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I track universe of these ~900 companies (by market cap). Below are some charts to give a sense of how things of moved in last few year and last few weeks. Data is from 1st Jan 2018 to 31st Aug 2020
#chart1 : % of stocks closed above 50 DEMA n 200 DEMA. Insight: After Jan 1, 2018, last week was 2nd occasion when >70% of stocks have hit closing price > 200 DEMA
Blue bar: Close>50 DEMA, Red: Close>200 DEMA (DEMA: Day Exponential Moving Average)
Blue bar: Close>50 DEMA, Red: Close>200 DEMA (DEMA: Day Exponential Moving Average)
#Chart2: Close > 20 DEMA. Extreme behavior <10% and >90% are rare. In last 2.8 year, <10% has happened across only 2 months (ILFS Crisis and Corona Crisis). However, in last 3 years, this is longest continuous occasion of 2-3 months when close price > 20 DEMA for >90% of stocks
#Chapter2 : Trend Trading .
Traders first priority is to take a trade basis the trend. Trend in simple terms means, following the direction of the Market.
Which also means, being with the forces who create the direction, who drive the prices, who move the market, SmartMoney.
Traders first priority is to take a trade basis the trend. Trend in simple terms means, following the direction of the Market.
Which also means, being with the forces who create the direction, who drive the prices, who move the market, SmartMoney.
What is Smart Money ?
Traders Small or Big who buy or sell in large quantities and have the money power to play with prices by buying or selling at important price points.
They decide if the Price is Undervalued for a Buying Opportunity or Over Valued for Selling Opportunity.
Traders Small or Big who buy or sell in large quantities and have the money power to play with prices by buying or selling at important price points.
They decide if the Price is Undervalued for a Buying Opportunity or Over Valued for Selling Opportunity.
As the Buying or Selling happens in Bulk, their Profitability depends on How far they can push the price, so that they can cover whole of their orders with out loosing much.
They have the power to hold positions and keep rolling it over for Years or Decades if they decide to do.
They have the power to hold positions and keep rolling it over for Years or Decades if they decide to do.
