1. Avoid Stocks Below 200 ema 2. Sell Stocks in Stage 4 Down Trend 3. Dont Trade Stocks that are moving in Circuits 4. Avoid News based Trading
A thread With examples
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A Study Shows that 90% of the winning Stocks stay above 200 ema before a big Advancing Phase
1. Simply Not Holding or Buying Stocks below 200 ema Saves a lot of time and Money. 2. You can looses opportunity Cost if you buy stocks below 200 ema. 3. TimeFrame: Daily 200 ema
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B. Sell Stocks in Stage 4 Down Trend
1. Stocks Exhibiting this are in complete Bear Grip 2. The 30 week ema acts as reference for stage analysis 3. These Stocks can be short sold on pullback to 30wema 4. Happens after Topping Phase 5. TimeFrame : Weekly , 30 Week Ema
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C. Dont Trade Stocks that are moving in Circuits
1. Mostly these stocks are Speculatve and Operator Driven. 2. You never know what is the top of the trend and may get Stuck with Huge Losses
Example : TTML , Alok , Ruchi etc
This is Pyramid Structure and news driven also 4/n
D. Avoid News based Trading 1. Whenever a postive News comes in Market People Jump in Buying the Stocks without thinking . 2. Most of the the times the news is factored in or gets factored after heavy buying 3. Your Money may get Stuck
About Darvas :
In the late 1950s, Nicolas Darvas was one half of the highest paid dance team in show business.
Darvas turned a $36,000 investment into more than $2.25 million in a three-year period.
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It was on a two-year tour of the world that he initially developed his ‘Darvas Box’ method of screening stocks – a method of picking stocks based on the stock’s price and volume .
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
They dont only buy on Uptrend but continue holding during pullbacks for bigger gains .
Important thing is pullbacks should always have less volumes . 3/n
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 2/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
Trend Analysis using moving averages !
A mega thread to understand the Use of 21 , 50 and 200 ema.
4 Effective uses of Exponential Moving Averages !
Which can Help you avoid Big Losses