Perfect channel in #GAEL!

Another reversal from the lower end of the channel this week.

It took me 10+ years & more than 1000+ hours of practice…

to master these 5 IMPORTANT RULES WHILE DRAWING TRENDLINES 🎯

These simple rules, if mastered, can help one spot HIGH PROBABILITY TRADES!

Ready to learn?🤓

Let’s go🧵…

1⃣ Trendlines are zones and not a single line!

- Due to volatility in price, many times prices tend to spike on both sides
- So, consider trendlines as zones from multiple swing highs(include wicks) to get the best fit trendline
- Your winning probability increases with zones

2⃣ Trendlines with more touchpoints

- Any trendline with 3 or more touchpoints is a very significant one
- The price points around significant trendlines are important & should be watched

Observe the commentary in the Nifty chart below

3⃣Trendlines on higher Time Frame are more significant

- A trendline on the 15 min chart will be easily broken than a trendline on the daily
- A shorter time trendline break might just mean a consolidation phase before the price moves up again resuming the larger trend

4⃣ The steeper the trendline the more likely it will break

- The less steep the trendline angle, the more significant it is & more likely to be respected.
- Any trendline with an angle greater than 30° is steep & likely to be broken before the previous trend continues.

A COMPLETE COURSE with strategies on Trading for FREE!

Yes, you heard it right!

So, stop paying for webinars & watch these videos!

My objective with the #LearnwithTrendlineInvestor series on Youtube was to help people learn.

So, I hope it benefits!

Let’s go! 🧵...

1⃣ Learn to create your own custom indicator for indices such as

- Cement
- Breweries
- HDFC group or
- Adani group

in

2⃣ Learn how to plot the same indicator in different timeframe on the same chart.

This technique will definitely help intraday traders, swing and positional

3⃣ Learn my 4 step process to increase conviction in trading using technical analysis.

If you are a fundamental analyst then this will definitely open you to a new

4⃣ Facing frequent false breakouts?

Then this is a must watch video for you where in I explain how you can avoid getting trapped in false breakouts and stop losing your hard-earned

Here’s your complete guide to...🧵

TRADING using MULTIPLE TIMEFRAMES (MTF) 📈

Most of the successful traders use MTF & just by knowing what’s happening in different TFs you increase your chances of winning.

Ok, so how can one use MTF to trade?

Let’s go...

👍Like & 🔁Retweet

Rule 1⃣: Define your Trading/Investing Style

You can be a
➡️ Long term investor
➡️ Positional trader
➡️ Swing trader
➡️ Intraday trader

Let's take the example of a Positional trader for this 🧵

Rule 2⃣: Identify the LONG TERM TREND on Monthly charts!

The long term chart helps you identify the long term trend & pivotal points in trend changes

In the below #NEULAND chart, you can see the stock has been in a long term uptrend since 2001.

Rule3⃣: Wait for a BUY SIGNAL on the Weekly chart!

In this chart once you get a buy signal on CCI and RS, take a look at the chart and you will observe the change in trend and breakout.

Now you know this is probably a resumption of the long term trend that started in 2001.

Rule 4⃣: Now it is time to hit that 'BUY' button.

But how to IDENTIFY THE ENTRY POINT?

Switch to the 'Daily' chart & buy either on

➡️Retest of breakout zone
➡️Or on the breakout after a short consolidation after 3-5 days

There are 1000s of indicators in Technical Analysis...

But you need to MASTER ONLY ONE🎯to 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...🧵

1⃣ CCI Basics

• CCI > 100 = Bullish and overbought
• CCI < -100 = Bearish and oversold

2⃣Entry criteria

• CCI(34) on Weekly crossed above 100
• CCI(34) on Daily >100
• Entry: above weekly swing high
• Stoploss: Recent swing low on daily chart

3⃣Exit criteria

• CCI(34) on Daily < -100
• Holding period: Few days to many months

Pyramiding your winners should be considered to make your winners big.

Separate post on this to follow.

4⃣ Why trade on a multi-timeframe?

• This is a top-down approach where we observe the larger trend of the stock before we take entries on the smaller or medium trend of the stock. This concept can be compared to tides in the sea.