How to Trade Breakouts Effectively?
How to Avoid Big losses in Failures ?
What to Look before entering into Breakouts?
A THREAD🔖
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What is Breakout ?
A breakout is a stock price moving outside a defined support or resistance level with increased volume.
Always trade breakouts in uptrend for high win ratios
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What to Look before entering a breakout ?
Look for Volume Spikes on Up days and Down Volume on down days.
Simply Volume Should Dry during Pullbacks
This is a sign of Accumulation by Bigger Sharks.
As they buy in huge quantities they have to buy in parts to avoid price spikes 2/n
200 EMA Reversal Strategy for Positional Trading
A Short Thread 🔖
✅Covering Price Action
✅How to identify the trend
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200 EMA : THE LONG TERM TREND
1.When a stock price crosses its 200-day moving average, it is a technical signal that a reversal has occurred. 2. A stock above 200 ema is considered bullish in its long term trend and if its below 200 ema its considered bearish
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3. A simple rule of not buying stocks below 200 ema for short term trading could save a lot of money 4. One may consider investing in stocks if the stock is below 200 ema only if he is confirmed about the fundamentals of the stock 5. Some may not agree with this and its ok!
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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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For example, a relative strength investor might select technology companies that have outperformed the Nifty50, or the Nifty 500.
This is basically used for Identifying the strongest sector , stocks , asset class by comparing the relative performance
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One of the best and easiest ways to increase your chances of making winning trades is to trade with the trend
The average directional movement index or ADX is an indicator that will not help you find a trend,but can show you how strong a trend is @Puretechnicals9@StocksNerd
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What is the Average Directional Movement
Index?
1. The average directional movement index was created by J. Welles Wilder in the 1970s.
2. The ADX combines two indicators to create a smoothed moving average that is then shown on your charts.
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