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#Freetip
How to find market tops or bottoms ?
Tools used by stalwarts like Stan Weinstein, Mark Minnervini, William O Neil, etc.
No. of stocks above 30 week MA (MAMB)
Steps :
1) Watch for Price making HH, but MAMB makes lower low; suggests top is near. Might take several weeks
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In our N500 chart, it started from 16/07/2021 and made HH on 29/10/2021. (14 weeks)
2) Look for a bearish price action in weekly chart, like bearish engulfing, bearish pinbar, etc. This more or less confirms the top specifically. (29/10/21)
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3) To be more specific, watch out for the first lower high in weekly chart. This confirms the top. (18/11/21).
(4th week after step 2).
THIS IS WHEN MARK MINNERVINI GAVE A SELL CALL ON S&P WHEN THE WHOLE WORLD WAS BUYING .
5) Market tried to make a HH with ....
Read 7 tweets
#FreeTip
Wealth Generation Tips through microcap / midcap / small cap / bse stocks.
1) Everyday look at tradingview ATH stocks and 52w high in indian markets. Look individual charts. If u see any pattern breakouts, look if fundamentals supporting using marketsmithindia.
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2) Look at Stocks that moved above 10%/above 5% in BSE website. Look individual charts and do the same thing recommended in 1.
3) Look at NSE and BSE website for bulk deals and block deals. See if any FII institution / MF institution is buying any stocks. If yes, then ...
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look at the chart and do the same think recommended in 1.
If u do these consistently every day or atleast once a week (during weekends), u can shortlist real gems and proceed further to plan for real entry.
These are some basic homework. Good Luck.
Read 3 tweets
#FreeTip
Free but powerful Tip
A simple strategy for those who aren’t comfortable with complex 1s like adv pivots, mp, cub, etc.
MIB/WIB/ DIB
1) MIB - Scan for stocks with Monthly inside bar. Eg,Today 02/8; So scan for stocks with July monthly candle inside June monthly candle..
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2) WIB - Now look for Weekly inside bar amongst stocks filtered in S. no .1 ; For Eg, Today 02/8, Look for stocks within S. no. 1 with weekly bar of 26/7-30/7 inside the weekly bar of 19/7 - 23/7.
3) DIB - Now after doing the above look for stocks with daily inside bar ...
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from amongst the list filtered in 2.
For Eg. Today is 02/08, Candle of 30/7 inside candle of of 29/7. Long above PDH with stop of PDL.
In this Eg, long above 29/7 high with stop of 29/7 low. Other methods to go long are break of Cam R4 for long; Reverse for short.
Read 3 tweets
#FreeTip
High probability strategy
Charges : Nil.
Name : MTF Inside bar (MInBar)
Everything right from the tool is provided here. All u need is to do a bit of home work and execute...
1) Scan for stocks with inside bar in 2 HTF, say monthly chart and weekly chart.
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2) Mark the high of the inside bar with a horizontal line.
3) Come to weekly chart. The monthly markings should be intact.
4)U will find an inside weekly bar as well. Mark the high of the inside weekly bar.
5) Now u have to go long when price goes above the high of ....
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this weekly bar or the high of the monthly inside bar whichever is higher.
6) U can go to the daily chart / 75 min chart for fine tuning your entry.
7) Keep stop of 8% in system, this is important . Exit without any questions even if the stock is of the highest quality.
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Read 7 tweets
#FreeTip
Basic rule for day trading in option buying for beginners.
1) Stick to monthly atm options.
2) Suppose u have a capital of Rs 5 lacs. Your max risk appetite is 1% which is 5k. Assume u look at BNF chart and find a buy setup at 35000 ...
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with a stop of 34900 ( 100 point difference). This essentially means that the 35000 atm options will have a stop of Rs 200 ( delta 0.5) assuming all other things are equal. So the number of lots U should typically deal with based on 1% Risk on 5 lacs capital ...
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is 5000 / 200, which is 25 , ie 1 lot. If your risk appetite is 2%, then u are allowed to take 50, ie 2 lots. Hence if option price is say, Rs 400, ur stop will be 200 and u have to deal with one lot which means your deployment is 25 x 400 = Rs 10,000....
Read 5 tweets
#FreeTip
A simple illustration to analyse stocks in a very simple way:
1) Prepare a list of stocks with more than say, 400% returns last 1 year and currently above 3 digits. U will have around 30-40 NSE listed stocks.
2) Look at each stock chart just before breakout
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3) Take a note book and right down against each stock, the behaviour of MAs Vis a vis the stock, for eg., 30 week MA / daily 200 ma / 150 ma, 50 ma, etc.); the behaviour of Relative Strength (RS); behaviour in terms of volume; any pattern like rectangular breakout etc.
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4) Might take 3 plus hours for the above exercise. Once you are done, see the common elements against all stocks. That is the edge you have knowing the behaviour of super performance stocks. U need not hold for 400%. U can atleast get 20% out of it.
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Read 4 tweets
#FreeTip
The math to do before entering trading:
1) Capital Rs 10 lacs
2) Risk per stock as a % of capital :1.25%, ie Rs 12.5k
3) Per stock max allocation: 12.5%, ie Rs 1.25L
4) Risk per stock as a % of position: Max 8%-10%, ie 12.5k
5) RR - 10%:20% , 1:2 , 12.5k : 25k
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6) No. of trades likely during the year : 100
7) Win % : 40%, ie 40 trades
8) Projected End capital : 10L x (1+0.20)^(40) x (1-0.10)^(60) = 26 lacs, ie 164% return
It doesn’t mean that u will necessarily reach the end capital ; U will know if your activity ...
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during trading is statistically feasible. For Eg, during trading u observe that u are getting 1:1.5 RR and not 1:2, then , the above calc leads to -52%; U get to know your activity is economically not feasible. For Eg, u observe after a few trades that your win % is ...
Read 4 tweets
#Freetip Do you know? Pivots can be bisected further intraday; For eg, A day can be divided into 3 zones 375/3 = 125 minutes; For each of these pivots can be drawn based on Prev 125 min price action. 5 min chart with daily pivots + 2 min chart 125 min pivots ....
.... provides a powerful combination of day trade setups. One simple eg is if in 2 min chart price crosses a key level ( any of the cpr based on prior 125 min hlc) and in 5 min chart if simultaneously price breaches a key level ( based on Prev day hlc), .....
.... it is a terrific combination; Logic of 2min tf 125 min pivots is as under:
5 min tf - 375 min pivots (daily means 375 min) ; So divide all be 2.5 which gives 2 min tf - 125 min pivots; While 5 min tf daily pivots keeps you on hold of Prev day sentiments ...
Read 7 tweets

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