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Using Concept of Support and Resistance
Using Minimum StopLoss
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THESIS:
📌We are looking for stocks that are in consolidation
📌These stocks when hit demand zone provide excellent Risk Reward opportunity
📌These will be all key moving averages hence will not be in momentum
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How to draw?
📌Look for stocks that are in consolidation for a very long time
📌Use Rectangle tool to make a range for the box from high to low of the price
⌛️Keep alerts at higher point of support and Buy when the alerts hit .
📌We are using the simple concept of Support. 3/n
Entry Rules :
⏫Entry Should be as close to support as possible
⏬To keep Minimum Stoploss Its Advised to Buy Near support and not in between the range
✅Bigger the consolidation , stronger the support
🛑Can be used for Longer form of trading , and not Swing Trades 4/n
STOP LOSS 1. Ideally your stoploss should be max 8% from your buy point 2. The closer you buy near support , the smaller the stoploss 3. Do not buy in between the range as you will get stuck in between for a long time 4. Moving Averages dont work as stoploss in sideways 5/n
TARGETS :
Risk Reward 1:2 will easily be acheived
One can even wait for box breakout
Generally Stoploss in my cases was less than 5% when buy point was accurate hence Reward was > 1:3 6/n
I made A few Lakhs using this Famous Swing Trading Strategy
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It is characterized by a period of price volatility followed by a contraction phase, leading to a breakout in the stock's price. Here's a breakdown of the VCP pattern:
Breakout Rules :
Buy Stocks on Break , not after breakout
Use Alert Systems or place GTT orders near Breakout area
If you miss the breakout better to stay away from stock as RR goes out of favour
It took me 3 years to understand Volume Price Analysis
I'll explain in next 10 tweets
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RT for max Support
Support Resistance
✅They simply represent the 'extreme' psychological levels of fear and greed in that particular price region and time.
✅Strength of Buyers = Sellers
✅Lower volatility price congestions
7 less known Tradingview Indicators that all traders should know about
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1. @TraderLion_ Enhanced Volume Indicator
Lime Green Bars Suggests day when the stocks closes near the days high and volume greater than past 10 down volume days Suggesting Institutional Accumulation
Has Features Like :Highest/Lowest Volume in a year.
Modified version of Bollinger Bands
When price is written in blue, volatility overall is falling. When the outer bands start to fatten up in blue, a contraction signal is forming. Works with any length of your choosing