your broker.

1. Market Order

• Buys/sells instantly at current price.

• Pros: Fast.

• Cons: Might not get best price (slippage).

Example:
BTC = $25,000. You click “buy.” Your broker fills order at $25,005 (small difference).
2. Limit Order

• Buys/sells only at price you choose.

• Pros: You control price.

• Cons: Order might not get filled if price never comes.

Example:
BTC = $25,000. You place limit buy at $24,800.

• If price drops → you buy.

• If not → you miss trade.

3. Stop-Loss Order (SL)

• Your safety net.

• Exits trade if price moves against you.

Example:

• Buy Reliance at ₹2500.

• Set SL = ₹2450.

• If price falls, you automatically exit (loss = ₹50/share).

Without stop-loss, you can lose everything.

4. Take-Profit Order (TP)

• Closes trade when profit target is hit.

Example:

• Buy Reliance at ₹2500.

• TP = ₹2600.

• If price rises → trade closes automatically with profit.

5. OCO (One Cancels Other)

• Combines TP + SL in one order.

• If one hits, the other cancels.

Example:

• Buy BTC at $25,000.

• SL = $24,500, TP = $26,000.

• If TP hits → SL cancels.

• If SL hits → TP cancels.

Beginner Mistakes with Orders:

• Not using stop-loss (biggest account killer).

• Using only market orders (can cause bad entries).

• Setting TP too far → trade never closes.

5. Practical Example (Putting It All Together)

Let’s say:

• You analyze Reliance chart.

• Support = ₹2000, Resistance = ₹2200.

You plan:

• Buy at ₹2000.

• SL = ₹1950 (risk = ₹50).

• TP = ₹2100 (reward = ₹100).

Risk-to-Reward = 1:2 (good trade).

Now, on your broker:

• Place Limit Buy at ₹2000.

• Place SL = ₹1950, TP = ₹2100.

 • This is called a planned trade.

6. Practice Task (Day 2)

1. Open TradingView.

2. Add 3 assets: BTCUSDT, RELIANCE, NIFTY50.

3. Draw 2 support lines and 2 resistance lines.

4. Place paper trades (using TradingView simulator):

o 1 market order.

o 1 limit order.

o With SL & TP.

Write them in your trading journal:

• Entry Price, SL, TP, Order Type.

7. Day 2 Recap

✔ Broker = execution platform.

✔ TradingView = charting platform.
✔ Timeframes → short-term vs long-term.
✔ Drawing tools = S/R, trendlines, zones.
✔ Order types = Market, Limit, SL, TP, OCO.
✔ Always use stop-loss & proper planning.

8. Day 2 Quiz

1. What’s the difference between a broker and a charting platform?

2. When would you use a limit order instead of a market order?

3. Why is a stop-loss necessary?

4. What is the benefit of an OCO order?

 5. If you buy Reliance at ₹2000, set SL at ₹1950 and TP at ₹2100, what’s your risk-to-
reward ratio?

DAY 3: Candlesticks – Reading the Market’s Language

1. Why Do We Use Candlesticks?

Imagine you walk into a room full of people but no one is speaking. How do you know what
they’re thinking? You look at body language — smiles, frowns, hand gestures.

In trading, candlesticks are the body language of price.

• A big green candle = buyers were excited and in control.

• A big red candle = sellers dominated.

• A tiny candle = confusion, indecision, no one sure.

• A long wick = one side tried but failed (like a hand pushing a door, but the other side
slammed it shut).

Candlesticks = emotions of buyers & sellers shown on the chart.

2. How a Candlestick is Built (OHLC)

Each candle is built from four pieces of information:

• Open → price when the candle started.

• High → the highest price during that period.

• Low → the lowest price during that period.

• Close → price when the candle ended.

Example: Reliance 1-Hour Candle

• Open = ₹2000

• High = ₹2020

• Low = ₹1990

• Close = ₹2015

This creates a green candle (because Close > Open).

Candle Structure (Visual in words)

High

| Wick (shadow)

+--------+

| | ← Body (Open & Close)

+--------+

| Wick (shadow)

Low

• Body = war zone (buyers vs sellers during that hour).

• Wick = failed attempt (someone tried but lost control).

3. Types of Candles & What They Mean

A) Big Green Candle (Long Bullish Body)

• Buyers were strong.

• Price kept rising.

• Market is showing demand > supply.

Analogy: Imagine an auction where everyone keeps shouting higher bids → the item’s price
shoots up.

B) Big Red Candle (Long Bearish Body)

• Sellers dominated.
 • Price fell consistently.

• Supply > demand.

Analogy: A shop putting everything on “flash sale.” Everyone selling, no one buying → price
crashes.

C) Small Candle (Doji or Neutral)

• Open ≈ Close.

• Buyers and sellers fought but ended equal.

