Thread by @sumitverma29

#LetsLearn

Earlier I explained how to make charts cleaner by using Two day Swing Lines & today I explained how to identify Relative Highs & Relative Lows in an objective manner
Link1:

https://twitter.com/sumitverma29/status/1261869400283582464?s=20

Link2:

https://twitter.com/sumitverma29/status/1264052994212917248?s=20

1/n

#LetsLearn

Now I will try to show how to make a TRADING system out of the two....

Tools used:
Relative High AND Low identifier (N=10) and
Two day Swing Lines

.....2/n

#LetsLearn

Further to the above thread to find trade setups using the above mentioned tools.

Topic: Identifying "TREND FOLLOWING trade setups" using Top-Down approach

- Weekly and Daily charts are taken with Relative Highs and Relative Lows marked (parameter N=5)

..contd..

#LetsLearn

- Below are the rules followed to find the trade setup
- Charts for same attached in order of sequence

Contd....

#LetsLearn

Final Picture

*Most imp is the ZONE to select for trading. Better trade setups appear in lower beta zone in largecap when N=5 is used. For Midcaps, N=10 works better due to beta factor.*
Many more concepts on pipeline to be explained under #LetsLearn...
Stay tuned..

Similar Setup observed in #Mcdowell-N .. currently in pullback mode..

Trigger level: 615

Setup triggered Bullish Signal (#TREND following) #McDowell-N