Thread by @niki_poojary

One of the most successful stock trader with special focus on cash stocks and who has a very creative mind to look out for opportunities in dark times

Covering one of the most unique set ups: Extended moves & Reversal plays

Time for a 🧵 to learn the above from @iManasArora

What qualifies for an extended move?

30-40% move in just 5-6 days is one example of extended move

How Manas used this info to book profits

https://twitter.com/iManasArora/status/1275095753292054528?s=20&t=HbHW_gr2YmSa19ecwzpKMg

Post that the plight of the stock:

https://twitter.com/iManasArora/status/1275724426072465408?s=20&t=HbHW_gr2YmSa19ecwzpKMg

Example 2: Booking profits when the stock is extended from 10WMA

10WMA = 50DMA

https://twitter.com/iManasArora/status/1410836266438987781?s=20&t=GSle9UEW7dpd4vUZ1Sgxaw

Another hack to identify extended move in a stock:

Too many green days!

Read below

https://twitter.com/iManasArora/status/1165869993260531713?s=20&t=GSle9UEW7dpd4vUZ1Sgxaw

When you buy a stock, first check whether they are extended from the MA, if yes then the probability of those stocks performing is lower

Read this entire thread, to know the rules of extended

https://twitter.com/iManasArora/status/1169515345607983104?s=20&t=GSle9UEW7dpd4vUZ1Sgxaw

Check you trade journal now, and go through the trades that didn't work, now check whether those were extended?

https://twitter.com/iManasArora/status/1169942927293861889?s=20&t=GSle9UEW7dpd4vUZ1Sgxaw

Positional/Swing traders are always have one question, when to book profits?

Ans: Exit partial qty when the stock gets extended

Simple yet Effective!

How extended move on the upside can be used to Short a stock:

Example 1: Shorting #JSWSTEEL on the basis of Extended move

https://twitter.com/iManasArora/status/1397177560283312131?s=20&t=GSle9UEW7dpd4vUZ1Sgxaw

Example 2: Shorting #ADANIENT on the basis of Extended move

https://twitter.com/iManasArora/status/1397172420755083272?s=20&t=GSle9UEW7dpd4vUZ1Sgxaw

And this is how @iManasArora shorts Index #NIFTY basis extended move

https://twitter.com/iManasArora/status/1288388818672840704?s=20&t=GSle9UEW7dpd4vUZ1Sgxaw

Not many traders short, especially the newbies, so here is an imp note:

Disclaimer: These stunts are performed by a pro @iManasArora , pls dnt jump directly into shorting without knowing the basics

So far you have understood two things:
1. Never enter an extended stock
2. Use the extended info to book profits or go short

But then, long only traders in cash segment think they cant utilize the opportunity in a down trending market

Time to bust this myth, @iManasArora shows how one can use the extended info to go long - REVERSAL PLAY!

Look for stocks down 4-6days in a row. Then look for reversal signs on a much lower frame to enter.

Manas believes: Excessive weakness offers a good long opportunity!

Thinking out of the box!

Lets see how @iManasArora Walks the Talk

How to use extended moves on the downside for reversal plays

Example 1: #BAJAJFIN

https://twitter.com/iManasArora/status/1253628325282512897?s=20&t=GSle9UEW7dpd4vUZ1Sgxaw

How to use extended moves on the downside for reversal plays

Example 2: #BSE

https://twitter.com/iManasArora/status/1425319550950596611?s=20&t=HbHW_gr2YmSa19ecwzpKMg

How to use extended moves on the downside for reversal plays

Example 3: #NBCC

https://twitter.com/iManasArora/status/1420633062501588998?s=20&t=HbHW_gr2YmSa19ecwzpKMg

Spot extended moves in your P&L as well, and know when to slow down

https://twitter.com/iManasArora/status/1275103399919288321?s=20&t=HbHW_gr2YmSa19ecwzpKMg

How to use extended moves on the downside for reversal plays

Example 4: #ASHOKLEY

https://twitter.com/iManasArora/status/1463057113383464961?s=20&t=GSle9UEW7dpd4vUZ1Sgxaw

How to use extended moves on the downside for reversal plays

Example 5: #DREDGECORP

https://twitter.com/iManasArora/status/1493434705299279873?s=20&t=GSle9UEW7dpd4vUZ1Sgxaw

How to use extended moves on the downside for reversal plays

Example 6: #JSL

https://twitter.com/iManasArora/status/1493458990118113282?s=20&t=GSle9UEW7dpd4vUZ1Sgxaw

How to use extended moves on the downside for reversal plays

Example 7: #AFFLE

https://twitter.com/iManasArora/status/1485823607255502848?s=20&t=GSle9UEW7dpd4vUZ1Sgxaw

How to use extended moves on the downside for reversal plays

Example 8: #DRREDDY

https://twitter.com/iManasArora/status/1420958701742006275?s=20&t=GSle9UEW7dpd4vUZ1Sgxaw

Lets check how to play reversals on fresh listed stocks i.e. recent IPO's

How to use extended moves on the downside for reversal plays

Example 9: #NYKAA

https://twitter.com/iManasArora/status/1493822685050470405?s=20&t=GSle9UEW7dpd4vUZ1Sgxaw

How to use extended moves on the downside for reversal plays

Example 10: #PAYTM

https://twitter.com/iManasArora/status/1493800535547592711?s=20&t=GSle9UEW7dpd4vUZ1Sgxaw

Be creative and have an open mind!

https://twitter.com/iManasArora/status/1485826188858003462?s=20&t=GSle9UEW7dpd4vUZ1Sgxaw

When to fold in Reversal Play,

https://twitter.com/iManasArora/status/1453208088412966915?s=20&t=GSle9UEW7dpd4vUZ1Sgxaw

A lot of people have a question, what if it falls further?

Ans: You can always get out with a small SL, but but but, remember the opportunity is only gonna get more sweeter

Since, @iManasArora enters a trade with tight stops of 1-2%, he has studied the behavior of his trades in past, and from experience he knows how much time they take to perform or fail!

You can use this info to build a system of yours!

Applying extended move logic not just to stocks but extending it your P/L

Now when the stocks have an extended move on the downside, instead of being grumpy, be happy that the opportunity to play the Reversals is round the corner

#BroTip

You can also go through his TL @iManasArora which itself is a pool of knowledge

If you❤️this, why not share?

Retweet the first tweet and help others find this 🧵

Happy learning 🤓 to everyone!