• Means indecision.

Analogy: Tug of war where rope stays in the middle.

D) Candle with Long Lower Wick (Hammer type)

• Sellers tried to push price down.

• Buyers fought back and pulled it up.

• Shows buyers rejection of lower price.

Analogy: A ball thrown down bounces back up.

E) Candle with Long Upper Wick (Shooting Star type)

• Buyers pushed price up.

• Sellers rejected it and pushed down.

• Shows sellers rejection of higher price.

Analogy: A rocket launched but fuel ran out → it falls back.

4. Candlestick Patterns You Must Know

Instead of dumping 20 patterns, let’s really understand the most important ones (the rest
are just variations).
1. Hammer (Bullish Reversal)

• Small body, long lower wick (at least 2x body size).

• Appears after downtrend at support.

• Means sellers tried to crash price but failed → buyers took control.

Real Example:
BTC falls from $30,000 to $28,000. At $28,000 support, hammer candle forms → next
candles turn green → bounce begins.

Rule: A hammer in middle of uptrend = meaningless. Must be at bottom.

2. Shooting Star (Bearish Reversal)

• Small body, long upper wick.

• Appears after uptrend at resistance.

• Means buyers tried to push up but failed → sellers took control.

Example:
Reliance goes from ₹2500 to ₹2600. At ₹2600 resistance, shooting star forms → price drops
to ₹2550.

3. Doji (Indecision)

• Open = Close (tiny body, long wicks both sides).

• Market doesn’t know what to do.

• At strong S/R = possible reversal signal.

Analogy: A coin tossed in air, no one catches it. Market is confused.

4. Engulfing Pattern

• Bullish Engulfing: Small red candle → followed by big green candle covering it fully.

o Appears at support = bullish reversal.

 • Bearish Engulfing: Small green → followed by big red covering it fully.

o Appears at resistance = bearish reversal.

Example:

• BTC falls to $25,000 → forms small red candle.

• Next candle huge green covering red → strong up move follows.

5. Morning Star (Bullish Reversal)

• Candle 1: Big red.

• Candle 2: Doji/small candle.

• Candle 3: Big green.

• Appears at support = big reversal.

Opposite: Evening Star (bearish reversal at resistance).

5. How to Trade Candles (Rules to Remember)

1. Context matters most.

o Hammer at support = powerful.

o Hammer in middle of chart = useless.

2. Confirm with next candle.

o Don’t jump at one candle. Wait for next one to confirm.

3. Combine with S/R & Trend.

o Best setups = candlestick + key level + trend.

6. Beginner Mistakes

Thinking candlestick patterns = magic (they aren’t).

Trading every hammer/engulfing without context.
 Ignoring trend → trading hammer in strong downtrend = loss.
Using only candles without SL (dangerous).

7. Practice Task (Day 3)

1. Open TradingView → BTC 4H chart.

2. Find and screenshot:

o 5 Hammers (bullish).

o 3 Shooting Stars (bearish).

o 3 Dojis (indecision).

o 2 Engulfings.

3. Write in your journal:

o Where did each appear (support? resistance? random?)

o Did reversal happen after them?

o What mistake would a beginner make here?

8. Recap of Key Lessons

✔ Candlesticks = emotions of buyers & sellers.

✔ Anatomy = Open, High, Low, Close.
✔ Long wick = rejection. Long body = momentum.
✔ Must-read in context of support/resistance & trend.
✔ Patterns: Hammer, Shooting Star, Doji, Engulfing, Morning/Evening Star.

9. Day 3 Quiz

1. Who invented candlesticks, and why?

2. What does a long lower wick (hammer type) show?

3. What’s the difference between a Doji and a Spinning Top?

4. Which pattern is stronger: Bullish Engulfing at random level, or at support? Why?

 5. If Reliance falls 5 days straight and then forms a hammer at support, what’s your
trade plan (entry, SL, TP)?

DAY 4: Support & Resistance (S/R)

1. Why Support & Resistance is the Heart of Trading

Candlesticks are the language of price, but Support & Resistance (S/R) are the map of
the battlefield.

Without S/R, trading = driving blind.

With S/R, you see where buyers/sellers are hiding.

Most professional traders say:

“Trading is just buying at support and selling at resistance.”

2. What is Support?

• Support = A price level or zone where buyers step in and stop price from falling
further.

• Think of it as a floor.

Example:

• BTC falls to $25,000 → bounces.

• Falls again to $25,000 → bounces again.

• That $25,000 is support.

Psychology:

• Traders remember this level as a “cheap price.”

• Big buyers (institutions) often place orders there.

3. What is Resistance?

• Resistance = A price level or zone where sellers step in and stop price from rising
further.
 • Think of it as a ceiling.

Example:

• Reliance rises to ₹2500 → falls.

• Rises again to ₹2500 → falls again.

