The time has finally arrived to simplify how we use the volume indicator on our charts. With a Tradingview script at the end, here is a thread🧵 on what “simple” volumes are, & how to use them: 👇

@ManishK56801020 Just change the value of ADX from the default of 14 to 22, & hide the DMI+ & DMI- lines.

#NIFTY weekly chart showing some similarities with the 2015-16 fall.

Both falls were preceded by an almost non-stop bull run for 1-2 years (counting from last retest of 200-week SMA).

In 2015-16, index fell 25% in 52 weeks. So far, from Oct 21, we have fallen 17% in 34 weeks.

Why do I use hollow candles & not traditional Japanese candlesticks? Are hollow candles just a cosmetic change, or do they provide us with some extra information that a traditional candlestick doesn’t?

A thread 🧵:

Traditional Japanese candlesticks are all solid. They are either green or red (colors may vary, but you get the point).

Hollow candles use two attributes to provide information regarding the price:
- Color of the candle
- Whether the body of the candle is filled or not

So, a green hollow candle can have its close > open (just like traditional candlesticks), or its open > close (here its body will be filled). Similarly, a red hollow candle can have its open > close (traditional), or its close > open (here its body will be hollow).

The colour of a hollow candle is decided by comparing the closing price of the current candle with that of the previous candle. So, a red-color candle (irrespective of whether it’s filled or not) means that the current candle’s close is lower than the previous candle’s close.

Here’s how to use Tradingview to quickly compare multiple symbols from a particular sector among themselves, & with the index👇

I’ve made a Tradingview watchlist of some sectors which do not find a place in any particular sectoral index. This list currently has 138 NSE stocks plus NIFTY. You can add more.
(List is a work-in-progress, & by no means complete.)

You can select the index & names from a particular sector, & compare their price movements. One can visually eyeball outperforming names in that sector.

e.g. Ship-building MAZDOCK has given a 232% return in past 1 year, as against 7% for NIFTY:

Here is the watchlist. Save it to your Tradingview & enjoy!

A simple #scan to find stocks which have moved 25-30% in past 20 weeks (with moving average critera & liquidity filters) will give you a watchlist of names to keep track of.

Update the list daily. Manually scan all charts in watchlist to add & reject.

https://t.co/J1wBe2yPui

This is in response to the question by @unseenvalue

If I had to buy 1 stock today, anywhere in the world, no avg. up or down, 5 year holding period (I will make that as 10 year for thesis to play out)

Since I track mainly Indian equities, restricting the choice to this space

Few points to look for
1. Strong macro tailwind rather than headwind, huge growth runway for company/segment. It can't be in a niche space & demand must not be easily substitutable
2. Strong Biz Model, high growth curve (15%+ over the period), strong ROE profile (hurdle rate 20%)

3. Low or no leverage, efficient capital allocation, (read minimal or zero fresh dilution requirements), strong cash flows and correspondingly high dividend payout ratios (consistent dividend history) and finally strong moat and with limited regulatory involvement / no reg issues

4. Promoter quality and intention must be beyond reproach, proven management with skin in the game
5. Capability to manage disruption, and if possible to even profit from it. If you can't be disrupted easily, you will eventually adapt your game to gain scale

6. There must be a possibility of non-linear growth if the scale-up hypothesis gets proven right. It's like an FD with low fixed return plus significant upside optionality. Multiple revenue streams / margin levers / IP that can provide non linearity in growth

Momentum Trading Trend Template

EMA-10> EMA-21> EMA-63

RSI- Above 55

High RS rating stocks , with 15% CAGR growth in earnings from last 3 years.

If you are a beginner and don't have any idea why the market is falling continuously.

Read Stan Weinstein's Book.
Read What is "Stage 4" and believe me there is no better explanation than that I found till today.

A NEW BULL MARKET:

originates when Dr #Copper bottoms out.

Equities and Copper have tended to correlate positively over the past 4 decades.

Remember: “Dr. Copper” is often seen as a proxy for the health of global industry and manufacturing

Good News: Daily charts are oversold