Positional and Swing Trading is best trading style to trade as it requires less efforts and time to generate good returns.
Sharing SIMPLE Positional Trading Strategies that I personally use.
A course worth Rs 50K for FREE.
Last strategy is my favourite.
Sharing SIMPLE Positional Trading Strategies that I personally use.
A course worth Rs 50K for FREE.
Last strategy is my favourite.
1/ All Time High or 52 week High Breakout:
Stock that breaks the uptrend are the one that can give massive upmove.
These stocks are considered as strong stocks in the market.
Timeframe should be monthly and if price closes above ATH or 52 week high on any day you can enter.
Stock that breaks the uptrend are the one that can give massive upmove.
These stocks are considered as strong stocks in the market.
Timeframe should be monthly and if price closes above ATH or 52 week high on any day you can enter.
Example 1:
Bajaj Finance gave a breakout above ATH at around 55 and then it moved up till 5000 levels.
Total returns of 9000% in 10 years.
Simple Strategy, isn't it?
Bajaj Finance gave a breakout above ATH at around 55 and then it moved up till 5000 levels.
Total returns of 9000% in 10 years.
Simple Strategy, isn't it?
Example 2:
Reliance Chart.
It gave breakout above its All Time High level after 10 years and then never looking back.
Price moved up from 700 to 2600.
Returns of 270% in five years.
Reliance Chart.
It gave breakout above its All Time High level after 10 years and then never looking back.
Price moved up from 700 to 2600.
Returns of 270% in five years.
How to Follow/Trail Stoploss?
Initially keep stoploss at swing low on daily/weekly chart and trail your stoploss accordingly to enjoy massive upmove.
Other ways of Trailing Stoploss can be using 200 EMA or any other indicator.
Initially keep stoploss at swing low on daily/weekly chart and trail your stoploss accordingly to enjoy massive upmove.
Other ways of Trailing Stoploss can be using 200 EMA or any other indicator.
2/ Using CCI for short-term trading:
This is the simple strategy, which is explained theoretically .
⚡️ Buy stock if CCI crosses above +100
⚡️ Exit if CCI crosses below -100
Sharing a chart of Dixon which satisfied above criteria and stock has given 360% returns.
This is the simple strategy, which is explained theoretically .
⚡️ Buy stock if CCI crosses above +100
⚡️ Exit if CCI crosses below -100
Sharing a chart of Dixon which satisfied above criteria and stock has given 360% returns.
One can modify this setup as well.
Like Entry can be if CCI crosses above 0/-100.
And Stoploss will be the same.
CCI above 100 means the stock is in good momentum for short term.
Like Entry can be if CCI crosses above 0/-100.
And Stoploss will be the same.
CCI above 100 means the stock is in good momentum for short term.
3/ Volume Spike:
Rule:
⚡️ Time frame: Daily/Weekly
⚡️ Volume should spike by more than 2x after a good downtrend (on non event days)
⚡️ After spotting the candle in which Volume Spike is there, mark high and low of that candle as it is very important.
Rule:
⚡️ Time frame: Daily/Weekly
⚡️ Volume should spike by more than 2x after a good downtrend (on non event days)
⚡️ After spotting the candle in which Volume Spike is there, mark high and low of that candle as it is very important.
⚡️ Wait for the price in the next few days to close above the high of that candle.
⚡️Once the price closes above the high, buy that stock and keep. stoploss a few points below the low of the candle in which the spike is there.
⚡️Once the price closes above the high, buy that stock and keep. stoploss a few points below the low of the candle in which the spike is there.
⚡️Sometimes candle will be big and sometimes it will be small, so better risk 2-3% of the total capital in each trade.
⚡️Keep Risk:Reward of atleast 1:2. So let's say risk in stoploss is 10 points, then reward/target has to be more than 20 points.
⚡️Keep Risk:Reward of atleast 1:2. So let's say risk in stoploss is 10 points, then reward/target has to be more than 20 points.
⚡️I also use 10-20% target for short term and 40-50% target in positional trade. You can use this rule as well.
⚡️As we are taking reversal trade, hence no need for trailing stoploss. Exit if your target is hit or trail aggressively.
