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Momentum Trader | Trading Coach | 'WHY' matters for me rather than 'HOW' | "Think, imagine, question, doubt and solve problems!" - @ProfFeynman
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Dec 1 5 tweets 2 min read
As this is a question several people asked me, hence posting it as a thread.

I rarely follow any rule, I believe in my abilities to identify character. It makes me able to make decisions in confusing situations too.

#IPOBases are volatile in nature. What I saw before (1/n) entering this stock was 3 days out of which on 18th Nov. gave a strong recovery and closed strongly. Next two days saw a volatility contraction in form of inside bars.

If a stock is not falling down, it is first sign of a probable recovery. Anything which is not going down (2/n)
Nov 21 9 tweets 3 min read
Srikanth, market doesn't work in that way. What we are seeing on the name of 52 week high etc is just an effect, an indicator of demand.

Question is what generates demand? Think on it - why you buy a stock? You buy it because you believe stock will go up. Hence behind your (1/n) action is your belief, your conviction which is the cause behind creating demand. Now think, where this conviction comes from?

For you, it might comes from technical aspects but for institutions, who makes these charts, the reason to buy or hold a stock is only value. (2/n)
Nov 21 4 tweets 2 min read
#SA_Notes for 21-11-2022

- Market is bear grip - both in long and short term.

- Volume still staying around 0.45, not suggesting any extreme. There is a high chance to see a continuation of the current situation for some more time.

- Bull swing is not yet around the (1/n) corner. Don't be in hurry to label any green day a start of a bull swing. Whenever market will stretch in shorter term time frame, it will give a green day or a strong opening, only to be sold off later. Beware of bull traps.

Such actions further tighten the bear grip. (2/n)
Nov 21 4 tweets 1 min read
यदि हमारे शास्त्रों में कोई सबसे दिव्य ज्ञान दिया गया है तो वो है 'अहम् ब्रह्मास्मि'! तुम में स्वयं ब्रह्म होने की क्षमता है, किंतु ब्रह्म होने की अनिवार्य शर्त एक ही है - आस्था की समाप्ति।

मुझे नहीं मालूम नास्तिकता इतनी अप्रिय क्यों है, क्यों इतनी नकारात्मक मानी जाती है। (1/n) जनतंत्र की भांति शायद यह इतना आधुनिक विचार है जिसके लिए मनुष्यता अभी तैयार नहीं है, उसे संभालने में सक्षम नहीं है। आस्तिकता आस्था से निकलती है, आस्था में प्रश्न की संभावना नहीं, केवल समर्पण की है। यहां केवल भक्त और भगवान का संबंध संभव है।

नास्तिकता प्रश्न का अधिकार देती (2/n)
Nov 20 13 tweets 6 min read
Hi Srikanth, you asked a very good and valid question. And I will love to revert on it.

First thing is, you need to understand that TA & a trading system are two different things. TA doesn't makes money, your system does.

TA just tells you that there are higher odds of (1/n) something happening over another thing.

If you read the bible of TA - John J. Murphy's Technical Analysis of the Financial Market, you won't be able to make money from it, as it might tell you about all sort of studies that can tell about having higher odds of one outcome (2/n)
Nov 19 4 tweets 1 min read
Much thanks bro. TBH, I want to change the complete way how technical analysis is done & taught in programs like CMT - I want to make it a study of the psychology of market participants rather than keeping it limited to drawing lines and spotting patterns and hoping them to (1/n) work.

It makes me really disappointed when people approach me and ask whether it is a right setup. Is it a right CNH? Is it a right VCP?

They are living in illusion where they forgot the cause, and are thinking that effects they seeing is everything.

This SHOULD change. (2/n)
Nov 19 6 tweets 2 min read
Color of a small size candle (size is high - low) doesn't matter much - whether red or green. With big volume it can be interpreted in 2 ways -

1) Inter institutional transaction - one major shareholder sold, and other one bought it from him. As we are not seeing any (1/n) price movement, it means no share came into public to be absorbed.

Problem arises when institution sells and public is supposed to absorb the supply.

For example this is Dixon on 25th July, 2019, almost a month before the huge move triggered. (2/n) Image
Sep 21 15 tweets 6 min read
Hi Nishant, I wrote a detailed thread on why I think it can fail. While any setup can fail, but obviously some are more failure prone and some are less.

We were taught to measure base in 2 ways - depth and duration. These are the key factors which differentiates a (1/n) flat base kind of setup from larger bases like CNH and W Bottom, VCP as pattern etc.

According to WON, a base can qualify for a flat base if it is 4 week long and upto 15% deep. But WON himself says that Flat Bases are weak bases - they work better when they emerge as a (2/n)
Jun 4 6 tweets 2 min read
These are rules for my #NSE_Universe watchlist -

▶️ CMP > 25
▶️ CMP < 10000
▶️ MCap > 300 Cr
▶️ MCap < 3 Lakh Cr (Below 1 Lakh Cr if only looking for small & mid cap)
▶️ Avg Turnover (50 day) > 2 Cr
▶️ Avg Vol (50 day) > 5000 (to remove ETFs)

Filter out stocks in 5% circuit! Two important tips -

▶️ While using moving averages (like I did for avg. turnover & avg. volume) keep in mind that chartink will remove stocks which didn't have 50 days of trading (as am using 50 MA). If you use 200, it will remove all stocks which gets listed within 200 days.
May 28 9 tweets 3 min read
Few months back I was in need for data for one of my research work. I had the raw data but I was looking for the code which can extract data in required format for research.

