1. NSE maintains two orderbooks one which has all the bid & ask offers till its full depth 2. is stoploss orderbook which is not available for anyone to lookup unlike the 1st one.
you can place two type of stoploss orders one is SL-Market & SL-limit
These SL orders gets recored in SL-Orderbook in 1st come 1st basis for that mentioned trigger price
ex. 1) 9:20 -> SL order trigger at 100 qty 500
2) 9:45 -> SL order with trigger at 100 qty 500
3) 11:30 -> SL order with trigger at 100.5 qty 500
Now when price is dropping and as soon as it starts hitting the trigger prices mentioned in SL-Orderbook .. these orders get released in pubilc bid ask orderbook. in this case for our ex. trigger execution order will be 3,1,2
for this particular day market opened gap-up, for lot of traders this becomes bullish bias .. with this bias market was in very narrow trading zone giving everyone opportunity to enter .. majority of ppl will keep SL below nearest swing low.
Out of curiosity, just gone through your timeline and prepared a data of your shared tweets in OCT'2020;
You will not believe the following numbers:
Charts shared = 29 (2 excluded due to splits)
Period = 8-oct to 30-oct'20
If min.10k invested on your each design, then
Amount invested in Oct'20 = 2.91 lacs
Present investment value = 4.72 lacs
Maximum drawdown = 9%
ROI = 62% in 200 days
Annualized ROI = 147%
**You ROCK brother**
I've prepared a sheet for all your Oct'20 tweets; It was so much learning on the charts as well as on the data-part; Please keep on the good work.
A thread 🧵to guide retail on why & what should they do at these historic market highs.
Do ‘re-tweet’ and help us educate more retail investors (1/n)
Some investors feel that markets are trading at a PE of 27 vs 10 years historical average of 20 and a market-cap to GDP of 105 vs historical average of 79 and hence markets look expensive (2/n)
But, in such crazy liquidity driven markets, prices can move much ahead of the fundamentals & suddenly we start hearing commentaries of how the market is pricing in the earnings of FY 22 & 23 to justify the rally
If you r new to fundamentals, 👇 can help
Market PE at 40 and yet the market is not falling, why? Getting asked this question multiple times. Here's a thread covering \u2018very basic\u2019 premier on valuation for my retail investor friends.— Kirtan A Shah (@KirtanShahCFP) January 14, 2021
Do hit the \u2018re-tweet\u2019 and help us educate more investors (1/n) pic.twitter.com/8oCkBmmOXY
Results for Q4 have come out very well but that is also because of the lower base effect of the last year.
Over the last many years, markets have corrected 10-15% each calendar year. Can it happen this year as well? Can very much and that can be a great entry point. Why? (4/n)
There are a lot of over hangs in the near term,
-Crude going up
-$ index moving up
-Inflation moving up
All of the above are –ve for markets & liquidity on the other side driving markets up, its impossible to judge the near term movement of the markets (5/n)
#Alligator #Indicators #Definedge
Alligator indicator is created by Bill Williams. He was a popular trader and author.
Before we discuss the indicator, let us understand an important concept.
Here is a chart showing 10 day moving average at bar A. Price of the stock is 100, Moving average price is 90.
What if we shift this moving average to 5 bars further? See the chart below.
Moving average at bar B is moving average price of bar A (5 candles behind). This is shifting of moving average price. What does it mean?
Simple explanation is – shifting the moving average can help one compare current price with past period moving average easily. It results in smoothening instead of increasing the moving average parameter. This is also known as Forward Displaced moving average.
Grab a cup of coffee, in this thread I will explain
1. Peter Lynch's Six Categories of Stocks
2. How to identify the type of stock you own?
3. How to think and decide about the runway for growth of a company?
Lets dive right in.
For those who do not know (I doubt there will be many), Peter Lynch is one of the most successful fund managers of all time.
He managed a fund called Magellan at US Investment Giant Fidelity Investments and during his 13 yr tenure, he delivered an average CAGR of 29.2%.
Sadly the fund couldn't keep up post Lynch's retirement and his successors weren't able to keep up with his returns.
That's how good Lynch was!
In 1989, a year before retirement, Lynch wrote and published a book called 'One Up on Wall Street'.
Almost 32 years later, the teachings of the book remain relevant.
(Highly recommended read)
Chapter 7 of the Book Titled
"I've Got It, I've Got It - What is It?"
talks about the need to classify stocks.
