Vishal Malkan
In the world of trading, many strategies can seem complicated or risky. But understanding price action through market structure can make your decisions much clear. In this ChartparCharcha episode, Vishal B Malkan simplifies one such powerful strategy, the Grandfather-Father-Son (GFS) Strategy based on the Relative Strength Index (RSI).
What is the GFS Strategy?
The GFS strategy aligns three timeframes-monthly, weekly, and daily-to help traders identify low-risk, high-reward entries. Vishal compares these timeframes to a family:
When all three are aligned in a certain structure, it creates a high-probability trade setup.
Why GFS is a 5-Star Strategy
Vishal gives this strategy a 5-star rating due to its strong risk-reward ratio and consistent strike rate. With a risk-reward of 1:3 or higher, and a strike rate of 50%, even winning 5 out of 10 trades can generate substantial profits.
The Setup
1. Monthly RSI > 60 (Grandfather is bullish)
2. Weekly RSI > 60 (Father is bullish)
3. Daily RSI retraces near 40 (Son is correcting)
This is the inflection point. If the son (daily chart) starts to reverse and a green candle appears near RSI 40, it could signal that the son is ready to follow the father and grandfather, indicating a strong buying opportunity.
The Entry
If price crosses resistance, use a trailing stop loss to ride the trend further.
Timeframes Can Be Adjusted
While the default GFS uses Monthly-Weekly-Daily, the concept can be applied to shorter timeframes too:
The principle remains the same: align higher timeframes before executing on the lower one.
Use Scanners to Save Time
With scanners, you can filter:
From thousands of stocks, you will get a shortlist of 10-20 that fit the GFS setup.
Mindset Matters
"No matter how great the strategy, 80% of trading success is mindset," says Vishal. In the next ChartparCharcha episode, he is joined by Wealth Mindset Coach Meghana V Malkan to explain the psychology behind successful trading.
Final Thought
You don't need to follow tips, tweets, or TV shows. When you know your entry, stop-loss, and structure, you gain control.
Want to learn GFS with real chart examples and step-by-step visuals?
Watch the full video on Vishal B Malkan's YouTube channel (Gujarati):
https://www.youtube.com/@malkansview5305