• ₹2500 is resistance.

Psychology:

• Traders remember this level as “expensive price.”

• Big sellers unload there.

4. Why Do S/R Levels Form? (The Psychology)

This is the secret:

• At support, buyers want to defend their position (they think it’s cheap).

• At resistance, sellers want to defend their position (they think it’s too high).

Example with people:

• You want to buy iPhone → price drops from ₹80,000 to ₹70,000.

• Next time it hits ₹70,000, you’ll want to buy again.

• Many people think like you → support forms.

Same in markets → human psychology repeats → chart patterns form.

5. How to Draw S/R Levels (Step by Step)

Step 1: Choose higher timeframe (Daily/4H) → stronger S/R.

Step 2: Zoom out → look for places where price touched and reversed multiple times.
Step 3: Draw horizontal line/rectangle at those levels.
Step 4: Adjust to make it a zone (not exact price).

Support/Resistance is a zone, not a single line.

Example Walkthrough: BTC Daily Chart

 1. Price touches $25,000 → bounces.

2. Price touches $25,200 → bounces.

3. Price touches $24,800 → bounces.

→ Together, we mark $24,800–$25,200 as Support Zone.

6. Types of Support & Resistance

1. Horizontal S/R

o Levels seen by everyone.

o Example: NIFTY 20,000 psychological round number.

2. Trendline S/R

o Diagonal support/resistance.

o Example: Uptrend line connecting Higher Lows.

3. Moving Average S/R

o Some moving averages (like 50 EMA, 200 EMA) act as dynamic S/R.

4. Previous High/Low

o Yesterday’s high or low often acts as intraday S/R.

7. Breakouts & Fakeouts

Breakout

• When price closes strongly above resistance or below support.

• Example: NIFTY breaks above 20,000 with strong green candles = breakout.

Fakeout (Trap)

• Price breaks briefly but comes back → many traders get trapped.

• Institutions use this to hunt stop-losses.

Rule: Wait for confirmation (close outside + retest).

 8. Beginner Mistakes in Drawing S/R

Drawing too many lines → chart becomes messy.

Using only 1-minute chart → weak levels.
Treating S/R as exact price (instead of zones).
Ignoring higher timeframe levels.
Trading fakeouts blindly.

9. How to Use S/R in Trading (Practical Rules)

• Buy near support, sell near resistance.

• Don’t buy at resistance, don’t sell at support.

• Always check trend → uptrend = stronger support, downtrend = stronger resistance.

• Add candlestick confirmation at levels.

Example Trade Plan (BTC):

• BTC in uptrend.

• Pulls back to $25,000 support.

• Hammer candle forms.

• Entry = $25,100.

• SL = below support ($24,800).

• TP = next resistance ($26,000).

10. Practice Task (Day 4)

1. Open TradingView.

2. Pick 3 charts: BTC Daily, Reliance Daily, NIFTY 1H.

3. Mark:

o 2 Support zones.

o 2 Resistance zones.

4. Write in journal:
 o Why did price react there?

o How many times was the level tested?

o Did breakout/fakeout happen?

Group Activity: Each person explains 1 chart to the others.

11. Day 4 Recap

✔ Support = floor where buyers defend.

✔ Resistance = ceiling where sellers defend.
✔ Levels form due to psychology (memory of cheap/expensive).
✔ Draw S/R as zones, not exact lines.
✔ Types: Horizontal, Trendline, MA, High/Low.
✔ Watch out for breakouts & fakeouts.

12. Day 4 Quiz

1. What is the difference between support and resistance?

2. Why do traders remember old support levels?

3. What’s stronger: Daily support or 5-minute support? Why?

4. What is a fakeout? How to avoid falling for it?

5. If Reliance has support at ₹2000 and resistance at ₹2200, where should you look to
buy and where to sell?

DAY 5 (FULL EXPANDED): Trends & Market Direction

1. First, What is a Trend?

A trend is simply the direction in which price is moving overall.

But here’s the important part: price never moves in a straight line.

It moves like waves: up, down, up, down.

These waves create the trend.

Think of the ocean:

 • Small waves go forward/backward.

• But the tide (overall direction) decides if the water is moving toward the beach
(uptrend) or away (downtrend).

So as traders, we don’t care about tiny moves — we focus on the bigger tide (trend).

2. Why Do Trends Form? (Psychology)

Trends happen because of collective behavior of buyers and sellers.

• Uptrend:
More people believe price will go higher → they keep buying.
Each time it drops a little, buyers rush in → pushes it even higher.

• Downtrend:
More people believe price will fall → they keep selling.
Each small bounce is used by sellers to sell again → pushes it even lower.

• Sideways:
Nobody is sure. Buyers and sellers are equally strong → price gets stuck between
two levels.

In short:

• Uptrend = buyers are boss.

