This is the most important thing especially if you are analysing long term charts!🧐
So, let's get this right today!
1⃣ Wait, What's Log chart?
Before I define Log chart, let's look at the chart you are using daily - 'The Linear Chart'
- Linear chart is used by default in most platforms. This is probably why you never knew log charts
Wait, don't click on 'log' yet before you understand it...
2⃣ ok, so what does Linear chart mean?
Take a look at the image
- The y-axis is separated equally by 1000 points starting from 0 to 11000.
- So, any linear chart would have its y-axis equally separated by 'N' points always
And... that's where the problem lies...
3⃣ But, I don't see any problem?🤔
Ok ok.. let me explain...
- Can you look at this #TATAELXSI chart & tell me the price in '99 when it was listed? No!
- Can you draw a proper trendline in this chart? No!
Reason is because of the price congestion between '07 to '20...
4⃣ What else?🧐
- Whenever there is a price change in an instrument & it's drastic it'd be difficult to analyse on a linear chart
- Look at this example of #BTCUSD. What happened in 2021(refer to the red box)? 🤔
All this is because of the equally spaced Y-axis!
Here is a compilation of past PowerPlay Trades in the Indian Markets I have tried to analyse and study (taken minimum stock advance of 75%)
Taken some past trades of @iManasArora @iArpanK @RahulKhemka16 to analyse these kind of setups
YouTube video link:
Will share my strategy - how i selected my portfolio coffee can stocks.
I am still learning and evolving.
Let's see with an example.
First site is screener and scientific screens
Sales growth 5Years >10 AND
Average return on equity 5Years > 20 AND
Average return on capital employed 5Years > 20 AND
Market Capitalization > 1000 AND
Return over 5years >20% AND
Profit growth 5Years >15 AND
Here are 6⃣ simple strategies which you can use if you are still struggling to trade cash stocks!
They are very simple yet very effective if you can stick to them🤓
Ready to learn?
1⃣ CCI & Pivot based strategy to ride massive trends in stocks
Don't forget to checkout the fundamental
For 7 yrs I struggled to ride trends..— Trendline Investor (@dmdsplyinvestor) April 30, 2022
& in 2015-17 when I started learning TA smthng crazy happened..
Here is a simple strategy that helped me..
\u2022 Identify turning points in stocks
\u2022 Find quality stocks
\u2022 Not panic & ride trends
\u2022 Finally make \U0001f4b8
CCI & Pivot Strategy\U0001f9f5.. pic.twitter.com/S0QFx00541
2⃣ Multi-time frame positional strategy based on CCI with
There are 1000s of indicators in Technical Analysis...— Trendline Investor (@dmdsplyinvestor) May 12, 2022
But you need to MASTER ONLY ONE\U0001f3afto win in markets...
I selected 'Commodity channel index' (CCI) as my PRIMARY INDICATOR & all my scanners are a variation of this...
MULTI TIMEFRAME POSITIONAL STRATEGY using CCI...\U0001f9f5 pic.twitter.com/4O2PrBxSw9
3⃣ Only CCI based investment strategy - You can catch massive trends in stocks with good Sales/PAT growth using this
My CCI based investment strategy - How does it work? A thread.— Trendline Investor (@dmdsplyinvestor) May 23, 2020
Objective: Identify stocks that are entering a phase of momentum on the upside and ride the stock until momentum weakens.1/n
4⃣ Tradingview code for strategy shared by @heartwon based on the long term and short term
A brilliant concept based on the long term and short term EMA by @heartwon. I'm here on twitter for such stuff that helps me build my systems. Really good one. Here is the trading view indicator that I coded. Please RT for everyone's benefit. 1/3 https://t.co/uleWiysyL1— Trendline Investor (@dmdsplyinvestor) July 5, 2020
for both LONG TERM BREAKOUTS and...
POSITIONAL TRADES based on the CCI Indicator🤓
Ready to learn how I use it?
1⃣ Since the scanners are based on CCI, let's learn what's CCI first 👇
The most important diagnostic tool for me that signals turning point in stocks. It’s very simple to understand, so give it a try after watching the
2⃣ The LONG TERM breakout scanner which is based on the weekly timeframe is simple and can be used to identify
- Positional trades
- Multibagger Ideas (don't forget to check the rules in 3)
3⃣ Rules to find LONG TERM breakouts👇
4⃣ Watch the details in this video as to how to use this LONG TERM breakout scanner.
