Stocks doubled Before entering into Stage 2 Uptrend
52 week RS was positive in stage 2
90% stocks even gave all time high breakout after Stage 2
60 Stocks had market cap less than 1000 Cr
Examples : OLECTRA , PGEL 2/n
So 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.
3/n
How to Apply ?
Type
“Relative Strength”
Choose any
By bharattrader
By traderlion
By Modhelius
I use by bharattrader
In setting use 52 period
Use Weekly Chart 4/n
Helps to filter out stocks in good momentum and that are giving better returns than nifty
These stocks tend to outperform the market for a long term
These are potentially superstocks
52 period signifies 1 Year of trading
In 1 Year we have around 52 trading Weeks 5/n
What is Stage Analysis ?
Stage 1 : Accumulation Phase
Stage 2: Advancing Phase This is the stage where we should be looking to take long positions in a stock or index. Buyers are now in control and the balance of power is now in line with demand
Look for Stocks in Stage 2 6/n
Past Leaders Charts :
3 types of entries
Stage 1 Breakout
52 week high Breakout
All time / Multi Year Breakout
Trading Strategy to find new Leaders :
Let us now summarize everything and apply the whole concept in real trading
What are we looking for ?
Stock breaking out of stage 1 and above 30 wema
Relative strength > 0 and increasing
Example : 20 Microns , #OrbitExports
7/n
The more time RS was positive before the breakout the better .
Enter on Stage 1 Breakout
Look for rising Volumes on right side of base
Volume on Updays should be greater than Volume on Downdays 8/n
Observations of Past data
Only ¼ of the stocks were trading above 100 before they became 5X
Out of 85 Stocks only 20 were above 100 rs
Even now 50 Stocks are having market Cap less than 5000 Cr that means they were having market cap of around 1k cr before they become 5X
9/n
20 Stocks are having market cap above 20k cr now
66 Stocks have market cap 10k Cr now !
Only 11 Stocks had ROE and ROCE >20 That means Fundamentals didn’t matter that much #CentruyPly#Onwardtech
10/n
Stoploss Also Hits using The same Stratgey #CosmoFilms #PrakashIndustry
Risk Reward Will always be > 1:10 As if we ride the complete trend till stage 3 Breakdown then stocks become 2X 3X easily
Small Losses should be Booked and Re entry should be Taken if stock regains momentum
Using the Same Concepts of Stage Analysis and Relative Strength
12/n
RULES :
➡️Enter Near Stage 1 Breakout and Pyramid Slowly
➡️Use 30 Wema trailing Stoploss
➡️ Look for Stocks below 1000 cr Market cap
➡️Fundamentals dont matter much if you use stoploss
13/n
✅Mentorship starting in April on weekends only with recording
✅Covering Pure Price Action , Relative Strength, Stage Analysis, How to find Super Stocks
What is FPO?
When an Already Listed Company issues new shares to the new Investors or existing shrare holders then it is called as Follow on Public Offer (FPO)
A Short Thread🧵
FPO is done for many reasons
1.Need funding for new projects
2.Funding for Expansion
3.Increase Public Share Holding to meet SEBI Norms
FPO leads to Increase in capital of the company and may lead to EPS Dilution
1/n
IPO vs FPO
If we differentiate between IPO and FPO, FPO is a cheaper and safer option as compared to an IPO because you already have an idea about the company, business, management strategy, financials and all other parameters.
What is NISM ?
National institute of Securities Markets.
NISM helps the market participants of India to develop their financial skills to the right level and expertise.
Website : nism.ac.in
RETWEET AND SHARE 💥
Which exam to choose from
There is a whole list of exams that you can choose from .
Ex : Mutual Funds , Derivatives, banking etc
Depends on your Personal Goal
You can either choose :
EQUITY DERIVATIVES
EQUITY RESEARCH ANALYST 1/n
Fees and validation
Different Exams have different Fees and Validation.
Generally lasting 3 years and minimal of 1500 Fees.
Some Have Negative Marking Some Do not !
Test is online and can be given from your own place by checking the center availability. 2/n
Swing Trading Strategy
That can help you generate Monthly Income !
A thread 🧵
Using RS , MACD , 21 EMA and Price Action
All Concepts with charts Explained !
RETWEET AND SHARE !
UNDERSTANDING MACD
Moving average convergence divergence (MACD) is a trend-following momentum indicator that shows the relationship between two moving averages of stock.
It is calculated by subtracting the 26-period exponential moving average (EMA) from the 12-period EMA. 2/n
The result of that calculation is the MACD line. A nine-day EMA of the MACD called the "signal line," is then plotted on top of the MACD line, which can function as a trigger for buy and sell signals. 3/n
A Shortv Thread on indicator : ADX
Average Directional Index a Quick Guide
Retweet Share !
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
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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.
3/n
Complete Guide to Swing Trading
A Mega Thread 🧵
With Live Charts and Examples
Comment " Yes " and Retweet if You want PDF version
Criteria for Swing Trading :
Uptrend HH HL Structure
Stage 2 Uptrend
Volume Expansion during Breakout
Pullbacks with Lower Volume
Base Formation ( Rectangle , Vcp Etc)
Relative Strength > 0
21 ema > 50 ema > 200 ema
Stocks near 52 week High
Stocks near All time High
1/n
What is HH HL Structure ?
1. A stock Maintains Bullish Momentum till it holds the last Swing . 2. Swings is an area from where stock reverses 3. As it is widely known Trend is your Friend A structure of Higher High is good for buying as overall momentum is in buying side
A Thread on Risk Management and Art of Position Sizing 🧵
⏺️A part of Risk Management that could make or
break your trading career
⏺️Position sizing refers to the number of units an
investor or trader invests in a particular security.
1/n Retweet and Share!
Determining appropriate position sizing requires
an investor to consider their risk tolerance and
the size of the account.
2/n
POSITION SIZING :
In simple Language how much Percentage of your Portfolio you should invest in a particular Script .
This is very important factor that changes your returns drastically .
There are rules to be followed
Either Fix Risk per Trade
Or Capital Allocation
3/n