⭕️Things we'll use and follow while applying strategy
🟢Williams Fractals indicator
🟢MACD Indicator
🟢Trade to be taken between 3:10pm to 3:30pm
🟢Should Exit on next day opening before 9:30 am
🟢Select strike price above 0.3 and below 0.6 delta
⭕️When to buy call option
🟢Look for MACD lines completely below zero line
🟢Look for blue line crossing above zero line
🟢Mark the candle with above condition
🟢Look for a fractal close to the candle close value
🟢If current candle closes above fractal candle high the buy call
Example 2⃣
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Stock filtration process for swing trading opportunities
🟢Use this filter only for finding buying opportunities
🟢Usefull for office-going people (filter every Sunday)
🟢No need for active monitoring, just set alerts
🧵follow the thread to understand the filter @kuttrapali26
⭕️Points to keep in mind while applying filter
🟢Accuracy 70% to 80%
🟢Use of only support and resistance
🟢6% to 20% expected return
🟢R:R = 1:2 or 1:3
🟢Holding period 1 week to 4 week
⭕️Following are the filtration criteria
1⃣ Stock price should be greater than 100
2⃣ Stock should be liquid
3⃣ Should not be in the upper/lower circuit
4⃣ FII/DII participation i.e high volume
5⃣ Relative outperform the index
Things to remember before you apply Box strategy
1⃣ It's a Techno-funda strategy means try to apply only stocks which are fundamentally good.
2⃣ It's more effective in an uptrend market
3⃣ Mostly used in equity markets (cash segment)
1⃣ Darvas theory states that
🟢The price of any asset moves in from one range to another. By correctly identifying the range we can use them to find trading opportunities
🟢Use Daily time frame for identifying the range
1⃣ Stay neutral
Don't have pre-bias on the market
🟢Decide your levels and when the market goes above/below those levels then only your view will become bullish/bearish
🟢Remember the game is not about proving yourself right it's about making money.
2⃣ Don't be afraid to execute the trade
🟢You'll be afraid only if you take a position size beyond your normal risk appetite
🟢One more reason of fear is taking trade on random information and without a backtested setup
🟢In a fearful trade you'll book small profits and big loss
Momentum Swing trading system for equity
🟢It was created by Dr. Alexander Elder
🟢It works on the principle that the market moves in
the cycle from a period of high volatility to a period
of low volatility.
🧵follow to learn all the rules
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Step 1⃣
To use the system you simply have to apply
🟢Elder's impulse system on the daily timeframe.
it's freely available on the @tradingview
Step 2⃣
Understanding the system
🟢Green bar is formed with the consecutive rise in the value of 13 ema and histogram
🔴Red bar is formed with the consecutive decrease in the value of 13 ema and histogram
🔵All the other cases will result in the formation of a blue bar
A complete guide on how to use "Bollinger Bands"
🧵
The thread will teach you.
🌟Building blocks of Bollinger Bands
🌟How to identify W-bottoms and M-tops using BB
Bookmark the tweet for future reference
🐦retween to share @bhatiamanu@kuttrapali26@KommawarSwapnil
Following are the building blocks of BB
🟢Middle line is 20 SMA
🟢Upper and lower band with 2nd deviation of volatility
🟢When price moves above/below band we'll see a trend
🟢Increase/decrease in the gap of band indicates high/low momentum
BB are volatility bands
🟢let's say stock price is 100 and 1st volatility deviation is 3% and 2nd is 5% it means price can remain in the range of 103 to 97 for 68.2% of time and in range of 105 to 95 for 95.4% of time.
🟢We can expect action when stock breaches these prices
Rules to be followed
1⃣ Time frame 2 min
2⃣ Trade only between 9:20 am to 10 am
3⃣ Deploy RSI with 40 as overbought and 20 as oversold setting
4⃣ Trade to be initiated or squared off only on candle closing basis
5⃣ No trade zone if RSI is between 40 and 20
6⃣ R2R 1:1 OR 1:2
1⃣ Example
🟢1st candle RSI above 40.
🟢 Use the high of this candle as an entry condition
🟢 When any follow-up candle closes above high take entry and keep low of the candle as SL.
🟢 SL is to be booked only if the candle closes below SL line on closing basis