what makes u to book ur profit early?
why are u cutting ur big winner into small winner?
what should u do in order to maximise ur winner?

Solution is multitimeframe analysis
read on,
An article adressing that follows

thread 1/14
Reason for Missing Big Moves & the Logic to Tackle that

Most of the stocks which r looking overstretched in uptrend that taking an entry would be very risky,
will have a great looking potential in weekly charts.
Higher TF reveal the trend which is in place has just started

2/14
Look at the daily chart of Bigbloc,
it has doubled from the price of May-2020.
It’s doubled in 4 months.
That’s too furious a rally.
In this TF, it’s definitely looks to have went up too far unreasonably.
And it’s too risky to bet on its further upside potential.

3/14
But have a look at its weekly chart.
Scenario here is completely different.
It’s a recent breakout from a flat top structure.
Good volumes are already in it to push much further ahead.
It’s a wonderfully looking chart in this TF.

4/14
In most cases,
whatever looks like exhausted in LTF,
would psychologically push us back from taking an entry in it.
We wait for a reasonable correction in it,
only to see it’s going up up and up again.

5/14
A view from HTF,
is the logical solution here.
U should never, make view based on LTF trend.
If u are into short to medium term delivery trades, avoiding what happens in weekly TF is a big mistake.

6/14
he same logic applies in all time frames in trading.
The volatile moves in LTF which u are trading in is the single biggest reason to profit prematurely.

7/14
You should always keep a tab on what being happened in HTF,
until unless something clearly visible there which suggests a trend reversal,
all the see-saw moves in LTF is a mechanisms to shake the weak hands off the positions.

8/14
Even in the case of a scalper who trades in 1min chart,
if he choose to catch the direction of the trade which is in line with TF like 15min,
he adds lots of favorable pointers to his advantage where he might catch a way bigger move.

9/14
A trend in 1 min lasts for 10-20min while a trend in 15 min lasts 3-5hrs.
A clear perspective about the trend in 15min might even enable him
to catch an entire move even from TF as small as 1min

That’s how multi time analysis should be used in your advantage.

10/14
The article is basically focused on the technical aspects of the trading.
There are lots of emotional & psychological traits involved in dealing with this which kept completely untouched here.

11/14
Those things cannot be generalized as each and every person has his own personal characteristics
and
no one size fits all.
Even a single size won’t even fit the next person let alone all people.
There is no clear way of explaining how to build the required mindset.

12/14
You cannot have the emotional stability
when ur hard earned money at stake,
without being systematic
and
have strong conviction on the method one use.
The proper way to build conviction is through backtesting your method and fine tune it in the live market.

13/14
The trust you develop on it based on the data which never lie. That’s the root of building the right mindset and psychology from. Work on the right factors to evolve urself into the better being as a trader.
Best Wishes

14/14

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More from @ProdigalTrader

15 Sep
There are only 2 principles upon which all the exit strategies are formulated

Telegram: t.me/prodigaltrader

1.Exiting on Weakness – Positional Trades
Ride the trend till it lasts.

thread 1//7
Use a trailing stop loss to stay in the trade for maximum time.
As long as trend is strong,
price won’t hit TSL rather it would move steadily in the direction of the trend.
When the trend loses its strength,
it breaks the TSL where u exit ur holding.

2//7
Few Common methods of TSL are

-Short term moving average such as 30 EMA
-ATR based Methods such as Chandelier Stop/Super Trend
-Break of last Swing low, in uptrend/ or last swing high in downtrend
-Parabolic SAR indicator

3//7
Read 7 tweets
30 Aug
How to trade with least Risk??

Price move in market is always controlled by either of the following mechanism

1. Momentum - Trend
2. Reversion to mean – Counter Trend

See this picture for clarity

1/22
2/22

Suppose we are trading with trend
& took breakout trade

u enter long above the high of the breakout candle.
Its usually a high momentum candle
making it too far away from the base of the break out level.

Hence SL will be wide
Which will severely affect the position size
3/22

Now let’s see a more realistic picture

Here u would see breakouts usually
undergoes deeper mean reversion
rather than going to the same direction.
Such moves always big threat to the SL we place in the trade.
Because in most case reversion goes way beyond breakout level
Read 22 tweets
30 May
Long Thread

Many queries are directed to me specifically asking about potetnial long term investing scrips.
Here am trying to analyse best 10 scrips i track since more than year now and trading with strong price-volume strcture

1/12
GMMPFAUDLR

price broke out in recent past on the back of strong demand an we have a successful retest in the last week with pric clsong near highs
strong momentum and strongly increasing delivery as well supporting the continuation of the trend

2/12
ALKYLAMINE

one of the very few scrip which made a higher low even in the korona fall 2020
A strong breakout few weeks back stalled from going up despite strong demand. Indecision cleared last week with a bar making new highs, confirming accumulation in the last few weeks

3/12
Read 12 tweets
29 Jan
Wesley Gray & Jack Vogel found a method by which measuring the momentum using 12 months of historical data giving list of stocks with enough room for further upside price action

The method as follows

1/4 Image
Monthly momentum values are calculated as cumulative returns over the past 12 months.

The monthly momentum is calculated in 3 steps

1) We calculate gross monthly returns by adding one to the percent monthly return.

2/4
For example, from a monthly return of 5% (0.05), we get the gross monthly return value of 1.05 (0.05 + 1) while from a monthly return of -5% (-0.05) we get a gross monthly return of 0.95 (0.05 + 1.0).

2) We multiply all the gross monthly returns of past 12 months.

3/4
Read 4 tweets
16 Dec 19
1/5

How does momentum divergence occur?

RSI is an oscillator set to oscillate between 0 and 100.
It measures the “ratio of average gain/average loss” based on closing price.
Here gain = closed abv previous close
Loss = closed below previous close
2/5

Simply putting rsi will increase if price has higher close.
Bt here its “average” gain/loss.
That simply means there is a time factor at the denominator.
Putting it simply, if price going up after a correction, yet price goes up only slowly,
3/5

means price closing abv previous close in decreasing percentage, this “average gain” will decrease.
RSI will get only lesser value even though price has made a higher high.
Read 5 tweets
31 Oct 19
trailing stoploss technique - Chandelier Exit (CE)

it is a volatility-based trailing stoploss indicator based on the Average True Range (ATR). it show 2 lines – the chandelier exit long and the chandelier exit short.

1/4
The exit long is used as trailing stoploss for long positions whereas the exit short is used as trailing stoploss for short positions.
The Chandelier long and short are used to compute the value of ATR.

2/4
Then, using the recommended setting of 21 periods, Chandelier exit will calculate the highest high or the lowest low for the same period used to calculate ATR. Lastly, subtract the multiple ATR (recommended setting - multiple of 3 times the Average True Range)

3/4
Read 4 tweets

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