Supertrend-Relative Strength Strategy for Positional and Swing Trading
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on Supertrend and Relative Strength !
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What is Relative Strength ?
📌Relative strength is a strategy used in momentum investing and in identifying value stocks.
📌It focuses on investing in stocks or other investments that have performed well relative to the market as a whole or to a relevant benchmark.
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Conditions of Relative Strenght
Relative Strength has a reference zero line
Line >0 Stock is Outperforming
Line <0 Stock is Underperforming
RS period 65 as we have around 65 trading days in 3 month
RS reference as Nifty50 as benchmark index as 3/n @kuttrapali26
Outperformance Vs Underperformance 4/n
How to apply in #tradingview
Type
“Relative Strength”
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By bharattrader
By traderlion
By Modhelius
I use by bharattrader
In setting use 65 period
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SuperTrend :
It is TrendFollowing Indicator That generates Buy / Sell signals based on the ATR value or volatility of the stock
Supertrend also works as a trailing stop-loss for the existing trades Best on daily time frame 6/n
Supertrend Conditions
Works Best on 10 , 3 settings
One can try and backtest on 10 ,2 at own also !
Doesnt Work well in Sideways Zone as it is trend following indicator @Techno_Charts 7/n
Buy Signal Rules
Stock above 50 ema
SuperTrend turned Positive
Rs line increasing and in positive
Volume up on updays and down on downdays
Daily Time only
Stock has to be in clear Uptrend for buy and Ideally near 52 week High @MarketScientist 8/n
Target 10 to 15 %or can be trailed using 50/ ema
Stop loss max 7 – 10 % in any case or nearest swing whichever is less
Ideal stop loss 5%
Position size 5-7%
In case you have to enter fresh when both are already positive enter on High Volume Breakouts
Example Shared at 430 9/n
Sideways Stock
Supertrend tends to give too many signals in sideways stocks hence its advised to only take trades based on breakout of range in this .
No trend following works in sideways market hence its best to stay sideways or looks for proper oppurtunities 10/n
Sell Signal Rules
Stock Below 50 ema
Supertrend Negative
Rs line decreasing and negative
Price near resistance or bearish patterns like double tops etc
Daily Time only
Stock below 20% of 52 week high
volume Increasing on sell side @premalparekh
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Target 10 to 15 %or can be trailed using 50/21 ema
Stop loss max 7 - 10 % in any case or nearest swing whichever is less
Ideal stop loss 5%
Position size 5 - 7 %
A similar Setup was shared by @vivbajaj Sir on 2 hour Tf on youtube can check it out !
One can even Modify This
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I made A few Lakhs using this Famous Swing Trading Strategy
A thread
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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
A thread🧵
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
A thread🧵
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