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Neha Singhal Trader

@nsinghal211

Jan 23

Open this Thread 🧵 to learn Pennant Pattern in Trading : How to Select Stocks, Set Stop Loss, Find Targets 👇👇

Types of Pennant Patterns

Bullish Pennant 🟢Occurs: After a strong upward price movement.

Indicates : The price is likely to continue moving upward after consolidation.

Key Features:Strong upward flagpole.
Tight consolidation forming a symmetrical triangle.
Breakout above the resistance line.

Bearish Pennant 🔴Occurs: After a strong downward price movement.

Indicates : The price is likely to continue moving downward after consolidation.

Key Features : Strong downward flagpole.
Tight consolidation forming a symmetrical triangle.
Breakdown below the support line.

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How to Identify a Pennant Pattern

Flagpole Formation : Look for a sharp price movement (either upward or downward).

Consolidation : Price moves within a narrowing range, forming a small symmetrical triangle.

Volume Behavior : Volume declines during the consolidation phase.

A spike in volume occurs at the breakout/breakdown point.

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Neha Singhal Trader

@nsinghal211

Jan 22

Open this Thread 🧵to learn PE Ratio, PB Ratio, ROE, ROA, Debt to Equity, current ratio, net profit margin, Dividend yield, EBITDA ⏬⏬

Create Portfolio via using these financial ratio which helps you to find best stock for long term.

1. PE Ratio (Price-to-Earnings Ratio)

Formula:

PE Ratio = Price per Share / Earnings per Share (EPS)

Example:

Stock Price: ₹100
EPS: ₹10

PE Ratio = 200 / 20 = 10

Buy/Sell Decision :

Buy : If PE (10) is lower than the sector average PE (15), the stock may be undervalued.

Sell : If PE (10) is higher than its growth potential or the sector average, it may be overvalued.

2. PB Ratio (Price-to-Book Ratio)

Formula:

PB Ratio = Price per Share / Book Value per Share

Example:

Stock Price: ₹120
Book Value per Share: ₹80

PB Ratio = 250 / 200 = 1.25

Buy/Sell Decision:

Buy : If PB < 1, stock is undervalued compared to its net assets.
Example: PB = 0.8 in a banking stock is a buy signal.

Sell : If PB > 3 without corresponding growth, it might be overvalued.

Read 12 tweets

Neha Singhal Trader

@nsinghal211

Jan 21

MACD Strategies : How to use MACD in intraday and identify fake breakout.

Open this Thread 🧵 to learn MACD strategies for Swing trading

1. Multi-Timeframe MACD Analysis

Concept : Combine MACD signals from multiple timeframes to filter false signals and ensure alignment with the broader trend.

Steps:

Higher Timeframe (e.g., Daily) : Use MACD to determine the primary trend.Bullish: MACD Line > Signal Line and above 0.

Bearish : MACD Line < Signal Line and below 0.

Lower Timeframe (e.g., Hourly): Enter trades in the direction of the higher timeframe's trend when MACD gives a crossover signal.

Example :

Stock : INFOSYS
Daily MACD : Bullish (MACD Line = 5, Signal Line = 2).

Hourly MACD : Bullish crossover at ₹1,450.
Entry : ₹1,455.
Stop Loss : ₹1,430 (hourly support).
Target : ₹1,500 (previous high).

Pro Tip : Multi-timeframe analysis reduces whipsaws in volatile markets.

2. MACD with RSI for Overbought/Oversold Confirmation

Concept : Combine MACD momentum signals with RSI overbought/oversold levels to identify precise reversals.

Rules :

Buy when : RSI < 30 (oversold), AND
MACD Line crosses above Signal Line near the 0-line.

Sell when : RSI > 70 (overbought), AND
MACD Line crosses below Signal Line near the 0-line.

Example :
Stock: TCS
RSI = 28 (oversold).
MACD Line = -0.2, Signal Line = -0.3 → Bullish Crossover.
Entry : ₹3,250.
Stop Loss : ₹3,200.
Target : ₹3,400.

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Neha Singhal Trader

@nsinghal211

Jan 20

VWAP Strategies : Intraday and swing trading strategy using VWAP

Open this Thread 🧵 to learn all VWAP Strategies

1. Mean Reversion with VWAP (Rejection Trades)
Concept: When the price moves far from VWAP and shows signs of rejection, trade back toward the mean (VWAP).

