#Technical_Learning
Price-volume relationships can tell, 4 major things. A study of volume bar is a must to confirm candle patterns. Image
Perfect case study - #IIFLSecurities
When to short - Price Declining but Volume rising. If shorted even after the 8th price candle - a gain of 11 points from 125 to 114.
For Candle pattern lover 4th & 5th candles formed 2xGravestone Doji - meaning downtrend in the price action. Image
#Technical_Learning
RSI is one of the indicators a trader should look at, with Price-volume relationships, whether the stock is going to consolidate.
Overbought => RSI ABOVE 70 => Short trade => MFI drop BELOW 90
Oversold => RSI BELOW 30 => Long trade => MFI move back ABOVE 10
#Technical_Learning
Analysing trends with RSI and using it to take enter or exit a trade. Image
Success rate of hidden divergences is higher not only due to the continuation of the trend but also due to smart money knowing the info beforehand & so price either moves up or down faster than RSI, once the public comes to know, the momentum also picks up to catch up the price.
Why is it essential to use Logarithmic scales, while doing chart analysis? #Technical_Learning
1. Logarithmic scales:
- provide better data visualization that skews towards large values in a dataset.
- can improve the ability to spot patterns. Image
- identify relationships among the data.
- Clear displays of volatility on higher time frames.
2. Trendline, support & resistance (on higher time frame) displays better results in log-charts.

Notice the red resistance line on the log chart on left to the linear chart on right. Image

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More from @pattanaik_jay

Aug 27, 2022
#Technical_Learning_Jay
Don't know or understand or confident in technical analysis. Sharing here the easiest way to apply technical. I will share recent, 47 scripts which have touched ATH due to these conditions:
Conditions for trading ATH counters:
1. More number of upward curves at ATH, even without price contractions. Not to be confused with VCP but if it has VCP footprints, best case scenario.
2. RSI above 70, if nearing 80 is the best case scenario.
3. Bullish RSI divergence confirms the breakout at pre-breakout.
4. Increased volume activities, even red candles are included.
5. Time for the maturity of the trade will be from 1 - 5 months.
6. Keep time SL or SL also in place in order to switch to new trade.
Read 34 tweets
Jan 9, 2022
Magic of IPO Listing High/Base Break-Out

Reasons for BO:
1. Entry of Fund House
2. Delivered as mentioned by Mgmt.
3. New favouring Govt Policies.
4. Need of hours of the product.
Types of IPO BO Candidate. Three kinds:
#IPO_Candidate_1 - Premium Listing followed by 15-45% corrections. 2-4x Potential after listing high BO, Time-frame – 1yr. e.g. #INDIAMART #HAPPSTMNDS #MTARTECH #POLYCAB #ANURAS #AFFLE
Read 15 tweets
Jan 8, 2022
#LXCHEM A gain of 33.33% is due. Seen making a base around 426, moving in a tight band (421 to 441), needs to break the upper limit(451), or lower limit(406) for confirming the move on either side. Negotiation of final at resistance(464) or support(392) will decide future course.
The move upward or downward is not clear as of now, but from the range, it is evident that the operator was keeping it in a band of 426 to 441 with very low volume, for 2 months plus. The stock was in ASM + circuit limit of 5% was a big spoiler.
Since the stock has come out of ASM yesterday, from the tight range it can be assumed that the counter should move northwards but may be to shake the existing stockholders or new entrants based on ASM news the operator might do some shake outs on either side.
Read 4 tweets
Jan 2, 2022
Magic of Multi-Year Breakout
1. It is well-established fact any counter which gives a multi-year breakout, it gives exponential returns in the shortest time frame.
#Multi_Year_Breakout
2. Pre-requisites for Multi-Year Breakout
(a) Turn around in company philosophy and/or management and/or profit generation.
(b) Govt Policies e.g. Ethanol blending, scrappage policy, make in India, various PLI schemes. #Multi_Year_Breakout
2. Pre-requisites for Multi-Year Breakout - Contd...
(c) Crisis e.g. Covid, Semiconductor shortages.
(d) Brownfield or Greenfield investment starts paying.
(e) Market maturity e.g. Rising interest in platforms business #Multi_Year_Breakout
Read 48 tweets
Jan 1, 2022
New Year Pick - #DATAPATTNS #datapattern
CMP 760 on 31st Dec 2021, Expecting it minimum of 3x by 31st Dec 22.
Discloser – I have in my portfolio, I may have bias.
1. DATAPATTNS - Upper limit of issue price was 585, available Rs 175 higher than CMP 760 on 31st Dec 2021.
2. Q1(Mar) company gets 90% of its revenue remaining three Qtr 0-10%. #DATAPATTNS #datapattern
3. Alphas
(a) Chairman and MD Srinivasagopalan Rangarajan @Data_Patterns energy-level, involvement, aspiration, and transparency. He is an IIT-Madras graduate.
(b) Issue price valued at ~49x of FY21 earnings, #MTAR is 149x, #Paras is 150x and #AstraMicrowave is 78.38x
Read 13 tweets

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