#Technical_Learning_Jay
Don't know or understand or confident in technical analysis. Sharing here the easiest way to apply technical. I will share recent, 47 scripts which have touched ATH due to these conditions:
Conditions for trading ATH counters: 1. More number of upward curves at ATH, even without price contractions. Not to be confused with VCP but if it has VCP footprints, best case scenario. 2. RSI above 70, if nearing 80 is the best case scenario.
3. Bullish RSI divergence confirms the breakout at pre-breakout. 4. Increased volume activities, even red candles are included. 5. Time for the maturity of the trade will be from 1 - 5 months. 6. Keep time SL or SL also in place in order to switch to new trade.
Depending on the response I will share a readymade list of potential candidates which can generate returns in the next 1-5 months.
1/11: The High Tight Flag (HTF) pattern, also known as Powerplay, indicates a potential strong upward movement in price after consolidation. It consists of a sharp price surge (pole) followed by a tight consolidation (flag) and breakout. #HighTightFlag#Powerplay
2/11: Anatomy of HTF:
Flagpole: Unusual surge in price and volume within a short time.
Flag: Consolidation phase with a narrow trading range and lower volume.
Sloping Flag: It may exhibit a slight downward slope.
Duration: Typically lasting weeks to months.
3/11: Key Characteristics of HTF:
-Not solely dependent on strong fundamentals.
-Occurs due to special situations or unexplained strength.
-Less influenced by the general market.
-Works with any instrument and time frame.
-High reward-to-risk ratio, daily returns averaging 2-5%.
#LXCHEM A gain of 33.33% is due. Seen making a base around 426, moving in a tight band (421 to 441), needs to break the upper limit(451), or lower limit(406) for confirming the move on either side. Negotiation of final at resistance(464) or support(392) will decide future course.
The move upward or downward is not clear as of now, but from the range, it is evident that the operator was keeping it in a band of 426 to 441 with very low volume, for 2 months plus. The stock was in ASM + circuit limit of 5% was a big spoiler.
Since the stock has come out of ASM yesterday, from the tight range it can be assumed that the counter should move northwards but may be to shake the existing stockholders or new entrants based on ASM news the operator might do some shake outs on either side.
Magic of Multi-Year Breakout 1. It is well-established fact any counter which gives a multi-year breakout, it gives exponential returns in the shortest time frame. #Multi_Year_Breakout
2. Pre-requisites for Multi-Year Breakout
(a) Turn around in company philosophy and/or management and/or profit generation.
(b) Govt Policies e.g. Ethanol blending, scrappage policy, make in India, various PLI schemes. #Multi_Year_Breakout
2. Pre-requisites for Multi-Year Breakout - Contd...
(c) Crisis e.g. Covid, Semiconductor shortages.
(d) Brownfield or Greenfield investment starts paying.
(e) Market maturity e.g. Rising interest in platforms business #Multi_Year_Breakout
New Year Pick - #DATAPATTNS#datapattern
CMP 760 on 31st Dec 2021, Expecting it minimum of 3x by 31st Dec 22.
Discloser – I have in my portfolio, I may have bias.
1. DATAPATTNS - Upper limit of issue price was 585, available Rs 175 higher than CMP 760 on 31st Dec 2021. 2. Q1(Mar) company gets 90% of its revenue remaining three Qtr 0-10%. #DATAPATTNS#datapattern
3. Alphas
(a) Chairman and MD Srinivasagopalan Rangarajan @Data_Patterns energy-level, involvement, aspiration, and transparency. He is an IIT-Madras graduate.
(b) Issue price valued at ~49x of FY21 earnings, #MTAR is 149x, #Paras is 150x and #AstraMicrowave is 78.38x
#Technical_Learning
Price-volume relationships can tell, 4 major things. A study of volume bar is a must to confirm candle patterns.
BO trades may not be cutting it in the present market as reversal trades take the spotlight. Join me as we explore the conditions for a successful reversal trade with a live example. #reversaltrading#Breakout_Failures#Technical_Learning