How to Trade on Buy Sell Signals

To trade you need to understand 3 things. (1-Ribbon’s Colour,2- Candle’s Colour,3- Valid Signal)

(1) Ribbon: - It contains two layers (a) Upper Layer (b) Lower Layer

The Colour of Ribbons “Upper layer” should be in the direction of Signal.

� See image for clarification

(2) Candle Colour:- “Green in Buy, Red in Sell”

(3) Valid Signal:- If the Signal Candle’s High Low breaks with 2 or 3 Ticks, it means “Signal is Valid”

Signal Icon: Main Buy Sell Signal=> & Re entry Signal=> Both are Valid.

Understand a Valid Buy Signal with Target & Stop Loss.

Note: - If stop loss line gives large S/L when signal appear then use signal candle's high/low/open/close as SL

According to the target. It happen due to Gap Up/Down opening or very big Spike (Mainly in fake high low)

& If first target already achieved when signal confirms then use 2-3 targets as 1-2 targets.

Understand a Valid Sell Signal with Target & Stop Loss.

Exit Conditions= 1- Confirmed Valid signal against your position, 2- SL Triggered (whichever is earlier)

If Colour of Ribbons Upper layer is in the direction of Signal & Lower layer against then take small profit & exit.

If both layers in the favour of Signal then use trailing Stoploss and take big profit

Example :-

Example of Invalid Signals:-

Example of late confirmed Signal:-

RULES for Eagle Trading Signal System

# We prefer Trade in 15 minute time frame “for intraday” in Active / High Volume Stock, Commodity & Currency. (Eg.:- Nifty,Bank Nifty, RIL, SBI, Axis, ICICI,Hdfc,L&T, Silver, Crude, Gold, USD/INR etc. (Use 1 hr time frame for Swing,BTST,STBT & Daily for Positional trades or adjust time frame according to your investment time period.)

1. Always use strict stop loss and never over trade, exit immediately when your stop loss triggered.

2. Exit Conditions= 1- Confirmed Valid signal against your position, 2- SL Triggered (whichever is earlier)

3. Never let profit turn into a loss. Use trailing stops to protect and lock your profits.

4. Just because you're a day trader doesn't mean you have to trade every day. Wait for good opportunities.

5. Never get into the market because you are anxious from waiting, and never get out of the market just

because you have lost your patience.

6. Do not guess where the top and bottom of the market is, but let the market signal its top and bottom.

7. Never average a losing trade, also avoid taking small profits and big losses.

8. Only trade with genuine risk capital, and be aware of the risk of losing.

9. Never let greed or fear take control over your winning positions.

10. Avoid Tips & Rumours. This is spread by people with self interests.

11. Divide your capital into few equal parts (preferably 10), never risk more than one part of your capital on any

one trade & please don't break any rule.

Note:- If you want to trade in 5 Minute time frame. Then how to trade in 5 minute?

Rule: - Use 5 minutes signals in the direction of 15 minutes signal. (But remember we don’t recommend 5 min. Time frame ) Example: 15 min. Signal => Buy & 5 min Signal => Sell - Don't trade on this signal 15 min. Signal => Buy & 5 min Signal => Buy - You can trade on this signal

COMMON MISTAKES IN TRADING (Please avoid these mistakes)

� Letting small losses turn into large losses.

� Not cutting losses and not letting profits run.

� Fighting the trend - shorting bulls and buying bears.

� Trading for excitement & thrill and trading with a high ego.

� Trading with money that can't afford to loose & being too emotional about money.

� Not sticking to plans & changing strategies.

� No trading plan and lack of record keeping.

Thank you

http://www.eagletradingsignal.com/

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