Thread by @Cryptified_Soul

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#Technical #Analysis #LongTerm #Investment

#Retweet for maximum reach!

Today I will show you how to pick #MultiBagger(2-10x) stocks #Technically

Disclaimer -

If the company isn't liquid enough, I can't give guarantee on the output. Also let us backtest it further.

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You have to assess the liquiduity and fundamentals then apply this #strategy.

Please go through the series of tweets THOROUGHLY to understand the strategy, I have tried to explain it in the simplest way possible.

Pre-requisites :
* #RSI
* #Volume
* #Patience

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What NOT to expect from this strategy?

* Instant return!
* "Becoming Millionaire" in 1 Month

What to expect from this strategy?

* #Guaranteed #MultiBagger #ALERTS
* 2-10x #RETURNS over 2-5 Years
* #Conviction
* Good Sleep @ Night

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Considerations -

We will be considering MONTHLY chart therefore each candle will take one month to form, you have to be patient to validate the strategy and only take action when the criteria is met.

Let us go through the pre requisite mentioned in above tweet...

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#Volume

You can get volume from any stock related website, I use trading view for it. Also you can extract monthly based volume using #Nifty's website

www1.nseindia.com/products/conte…

I have attached a screenshot to show the volume and explained it in simple manner.

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#RSI

The relative strength index (RSI) is a momentum indicator used in technical analysis. RSI measures the speed and magnitude of a security's recent price changes to evaluate overvalued or undervalued conditions in the price of that security.

screenshot to know further

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#Patience

We need patience because we are dealing with monthly candles, In one monthly candle there are multiple weeklies and daily candles.

These #weekly and #daily candles adjust themselves in accordance to the trend of #monthly.

If you constantly check price...

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then you will get panic and may sell or do some sort of unwanted transaction therefore you need patience if you trust the process.

I will post the strategy in upcoming time as a continuation of the current tweet.

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#Strategy

I will take the example of #Vedanta to explain it.

Disc - It is not a buy recommendation.

Step 1) #Volume - Look out for green spiked #volume bars as shown in the screenshot, you need to consider only those 🟢 bars which are higher than average volume.

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Step 2)
Once you find the step 1 scenario you have to wait till the 3rd bar to take an entry. It means you have to wait for 3 months to check the volume(as shown in screen shot). If you are getting 3 above average green bar take an entry in the stock as shown in the pic

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Now, how to identify how many bagger will it give?

Step 3)

There are two aspects of it,

* #BottomFishing
* #MomentumGrab

Let us understand what these two aspects are,

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#BottomFishing -

If the high volume formations are happening near oversold or middle zone then it is called bottom fishing.

Please refer the screenshot

* You have to see 3 above average bars
* Buy after 3rd bar

You can refer buy and sell zone shown in pic

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#MomentumGrab -
If the high #volume formations are happening near overbought zone then it is called momentum grabbing as shown in the ss. If you see the buy level is Rs 19 and selling is coming around Rs 190 i.e. 1000% return.