Inspiration and credits: Mark Minervini sir
Youtube Link :
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What to Look for ?
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Screener for stocks that are within 25% of their Highs
The screener filters out Stocks that have 1. Relative Strength Positive 2. Above 50 dema on 3. Above 30 wema ( in Stage 2) 4. Volume greater than 50k 5. Above 20 rs chartink.com/screener/stock… 3/n
Example of Stocks that have Corrected less than 25% in this Bear Market
Always Look for Stocks that in longer term uptrend and still near 52 week high .
These Stocks tend to outperform when market recovers
Stock vs Nifty50 #Bls#MFL#Timken 4/n
Ipo base stocks #Tarsons gave a cheat entry within its ipo base . Stock is up more than 20% in few days #Rolexrings : Stock had broken out of its ipo base and gave a decent rally as markets recovered 5/n
#Homefirst: Stock hasnt broken out but has good Volatility contration and near the retest of old breakout #Metrobrands consolidating from past 6 months
breakout can give good Rally #Kpigreen 6/n
What we want to see :
Signs of Accumulation
Followthrough in breakout
Good market Breadth 7/n
Look for Stocks that are breaking out when market is correcting 8/n
Characteristics of a leader:
AMAZON in 2002 vs AMAZON in 2022 9/n
THINK DIFFERENT !
1. look at the old leaders the old leaders are not most likely going to lead in the new cycle it's very difficult to do 2. they're not going to go out of business see a stock doesn't have to go out of business to make you go out of business
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Some went down and moved sideways and some of them didn't come back to break even for 20 years
Guess Which Indian Stock ? vs $MFST 11/n
Fast rebound Stocks 1. stock come ripping back off the lows and this is where you should be looking to buy 2. These stocks move 20-50% in Small duration during small market recovery from the lows and reach their highs 12/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
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
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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
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
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4 Stages are :
✅The Basing Area,
✅Advancing Phase
✅The Top Area
✅Declining Phase
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