Thread by @dmdsplyinvestor

I was hardly profitable for 7 long years...

until I found this low-risk strategy! 😃

This strategy is MY FAVOURITE &

• Low risk & High reward
• profitable even with 40% win rate
• can help one take big positions
• can make you 💸

REVERSALS FROM CONFLUENCE OF SUPPORTS🧵...

1⃣ Scanner to use

Use the below scanner & only focus on stocks in the list 👇
'CCI Daily crossing above -100'
chartink.com/dashboard/34179

2⃣ Add these stocks to Trading watchlist to scan

You can do this in 5 mins, literally! Watch the below video how to do it👇

Scan each stock manually with your 👀

3⃣ Stock MUST be near confluence of supports!

What's that? There are two rules

Rule 1:
• Price should be reversing from a major horizontal support zone Ex: #GOKEX

This should be visible clearly on weekly/daily charts

4⃣ Rule 2:

• Price should be reversing from major trendline support

If you also observe
• Candles with long lower wicks or
• Big green candles - refer chart

then winning probability increases😃

This reversal from HORIZONTAL & TRENDLINE Support is reversal from confluence!

5⃣ Additional rules

• There MUST be a decent increase in volumes around the confluence zone
• The trendline MUST connect the wicks
• Price MUST be in uptrend(higher highs, higher lows) on weekly charts.

6⃣ What should be your entry price?

• Enter the next day
- above previous day high or
- above the previous big green candle high or
- above previous 2/3 day high

7⃣ What should be your stoploss(SL)?

• SL should be the trendline reversal point.
In this case the SL would be previous candle low since that was a trendline reversal.

• The SL should not be > than 10%. If > 10% ignore the stock & move on. If SL < 6%, it is a must enter.

8⃣ How to pyramid/add on to positions?

• Price should consolidate for at least 3 days before adding more
• Add above previous swing high - refer to chart
• If you're conservative add in the last 30 mins of the day or the next day above previous day high

9⃣ How to define targets?

• Use the Pivot HL indicator in tradingview
• Identify previous swing highs and mark your targets

As an alternative,
• Book 50% position at 3 times the risk
• For the remaining position trail the stop & ride the trend on hourly charts

🔟 If you loved this strategy, please👇

1. Retweet the first tweet
2. Follow @dmdsplyinvestor
3. Subscribe to my YouTube channel for more content! youtube.com/c/TrendlineInv…

https://twitter.com/dmdsplyinvestor/status/1560911824144502784?s=20&t=FG8ZE4U2MS8vYQsn-lOkMQ