Never forget: equities tend to print new ATHS a few months after FED hike

#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.

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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.

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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)

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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).

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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).

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Screeners helps trader in saving lot of time in filtering best stocks out of 5000+ listed stocks.

Here is the list of top 7 Free Strategy and its respective screeners that I use:

Also, last screener is my favorite to pick early momentum stocks.

1/ Golden Crossover:

Golden Crossover of 20 EMA above 200 EMA is a good strategy used by the trader. This screener will help you in identifying stocks that has given golden

2/ CCI Momentum:

CCI is a good indicator to find out stocks that are bullish and are in momentum. I had already shared a thread on the same.

This screener will help in identifying stocks for which CCI has crossed above

3/ Bullish Engulfing:

Bullish Divergence is a setup used by contrarian traders.
This screener will help in identifying stocks in which bullish divergence is

4/ Bearish Engulfing:

Bearish Divergence is a setup used by traders to take contra trades.
This screener will help in identifying stocks in which bearish divergence is

My SCREENING TECHNIQUE Based #hypothetical #Portfolio
6th Upd - 26Sep2021

📍Purely based on my Financial Data Screening !

NO TIPS!
NO MEDIA!

📌#Screener Names in👇🧵summarizes Fundamental, Momentum, Valuation traits hence saves tons of analysis time.

@Vivek_Investor

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Stocks & Screening Technique Methodologies !

@Coolfundoo 🌟25 , 22, 20, 19

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Stocks & Screening Technique Methodologies !

@Coolfundoo 🌟18, 17, 16

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Stocks & Screening Technique Methodologies !

@Coolfundoo 🌟15, 14

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Stocks & Screening Technique Methodologies !

@Coolfundoo 🌟 14 (continued), 13, 12

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Carnage in broader market is something of a characteristic of the final leg of correction.

Broader market bleeds more than index to scare off the retail from smaller stocks.

Can go on for few weeks.