• Downtrend = sellers are boss.

• Sideways = no boss, just a fight.

Understanding the 3 Types of Trends

1. Uptrend (Market Going Up)

Definition (simple):
An uptrend means the price is climbing step by step.
Every time it falls a little, it bounces back higher than before.

How It Looks (in numbers):

₹100 → ₹120 → ₹110 → ₹130 → ₹115 → ₹140

• First went to ₹120 (new higher point).

• Then dropped to ₹110 (but still above ₹100).

• Then went ₹130 (new higher point again).

• Dropped to ₹115 (still higher than ₹110).

• Went to ₹140 (again higher).

Both the highs and the lows are moving upward.

Story Analogy:

Imagine you’re climbing stairs.

• You step up → pause → step up → pause → step up again.

• Sometimes you stop and step down one stair, but overall you’re still going higher.

That’s exactly how an uptrend works.

Market Psychology:

• Buyers are stronger than sellers.

• Every time sellers push price down, buyers come back quickly and push it even
higher.

• Everyone feels: “If I don’t buy now, it will be more expensive later.”

Example from Real Markets:

• Bitcoin went from $10,000 → $20,000 → $30,000 → $60,000 (2020–21).

• Infosys stock has been making new highs for years.

2. Downtrend (Market Going Down)

 Definition (simple):
A downtrend means the price is falling step by step.
Every time it bounces up a little, it drops down lower than before.

How It Looks (in numbers):

₹200 → ₹180 → ₹190 → ₹170 → ₹185 → ₹160

• First fell to ₹180 (lower point).

• Then bounced to ₹190 (but still lower than ₹200).

• Fell to ₹170 (lower again).

• Bounced to ₹185 (still lower than ₹190).

• Fell to ₹160 (new low).

Both the highs and the lows are moving downward.

Story Analogy:

Imagine you’re walking downstairs.

• You step down → pause → step down → pause → step down again.

• Sometimes you step up one stair, but overall you’re still going lower.

That’s exactly how a downtrend works.

Market Psychology:

• Sellers are stronger than buyers.

• Every time buyers try to push price up, sellers return and push it even lower.

• Everyone feels: “If I don’t sell now, I’ll get less later.”

Example from Real Markets:

• Bitcoin crashed from $20,000 in 2018 → $3,000 in 2019.

 • Many stocks fall during recessions (2008 crash, COVID crash).

3. Sideways (Range / Consolidation)

Definition (simple):
A sideways market means the price is stuck between two levels.
It’s not going up overall, not going down overall — just moving back and forth.

How It Looks (in numbers):

₹100 → ₹120 → ₹105 → ₹115 → ₹110 → ₹118

• Every time it goes up, it stops around ₹120.

• Every time it goes down, it stops around ₹100.

• It’s bouncing between two walls (support & resistance).

Story Analogy:

Imagine a ball bouncing inside a box.

• Hits the floor → bounces up.

• Hits the ceiling → bounces down.

• Repeats again and again.

That’s exactly what a sideways trend is.

Market Psychology:

• Buyers and sellers are equal in strength.

• Buyers defend the bottom (support).

• Sellers defend the top (resistance).

• Everyone is waiting for something (big news, breakout).

 Example from Real Markets:

• NIFTY often stays in a range (e.g., stuck between 18,000–18,500 for weeks).

• Bitcoin stayed around $29,000–$31,000 for months in 2023.

4. Quick Comparison

Type What Happens Analogy Who is Stronger?

Uptrend Higher Highs + Higher Lows Climbing stairs Buyers

Downtrend Lower Highs + Lower Lows Going downstairs Sellers

Sideways Price stuck between support & resistance Ball in a box Equal

5. Practice Task

1. Open TradingView.

2. Pick 3 charts: Reliance (stock), BTC (crypto), NIFTY (index).

3. For each chart, ask:

o Are highs going higher or lower?

o Are lows going higher or lower?

o Or are both staying almost same?

4. Label it: Uptrend, Downtrend, or Sideways.

Group Activity:
Each of you pick one chart, explain to others why you think it’s up, down, or sideways.

6. Super Simple Recap

• Uptrend = market climbing stairs.

• Downtrend = market going downstairs.

• Sideways = ball bouncing inside a box.

 • Always look at highs and lows to judge trend.

• Beginners should always trade with the trend, not against it.

7. Quick Quiz

1. What is the easiest way to identify an uptrend?

2. If Reliance goes ₹200 → ₹180 → ₹190 → ₹170 → ₹185 → ₹160, is it uptrend, downtrend,
or sideways? Why?

3. If BTC goes $25,000 → $27,000 → $26,000 → $28,000, what type of trend is this?

4. What does sideways market mean?

5. In which type of trend should beginners avoid trading?

DAY 6 (FULL EASY GUIDE): Chart Patterns – Market’s Shapes & Stories

1. First Question: What are Chart Patterns?

When you look at a price chart, sometimes the candles form shapes.

