It's weekend time ...let's catch up on highly successfull bullish candle stick patterns ...hold your patience as we roll into spotting these to make good gains in swing & momentum trades ...🧵🧵🧵
Don't forget to RT as we learn together ♻️♻️♻️
#bullishengulfing
- two candle setup
- effective to spot a reversal in downtrend
- first -tive candle followed by a +tive candle
- Second day candle price opens lower than First day low & closes higher than the first day high
- Enter when high of second day is xossed up
#Morningstar
- three candle setup
- used to spot downtrend reversal
- one thin body candle between first long black candle and third long white one.
- Bodies of second and first candle should not overlap
- Gapup on third candle
- Entry at xossing up from third day candle
As per Peter Lynch - Investor Fund Manager with record 29.2% return at Fidelity from 1977 to 1990. Author of - One up on Wall street & Beating the Street .
A Thread 🧵🧵
RT ♻️♻️ to share Knowledge
🎯 Look for company growing convincingly - consistent top & bottom line growth with good stable margins
🎯 Company has happy satisfied Customers. Typically the business should be of sticky nature to not to loose customer base as it grows
- long term uptrending charts are formed when smart money / institutional investors add or keep holding a stock
- Major valuation criteria they track is Price to EPS ratio - P/ E
- They will allow the Price to run on charts untill earnings - EPS keeps rising in the PnL
- Simply put fundamental analysis is nothing but identifying businesses where EPS has been growing historically ( Quantitative Analysis) and will also continue to grow in future ( Qualitative Analysis )
Nikhil Adhesives : what got me interested ? 🧵🧵
Mkt cap : 390 cr
Ratio Analysis :
- low debt to equity 0.42
- high roce yrly and 3 Yrs 33.6 / 26
- PE < peers avg. 13.8/26.5
- Aggressive profit growth 605%
- Good Sales growth 106%
- Mkt. Cap/ sales 0.53
- Peg ratio 0.24
Trend Analysis :
- Steady rising sales across years
- Steady rising EPS across years
- Improving OPM across years
- Adding assets across years
- Steady rising PAT across years
- Rising Reserves across years
- Rising Op. Cashflow yoy
Risks :
- low operating margin means volume growth critical for future as pricing power not effective
- too many product ranges mainly emulsions
- Genric demand slowdown due to covid can hurt
- Mostly present in North India
- increasing debtors inventory & payable days