So friends here is the thread on the recommended pathway for new entrants in the stock market.

Here I will share what I believe are essentials for anybody who is interested in stock markets and the resources to learn them, its from my experience and by no means exhaustive..

First the very basic : The Dow theory, Everybody must have basic understanding of it and must learn to observe High Highs, Higher Lows, Lower Highs and Lowers lows on charts and their implications.

https://t.co/MGKzygn1YW
Even those who are more inclined towards fundamental side can also benefit from Dow theory, as it can hint start & end of Bull/Bear runs thereby indication entry and exits.
Next basic is Wyckoff's Theory. It tells how accumulation and distribution happens with regularity and how the market actually moves.

https://t.co/72M2DCPJHZ
Dow theory is old but gold...

https://t.co/uqJRvfkxb5
How Wyckoff theory can help in stock market

https://t.co/wWlpBplAYX
With the basics, out of the way we'll now see some basics of Technical Analysis.

First concepts to be learned are finding support and resistance on charts or price levels.

https://t.co/Q5njGt26zv
The support and resistance (S&R) are specific price points on a chart expected to attract the maximum amount of either buying or selling, hence they are very important levels on chart.

For breakouts, they are very very important !

https://t.co/kHK064D5z1
Time for a video on basics of Technical Analysis. If you need only one, this is it.

https://t.co/0qUaenJmAF
Trendlines are also important. Just one important point, horizontal trend lines are more effective than sloping trendlines, because a breakout from horizonal levels is high probability breakout as compared to a breakout from sloping trendline.

https://t.co/rWVkIEAphx
When we know how to draw trendlines and Support & Resitance (They are also trendlines only) we can move to Chart patterns that are formed by combining trendlines and few more inputs.

Here are most important ones.

https://t.co/KIITvSWsj0
I would complete the Technical Analysis part with this gift from @nooreshtech Sir who is an accomplished Technical Analyst.

This is his workbook on Technical Analysis https://t.co/2GrnycldWf

No need to buy expensive books on Technical Analysis.
Now we'll see indicators, they are of 4 types:

Trend indicators : For direction and strength

Momentum indicators : For the speed of price movement

Volatility Indicators : For measuring fluctuations

Volume Indicators : For measuring strength of trend based on volume traded
Indicators introduction : A picture is worth thousand words
Some important indicators:

https://t.co/Y4RShkuBFO
A very important tool is Bollinger Band. This incorporates moving average and statistics and can produce wonderful results in the hands of a deft person.

Thanks @bbands for this excellent tool.

https://t.co/W0UatdqXRw
Often there is a tendency of overloading the chart with too many indicators ! Keep them to bare minimum. Remove one by one till you can’t remove any further.
Another important point worth highlighting is combination of wrong indicators. If somebody uses RSI, MACD and Stochastic then what he/she will see is same view across all the indicators giving a false sense of confirmation by all 3 indicators. They belong to the same category.
So combine a trend indicator with momentum indicator and you are all set. Find your own combination.

An indicator cheat sheet is here
After having fun with all the girlfriends/boyfriends there comes a time when everybody has to settle. Similarly after experimenting with all the indicators there comes a time when the trader decides that Price Action is best and instead of all these indicators i must focus on PA
All the indicators/oscillators are based on either price or volume or a combination of both.

So once a person sees this light, he shifts to another gear increasingly trades on price Action, only occasionally taking support of indicators.

https://t.co/TSZXAMe196
Those who want to do a deep dive in price Action, may read these books.

Caution : These are only for advance readers.
Now coming to my Bread & Butter : Breakout Trading.

Accumulation, Distribution and Breakouts are regular feature in markets. One or the other is always happening in some stocks.

In Roaring Bull markets, Breakouts increase as now a days we are seeing daily.
Breakouts often happen after long consolidations. Longer the consolidation, stronger the breakout.

And the breakout may be in upside or downside both. If it happens after accumulation, it will be a bullish breakout and after distribution, it'll be bearish breakout.
And Breakouts are not only for trading, they make solid base for investing. If a fundamental investor enters a stock on breakout than it may give many successive breakouts and can reach stratospheric levels.

I simple love breakouts.

https://t.co/2rCmYFK1Yr
Legends on Breakouts
Opening range Breakout is a very popular strategy and it can be used in Stocks as well as Indices.

Wait for first 45 minutes, let the market settle and an opening range get formed. Now if any candle opens above or below this range, take trade in the direction of breakout.

More from Professor

More from Screeners

Central Pivot Range—(CPR)

What does it mean?

7 tweets that will teach you about its basics (and much more):🧵

Collaborated with @niki_poojary

1/ What is CPR?

The basics of CPR, how it's calculated, and TC and BC in CPR.

User: @ZerodhaVarsity.

One can also gauge the trend whether bullish or bearish.

Explained in very simple words

@ZerodhaVarsity 2/ What are the Uses of CPR?

User: @YMehta_

A thread that provides examples along with the concept.

Also includes an Intraday Trading Setup on 5 min


@ZerodhaVarsity @YMehta_ 3/ How to analyze trends with CPR?

User: @cprbykgs

How to interpret CPR based on the candles forming either above or below the daily and weekly CPR.

He is the most famous guy when it comes to CPR, so go through his Twitter and Youtube


@ZerodhaVarsity @YMehta_ @cprbykgs 4/ Interpreting longer timeframes with CPR

User: @cprbykgs

Trend Reversals with CPR when the trend is bullish and it enters the daily CPR

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