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
3/n
1. Works Best In trending Markets 2. Keep Riding the trend till Supertrend Turns Red 3. Use Price Action to Enter and Supertrend As Trailing Stoploss 4. Sometimes Gives Multiple Signals Where you can take Small Stoploss .
Example : 4/n
Supertrend to be avoided in Sideways markets as it gives a lot of false Signals .
Use Normal Support Resistance as Stoploss in this case
Use Supertrend in Range breakout or range breakdown whenever stock gets stuck in range 5/n
3. Moving average stoploss
The “well known” moving averages, such as the 30 , 50, 100, 200 daily moving averages act as natural support and resistance.
21 ema Momentum Trades
50 ema short term trades
200 ema positional trades
30 Weekly ema Long term trades 6/n
Shouldn’t be used in sidways stocks , either it should be clear uptrend or clear downtrend
Stock Will Give multiple Signals which has to be ignored
Red 21 ema
Green 50 ema 7/n
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 8/n
Conditions of Relative Strength
Relative Strength has a reference zero line
Line >0 Stock is Outperforming
Line <0 Stock is Underperforming
RS period 65 as we have around 65 trading days in 3 month
RS Period 52 in Weekly Time
RS reference as Nifty50 as benchmark index as 9/n
Keep Holding Stocks Till RS is positive to Stay in Complete Trend .
Use 52 on Weekly time Frame for Longer form of trading
Works well in all Markets and all Conditions 10/n
✅Mentorship starting on 9th July on weekends only with recording
✅Covering Pure Price Action , Relative Strength, Stage Analysis, How to find Super Stocks
6 Continuation Chart Patterns All Traders should know about !
A Thread🧵
What are Chart Patterns ?
A chart pattern suggests what prices might do next, based on what they have done in the past
They are patterns that repeat again and again as they are basically representing human emotions.
These patterns have been into existence since 100s of years!
1. Bullish Triangle
Triangles are similar to wedges and pennants and can be either a continuation pattern, if validated, or a powerful reversal pattern, in the event of failure.
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🔖
Retweet to Educate Your Trading Friends !
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
2/n
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
I read one of the Greatest Trading Books so that You dont have to !🧵
Secrets of Profiting in Bull and Bear Markets
by Stan Weinstien
Stan Weinstein's Stage Analysis offers traders a powerful methodology to identify trends in the markets while following strict risk management principles.
Stage Analysis is used to identify the longer-term trend of a stock or index. There are 4 different stages
1/n
4 Stages are :
✅The Basing Area,
✅Advancing Phase
✅The Top Area
✅Declining Phase
2/n