Thread by @BasicLearner

First of all Hearty Congratulations to those who have shown keen interest in learning and sharing the knowledge.

Stock Selection process....

Is it a Holy Grail?..... NO

Will it work all the time? …..NO

Can you do it tomorrow… NO…

https://twitter.com/BasicLearner/status/1190209461475954688

For this, One need to build up your own data for analysis and the reward of it you knows. This Stock selection process is totally based on the simple yet very important logic,

“Market is Supreme, Market knows everything”.

Here, the logic I consider is, if, there is any delivery based buying(someone accumulating the stock slowly) then, he knows something, which you and me don't and the stock may have a bright future.

During my studies of profile of the upcoming/growing stocks what I observed is the most stock follows Phase I of Richard Wyckoff’s Accumulation phase, wherein following few stages occurred.

1.Stock moves in the small range.
2.No one talks about the stock.
3.No media announcements.
4.Quite accumulation being done by the insiders/smart players.

Now question is how to find out this….. For it, there is no need of any paid app/ stock filter, neither one need to be dependent on any brilliant analyst and media…..Never.

Just focus on Numbers,

But again no excuse for home work. It is must and one need to be consistent.

So let’s find out how to do it.

1.Use this site for downloading of Delivery % of the stock.

nseindia.com/products/conte…

Go to Full Download. Choose equity.

2. The screen will appear like this. Download the file and store the delivery % date wise for minimum 20-30 days.
Average them for 3 days, 5 days, 7 days, 10 days, 15 days and 21 days. To find a pattern.

3. Here you get the delivery % data of all the securities. For analysis purpose one need to have the data of minimum 20-30 days. Thereafter, segregate the data based on the increasing average delivery % . 15 days average delivery % < 10% < 5% < 3% < 1%.... For BUY signal.

4. Here, If, its day by day increasing the delivery % then i assume some one is accumulating the stock at lower levels. For buy signal I consider minimum delivery % is to be 30%.

5 Data recorded and processed will look like this.
Further, For Sell signal if 1 day delivery % < 3 days average delivery % < 5 day % < 10 days %< 15 days % . Here I consider it as the stock is over bought and there are no buyers at this price and stock will decline from here.

6. The data of EQUITAS on 31 Oct 19.

7. In most cases the stock passing all the criteria would be at the bottom or at the top. Awaiting for the trend to change. Here, One can catch the stock at the bottom with minimum SL.

8. Most ideal candidates are those stocks making double bottom with RSI + Ve diversion and stocks making double top with RSI –Ve diversion

9. I being the most conservative retailer I don’t attempt short trades. You may try at your own understanding and risk appetite

10. Further, One can do the required TA or use Option Chain as per your understanding for final trade.

Hope you have the basic idea behind the stock selection..

If you have learn something RE-TWEET Please.

If you need today's processed data, Please let me know

#EQUITAS

Sample data sheet

There is confusion for ave. del. %...

To find out 3 days average del. % one can not take the Del. % of 3 days and average. e.g.

For 3 days of ave. del. % = 3 days Total del. quantity * 100/ 3 days total traded quantity

Use figures in column K & N for your calculations.

FAQ:

1. How can I get historical data?

Use this link .. Select.... Security wise delivery Position... Select Date. And its ready.

nseindia.com/products/conte…

FAQ:

2. Is the Delivery data important?

My take:

If, it was not important, it would be available to everyone without effort.

I am very Happy to know that most of you are sharing this tweet and started making your own data base. So lets understand what is the most FAQ in my DM:

FAQ: 3.

While downloading old data its in DAT format , how to download in Excel?

Step 1.

Step 2.

Select All. Paste in New sheet

Step 3.

Select data... Select text to column

Sep 4.

Select Delimited.. Select Coma... Select next

Step 5.

Select text... Select next....

Your sheet ready. Select equity and DONE.