Key Technical Tools I found useful for day trading !!!

1. VWAP.
2. Pivot Points.
3. 20-100 ema.
4. Reference pts PDH-PDL.
5. Candlestick patterns.

(Time frame 5 mins)

#trading #Investment #StockMarket #Nifty

Did you know: U can make tremendous money if u refer to these 2 websites...open the attachments posted here and read them

Getting many questions related to Breakout Trading.

Hence thought to share all the info in one place:

Breakout Trading Book - https://t.co/iLkePBPA2x

Breakout Trading Screener - https://t.co/3teN7Jtuyk

Steps to use the screener -

An educational #Thread on how 1 can identify "Freakout"(Fake Breakout) explained with practical e.g's so that every1 can understand.

Identifying Breakout is not a big challenge but exiting it at the right time if it "fails" with minor loss is imp. which 90% people don't do.

1/n

1st lets learn how to judge that the Breakout is not sustaining & time to exit the trade has come for once.

With digital content available identifying #Stocks breaking resistance is not a big task but exiting these trades timely if they go against us is the most imp. thing.

2/n

Let's understand the abv with recent e.g of USDINR. It gave a breakout abv 75.6 after 8 months. Though we saw a mild upmove after that but it drastically failed& cmp is 74.5.

Now if some1 bought on breakout then usually most will hold it till now or exit at cmp in distress.

3/n

If any of the following 2 criteria's match then 1 should exit the trade.

* Stock makes a LowerLow, LowerHigh consecutively for 2 days.
* It breaks the low of breakout candle & sustains for 1 day.

USDINR made a LL,LH for 2 days on 17th,20th Dec so exit was at 75.73 on 20th.

4/n

Similar e.g is Bharti which gave a ATH, consolidation breakout on 23rd nov abv 745. The Breakout couldn't sustain & cmp is 684.

Ideal exit was on 29th Nov at 739 when it broke the breakout candle low of 733 & sustained below it on 29th. So it fulfilled 2nd criteria of exit.

5/n

Developed a Heikin-Ashi scanner for bearish reversals. Today's outputs and two charts attached.
2 conditions for reversal -
a) HA doji at prev candle and open=high at current candle
b) Open=Low at prev candle and Open=high at current candle
Filter added - disparity indx on 21 EMA

Pullback Trading Strategy

Stock Selection: Stock under major uptrend with higher swing highs and lows since last one year
Trade location: Pullback to 20SMA after making a higher high
Trade set up: Candlestick Reversal Pattern with high Volume
SL: <20SMA of low
Target: Breakout

#FreeTip
Free but powerful Tip
A simple strategy for those who aren’t comfortable with complex 1s like adv pivots, mp, cub, etc.
MIB/WIB/ DIB
1) MIB - Scan for stocks with Monthly inside bar. Eg,Today 02/8; So scan for stocks with July monthly candle inside June monthly candle..

....
2) WIB - Now look for Weekly inside bar amongst stocks filtered in S. no .1 ; For Eg, Today 02/8, Look for stocks within S. no. 1 with weekly bar of 26/7-30/7 inside the weekly bar of 19/7 - 23/7.
3) DIB - Now after doing the above look for stocks with daily inside bar ...

....
from amongst the list filtered in 2.
For Eg. Today is 02/08, Candle of 30/7 inside candle of of 29/7. Long above PDH with stop of PDL.
In this Eg, long above 29/7 high with stop of 29/7 low. Other methods to go long are break of Cam R4 for long; Reverse for short.

More than a million traders learn from Youtube videos.

But most of them don’t know how to use Youtube effectively.

Here are 8 ways to double Youtube productivity today:🧵

Collaborated with @niki_poojary

1. Avoid ads

Constant ads are the biggest irritation when it comes to Youtube.

Just download Adblock Plus to avoid ads on your computer/desktop.

Save up on time.

Here is the link to download it.

2. Block Ads on Youtube Mobile - (Youtube Vanced)

Most people aren't aware that they can block ads on youtube mobile too. Don't need to purchase Youtube premium.

How? well, just download Youtube Vanced.

Here is the link to download Vanced

3. Make another account

Make a new account and follow channels related to trading and keep that youtube account only for trading videos.

This way you don't miss out on any trading videos and have them clubbed together.

My main Youtube account I keep for other entertainment.

