If a stock gaps up in pre-open due to an event, does it usually continue going up after market opens? Here’s the analysis about #imtraday#gaptrading
To validate if a gap up stocks would continue to move up after market opens, we need to backtest it with huge data sets. I have considered data from 2007 to 2019, taken all gap up stocks, gap is calculated by
(Today’s Open price - Previous Close price)/Prev close price.
I get the list of gap up stocks.
Once I get this list, then I calculate what is the % intraday movement. That is Open to close. So again I calculate the returns
(Today’s close price - Today’s open price)/Today’s open price
Then I get the list of stocks that are gaped up and their respective returns for the day, what would have been the returns if people bought the stocks at market open.
I plotted the return distribution and it looked like below, where most of the times returns are negative. With the data sets, it is clearly shown that more than 65% of the time, returns are negative, which means if you buy the gap up stocks, you can lose 65% of the time.
Though there could be few instances where gap up stocks tend to go up, but most of the time, gap up stocks tend to go down and gap down stocks tend to go up. So its wise to Short the gap up stocks and buy the gap down stocks!
• • •
Missing some Tweet in this thread? You can try to
force a refresh
1 Lac invested in this stock has become 1.5 Crores in less than one year. Upon further research found a pattern in all such stocks which made a phenomenal move within short span of time, here's the detailed report 🧵
SABTNL is one such stock where stock price gained more than 20500% in less than a year. Inspite of having poor fundamentals the stock price has sky rocketed.
Fishy part is promoters have increased their stake from 22% to 60% in just one quarter. Public holdings and DII holdings decreased during the same period. Looks like an organised pump and dump play going on.
I have made close to 90 lacs profits in the last 267 trading days with my trading system. In the last 6 months made 50% net returns. Not even a single day I have interfered manually. I was in a dilemma, should I withdraw profits or continue to compound? I decided to …🧵
I decided to withdraw profits to buy a flat. If you check all my old tweets, I would have tweeted always against buying a property. What changed my mind to buy a flat instead of compounding my capital. Let me explain that.
Trading is a tough profession, market doesn’t care how intelligent you sound, end of the day if you are not disciplined enough to follow your trading system, it kicks you out. It’s not a question of does option buying works or option selling works or Greeks works?
Did a 10 days solo trip to Kashmir, spent just ₹800 a day by staying at Hostel, met wonderful people around the world and this was most life changing experience of my life. Kahsmir is truly a heaven on earth. Here’s how I planned my trip🧵
The moment you arrive at Srinagar none of your other State prepaid mobile network work here. I bought a Jio Sim for 500₹ which is sufficient enough for next ten days to cover my work and to stay connected. If you have postpaid, then no problem.
Ola/Uber doesn’t have a big traction here, Jugnoo is the widely used app here. You can use that to book cab to your hotel or opt for prepaid taxi. I did not have any plans or itinerary, once I arrived at Srinagar, I booked my stay @ZostelHostel for 2 days only.
More than 30 million users actively use @tradingview but very few people have Pine script coding knowledge due to which many users just stick to basic Trading view charting functionality, let me explain how can you write your own Pinescript code using @ChatGPTapp free version🧵
I wanted to study the spike patterns in BankNifty on expiry days, within 5 minutes if market moves greater than 100 points I wanted to track those days and see what happens after such spike, does market makes follow through move or it reverses after spikes?
Go to ChatGPT and enter the below Prompt Create a Pinescript that can track every candle and see if market has moved up more than 100 points or moved down more than 100 points in just one candle and plot bigger text S above that candle.
I just came back from a 10 days solo trip to Bali,I always wondered whats the fun when you travel solo, I was so wrong. Met different people across the world, spent time at mesmerising places, its a different vibe. Trading & Traveling is a deadly combo. Here's how I managed it🧵
Flight - There is only one direct flight from Delhi to Bali operated by Vistra which costs around 35k. Most flights are connecting via KL or Singapore, Use Skyscanner to find cheapest deals. Extra 20kg baggage cost additional 10k. Default is only 7kg.
My biggest blunder was to carry heavy luggage as its for ten days, I realised the laundry cost is very less in Bali. Around Rs.400 for 5kg, so travel light, this can save you additional 10k in ticket cost and makes it easier when you roam around islands in Ferry.
Ever wondered where the big institutional investors are putting their money? Is there any way to track which stock has highest holdings of FII (Foreign Institutional Investors) and DII (Domestic Institutional Investors)? Using this free screener its easier to track. Here's how🧵
Go to and click on Screens and Click on Create New Screen. Large-cap companies have a market cap of Rs 20,000 crore or above. Mid-cap companies is between Rs 5,000 crore and less than Rs 20,000 crore, small-cap companies have a market cap of < Rs 5,000 cr buff.ly/3TkZeji
So let's find out which stocks under each of these segments has highest FII, DII holdings. This query retrieves list of small cap stocks with market cap <5000 cr and DII share holding > 50%, once you run the query it gives you the list of eligible stocks.