Detailed Study of Stocks that became 5X in past 2 Years
A Mega Thread๐งต
Concepts :
Relative Strength
Stage Analysis
Retweet and Comment If you want a PDF
We have Got around 86 Stocks that became 5X in 2 years
These Belonged to various sectors and Groups
Excel Link for List of Stocks docs.google.com/document/d/1J-โฆ
( As on 30th March 2022)
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All stocks had few things in common :
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
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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.
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How to Apply ?
Type
โRelative Strengthโ
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
[7/n] #LTI#JSLHISAR#Tatalexsi
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 : #MRPL , #SDBL , #MARATHON
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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
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Observations of Past data
โด๏ธOnly ยผ of the stocks were trading above 100 before they became 5X
โด๏ธOut of 85 Stocks only 20 were above 100 rs
โด๏ธEven 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
10
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 didnโt matter that much #CentruyPly#Onwardtech
Stage 2 Screener Video :
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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
Some Stocks That are coming out of stage 1 and 52 week RS Increasing and >0 #Shankara#HSCl#RuchiraPapers #SDBL
Using the Same Concepts of Stage Analysis and Relative Strength
๐๐ฆ๐ต๐ข๐ช๐ญ๐ฆ๐ฅ ๐ ๐ฐ๐ถ๐ต๐ถ๐ฃ๐ฆ ๐๐ช๐ฅ๐ฆ๐ฐ (๐๐ผ๐ป๐ ๐ ๐ถ๐๐ !)
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RULES :
โก๏ธEnter Near Stage 1 Breakout and Pyramid Slowly
โก๏ธUse 30 Wema trailing Stoploss
โก๏ธ Look for Stocks below 1000 cr Market cap
โก๏ธFundamentals dont matter much if you use stoploss
โ Mentorship starting from 7th August on weekends only with recording (5 Sessions)
โ Covering Pure Price Action , Relative Strength, Stage Analysis, How to find Super Stocks
If you are interested in Option Selling Watch this Video :
๐ฆ๐๐ถ๐ป๐ด ๐ง๐ฟ๐ฎ๐ฑ๐ถ๐ป๐ด ๐ ๐ฒ๐ป๐๐ผ๐ฟ๐๐ต๐ถ๐ฝ to find winning Stocks Starting from August
๐๐ฆ๐ฆ๐ฅ๐ฃ๐ข๐ค๐ฌ from Last Few Batches :
Payment Link : rigipay.com/g/Bmtu24p9sD
//END//
โข โข โข
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๐ฆ๐ฒ๐๐๐ฝ:
๐ธ Monthly Option Buying
๐ธ 50 ema on 3 min timeframe
๐ธ Supertrend 10 , 3
๐ธ Chart : Banknifty , Nifty Futures as we backtested on futures
๐ธ Entry 9:20 to 3:00
๐ธ Max 3 Entries per day
๐ธ Premium nearest to 200 Rs only
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Why Monthly Option buying ?
๐ธ Less theta decay compared to weekly options
๐ธ Less Volatility
๐ธ Supertrend and MA Settings
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In rule based trading you donโt take trades based on what you think is going to happen , rather depend on data to tell you what can probably happen.
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A Thread Covering basics of Rules Based Trading ๐งต
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Traders gather past historical data and try to identify profitable trading opportunities, backtest their logic and develop profitableย trading strategiesย
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What matters is only data and what the data is trying to tell you.
In rules based trading you donโt take trades based on what you think is going to happen , rather you follow the rules that you have created
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1. Look for Signs of Accumulation ( Institutions don't buy in 1 day and Spread their Buying over a period )
2. Enter into early Stage Bases ( Generally good Risk Reward is good till 3rd Stage)
Retweet and share ๐
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3. Stage 4 and Stage 5 bases generally mean the top of the trend and leads to exhaustion
4. Look for climax selling at the top of Trend ( Big Rejection Candle , big Red Volume Bar , Weekly timeframe )
Example : Iex , Irctc , Dixon
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5. Sell Stocks in stage 4 downtrend ( Use 30 ema or Supertrend on weekly to check trend reversals )
6. In Bear Markets look for stocks near 52 week highs , Ipo base Breakouts , Stock in Basing period in longer term uptrend ( Tarsons , Rolex Rings , Usha Martin , Fcl , Mfl)
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