A small multi time frame system to identify stronger stocks based on RSI/SuperTrend/EMA
@Definedge
Conditions:
a) RSI > 55 < 70 in daily
b) RSI > 60 in weekly/monthly
c) Candle close above SuperTrend(10,3)
d) Candle close above 200EMA in daily and 34EMA in weekly/monthly
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#RELIANCE futures and 2060 CE trades @PRANAV_DOSHI
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#HDFCBANK futures on short term charts #OneSmallTrade #LowRisk #StrikeBack

#JUBLFOOD futures on short term charts 0.25% boxsize #FAST @Definedge

breakfast at Jharkhand ?

#SRF futures #MomentumStock #MomentumScanner
CMP 2764
On P&F charts 0.25% boxsize - looking bullish continuation patterns
@PRANAV_DOSHI @pradytrader1 @flyingvikas129 @sortingthings

#Kotakbank - something is cooking - A study from various angles

1) On candlestick charts - closed above 20days high
#20BarHighScanner

#KotakBank - 2) On Heikin-Ashi charts - giving a HA-bullish reversal

#KotakBank - 3) on Renko Charts - 3% brick size signs of breaking out after pullback and also from support/resistance area

#KotakBank - 4) on P&F charts (medium and short term charts)

#KotakBank - on RS charts with Nifty 50. Stock started outperforming in the index

Made a combo using @mystockedge

Strong stock
Long position on fri
High delivery on fri
High cash volume on fri

#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

My Basic Trend Following system :

EMA-9> EMA>21>EMA> 63> EMA> 200.

RSI > 55

Weekly bases - Minimum 4 weeks.

Volume up by 200% .

Some others point to note :

Institutional sponsorship must.
Leading group
Annual Growth > 15 %
Quarterly growth > 15%
PEG <2.5

Moving average envelop using #mycomboscans of @mystockedge