I wrote to everyone in India who could have helped me. They all are very famous & respected people. (1/n) I also tried to hire professionals who can do it for me. But they said it is not possible to do in this software.

I finally wrote to the company whose software I was using. They said, it is possible but didn't provided the code.

"IT IS POSSIBLE" - these were magical (2/n)
May 26 11 tweets 4 min read
The 2nd point here gave me goosebumps. Had been fighting against this myth of overhead supply and nonsense of buying at the ATH since long. Finally it is backed by performance too. 1/n This myth busting started with my concept of #200MA_LLR. I needed to thought deeply about it because in that setup, overhead supply was a common question and concern. Some of the first tweets regarding it where here. 2/n

May 6 6 tweets 2 min read
Many people keep on wondering about stages- stage 1, 2 etc. I usually do not bother much. Reason is, I usually do not get a tradable setup with right entry without a stock being in a stage 2 advance.

I just follow 2-3 rules for quick analysis. Firstly, I do not buy any (1/n) stock below its 200 DEMA. Not because this 200 DEMA rising for X no. of months will show me that the trend is established, but because it will provide resistance when the stock surges upwards.

2nd thing I like to see is volume. Stage 1 is neglected phase, except some core (2/n)
Mar 20, 2021 20 tweets 9 min read
#CaseStudies #IPOBase #Shankara

As mentioned, here is my next study on #IPOBases on Shankara Building Products. The public offer for Shankara opened on 22nd March, 2017 & closed on 24th March, 2017. It saw good response in public offer, got subscribed 41.88 times and got (1/n) listed at 18% premium on 5th April, 2017.

Post listing what the stock made, we can call it a model IPO Base. It just can't be any better. The stock rose for 5 days post listing, signifying good demand before forming its left side high of the base. For 2 weeks we saw a (2/n)
Mar 18, 2021 27 tweets 9 min read
Conducting study on how we would have done if we would have bought every valid #IPOBase breakout since 2017. This will help us in finding the success rate of IPO bases and also in identification of the characteristics of a high probability setup. While I wish to publish (1/n) complete study & the results on completion, but as it includes too many stocks and multiple charts of each setup, it will become too much complicated to publish on twitter. Hence I will share some #CaseStudies here which I hope will be beneficial not only in understanding (2/n)
Oct 25, 2020 10 tweets 3 min read
On this very auspicious day of Shree Vijaya Dashami, I am glad to announce the launching of my Chart Reading Master Class Course, the CRMC. CRMC is actually Module A of my Mentorship Program which is currently available only to those who are personally in touch with me. In (1/n) the past one year, whenever I shared any part of my chart studies or research work, I often get many queries about whether I will be interested in mentoring the way I read the charts, and after a long pending constant demand, I finally decided to launch this program for (2/n)
Oct 16, 2020 34 tweets 12 min read

I decided to do case studies of super performers of past few years for research purposes. Will publish some of them here for learning purposes. Today am publishing case study of #AvantiFeeds of year 2017. (1/n) #CS1 We need a beginning point to start studying, and here we will use the point from where we'll determine that the stock is in Stage 2. This is Jan 2017 chart on weekly.

I used bar replay feature of tradingview for this study. On weekly charts these are 10 & 40 period EMAs. (2/n)
Sep 20, 2020 18 tweets 5 min read
Thank you everyone for participating in the poll. As expected most people do not believe that it is possible to catch tops & bottoms, & they are not entirely wrong. I will love to share my opinion on this subject as well.

I believe it is possible (1/n)

to catch tops & bottoms though not in every stock. But many stocks often show clear signs of top & bottom formation and I myself had caught many tops in past, but as I was never been interested in bottom fishing, I never tried to buy at the bottom.

Catching Tops & Bottoms (2/n)
Sep 2, 2020 6 tweets 1 min read
The Aha! moment of my career came when I started looking at price action as a study of market psychology. My thought process is built upon 4 fundamental rules which helps me understand what the market wants to tell. And due to this, I never find myself confused with any (1/n) of the trading decisions I've to make. Let's see those 4 rules-

1) Thinking in terms of suddenness, extremes and urgency - this is important for chart reading.

2) Thinking in terms of expectations and expectation failures - helps with understand what major forces are (2/n)
Aug 25, 2020 5 tweets 2 min read
Dear Team @zerodhaonline, first of all congratulations for winning the prestigious ET Startup of the Year Award. This is well deserved.

As you guys are relentlessly working towards bringing in cool features for you customers, I have a request (1/n)
& also wanna derive your attention towards a problem on kite web. Let's start with request.

Am a swing trader, I place my SL using SLM orders in morning for my open positions. Sometimes I have to leave my trading desk during market hours as well, so I remain assured. 2/n
Aug 11, 2020 5 tweets 1 min read
Most of the trades fail due to questionable setups. And in an environment like such, when everything is giving a breakout, it is very difficult to select appropriate setups. Specially due to FOMO: we often try to have every stock in our portfolio which is breaking out. 1/ Result- over trading & trading faulty setups!

The best way to avoid this is to have a proper trade selection checklist. This checklist will immediately tell you whether you should be taking the trade or not, and even if you'll be taking the trade, what are the probable 2/
Aug 11, 2020 4 tweets 1 min read
IMHO, tightness in price can't be sufficient for a trade selection if the context is not in sync with the direction of your trade. Tightness will create temporary velocity, as volatility tends to expand after contraction, but will face OH supply as it 1/
moves up. More than temporary excitement it causes due to speed, important is that your trade meets the target.

With all respect to your knowledge & experience, I trust & admire your capabilities to deal with situations even if you're playing with fire, but you have a huge 2/