You would have seen some kind of spurt in volume in a day after a up/downtrend. Here, we don't consider any day in which there is corporate action or quarterly result.
Let's see some chart:
Below Chart is of #Metropolis when volume spurt occurred.
Buying/Selling climax is very common in the #stockmarket and it is completely based on the price.
#Volume #Climax is something that I have observed.
In this thread🧵, I am sharing a #trading strategy that I am using based on this.
Like❤️and Retweet🔄 for wider reach.
You would have seen some kind of spurt in volume in a day after a up/downtrend. Here, we don't consider any day in which there is corporate action or quarterly result.
Let's see some chart:
Below Chart is of #Metropolis when volume spurt occurred.
This means at this candle smart money had offloaded the stock and retailers bought it. Hence stock went in the downtrend and Metropolis went down by 20%.
In the above example, when price was in uptrend, it went in downtrend and vice versa is also applicable.
Seems easy right?
But there are some rules that I have created for my own trading. Let's see that now.
There is no mathematical definition for this. If you open the chart, just see that the volume is highest in the normal range of candle (can consider last 100 candles).
Volume Spike should happen after a downtrend/uptrend to catch the reversal trade opposite direction.
Which Time Frame?
Use Daily/Weekly/Monthly but don't use it in #Intraday.
⚡️After spotting the candle in which Volume Spike is there, mark high and low of that candle as it is very important.
⚡️As we are discussing strategy for buy, we will wait for the price in the next few days to close above the high of that candle
⚡️Sometimes candle will be big and sometimes it will be small, so better risk 2-3% of the total capital in each trade.
⚡️I also use 10-20% target for short term and 40-50% target in positional trade. You can use this rule as well.
⚡️If you see Volume Climax setup at support/resistance, then it is the best trade to take in swing/positional. Never miss such a trade.
#DMART Weekly Time Frame formed Volume Climax Pattern and after breakout stock moved up by 100%.
Risk was hardly 20% in this.
Best part of taking reversal trade is the risk on the basis of Stoploss is minimal.
Moreover, I use it only for buying as I don't prefer shortselling any stock.
Just a reminder that it is not a holy grail strategy, so follow the trading plan properly and exit if stoploss gets hit.
But it doesn't matter. The foundation of the strategy is important it is shared here for free.
If you find this strategy useful, then do give us a Thumbs Up 👍 by Liking ❤️and Retweeting 🔄the first tweet.
Thanks for Reading.
https://t.co/MgKNnAKEDH
Buying/Selling climax is very common in the #stockmarket and it is completely based on the price.#Volume #Climax is something that I have observed.
— Yash Mehta (@YMehta_) June 25, 2022
In this thread\U0001f9f5, I am sharing a #trading strategy that I am using based on this.
Like\u2764\ufe0fand Retweet\U0001f504 for wider reach.
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Sharing SIMPLE Index Option Selling Strategies that I personally use and less effort is required.
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1/ Short Straddle/Iron Condor for Expiry (Famous 916 Strategy):
Just create a Short Straddle/Iron Condor 100 points away in Nifty on expiry day.
For eg. if Nifty Spot is at 17610, then short 17700 CE and 17500 PE.
Iron Condor can be taken by buying 300 points away hedge.
Exit Strategy:
1. Exit all the Position if any of the options become ATM or near to that. For this, an alert at upper and lower levels can be placed.
2. If the above condition is not executed, then close the position manually by 3:15 PM.
For example: In Last Expiry, we have taken below Short Straddle Trade and same was shared live.
Stoploss was kept as 17450/17750 after considering the premium that we collected from
Taking this Intraday trade for today's expiry
— Yash Mehta (@YMehta_) February 2, 2023
Selling Nifty 17700 CE and Nifty 17500 PE
One can hedge it by buying OTM options to reduce margin or can go naked selling.
Stoploss: 17450/17750
Combined Premium of selling is 43 points pic.twitter.com/ga3hIoVTPC
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