Passionate Educator and Knowledge Advocate | Sharing insights on Trading & Financial Markets | Former Dean & Professor
Jan 29 • 36 tweets • 8 min read
Follow this thread for a step-by-step guide on how to calculate, interpret, and apply ADX to both OHLC and PnF charts. Plus, discover how to use ADX for indicative scans. #ADX#TechnicalAnalysis#Trading
This thread includes a study of Welles Wilder from his book ‘New Concepts in Technical Trading System’ on the Average Directional Index (ADX). This book also includes details on Average True Range (ATR), the Parabolic SAR system, and RSI.
Dec 11, 2022 • 18 tweets • 6 min read
We will delve into the use of Options Chain analysis as a tool for gaining insights into the market's direction.
We will touch on two concepts - Max Pain and PCR, and how to apply this information to your trading decisions. #OptionsOpenInterest#MarketAnalysis
In this thread, we are going to discuss which tools to use to analyze OI, how to interpret the data and some case studies.
Dec 4, 2022 • 24 tweets • 5 min read
Open Interest and how to effectively use open interest for our analysis
Let us start with understanding what is Open Interest and why traders are obsessed with OI data. What information we can fetch from the data and why analysing it is important?
Nov 12, 2022 • 18 tweets • 6 min read
“If you are in the right sector at the right time, you can make a lot of money real fast.” – Peter Lynch
In this thread, 🧵⬇️
- we will discuss sector rotation
- how we can spot that with help of @mystockedge
Sector rotation is the movement of money invested in stocks from one industry to another as investors and traders anticipate the next stage of the economic cycle.
Sep 30, 2022 • 20 tweets • 4 min read
Thread-6 | Pole - High Pole 🧵⬇️
In this thread we will discuss: 1. Pattern construction 2. High Pole 3. How to trade High Pole
Pattern Rules (three requirements) 1. Breakout – DTB or DBS 2. Long Column 3. Price retracing at least 50%
All happening over 4 Columns
Sep 27, 2022 • 14 tweets • 5 min read
Thread-5 | Traps Pattern
In this thread we will discuss: 1. Traps 2. Importance of Traps 3. Types of Traps patterns 4. Bear Traps 5. Bull Trap
Traps is getting stuck in a trade that has moved against the entry
In this thread we will discuss: 1. Box Value into different slots 2. Pattern formation in each slot 3. Importance of patterns in different box values
Whenever we decide to plot P&F Charts, determining box values is important. Log box values have simplified the subject and made the patterns and other P&F formations more relevant.
Sep 9, 2022 • 18 tweets • 5 min read
Thread-2 | Basic Patterns of P&F Charts
In this thread we will discuss: 1. Column Reversal 2. Double Top Buy (DTB) 3. Double Bottom Sell (DBS)
In the first thread of the Twitter Thread series, we discussed the construction of P&F charts. So, for a quick recap, a shift in column happens in the P&F chart only when reversal criteria is met.
Sep 6, 2022 • 34 tweets • 8 min read
Thread-1 | Introduction to P&F Charts
In this thread we will discuss: 🧵⬇️ 1. What is a Point & Figure Charts (P&F) 2. Why consider P&F for trading and investing 3. Construction of P&F Charts 4. How P&F method of charting will help you
What is a P&F?
P&F chart plots price movements for stocks, bonds, commodities, or futures without taking into consideration the passage of time. Contrary to some other types of charts like OHLC, which mark the degree of an asset's movement over set time periods
In the thread⬇️ 1. #Nifty Range and Breadth 2. #Banknifty range and Breadth 3. #Sector Breadth 4. #FII Derivative Activity 5. #Summary of the analysis 1. Price trading above TMA is bullish 2. Broke out of recent consolidation 3. Near resistance is 18000 4. Support is 17500 #Nifty#nifty50#NIFTYFUT
In the document ⬇️ 1. #Nifty Range and Breadth 2. #Banknifty range and Breadth 3. #Sector Breadth 4. #FII Derivative Activity 5. #Summary of the analysis 1. The marked zone in 'Green' is Demand Zone for Nifty 2. Price has traded there for more time than expected near the Demand Zone 3. Price trading near the demand zone is a negative sign and may have weakened the zone
1. Trading below TMA 2. TMAs are turning negative 3. When TMAs are in the process of becoming negative = #markets generally go sideways 4. Expect sideways to #bearish action
May 29, 2022 • 12 tweets • 6 min read
Did you try predicting momentum in stock but failed? This thread is for you.
In this tread, we will discuss the concept of Momentum Trading using Relative Strength to identify a perfect trade setup which will have high accuracy and small SL.
Strategy Thread 🧵⬇️
Relative Strength is a behaviour of stock w.r.t Benchmark or Sector. That means it is a method of identifying stocks or instruments that are relatively strong or weak either against benchmark or sector.
Feb 10, 2022 • 19 tweets • 6 min read
Have you ever thought of considering #CAGR for your #trading?
If not, this thread will give you a new insight into how CAGR can be used for trading as well as in investing. I have been using this concept for a long time now.
CAGR stands for Compound Annual Growth Rate. This shows - at what rate the stock/index is growing year on year. In my terms, how much wealth it has generated for the investor. I have not come across any other ratio which gives this information.
Dec 19, 2021 • 7 tweets • 6 min read
Master Thread 🧵| Index of all Twitter Threads and YouTube Videos of November and December month
Moving Averages (#MA)
Relative Strength Index (#RSI)
Trading #Divergences using RSI