CCI based breakout scanner to identify swing trades/positional trades/investment ideas. With some effort you can find the next potential
Mini Course 🧵🧵 (Free)
How to Enter Long and Short Trade
Explained with 30+ Charts
Kindly Re-Tweet and Like for Max Reach 🙏
1) Importance of Trend
2) Time Frame Importance
3) Bullish Day Signals
- Candles, VWAP, EMA, Patterns, Resistance BO
4) Bearish Signals
Imp - Explanation in Charts Only
Importance of Trend
"Trend is our Friend except at the end when it bends"
Trend Following importance explained in 4 charts -
Going against the trend stands very less chance of success as explained in this chart that cover 5 days of uptrend -
Time Frame importance -
1) 3 min - For Execution
( indicators provide early signals and less reliable)
2) 15 min - to look at trend of week, Support and Resistance of last 4-5 days
3) Daily - to check current trend and Short Term S-R (More reliability)
Bullish Day Trading Signals
1) First Big Green Candle
First candle is always a good signal and trend setter for the day. Trading in direction of that candle have more success chances
E.g Reliance Big candle on 9 March, Entry with SL below first candle
Success Rate > 60%
This Scanner will be More than Enough for any Swing / Positional Trader to find Good Stocks.
Few Important Chart ink Scanners which can help you to find Setups and boost up your Trading Account : 🧵
Do Retweet If you If it Useful
1. Momentum Stocks
This Scanner can be helpful for Short term Swing Trades . you can easily find Stocks which are in Momentum.
Stocks which are up by 20 % in 5 Days
Stocks which are up by 30 % in 30 Days
Stocks which are up by 30 % in 30 Days
2. Volume Spike
We always Look for Price and Volume Confirmation for Breakout Trading. This scanner will help you to find the Stocks Which has given a move with Good Volume . You can keep this Stock in Radar and catch the Next move in them :
3 . Reversal Scan
Stocks which are Down by 20 % + in 5 days
When Market Corrects for sometime , You can find Stocks where selling is Exhausted and they can make a Good Reversal move .
4. Reversal Scan - Stock Down continues 5 days .
If you Know the Concept of 3-5 Days move . you might catch few stocks from this scanner. Always try and Pick stocks which are in strong momentum , you have more Chances of Getting Right in Reversal Trade.
Nowadays everyday market is opening with big gaps.
Shifting to Stocks!
But How to Pick Good Stocks for Tomorrow's Trading?
Presenting 11 FREE Screeners to scan Stocks for the Next Trading Day!
MYFNO - To Know the Stocks Which Received High and Low Open Interest (OI)
Shortlist Bullish Momentum Stocks
This Screener shortlists all the bullish momentum stocks from NSE for the next day's trading (based on price action).
Screeners Based on Price (ex: Previous Day Breakout, Weekly Breakout, Monthly Breakout, etc.)
Volume Shockers - Stocks that received a huge volume
Yes, Volume is the most useful indicator in Price Action Trading.
A thread🧵 on Volume Analysis and Interpretation -
Price increases + Volume increases = Bulls have strength
Price decreases + Volume increases = Bears have strength
Price increases + volume decreases = Bulls don't have strength, won't sustain higher levels
Price decreases + volume decreases = Bears don't have strength.
Points to Remember -
1. Big breakouts start with big VOLUME always.
The Higher the volume + Higher the range = the bigger will be the move.
2. When the stock consolidates and rejects from the higher price, volume is always low.
And when it gives the decisive breakouts, The Volume is stronger than the whole consolidation..
See the attached chart.
3. When the trend changes from Positive to Negative, Or Negative to Positive, It is always supported by strong Volume..
See the volume when the stock was declining and going in a downtrend from the uptrend in the pic below.
This thread will show you how...for Free.
Here's My 16-Points For Using CPR Indicator Into A Profitable System in Intraday Trading:
The Central Pivot Range (CPR) indicator is a technical analysis tool that is used by traders to help identify potential trading opportunities
The CPR indicator is based on the concept of support & resistance levels. It can be used to help identify potential entries/exits
CPR is developed by Frank Ochoa. It is similar to Pivot Points but with additional lines (TC & BC).
As per Frank,
CPR is the Swiss Army Knife of pivots, and Like the Moon, the central pivot range controls the tides of the market.
Pivot Points Formula
Pivot point (PP) = (High + Low + Close) / 3
R1 = (2 x PP) – Low
S1 = (2 x PP) – High
R2 = PP + (High – Low)
S2 = PP – (High – Low)
CPR Indicator Formula
The CPR Indicator consists of 3 components:
Pivot = (High + Low + Close)/3
BC = (High + Low)/ 2
TC = (Pivot – BC) + Pivot
Few of these indicators are designed by me.
Also, the last indicator is one of my favourite to pick early momentum stocks.
It is a popular indicator of the trading community. One can try it for Nifty and Banknifty futures and options
2/ Relative Strength (RS):
This indicator helps in identifying stocks that are showing strength against benchmark (Nifty or any Index). It can help you to hold and ride the
3/ Ratio Chart:
This plots ratio chart of two stocks or index, e.g. Reliance/Nifty.
It is the same as Relative Strength, and you can use PA on the ratio chart to pick momentum stocks
4/ NIMBLR F2F Momentum & Indecisive Candle Finder:
This is based on F2F interview of @Deishma.
This indicator helps you to identify momentum and indecisive candle as discussed in the F2F.