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On this auspicious day of #GuruPoornima2020
Would like to present a simple yet effective way of understanding and following the TREND of the instrument/stock.
Q: Why I came up with the concept?
A: I wanted to remove noise, keep my chart simple where just a glance, tells the story
#RTM Ratio of Trending Move
The heart of this concept has just 2 moving averages and their smart, effective use.
Daily Time Frame: I am using 5 EMA and 21 EMA.
Q: Why 5 and 21?
A: There are 5 trading days in a week and approx 21 in a month. Moreover, both are Fibonacci numbers.
5 period EMA denotes an extreme short trend and 21 periods EMA gives an idea of what's going on a lightly longer term as compared to 5 the period. As mentioned before, its like a week and month's view. The next step is to compare and see how they fare to each other.
#RTM = Short-Term Trend / Longer-Term Trend
As a thumb rule, shorter-term parameters are more vibrant as they are more sensitive to price movements. So if the #RTM is above 1, it implies that the trend of the shorter-term is above that of the longer one and vice-versa.
If #RTM is 1, it means both the shorter and the longer-term are neutral. It is noticed on the charts, in such a scenario, there is a flattened movement in price. As the ratio is moving upwards, it shows up in Green color and as it turns down, its Red.
In order to spice up the things:
Weekly Time Frame: 4 EMA and 12 EMA
Q: Why 4 and 12?
A: There are 4 weeks in a month and 12 weeks, constitute a quarter.
Again would derive the #RTM Weekly of the two trends and plot them on the Daily Time Frame chart
Holistic View in front of us
I've added some more twist to the concept and it works beautifully in conjunction with the individual stocks. Would present it sometime later if people find this useful. Kindly retweet, the first tweet of this thread for a wider reach. Thank you.
Here's a glimpse of one of the twists in #RTM 😀
Missing some Tweet in this thread? You can try to force a refresh.

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