4. Subscribe to your favorite channels

Go to your subscriptions tab.

Here you'll see the videos released that day of the accounts you follow.

Add to queue all the videos you want to watch which have been released that day. Consume those together.

Breakout Scanner listed many charts today!

Steps to use this FREE Scanner - https://t.co/3teN7Jtuyk

(Link is given inside the article) https://t.co/CNMGIPbK5S

#FreeTip If a longer term MA is sloping upwards and price manages to drop below long term MA and subsequently moves above it, it is a great buy zone for a massive move . Longer the MA better is the effectiveness. 200 period is ideal. Any time frame works.

High Stocks with potential to go Higher.

Combination made using @mystockedge

Keep it Simple Baby

Yesterday Subasish Sir from Power of Stocks made his first 1.5cr on Intraday

So let's have a look what we can learn from his today's profit:

• He generally build positions at previous swing break or after seeing a reversal candle after some retracement

• He generally creates his positions at 1st half of market
After that he just do adjustments and other things to his existing positions
• He trail his positions at previous swing high/low level

• He watch 5 min time frame to find reversals (W or M pattern) at Support/Resistance

• He generally short ITM options with hedge at 2000 far strike for margin benefit
• He leaves CE short options alone for overnight only if it decays over 20-30% after his entry

• But he never leaves PE short options alone (except where it become deep OTM) cause market generally gap up by small % but it can gap down by huge % due to any economic fear
• He always keep hedges(CE/Future short)to protect down side risk while he leave PE short for overnight

I am getting many questions related to Breakout Trading.

I have mentioned all the rules in this book

https://t.co/UIwiwggEUg

#RSI is a common indicator which most of us use in the stock market.

This learning thread would be on
"𝙐𝙨𝙚𝙨 𝙤𝙛 𝙍𝙎𝙄"

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

Also, an investment strategy is shared using RSI in the end.

1/16

Setup 1:

RSI- commonly used to show whether price is overbought or oversold.

General rule:
𝐑𝐒𝐈 > 𝟕𝟎 -- 𝐎𝐯𝐞𝐫𝐛𝐨𝐮𝐠𝐡𝐭
𝐑𝐒𝐈 < 𝟑𝟎 -- 𝐎𝐯𝐞𝐫𝐬𝐨𝐥𝐝

One becomes cautious once price becomes overbought and optimistic when price becomes oversold.

2/16

Let's understand this with an example of Laurus Labs:

1. It was in overbought zone and after a few days when a small dip was seen from 693 to 588 (15% downside)

2. It was in oversold zone and after a few days when a small rally was seen from 59 to 107 (82% upside)

3/16

Well, this looks very easy, but it is not.

When a price is in overbought zone and is in momentum, then it can move up without taking a dip and exiting or shorting stock would prove wrong.

When IRCTC was in overbought zone, price went up from 2718 to 6396 (135% rally).

4/16

Similarly, for oversold stock.

When a price is in oversold zone and is crashing, then it can move down without taking an upmove and buying stock would prove wrong.

When DHFL was in oversold zone, price went down from 126 to 11 (91% crash).

5/16

I studied 8⃣ companies which have given multibagger return (8x/10x) in just 5/8 years.

🌠Alkyl amine

🌠Tanla platform

🌠Supreme ind.

🌠HLE glascoat

🌠TATA elxsi

🌠Balaji amines

🌠Abbott india

🌠Bharat rasayan

They all have some common things 👇

1⃣ low market cap - 5/8 years ago they all have low market cap less then 5000 CR

2⃣ Low debt - their debt are low or manageable

Debt/equity < 1
Intrest coverage ratio>3.5

3️⃣ good cash flow -

Free cash flow 10 year > 0
Free cash flow 5years > 0

4⃣ good return on equity - their ROE >25%
And also good ROE track record from last 5 years

Invest in the future:

• Robotics
• Blockchain
• Clean Energy
• Electric Vehicle
• Meat Alternative
• Cancer Research
• Machine Learning
• Space Exploration
• Artificial Intelligence
• Internet of Things (IoT)

What else would you add?

Being a busy professional with an awesome full time job, I am always on the look out for tools that improve the productivity of my stock research.

Bought this simple and easy to use software tool from @bsescreener. I run it everyday before going to bed

Highly recommend it👍👍