How To Make Money Trading With Charts

2016·12.21 MB·English

by  Ashwani Gujral

About the Book
A top trader shows you how to make money in any type of market using
price charts
Knowledgeable traders are able to make money using their skillful reading
and interpretation of price charts, irrespective of whether the market is rising
or falling — or simply moving sideways.
In this bestselling book, Ashwani Gujral shows how you too can make
money in any type of market by correctly identifying the market’s mood from
the various typical patterns that are formed on charts — and by using
appropriate trading methods for each pattern:
How to make big profits by identifying a trend and trading with it
How to make mega profits by identifying impending trend reversals
and catching big moves in the opposite direction
How you can reap windfall profits by identifying and trading breakouts
from continuation price patterns on charts
How to use volume to confirm price action
How to use momentum indicators in conjunction with charts to finesse
profitable entries and exits
How to improve your trading success rate and protect your capital
using proven methods of money management
How charts can help you identify hot sectors and stocks to trade
Trading rules for different chart patterns
PLUS: New chapter — Trading the Railway-Line Theory.
With real-life examples and 175+ charts from Indian markets, this
pioneering and comprehensive book on chart patterns and chart analysis
explains every significant tradable pattern, buy and sell signal, and the use of
important technical indicators.
Novices and professional traders alike will profit from this book, and the
lessons it offers are equally applicable whether you trade stocks, derivatives,
commodities, currencies, etc.
“A must read for anyone interested in trading the Indian markets.”
– Technical Analysis of Stocks and Commodities Magazine,
USA
About the Authors
ASHWANI GUJRAL is one of India’s most famous market analysts and trading
experts. He is the Chief Market Strategist and Fund Manager of
ashwanigujral.com and a regular market commentator including on CNBC
TV18 business channel. He has written on trading and technical analysis for
leading US specialist magazines and journals, including The Active Trader,
Stock Futures and Options, Futures, Trader’s Source, and Technical Analysis
of Stocks and Commodities. Ashwani has been a full time trader of stocks and
derivatives since 1995. His activities include running a technical analysis plus
trading chatroom and newsletter.
Ashwani’s brilliant academic background spans engineering and finance.
He is BE (Electronics and Communications) from M.I.T. Manipal, 1993 and
MBA (Finance) from Georgetown University, Washington DC, USA, 1995.
Ashwani Gujral’s other two books, How to Make Money Trading
Derivatives and How to Make Money in Intraday Trading are runaway
bestsellers. You can catch up with his trading thoughts and ideas on his
Twitter handle @GujralAshwani.
PRASANNA KHEMARIYA studied aquaculture engineering at the Indian Institute
of Technology, Kharagpur. He has been actively following and trading the
market for the past 15 years. He has been extensively trained and coached by
Ashwani Gujral in these fields, with whom he works as a technical analyst.
Prasanna Khemariya also has an active interest and expertise in the rural
development sector and possesses a deep understanding of the Indian
economy.
Other Trading Books
by
Ashwani Gujral
How to Make Money Trading Derivatives
How to Make Money in Intraday Trading

Dedication
Dedicated to the two bullish candles that light my life, my wife Anubha and
daughter Rtunjya.
– Ashwani Gujral
Dedicated to my wife Nilusha and our children, Ishita and Pravar — the
three most special people in my world. They always inspire me to remain
bullish on life.
– Prasanna Khemariya
Disclaimer
The author and the publisher disclaim all legal or other responsibilities for any losses
which investors may suffer by investing or trading using the methods suggested in this
book. Readers are advised to seek professional guidance before making any specific
investments.
www.visionbooksindia.com
First Published 2008
Reprinted 2009 (Twice), 2010, 2011, 2012, 2014, 2015 (Twice)
Second Edition 2016, Reprinted 2017 (Twice)
Third Edition 2018
eISBN
eISBN 10: 93-86268-23-X
eISBN 13: 978-93-86268-23-5
© Ashwani Gujral & Prasanna Khemariya, 2008, 2018
ALL RIGHTS RESERVED. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted by any means, electronic, mechanical, photocopying,
recording, or otherwise, without the prior written permission of the publisher and the
copyright holder.
Published by
Vision Books Pvt. Ltd.
(Incorporating Orient Paperbacks and CARING Imprints)
24 Feroze Gandhi Road, Lajpat Nagar 3
New Delhi-110024, India.
Phone: [phone] / 22
e-mail: [email protected]
Contents
Preface to the Third Edition
List of Abbreviations
Chapter 1. Introduction
Indian Stock Markets — A Quick Overview
Working of the Indian Stock Markets
Why People Invest
Know Your Profile
Derivatives
Futures Contracts
Technical Analysis
Charting
Types of Charts
Broad Classification of Chart Patterns
Use of Multiple Time Frames
Summary
Chapter 2. The Average Directional Index (ADX): Finding Out if the
Market is Trading or Trending
What Average Directional Index (ADX) Is
Directional Movement (DM)
Positive and Negative Directional Indicator (DI)
Weaknesses of ADX
Summary