These shapes are not random. They repeat again and again because human
psychology never changes.

• When people are greedy, they buy in similar ways.

• When people are scared, they sell in similar ways.

• These emotions leave patterns on the chart.

Analogy:
Imagine clouds.

• If you see dark heavy clouds, you guess “rain is coming.”

• If you see light fluffy clouds, you guess “good weather.”

Similarly, when you see Double Top or Head & Shoulders, you can guess what might
happen next.

2. Two Types of Patterns

 1. Reversal Patterns = Market wants to change direction.

2. Continuation Patterns = Market is just taking a rest, then will continue the same
direction.

Think of it like a runner:

• If the runner is tired and turns around → Reversal.

• If the runner is just catching his breath and continues → Continuation.

3. Reversal Patterns (When Market is Tired of Going One Way)

A) Head & Shoulders (H&S)

Looks like:
Left Shoulder → Head (higher peak) → Right Shoulder (lower peak).

Appears after an uptrend.

Means buyers are tired, sellers taking over.

Story Example:
Imagine someone climbing a hill:

• First climb = left shoulder.

• Big climb = head.

• Small climb = right shoulder (he’s too tired to climb as high).

• Then he comes back down = trend reverses.

Real Example:

• Stock rises ₹100 → ₹150 → ₹120 → ₹160 → ₹130 → then drops below ₹120.

• That’s Head & Shoulders → downtrend begins.

Inverse H&S = opposite, happens after downtrend → bullish reversal.

B) Double Top (M Pattern)

 Looks like the letter M.
Appears after uptrend.
Price hits the same resistance twice but fails both times → falls down.

Story Example:
Think of a ball hitting the ceiling:

• Hits ceiling once → falls.

• Tries again → hits same ceiling → falls harder.

Real Example:

• Reliance: ₹2000 → ₹2200 → ₹2000 → tries ₹2200 again → fails → drops to ₹1900.

C) Double Bottom (W Pattern)

Looks like the letter W.

Appears after downtrend.
Price hits same support twice and bounces.

Story Example:
Think of a ball hitting the floor:

• Hits floor once → bounces.

• Falls again → hits same floor → bounces higher.

Real Example:

• BTC: $25,000 → $28,000 → $25,000 again → bounces $30,000.

4. Continuation Patterns (When Market is Resting, Not Reversing)

A) Triangles

Triangles happen when price squeezes, like air inside a balloon.

1. Ascending Triangle:

o Flat top (resistance).

o Rising bottom (support).

 o Buyers are pushing harder each time.

o Usually breaks UP.

Story: Like people pushing a door from below again and again. Finally, it bursts open.

2. Descending Triangle:

o Flat bottom (support).

o Falling top (resistance).

o Sellers are pushing harder each time.

o Usually breaks DOWN.

Story: Like water dripping into a crack in the floor. Eventually, it breaks through.

3. Symmetrical Triangle:

o Both sides closing in like a pizza slice.

o Buyers & sellers are waiting → price builds pressure → explodes one side.

Story: Like a spring being squeezed. At some point → it snaps open.

B) Flags and Pennants

These happen after a strong move.

• Price runs up quickly → then pauses in a small downward channel (flag).

• After resting, price continues same way.

Story:
A runner sprints → takes a short water break → then runs again.

Real Example:

• Stock jumps from ₹100 → ₹120.

• Then stays between ₹115–₹118 for some time.

• Breaks out → goes to ₹130.

 5. Key Rule: Always Wait for Breakout

Don’t trade a pattern just because you “see” it.

The real move happens when price breaks the key level.

• Double Top → trade only when price drops below the middle line (neckline).

• Double Bottom → trade only when price goes above neckline.

• Triangle/Flag → trade only when price breaks out of the shape.

Story Analogy:
Don’t celebrate a cricket win before the last wicket falls. Same with patterns → wait for
breakout!

6. Common Mistakes Beginners Make

Seeing patterns everywhere (forcing imagination).

Entering too early (before breakout).
Forgetting bigger trend (trading reversal inside strong trend).
Not using stop-loss (patterns can fail).

7. Practice Task (Day 6)

1. Open TradingView.

2. Pick 3 charts: Reliance, BTC, NIFTY.

3. Find & mark:

o 1 Double Top (M).

o 1 Double Bottom (W).

o 1 Triangle.

o 1 Flag.

4. In your journal, write:

o Where did pattern form (after uptrend/downtrend)?

 o Did breakout happen? Which side?

o If you traded it, what would be Entry, SL, TP?

Group activity: Each person brings 1 pattern and explains the “story” of buyers vs
sellers behind it.

