Do you wish to get in the stocks right before they explode, without spending hours to scan them manually?
With hacks to find the stocks before they have explosive moves:🧵
Collaborated with @AdityaTodmal
1/ Market moves in waves:
• A stock/index / underlying usually follows two phases; viz. Contraction & Expansion in a cyclical manner.
2/ Logic to find explosive stocks:
• After a quite/contraction phase the expansion phase follows, this is where most of the money is made for a trend follower.
• Like a lion which patiently waits to for its prey to make less movement before making a kill.
• A trader too has to wait for the sideways /consolidation period to end before striking the hammer for the explosive move.
• Wait patiently for market to make a narrow range such that movement should be almost dead or within a very small range.
• A volatility contraction is often followed by a volatility expansion.
• After a range formation the range will be broken either oon upside which is called as Breakout (BO) or would be broken on the downside which is called as Breakdown (BD).