⚡️As we are taking reversal trade, hence no need for trailing stoploss. Exit if your target is hit or trail aggressively.
⚡️If you see Volume Climax setup at support/resistance, then it is the best trade to take in swing/positional. Never miss such a trade.
Now let's see an example in which I personally took the trade based on Volume Climax and also it was shared on Twitter.
#DMART Weekly Time Frame formed Volume Climax Pattern and after breakout stock moved up by 100%.
Risk was hardly 20% in this.
#DMART Weekly Time Frame formed Volume Climax Pattern and after breakout stock moved up by 100%.
Risk was hardly 20% in this.
4/ Volatility Contraction:
Setup:
⚡️ Identify a big candle either bullish or bearish which have less wick.
⚡️ Volume of this candle should be above average
⚡️ After that atleast three entire candle should form inside the range of that big candle
Setup:
⚡️ Identify a big candle either bullish or bearish which have less wick.
⚡️ Volume of this candle should be above average
⚡️ After that atleast three entire candle should form inside the range of that big candle
⚡️ Wait for breakout above high of the big candle with good volumes
⚡️ Stoploss will be low of the same big candle and trail SL as per your setup
⚡️ Target Risk:Reward of atleast 1:1
⚡️ Stock can be in any trend
⚡️ Use Daily/Weekly/Monthly Time frame
⚡️ Stoploss will be low of the same big candle and trail SL as per your setup
⚡️ Target Risk:Reward of atleast 1:1
⚡️ Stock can be in any trend
⚡️ Use Daily/Weekly/Monthly Time frame
Let's see some live case or examples.
Graphite Daily Chart.
After satisfying all the criteria of candle formation and a breakout above big candle high.
After that stock had rallied from 262 to 332 which is almost 27% returns in short term. Risk in this trade was 11%.
Graphite Daily Chart.
After satisfying all the criteria of candle formation and a breakout above big candle high.
After that stock had rallied from 262 to 332 which is almost 27% returns in short term. Risk in this trade was 11%.
#SRF Weekly Chart.
It had formed Volatility Contraction pattern and gave breakout above high.
After that stock had rallied from 415 to 580 in short term.
Returns of 39% and Risk in this trade was 10%.
It had formed Volatility Contraction pattern and gave breakout above high.
After that stock had rallied from 415 to 580 in short term.
Returns of 39% and Risk in this trade was 10%.
#IndiaMart Monthly Chart.
It had formed Volatility Contraction pattern and gave breakout above high.
After that stock had rallied from 2850 to 9900 in six months.
Returns of 250% and Risk in this trade was 43% which is very high. So position sizing is important here.
It had formed Volatility Contraction pattern and gave breakout above high.
After that stock had rallied from 2850 to 9900 in six months.
Returns of 250% and Risk in this trade was 43% which is very high. So position sizing is important here.
Now important part.
I have created scanners related to the same on Chartink.
Daily Volatility Contraction: chartink.com/screener/volat…
Weekly Volatility Contraction: chartink.com/screener/volat…
You can create a screener for monthly time frame and share it with others.
I have created scanners related to the same on Chartink.
Daily Volatility Contraction: chartink.com/screener/volat…
Weekly Volatility Contraction: chartink.com/screener/volat…
You can create a screener for monthly time frame and share it with others.
I have created Volatility Contraction #Indicator on
@tradingview
and it is open sourced.
Use this link to add the indicator:
in.tradingview.com/script/kQkTd6E…
It will mark Volatility Contraction (VC) candle automatically on chart and it will adjust according to the time frame.
@tradingview
and it is open sourced.
Use this link to add the indicator:
in.tradingview.com/script/kQkTd6E…
It will mark Volatility Contraction (VC) candle automatically on chart and it will adjust according to the time frame.
Note all these strategies are simple and effective to use but these are not holy grail strategies. If you are confident and comfortable, then only use it.
Stoplosses will hit, but it is part of the trading. So accept it and move on to the next opportunity.
Stoplosses will hit, but it is part of the trading. So accept it and move on to the next opportunity.
These are some Positional and Swing Trading Strategies I use in Stocks.
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If you found this useful, please RT the first tweet.
For live trading and stock market related updates, you can join our Telegram Channel⤵️
telegram.me/finquity
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