8. Recap (Easy Words)

• Reversal Patterns:

o Head & Shoulders → Trend changing down.

o Double Top (M) → Trend changing down.

o Double Bottom (W) → Trend changing up.

• Continuation Patterns:

o Triangles → Price squeezing, breakout coming.

o Flags → Quick rest, then continues trend.

Rule: Wait for breakout before trading.

9. Quick Quiz

1. Which pattern looks like the letter M? What does it signal?

2. Which pattern looks like the letter W? What does it signal?

3. What’s the difference between Ascending and Descending Triangle?

4. Why should you always wait for breakout?

5. After a strong rally, stock forms a flag. What’s most likely next?

DAY 6 (EXPANDED): Extra Chart Patterns

1. Rectangle (Box Pattern / Sideways Range)

 What It Looks Like:
Price keeps bouncing between the same support (floor) and resistance (ceiling).

Can appear after uptrend or downtrend.

Breakout decides next move.

Story Example:
Imagine a ball bouncing between the floor and ceiling inside a box. It will eventually break
out of the box.

Real Example:

• NIFTY moves between 18,000 and 18,500 for weeks.

• Once it breaks 18,500 → continues up.

• If it breaks 18,000 → continues down.

2. Cup & Handle

What It Looks Like:

• Price first falls, then slowly rises → forms a “cup” shape.

• Then makes a small dip → forms a “handle.”

• Then breaks out upward.

Appears after uptrend.

Bullish continuation pattern.

Story Example:
Think of a teacup. You pour tea → it fills up (cup shape). Then you lift the cup → handle
forms. Then you drink → price continues up.

Real Example:

• Reliance goes ₹2000 → falls ₹1800 → slowly back to ₹2000 (cup).

• Dips slightly to ₹1950 (handle).

• Breaks above ₹2000 → goes ₹2200.

3. Rounding Bottom (Saucer Pattern)

 What It Looks Like:

• Price slowly falls → makes a round bottom → then slowly rises.

• Looks like a saucer / U-shape.

Appears after downtrend.

Signals slow reversal upward.

Story Example:
Think of a big ship turning in the ocean. It doesn’t turn instantly — it slowly curves around.

Real Example:

• Stock falls from ₹500 → slowly drops to ₹400 → then starts rising slowly → ₹450 →
₹500 again → breakout upwards.

4. Rounding Top

What It Looks Like:

• Opposite of rounding bottom.

• Price slowly curves down after uptrend.

Signals bearish reversal.

Story Example:
Like a balloon losing air — slowly coming down.

Real Example:

• BTC rises from $20k → $22k → $21.8k → $21.5k → $21k → slowly rolling over → falls
$19k.

5. Symmetrical Wedges

Similar to triangles but tilted.

• Falling Wedge:

o Price slopes downward but converges (getting narrow).

o Usually breaks UP (bullish).

 o Story: Like a spring being pushed down, then released upward.

• Rising Wedge:

o Price slopes upward but converges.

o Usually breaks DOWN (bearish).

o Story: Like a mountain road getting steeper — eventually you slip down.

6. Pennants

Very small triangles formed after strong move.

• Example: Stock jumps quickly → then forms tiny triangle → breakout in same
direction.

Story Example:
Imagine someone running fast, then stopping for 5 seconds to catch breath → then
continues running again.

7. Summary of Beginner-Friendly Patterns

Reversal Patterns (Trend Change):

• Head & Shoulders → Uptrend to Downtrend.

• Inverse H&S → Downtrend to Uptrend.

• Double Top (M) → Uptrend to Downtrend.

• Double Bottom (W) → Downtrend to Uptrend.

• Rounding Top → Slow downtrend start.

• Rounding Bottom → Slow uptrend start.

Continuation Patterns (Trend Pause):

• Triangles (Ascending, Descending, Symmetrical) → breakout with trend.

• Flags & Pennants → rest, then continuation.

• Rectangle (Box Pattern) → breakout decides direction.

• Cup & Handle → bullish continuation.

8. Beginner Rules for Chart Patterns

1. Don’t guess → always wait for breakout.

2. Use support/resistance zones with patterns.

3. Patterns fail sometimes → always keep stop-loss.

4. Bigger timeframe patterns (Daily, Weekly) are stronger than small ones.

9. Practice Task (Day 6 Expanded)

1. Open TradingView.

2. Pick 5 charts (Reliance, Infosys, BTC, ETH, NIFTY).

3. Find at least:

o 1 Rectangle

o 1 Cup & Handle

o 1 Rounding Bottom or Top

o 1 Triangle

o 1 Double Top/Bottom

4. Save screenshots.

5. Journal:

o What type of pattern?

o Where did it form (after uptrend/downtrend)?

o Did breakout happen? Which way?

10. Quick Recap (Easy Words)

• Reversal Patterns: Trend is tired → will change.

• Continuation Patterns: Trend is resting → will continue.

