Nearly 5000 stocks are publicly traded, this would help you zero down to best names which are likely to go north.
And no, you don't need to know what company does or actively track news to make a killing.
Price + Volume = All you need
Long read ahead..
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Stocks having underlying buying force, that doesn’t rule out the possibility of breakout of a beaten down name. It simply force represents the upper hand of buyers in the stock. In cases where stock is in a base and has no recent buying force, look out for pocket pivot days
Pocket Pivot is day with higher volume than any of the down volume days in the prior 10 days
Stock undergoes price & time correction for months after a massive move, it gets out of hibernation by moving explosively in matter of few trading sessions on higher than usual volumes
- Big news that had catastrophic effect on the prices
- Which led to upsurge in volatility
- Being in FnO made it free from circuit limits
- High liquidity, less slippage
Such instances are rare in Indian Markets, #YESBANK & #DHFL had similar characteristics.
Such trades have high R:R and high win rate, like how often you buy something and it goes up 90% on the same day? Bonkers!
> Risk was much higher than my usual risk per trade (while trading cash stocks)
> Traded mostly futures
> Tools used: EMAs, A/VWAPs & intraday high and low
It is a broad approach to overall market analysis that helps traders to realize the underlying strength or weakness associated with a market move
Thanks @PradeepBonde for the blogpost & @iManasArora for making breadth tool in context of Indian Market
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Breadth will treat all stocks in an index equally. Stock with largest capitalization and the smallest are both equal in breadth analysis. It can be applied to any exchange or index of securities, any sector or industry group.
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One may consider it "oscillating indicator", when reached a threshold level, either positive or negative, they tend to reverse or take a halt.
It is concerned with probability that market is approaching a major turning point, so it isn't helpful knowing everyday trends.