This is how you use 3 Timeframes (M/W/D) to identify the Major trend, pin down on a stock & also buy at the right entry point.
Rule 5⃣: If you read till here & ♥️ this thread, then you are definitely going to like my video explanation & also my 'Learn with Trendline Investor' Playlist on Youtube!
This is the most important thing especially if you are analysing long term charts!🧐
So, let's get this right today!
Let’s go🧵...
1⃣ Wait, What's Log chart?
Before I define Log chart, let's look at the chart you are using daily - 'The Linear Chart'
- Linear chart is used by default in most platforms. This is probably why you never knew log charts
Wait, don't click on 'log' yet before you understand it...
2⃣ ok, so what does Linear chart mean?
Take a look at the image
- The y-axis is separated equally by 1000 points starting from 0 to 11000.
- So, any linear chart would have its y-axis equally separated by 'N' points always
It took me 10+ years & more than 1000+ hours of practice…
to master these 5 IMPORTANT RULES WHILE DRAWING TRENDLINES 🎯
These simple rules, if mastered, can help one spot HIGH PROBABILITY TRADES!
Ready to learn?🤓
Let’s go🧵…
1⃣ Trendlines are zones and not a single line!
- Due to volatility in price, many times prices tend to spike on both sides
- So, consider trendlines as zones from multiple swing highs(include wicks) to get the best fit trendline
- Your winning probability increases with zones
2⃣ Trendlines with more touchpoints
- Any trendline with 3 or more touchpoints is a very significant one
- The price points around significant trendlines are important & should be watched
It took me 7+ years to master the most important thing in trading...
EXITS, EXITS & EXITS!🎯
It is when you finally exit a stock that you make money and it is the most confusing!
So, here are 5⃣simple yet effective EXIT STRATEGIES for you...
Ready to learn?🤓
Let's go...🧵
1⃣ Primary trendline breakdown
My favourite exit rule which never fails to amaze me! Very effective and keeps you away from stocks entering long sideways consolidation/correction phase 😃
2⃣ Price over extended
When a stock rallies continuously, it is most likely that it will give back at least 30% of its gains in a quick time. If you want to avoid giving back gains, use this technique to sell on rise.
The only BREAKOUT scanner that I use day in and out...
for both LONG TERM BREAKOUTS and...
POSITIONAL TRADES based on the CCI Indicator🤓
Ready to learn how I use it?
Let's go🧵...
1⃣ Since the scanners are based on CCI, let's learn what's CCI first 👇
The most important diagnostic tool for me that signals turning point in stocks. It’s very simple to understand, so give it a try after watching the video.
2⃣ The LONG TERM breakout scanner which is based on the weekly timeframe is simple and can be used to identify
- Positional trades
- Multibagger Ideas (don't forget to check the rules in 3)