 • Shapes to remember:

o M (Double Top) → bearish.

o W (Double Bottom) → bullish.

o Cup (with handle) → bullish.

o Box (Rectangle) → breakout.

o Triangles/Wedges → pressure building → breakout.

o Flags → short rest, continue running.

11. Quiz (Day 6 Expanded)

1. Which pattern looks like the letter W and signals bullish reversal?

2. Which pattern looks like a tea cup and usually breaks upward?

3. If price stays between ₹1000–₹1200 for 1 month, which pattern is this?

4. Which wedge usually breaks upward: Falling or Rising?

5. Which pattern shows a slow reversal instead of sharp reversal?

DAY 6 (EXPANDED): Extra Chart Patterns

1. Rectangle (Box Pattern / Sideways Range)

What It Looks Like:

Price keeps bouncing between the same support (floor) and resistance (ceiling).

Can appear after uptrend or downtrend.

Breakout decides next move.

Story Example:
Imagine a ball bouncing between the floor and ceiling inside a box. It will eventually break
out of the box.
Real Example:

• NIFTY moves between 18,000 and 18,500 for weeks.

• Once it breaks 18,500 → continues up.

• If it breaks 18,000 → continues down.

2. Cup & Handle

What It Looks Like:

• Price first falls, then slowly rises → forms a “cup” shape.

• Then makes a small dip → forms a “handle.”

• Then breaks out upward.

Appears after uptrend.

Bullish continuation pattern.

Story Example:
Think of a teacup. You pour tea → it fills up (cup shape). Then you lift the cup → handle
forms. Then you drink → price continues up.

Real Example:

• Reliance goes ₹2000 → falls ₹1800 → slowly back to ₹2000 (cup).

• Dips slightly to ₹1950 (handle).

• Breaks above ₹2000 → goes ₹2200.

3. Rounding Bottom (Saucer Pattern)

What It Looks Like:

• Price slowly falls → makes a round bottom → then slowly rises.

• Looks like a saucer / U-shape.

Appears after downtrend.

Signals slow reversal upward.
Story Example:
Think of a big ship turning in the ocean. It doesn’t turn instantly — it slowly curves around.

Real Example:

• Stock falls from ₹500 → slowly drops to ₹400 → then starts rising slowly → ₹450 →
₹500 again → breakout upwards.

4. Rounding Top

What It Looks Like:

• Opposite of rounding bottom.

• Price slowly curves down after uptrend.

Signals bearish reversal.

Story Example:
Like a balloon losing air — slowly coming down.

Real Example:

• BTC rises from $20k → $22k → $21.8k → $21.5k → $21k → slowly rolling over → falls
$19k.

5. Symmetrical Wedges

Similar to triangles but tilted.

• Falling Wedge:

o Price slopes downward but converges (getting narrow).

o Usually breaks UP (bullish).

o Story: Like a spring being pushed down, then released upward.

• Rising Wedge:

o Price slopes upward but converges.

o Usually breaks DOWN (bearish).

o Story: Like a mountain road getting steeper — eventually you slip down.
 6. Pennants

Very small triangles formed after strong move.

• Example: Stock jumps quickly → then forms tiny triangle → breakout in same
direction.

Story Example:
Imagine someone running fast, then stopping for 5 seconds to catch breath → then
continues running again.

7. Summary of Beginner-Friendly Patterns

Reversal Patterns (Trend Change):

• Head & Shoulders → Uptrend to Downtrend.

• Inverse H&S → Downtrend to Uptrend.

• Double Top (M) → Uptrend to Downtrend.

• Double Bottom (W) → Downtrend to Uptrend.

• Rounding Top → Slow downtrend start.

• Rounding Bottom → Slow uptrend start.

Continuation Patterns (Trend Pause):

• Triangles (Ascending, Descending, Symmetrical) → breakout with trend.

• Flags & Pennants → rest, then continuation.

• Rectangle (Box Pattern) → breakout decides direction.

• Cup & Handle → bullish continuation.

8. Beginner Rules for Chart Patterns

1. Don’t guess → always wait for breakout.

2. Use support/resistance zones with patterns.

3. Patterns fail sometimes → always keep stop-loss.

4. Bigger timeframe patterns (Daily, Weekly) are stronger than small ones.

9. Practice Task (Day 6 Expanded)

1. Open TradingView.

2. Pick 5 charts (Reliance, Infosys, BTC, ETH, NIFTY).

3. Find at least:

o 1 Rectangle

o 1 Cup & Handle

o 1 Rounding Bottom or Top

o 1 Triangle

o 1 Double Top/Bottom

4. Save screenshots.

5. Journal:

o What type of pattern?

o Where did it form (after uptrend/downtrend)?

o Did breakout happen? Which way?

