thread 🧵
how to decode my strength score report & use it for identifying trend reversal

first understand my core formula for making report
i use 2 indicators for make this

1 = SUPERTREND
2 = CCI

@Trendmyfriends
@SouravSenguptaI

https://twitter.com/trend_folowing/status/1511335407325220864

I consider above super trend is positive and below is negative
above 100 cci is positive and below -100 cci is negative

as per this calculation I give score to all F&O stocks
and after that
positive-negative = net score
previous day score - today score = change in strength

Some important basics I follow for stock selections
Let's understand in simple words

Most of friends know I am following just 2 indicators supertrend 10.2 & DC50

someone messaged me when you buy at supertrend and when DC50?

Let's understand this First assume we have a one team with aprox 100 players and one good captain

Players = stocks
Captain = nifty

And race for running between this players and captain

We have some stations between race-course

1= supertrend
2=DC50
3=52 week high
4=all time high

thread 🧵

𝗵𝗼𝘄 𝘁𝗼 𝗯𝗲𝗰𝗼𝗺𝗲 𝗽𝗿𝗼𝗳𝗶𝘁𝗮𝗯𝗹𝗲 𝘄𝗶𝘁𝗵 𝘀𝗺𝗮𝗹𝗹 𝗮𝗰𝗰𝗼𝘂𝗻𝘁 𝗶𝗻 𝗼𝗽𝘁𝗶𝗼𝗻 𝗯𝘂𝘆𝗶𝗻𝗴

there is overall perception in tweeter that only option seller make money and option buyer lose money

its right ? 𝗻𝗼
its completely wrong ? 𝗻𝗼
⬇️

https://twitter.com/trend_folowing/status/1502870450195484672

average capital of option buyer is between 1 to 5 lac

option seller target 1-1.5% of there capital
but option buyer target 1 lac % 😂

thoughts of buyer

ye kal 2 ka tha aaj 10 ho gaya maine liya hota to?
hero zero trade mileaga or ham carorpati ban jayenge

⬇️

Why most of small account traders fail in option buying?

Some of the reasons 👇

1- They start with 1-2 lac & try to make 10-20k/day because in twitter everyone making 10-15 lac par day so after seeing those screenshot-guys they want to copy them

⬇️ 2- most of the time they identify good entry in option but after some small reversal they think कहीं आया हुआ प्रॉफिट चला ना जाए इसलिए book कर लेते हैं।

And if position go against them from start then they hold क्युकी लॉस बुक करेंगे तो लॉस हो जाएगा ना, इसलिए hold करेंगे।

⬇️

Before going deep in setup, I will explain how I think about option buying in intraday 🧵

• Option buying is not buy & hold type of instrument

• And as a trend follower I can’t follow a trend in option buying

1-

https://twitter.com/trend_folowing/status/1482963007479029762

• Most common mistakes we all are doing in option buying is buy & hope

• It’s not work like that because options has an inherent nature of dilute

• If we are right in our prediction and our option price go up after buy but then we hope that it will go up & up & up

2-

thread alerts 🧵

how to give simple ranking to stocks witch is trending higher & witch is trending lower

for simple ranking you can use CCI indicator
for identified top strong & top weak stocks.

@Trendmyfriends
1⃣ CCI Developed by Donald Lambert

⚡️The Commodity Channel Index​ (CCI) is a momentum-based oscillator used to help determine a price trend direction and strength of stocks

⚡️CCI measures the difference between the current price and the historical average price.
2⃣

so many friends want to learn trend following & read multiple books

but today i made thread from knowledge shared by most experienced trend follower and best mentor for psychology & mindset

after studying tweets by @Trendmyfriends sir you don't need any book or strategy
1⃣ first of all start trading with any strategy you need to make proper sustainable business plan,

its include how it works

if its not work what to do

how you plan your whole execution

and for this you just need to study this 2 images shared by sir

how to make VAR
2⃣