My Authors
Read all threads
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.

Keep Current with Amitt Saini 🇮🇳

Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

Twitter may remove this content at anytime, convert it as a PDF, save and print for later use!

Try unrolling a thread yourself!

how to unroll video

1) Follow Thread Reader App on Twitter so you can easily mention us!

2) Go to a Twitter thread (series of Tweets by the same owner) and mention us with a keyword "unroll" @threadreaderapp unroll

You can practice here first or read more on our help page!

Follow Us on Twitter!

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3.00/month or $30.00/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!