Swing Trading Strategy
That can help you generate Monthly Income !
A thread 🧵
Using RS , MACD , 21 EMA and Price Action
All Concepts with charts Explained !

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UNDERSTANDING MACD
Moving average convergence divergence (MACD) is a trend-following momentum indicator that shows the relationship between two moving averages of stock.
It is calculated by subtracting the 26-period exponential moving average (EMA) from the 12-period EMA.
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The result of that calculation is the MACD line. A nine-day EMA of the MACD called the "signal line," is then plotted on top of the MACD line, which can function as a trigger for buy and sell signals.
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Traders may buy the security when the MACD crosses above its signal line and sell—or short—the security when the MACD crosses below the signal line.
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UNDERSTANDING RELATIVE STREGTH
1.Relative strength is a strategy used in momentum investing and in identifying value stocks.
2. It focuses on investing in stocks or other investments that have performed well relative to the market as a whole or to a relevant benchmark.
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My biggest issue investing is giving back too much of good gains. So I've been working on offensive sell rules and this is what I've come up with. Still a work in progress so this is just the beginning.

Use the attached chart for extensions above key moving averages.

Calculate market cap at time of breakout.
Small cap less than 2 Billion
Mid Cap 2-10 Billion
Large over 10 Billion

Once the average extension above the 200 day is reached. Look back at the uptrend since last breakout and determine which moving average shows the most obvious support. Sell on first close below that moving average.
Can use 10 21 or 50 day. If uncertain use the larger of the two

If the Top 10 extension is reached then stop changes to close below the 10 day.

If price continues up and gets above both 50 and 200 day Top Ten extensions then sell.

Some examples.
NVDA Large Cap break out March 2016
7/11 over 52% use 50 day as stop
11/11 over 68% use 10 day as stop
11/30 closes below 10 day. Sell

I found two cash stocks which are near 52 weeks high in this correction.
JK paper and GHCL.
Both MCAP under 5000 cr.
Annual Profit more than 500 cr.
@Atulsingh_asan
He can further guide.
I have not invested yet.

Your trading life depends on two things:
1. How well you protect your principal.
2. How well you protect your profits.
If you can't do those two things well - regardless of style or strategy - everything else will result in trading mediocrity.
What is your protection plan?

5 Types of Elliott Wave Patterns to understand Market Behaviour (🧵)

Before we dig in, what exactly is the Elliott Wave Theory?

The Theory suggests that the #stock priced move continously up & down in the same pattern known as waves👇

The underlying theory behind these waves is #Trader Psychology. The Theory suggests that these patterns are recurring in nature👇

1. Motive Waves: These move in the direction of the main #trend and consists of 5 waves that are labeled as Wave 1..2..3..and so on👇

Wave 1,2 and 3 move in the main direction, whereas Wave 2 and 4 move in the opposite direction. There are 2 types of Motive Waves: Impulse and Diagonal Waves

2. Corrective Waves: These are known to counter the main trend. They are more complex and time-consuming than motive Waves👇

Just because there's a 4ema cross doesn't mean there's a SS. Study guide.

1. Not a slingshot
2. not a slingshot
A. interday triggers but no slingshot close above 4ema
3. not slingshot - just range break (would have been on hourly)
4. not a slingshot.
5. A Great Slingshot

It only takes a few big winners to have a great year (if handled correctly). O’Neil had 2 of these monsters (over 100%) from this list in ‘63. Pic is from The Haller Theory Of Stock Market Trends - 1965 by Gilbert Haller.

A detailed guide on how to trade chart patterns like a pro even if you have no trading

What is your favorite day trading strategy?

Another day in the office...

Apart from that, in case you were wondering, last week's third most popular thread was this one. See You soon! 👉

@PARKER_WINS @monsterstocks1 @johnscharts @IBDinvestors

@MaanNischay I prepare a potential list From Bhav Copy OI Build up & OI Decrease data and watch them regularly.

I always look at weekly charts first. Only if I see an appealing chart pattern (VCP, cup & handle, flat base …) here, I go to the daily chart. With that approach, I can flip over hundreds of charts in minutes.

Moving Averages is a common indicator which most of us (novice/professional) use in the stock market for trading and investment.

This learning thread would be on
"𝙐𝙨𝙚𝙨 𝙤𝙛 𝙈𝙤𝙫𝙞𝙣𝙜 𝘼𝙫𝙚𝙧𝙖𝙜𝙚"

Like👍 & Retweet🔄 for wider reach and more such learning thread.

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Basics of the moving average:

It takes average of the price for the duration we want.

So 10 days moving average means an average price of 10 days closing price.

Common types of Moving Average:
Simple, Exponential, Weighted.

Use only one type in your trading setup.

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Different uses:

1⃣ Moving Average Crossovers:

Common strategy used by positional traders and investor in finding multibagger or good returns stocks.

Common crossover used is for 50 & 200 Moving Average.

Also, this is called as "𝗚𝗼𝗹𝗱𝗲𝗻 𝗖𝗿𝗼𝘀𝘀𝗼𝘃𝗲𝗿"

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In this buy signal is initiated when lower MA (50 EMA) crosses above higher MA (200 EMA).
And exit or sell signal is intiated when lower MA (50 EMA) crosses below higher MA (200 EMA).

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Let's see an example:
Pidilite Industries

Buying Price was 56 in 2009 and CMP is 2462 and still there is no selling signal.

44 times Multibagger or 4300% returns.

In lower time frame, it will give more whipsaw and more number of trades.

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For me, #Price & #BollingerBands r enough 4 forming a view about a stock. However, I smtimes also use following as my confluence factors:
1. RS along with its #SMA 144 & 63
2. #SMA50
3. Ichimoku Cloud
4. Super Trend

What do u use as ur Primary & Secondary Indicators ? Comment.

Avoiding big draw downs at all costs is important because

10% loss requires 11% gain
20% loss requires 25% gain
50% loss requires 100% gain
90% loss requires 900% gain
to get back to break-even.

Managing the down side is much more important than managing the upside!

#Trading tip: There is rarely a reason to sell a stock which is above the EMA 8 or even EMA 21. I am sure: If you use this rule instead of blindly selling on your feelings, you will make a lot more profits.

#Trading tip: If stock is up >3 days in a row before a breakout, be cautious. Often it pulls back and you get a better risk-reward-ratio after the pullback.