Thread by @iManasArora

Another way to create a new position or add to an existing one (Pyramiding), known as Squat!

Read on:

Bought #Dixon using 4 to 8 weeks breakout method using the weekly time frame.

The stock went below the breakout line & stayed lower for a few days (Daily frame). Came back up above the line again which is where I bought more. Imagine the legs exercise behaviour, Squat.

#AFFLE

Cup & Handle breakout on the daily frame. The stock went below the breakout line and stayed lower for a few days. I bought when it came back again & 'closed' above it. Another squat behaviour.

#DeepakNTR

1st entry - Bought 4to8 weeks breakout.

Same squat behaviour on the daily frame. Price went & stayed below the red line for a few days. Came back up & closed above it which is where my 2nd entry was.

You can use Squats for pyramiding or for creating a position where you missed buying on the first breakout.

P.S: Let the price 'close' above the old pivot line before you create a position.

#BroTip

Important points to add here:

- The stock should stay below the breakout line for a few days. Like all my above examples show. I'd not buy if the price goes down & comes back up the next day itself.
- The lesser the fall, the better the buying strength
- Low volume on down days