, 8 tweets, 2 min read Read on Twitter
#TRADING Intraday - #INERTIAMETHOD Inertia - A property of matter by which it continues in its existing state of rest or uniform motion in a straight line, unless that state is changed by an external force. This is the law of physics.
Inertia method applies this law of physics for selecting stocks for intraday trading the next day. Stocks that are in motion are selected with the assumption that it might continue the motion (uniform motion).
Method -
Select stocks that satisfy the following conditions - To be done at EOD
a) Stocks with latest daily range greater than 1.25 times of 10 day Average daily range AND
b) Stocks with latest body size of the candle consuming 75% of the daily range.
Usually there will be less than 10 stocks
Next day, ie trading day,
a) Enter long only if the prev day candle is bullish; Entry will be breakout of previous day high with stoploss of few ticks below prev day high / low of the breakout candle. Don't enter during gap up.
b) Enter short only if the prev canle is bearish; Entry will be breakout of prev day low with stoploss few ticks above prev day low / high of breakout candle. Don't enter during gap down.
Target based on risk appetite; can use camarilla pivots, long positions can use R4 or 75% of R4-R3 as targets (r3+0.75(r4-r3)). Similarly for short positions can use S4 or 75% of S3-S4 as targets (s3 - 0.75(s3-s4)). Can use any other method also, for eg some MA.
Eg. 09/05/2019 - CEAT
Scanning of stocks based on the condition can be easily done in Amibroker.
Correction in the image: To be read as - Stop at few ticks above prev day low, preferably high of the breakout candle.
Missing some Tweet in this thread?
You can try to force a refresh.

Like this thread? Get email updates or save it to PDF!

Subscribe to HMK alias MANOJ
Profile picture

Get real-time email alerts when new unrolls are available from this author!

This content may be removed anytime!

Twitter may remove this content at anytime, convert it as a PDF, save and print for later use!

Try unrolling a thread yourself!

how to unroll video

1) Follow Thread Reader App on Twitter so you can easily mention us!

2) Go to a Twitter thread (series of Tweets by the same owner) and mention us with a keyword "unroll" @threadreaderapp unroll

You can practice here first or read more on our help page!

Follow Us on Twitter!

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just three indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3.00/month or $30.00/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!