Peter's argument is that you need to know what kind of stock you hold in your portfolio.
Not all stocks are the same - and he is right!
This setup is a gift to anyone who trades long ideas and those who want to trade in CASH due to Capital Constraint. Fits best for people who don't do FNO as this picks some amazing scripts.
1⃣ Before heading on to the set-up we want to make sure the entire system credit goes to @Singh7575 . We are just here to share it and make people aware of such simple set-ups that can give money considering risk is
2⃣How to Set it Up?
This setup best fits in @tradingview /@zerodhaonline or any broker that provides charting. We only need 2 Indicators.
Indicator 1- 13EMA
Indicator 2 - 34EMA
Both indicators are compulsory and should be exponential(EMA) instead of Simple moving average.(SMA)
3⃣ How to use this Setup?
Whenever this Setup meets a condition where 13EMA crosses 34EMA from below as depicted in the chart. Whenever the 13EMA crosses 34EMA from below it is a LONG (BUY) SIGNAL.
❗️Timeframe needs to be Daily Only!
4⃣ When to Place Order?
The Condition is to place order above the Day's High when crossover happened. Place buying bid above Previous Day’s high. If on current day the stock
doesn’t cross previous day’s high, place a buying bid the next day above current day’s high. For E.g.
VIX at 16: If you check today's IV behaviour, they were not spiking much even with decent delta move in BNF. The movement was subtle, giving some time to adjust. So someone having good adjustment mechanism can stay in the game longer.
VIX at 20: The same delta move will be more fierce, coupled with rise in premiums. When premiums rise with movement, then the adjustment cost increases exponentially. The premiums can fall back at EOD, but the damage is done if caught in the spike.
After talking to few traders, their backtest result was in favor of high VIX of 2020, rather than 2017-19. The key flaw in the backtest were the adjustments which are not easy to calculate. Combination of high theta & fixed SL during high VIX, the IV crush is cashed at EOD.
Neutral option sellers who don't adjust & have fixed SL on a static straddle will not be able to benefit highly in low VIX. The straddle which moves away from ATM will increase no matter what. But if we keep on rolling our strikes, then we get good realisation of theta.
I have made majority of my profits in option selling when VIX was at 13-15, mostly just relying on my adjustments. Since 2020 with high VIX, adjustments stopped working because of increase in the frequency of delta + IV spike combos & so had to shift to directional trading.
Very Intuitive, Handy & Works with a Free Account!
1. Add your benchmark Index. Say, Nifty 50.
2. Add Indices you want to track Via Compare feature in @tradingview Click Same % Scale
3. I have added a handful of them. Because I want to see a sector turning and catch outperformance immediately.
4. Set a Benchmark Date from where you want the performance to be calculated. Since we have selected same % scale, as our chart moves the % on right will change. It considers the date on left as the starting point. Mark it & Scroll such that that vertical line is just about seen.
Save this as your Indicator Template & come back to it whenever you want to track indices from one page in real time & any time frame!
- A stock moving with a healthy momentum and reasonably good trajectory.
- I assume that It may come down to touch it's primary support trend line as it did in the past.
-If it do so, It will be a "must buy" opportunity.
a) 30°-45° inclined trend line is considered sustainable.
b) Steeper trend line angle can not sustain for a long period of time.
c) Exceptions are always there.
d) To beginners : Explore more related to trend line inclination angle and relate this with above chart.
This is how to differentiate:
• if right shoulder is smaller than left, most likely a continuation H&S
• if right is same or higher than left, and the price is not coming to neckline, most likely CF
just discipline and risk mgmnt
2/n: System as explained before:
4 step process
1. Identify stock from EOD chart
2. Look for RSI Divergence in 15 minutes
3. Wait for Consolidation and range break.
Trade in the direction of break.
4. Trail for at least 1:3 RR or SL.
3/n: Had posted last week about weak EOD chart of MnM. See what happened this week despite the fact that the overall market was bullish.
It is a zero loss trade now.
Invest in yourself. No guru can make you a successful trader. #hardwork #discipline
4/n: there are many more examples of this if you see my timeline. it works across markets even in bitcoin lol!
Keep it simple. Trick is always in the risk reward and position sizing.
Must only take trades which have minimum 1:3 RR.
Do not use excessive #leverage.
5/5: Charlie Munger: “If you’re smart you don’t need leverage; if you’re dumb, it will ruin you.”
Cant put it better as I have been on both sides :-)
#weekend #learn #trade #success