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Subhadip Nandy

24 Jul, 10 tweets, 2 min read

A short thread on #MFI

The basics here :

school.stockcharts.com/doku.php?id=te…

Technical analysis says two things :
1. Momentum precedes price
2. Volumes precedes price

So, if an indicator includes momentum and volume analysis, it will be a leading indicator to some extent. This is the crux why I am so much confident on MFI

The indicator can be used for swing as well as day-trading. I use a period of 10 as I have seen that being our responsive to our markets here

Trendlines drawn on MFI or patterns might not be visible on price, normal trendline trading rules apply.

Divergences work and so does patterns

One can use MFI as a stand alone tool or as a supporting tool with other indicators

My indicator on divergences used codes was not allowed by tradingview ( future looking in a protected code). Tradingview has a good built-in divergence indicator which I have simply modified by plugging in MFI in place of RSI.

Since the original code here is not mine, publishing it as open source

tradingview.com/script/UFuelMF…

Clicking inside the settings shows the hidden divergences also. Normally shows the standard divergences

Consider this a guru-purnima return gift. Play along with the code, study the indicator well and make it a part of your arsenal 🙏

If this also gets taken down, here is the code. Save it as your own indicator and use in future :

quantgym.biz/post/mfi-diver…

Inside the code, substitute the MFI with any other indicator like RSI or MACD etc, the divergences will be plotted for them too

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More from @SubhadipNandy16

Subhadip Nandy

@SubhadipNandy16

20 Jul

I had this theory that if #Bitcoin went below $30k , this time it probably won't go up again. Let's see

1. I had earlier posted a distribution analysis for bitcoin
2. Traders have been primed by the price action of the past few months where it goes below $30k on weekends and then bounces back. This dip should see heavy accumulation from retail and thus a perfect distribution point

If this is not distribution, I don't know what is. If I were trading this, would have shorted below $29k with a stop at $31k and then progressively trailed stops

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Subhadip Nandy

@SubhadipNandy16

20 Jul

BNF

One can have any view looking at anything. Question is, do you trade your view ?

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Subhadip Nandy

@SubhadipNandy16

20 Jul

https://twitter.com/SubhadipNandy16/status/1416974229707182080

Spread initiated at 2.60, now at 6. A loss of 3.40 per lot. Waiting with the spread, no adjustments as of now
#hcltech

https://twitter.com/SubhadipNandy16/status/1416974229707182080

Loss as of now is approx Rs.2300 per lot

If this loss crosses 10k, will sqoff the position and book losses. Else will wait.

Read 4 tweets

Subhadip Nandy

@SubhadipNandy16

19 Jul

The lines win :)

Day's job done 😋

MFI reached 3 within the bar, extreme oversold. So sold 15800PE

Read 5 tweets

Subhadip Nandy

@SubhadipNandy16

19 Jul

Results trading is one of the biggest plays on options markets worldwide. The theory goes like this :
Before results, IVs shoot up as both bulls and bears buy options expecting a major move in their chosen direction.

Now, it has been a proven theory that IVs "generally" overstate the actual move that happens post results. This has given rise to the famous results trades for options sellers where the sell straddles or strangles in order to capture the volatility crush post results.

Their trades are based on a higher POP per trade but less absolute profits per trade. Some results obviously are totally against any market expectations and the stock makes a huge move. This gives a major delta loss as well as sometimes when IV goes up, also a vega loss whammy.

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