Scribd
Upload
113 views5 pages

In Out in Trick

This document describes the "IN OUT IN" or "diamond pattern" candlestick formation for analyzing stocks. It consists of 3 candles where the first and third candles have a smaller high-low range than the middle candle. An entry is made if the high or low of the third candle is broken on the fourth day. Target is typically set at 2-4 times the average high-low range within 2-4 days. Several examples of stocks exhibiting this pattern are provided. The document also discusses using this pattern for intraday trading with entries 0.1 above/below the third candle and various stop loss options.

Uploaded by

Stephan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
113 views5 pages

In Out in Trick

This document describes the "IN OUT IN" or "diamond pattern" candlestick formation for analyzing stocks. It consists of 3 candles where the first and third candles have a smaller high-low range than the middle candle. An entry is made if the high or low of the third candle is broken on the fourth day. Target is typically set at 2-4 times the average high-low range within 2-4 days. Several examples of stocks exhibiting this pattern are provided. The document also discusses using this pattern for intraday trading with entries 0.1 above/below the third candle and various stop loss options.

Uploaded by

Stephan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 5

IN OUT IN (IOI)

OR
DIAMOND PATTERN
Works on any timeframe from 1 day to 30 mins in
MCX, & upto 15 mins in equity segment
Let see that now IN OUT IN
This is a Bar/Candle formation where in
we have to look for 3 Days Candles and the
setup goes like this
DAY 1 CANDLE/BAR "HIGH-LOW" IS LESS THAN
DAY 2 CANDLE/BAR "HIGH-LOW"
SAME
DAY 3 CANDLE/BAR "HIGH-LOW" IS LESS THAN
DAY 2 CANDLE/BAR "HIGH-LOW"

As the name of concept


1st candle is IN
2nd candle is OUT
3rd candle is IN

1
Carry on with positional trading today as per IN OUT IN using daily candle
Once you are aware of these bar formation.
As soon the 2ND BAR High/Low is BROKEN from 4TH DAY TIL 8TH DAY you can trade
in the Direction the Break Out of happens these candle formation right now we use on
DAILY, WEEKLY ONLY
Ok
Entry is DONE
Now SL will be the REVERSAL
If High BROKE you are in LONG so LOW is your SL
IF Low BROKE you are in SHORT so HIGH is your SL
TARGET will be achieved within 2-4 DAYS of BREAKOUT
And target is at your comfort or can use below formula.
Target for Long
(Highest High of 3 Bars - Lowest Low) X 2+ Highest High

For Short
(Highest High of 3 Bars - Lowest Low) X 2- Lowest Low

Check This IN OUT IN crossed 332.4 and made HIGH after breaking HIGH- Stock Name IGL

2
Broke High 581.05 and made High 640 Stock Name MINDTREE

These type of charts or scripts you have to avoid it by seeing


chart you shall come to know PETRONET, ICICIBANK, SBIN.
some few scripts must be avoided

avoid these because the range is too HIGH

3
if you find at TOP OR BOTTOM this formation then
JACKPOT shared one more example also here

see even this at top


Hope you understood something with the examples shown...

44 Vishal Sonar
Now if you find O=H or O=L
Before breakouts only

You can take position with 1-2 Rs. SL Below OHL,


I am talking about universal law of OHL
Then you can achieve more gains with more confidence

Ok Friend’s, let’s start class on IN OUT IN (INTRADAY)


We have seen this formation using for Positional calls with respect to 2nd Candle
Breakout now let’s see, for INTRADAY to use the same formation of IOI

If
3rd Candle High/Low Breaks, it shall be valid for INTRADAY TRADING

DAY 1, DAY2, DAY3 is the formation

Only on Day 4 if High/Low of 3rd Day Breaks you can trade


Entry is 0.10 + HIGH OF 3RD CANDLE, 0.10 - LOW OF 3RD CANDLE

Target as your wish as no fixed target is there

SL
Usually we keep the other end of 3rd candle as SL
Even you can use nearest body of 3rd candle as SL

If High Broke, Nearest Body shall be your SL, If Low Brakes Nearest body shall be your SL

You can take Mid of the 3rd candle and keep that as SL too, so 3 types of SL are there

Which suits you, follow. If the price range is BIG use minimum SL
Selecting scripts on Daily time frames only.
Still not tested on lower time frame
-Credit to Santu Baba for this concept. Works in Equity & MCX

You might also like