10. Quick Recap (Easy Words)

• Reversal Patterns: Trend is tired → will change.

• Continuation Patterns: Trend is resting → will continue.

• Shapes to remember:

o M (Double Top) → bearish.

o W (Double Bottom) → bullish.

o Cup (with handle) → bullish.

o Box (Rectangle) → breakout.

 o Triangles/Wedges → pressure building → breakout.

o Flags → short rest, continue running.

11. Quiz (Day 6 Expanded)

1. Which pattern looks like the letter W and signals bullish reversal?

2. Which pattern looks like a tea cup and usually breaks upward?

3. If price stays between ₹1000–₹1200 for 1 month, which pattern is this?

4. Which wedge usually breaks upward: Falling or Rising?

5. Which pattern shows a slow reversal instead of sharp reversal?

DAY 7: Bringing It All Together + Demo Trading & Journaling

1. Why Practice is Everything

Reading notes is like learning cricket rules.

Real improvement comes only by playing matches (practice).

Same in trading:

• Knowledge = theory.

• Demo trading = practice ground (no real money).

• Journaling = how you learn from mistakes.

By end of today, you’ll know how to analyze any chart step by step, place a demo trade,
and record it.

2. Step-by-Step Chart Analysis Routine

When you open a chart, don’t just stare at candles. Follow this 5-step routine:
Step 1: Identify the Trend

• Is price making higher highs/lows? → Uptrend.

• Is price making lower highs/lows? → Downtrend.

• Is price stuck between levels? → Sideways.

Example: BTC moving $25k → $30k → $28k → $32k → Uptrend.

Step 2: Mark Support & Resistance

• Draw 2–3 major support levels (floors).

• Draw 2–3 major resistance levels (ceilings).

Example: Reliance has support at ₹2000, resistance at ₹2200.

Step 3: Look for Candlestick Signals

• At support: do you see hammer / engulfing (bullish)?

• At resistance: do you see shooting star / bearish engulfing?

• In sideways: do you see doji (indecision)?

Example: At $25k BTC forms a hammer → bullish sign.

Step 4: Check for Chart Patterns

• Do you see M (Double Top), W (Double Bottom), Triangle, Flag, Cup, Rectangle?

• Wait for breakout → don’t jump early.

Example: NIFTY stuck 19,800–20,200 (Rectangle). Break above 20,200 → continuation.

Step 5: Make a Trading Plan (Entry, SL, TP)

• Entry = when breakout/confirmation candle forms.

• Stop-Loss (SL) = just below support (if buy) or above resistance (if sell).

• Take Profit (TP) = measure pattern target OR next major support/resistance.

 Example Plan:

• BTC at $25k support, hammer formed.

• Entry: $25,200.

• SL: $24,800.

• TP: $26,000.

3. Journaling Your Trades

Journaling = your trading diary. Every great trader does it.

What to write for each trade:

1. Date & Time

2. Market (BTC, Reliance, NIFTY, etc.)

3. Setup (support, resistance, candlestick, pattern)

4. Entry Price

5. Stop-Loss

6. Target

7. Result (Win/Loss, how much)

8. Notes (What went right, what mistake)

Example Journal Entry:

• Date: Oct 1, 2025

• Market: BTC 4H

• Setup: Double Bottom at $25k + Hammer

• Entry: $25,200

• SL: $24,800

• TP: $26,000

• Result: Target Hit (Profit +$800)

• Notes: Good patience, waited for breakout

 This habit will show you your strengths and weaknesses over time.

4. Common Beginner Mistakes (Week 1 Summary)

Trading without checking trend.

Buying at resistance or selling at support.
Entering before breakout.
Not using stop-loss.
Trading too many markets at once (focus on 1–2).

5. Practice Task (Day 7)

Each of you (3 in group) do this:

1. Open TradingView.

2. Pick 1 stock (Reliance), 1 crypto (BTC), 1 index (NIFTY).

3. Apply the 5-step analysis routine:

o Trend → S/R → Candlestick → Pattern → Trade Plan.

4. Place demo trade (paper trading, not real money).

5. Record in your Trading Journal.

Group Activity: Share your journals with each other. Discuss:

• Who followed the rules well?

• Did anyone enter too early?

• Did SL/TP make sense?

6. Day 7 Recap

✔ Trading = putting together candles + S/R + trend + patterns.

✔ Always follow a step-by-step routine.
✔ Practice on demo first, never jump with real money yet.
✔ Journaling is your biggest teacher.
✔ Goal of Week 1: Understand chart reading basics, not making money yet.

7. Final Week 1 Quiz

1. What’s the first thing you check when you open a chart?

2. Where should you place a stop-loss when buying at support?

3. Why should you wait for breakout before entering a pattern trade?

4. What should a trading journal include?

5. If NIFTY is in uptrend, at support, forms a hammer, what’s your plan?