PCTS Test for Entry

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 PCTS Test

PCTS are the parameters that helps to enter into a trade. These are the necessary steps that need to be taken before entering into a trade. An entry has to be passed at least 3 out of 4 parameters to become a high probable trade.



P - Position 

The position of stock at any time during the market hour in any timeframe. There are three positions a stock can be situated. 

1)- above 20 & 200 SMA. (Buy) 

2)- below 20 &200 SMA. (Sell)

3) in between 20 & 200 SMA. (No trade zone)

C - Color

Here color means that dominant color in the market for period of time. it could be 2-min or 2-hour timeframe. It's depending on the timeframe we are entering in trade. Dominant color means that most candles are of that color and large in size. consider latest 20-30 bar in any timeframe.

1)- Bearish elephant bar/ pin bar (Sell)

2)- Bullish elephant bar/ pin bar (Buy)

3) - Small/ Doji candle (No trade / indecision)

T - Trend

A trend is the direction where the stock is moving. it could be up, down and sideways. We have to look for the opportunity to trade in the direction of trend. There are many indicators which helps us to know the direction of trend such as Moving averages, Super trend etc. we generally use moving averages.

1) - stock above 20 or 8 SMA and Rising SMA (Buy)

2)- stock below 20 or 8 SMA and falling SMA (Sell)

3) - stock moving in zig zag way or flat 20 or 8 SMA (No trade)

S - State

There are three state - narrow, wide, and neutral. An entry is best in narrow state and ok in neutral state. Do not enter into wide state because probability is high for bad trade.

1) - Narrow - when 20 & 200 SMA is near to each other, look for entry opportunity.
2) - Wide - when 20 & 200 SMA is far away from each other, look for profit booking and no entry.
3) - Neutral - when 20 & 200 SMA is in moderate distance. look for add in existing position.


Follow this entry setup for high probability trade in any market or any instrument. This entry method has more than 80% accuracy in any market condition. 

Points to be remember -

  • SMA is not a line, it's a zone which act as support and resistance.
  • Always look for follow through candles before and after entering into trade. follow though candles confirm the trend direction.
  • It's works effectively near Support/ Resistance Zone or consolidation zone.

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