Rules :

Identify Overextension : Use an oscillator like RSI (>80 or <20) to confirm overbought/oversold conditions.

Rejection Signal : Look for candlestick patterns like shooting stars or hammers near the extremes.

Entry : Short when the price rejects a higher level or buy when it rejects a lower level.

Stop Loss : Above the recent high or below the recent low.

Target : VWAP.

Example :

Stock: ICICIBANK
Price shoots up to ₹950 (RSI at 85), far above VWAP = ₹940.

Shooting star forms at ₹950.
Entry: Short at ₹948.
Stop Loss: ₹952.
Target: ₹940 (VWAP).

2. Dual VWAP Crossover Strategy

Concept : Use two VWAPs—one with a shorter period and another with a longer period. Look for crossovers as entry and exit signals.

Rules :

Set VWAP Periods: Use intraday 5-min VWAP for a short period and 15-min VWAP for a long period.

Bullish Signal: Buy when the short-period VWAP crosses above the long-period VWAP.

Bearish Signal: Short when the short-period VWAP crosses below the long-period VWAP.

Example:
Stock: HDFCBANK
5-min VWAP = ₹1,620, 15-min VWAP = ₹1,615.

Entry: Long at ₹1,620 (crossover).
Stop Loss: ₹1,615.
Target: ₹1,635.

Read 11 tweets

Neha Singhal Trader

@nsinghal211

Jan 18

Mastering Option Greeks : How to use Delta, Gamma, Theta, Vega, and Rho

Open this thread 🧵to learn which option strike to choose for option buying or option selling👇

Tips for Beginners

Telegram channel - t.me/nehasinghaltra…

Delta : Use for directional trades. Choose ITM for higher probabilities or OTM for lower premiums.

Gamma : Monitor for volatile movements. Adjust positions dynamically.

Theta : Sell options close to expiry for higher time decay.

Vega : Watch IV trends before entering trades.

Rho : Focus on long-term options when rates are expected to change.

1. Delta (Δ) : Measuring Price Sensitivity

What is Delta?
Delta represents how much an option's price changes when the underlying asset moves by ₹1.

Call Option Delta : Positive (0 to 1).
Example : A delta of 0.5 means the option price will increase by ₹0.50 for every ₹1 rise in the underlying asset.

Put Option Delta : Negative (-1 to 0).
Example : A delta of -0.4 means the option price will drop by ₹0.40 for every ₹1 rise in the underlying asset.

Usage :
High delta options are ITM (In-the-Money) and react more to price changes.

Low delta options are OTM (Out-of-the-Money) and less sensitive.

Example Calculation :
Underlying Stock : RELIANCE at ₹2,400.
Call Option (₹2,400 Strike) : Delta = 0.6.
If RELIANCE moves to ₹2,410 :Option price increases by ₹6 (₹10 x 0.6).

Read 10 tweets

Neha Singhal Trader

@nsinghal211

Jan 17

Bollinger Bands all Strategies for option buyers and sellers. Swing trading using Bollinger band

Open this Thread 🧵 to learn intraday and swing trading strategies with Bollinger bands on multiple timeframe 👇👇

What Are Bollinger Bands?

Middle Band : A Simple Moving Average (SMA), usually 20 periods.
Upper Band : SMA + (2 * Standard Deviation).
Lower Band : SMA - (2 * Standard Deviation).

Telegram channel free t.me/nehasinghaltra…

These bands expand during high volatility and contract during low volatility, giving traders clues about market behavior.

Strategy 1: Bollinger Band Squeeze (Breakout Strategy)
Concept:

When bands contract (squeeze), it indicates a period of low volatility, often followed by a sharp breakout.
How to Trade:

Entry : Enter when price breaks above/below the bands after a squeeze.
Stop-Loss : Place SL below/above the breakout candle.
Target : Measure the width of the bands before the squeeze and project it from the breakout point.
Example:

Stock : TCS
Observation : BB squeeze on a daily chart.
Breakout : Price breaks above the upper band at ₹3600.
Entry : ₹3610.
Stop-Loss : ₹3550.
Target : ₹3750 (based on pre-squeeze width).

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