BC TRADERLION
Saved by @SeekerHari

What is Relative Strength (RS) and how to identify it (Thread)

 Focusing on stocks exhibiting strong Relative Strength is one of the keys to achieving superior returns. This is one of the core ideas of #CANSLIM

In one sentence showing RS means outperforming other stocks both during market uptrends and downtrends.
In this thread we will cover examples, how to spot it, and how to use it to make sure you are in the top stocks.

If you want to outperform the indexes, logic says you have to be invested in stocks doing the same.
First Some Basic Terminology:

RS Rating: @IBDinvestors Proprietary measure of RS scored 1-99. Stocks with an RS rating of 80 have outperformed 80% of stocks over the past year.

RS Line: The Line plotted by dividing each day’s stock price/ price of the SPX.
The value of the RS line itself does not mean anything, but the trend of this line is very important.

-Note RSI (Relative strength index) is something completely unrelated to the concept of this thread.
RS is the result of supply and demand. Stocks with poor RS are in a distributive phase by major players and institutions. During corrections, such stocks will be sold first instead of accumulated. $IBM is an example of poor RS.

RS rating: 7, decreasing RS line
Strong RS on the other hand is shown by stocks that are under accumulation. Funds are tripping over each other to build positions. This results in the stock price being “supported” even during market turbulence.

NET is an example
RS rating of 98, ⬆️ RS line and # of funds.
So how can you identify Relative strength?

There are many different ways summarized extremely well by @duckman1717 in the document below and I will expand on a couple of these concepts.
First Case Study: $TSLA

Makes a higher Low when the SPX makes a lower one
Stays above 200day SMA while SPX undercuts by 28%

The Leaders often bottom before the indexes

$TSLA increased 800% from this point in 9 months
2nd Case Study: $DOCU

Higher Low again
RS Line hitting new all time highs during correction
Strong bounce once market pressure lifts
Broke out to new all time highs shortly after correction

$DOCU increased 120% in 3 months
3rd Case Study $NIO

Trends above all Key Moving Averages
RS Line in Uptrend
Forms Tight Price areas then breaks out.
Pullbacks are on lower volume than advances

Increased 1000% in 6 months while trending with the 21ema
4th Case Study $FTCH

Breakout on large volume to all time highs
Many up days in a row
Upside reversals near the bottom of price consolidations
Tight price action during correction and right before BO

Increased 100% in 1.5 months from the breakout
5th Case Study: $CRSR

Red to green move on a gap down day
Upside reversal
Prior Uptrend and Volume Contraction within base
These same concepts hold true on shorter timeframes. $TDOC today showed RS for much of the day as it ignored the market intraday pullback for the most part

5 minute chart with SPX comparison
Also take note of #RS changes in character, these can make the start of a strong uptrend/downtrend

For instance:

- Earnings gap ups from Bases on large volume
- Newfound respect for a key moving average

Avoid

- Gap downs on large volume
- Breaking previously respected KMAs
General #RelativeStrength Signs. These are indications that institutions are supporting a stock

- Red to green moves
- Green on Red days
- High DCR +WCR compared to $SPX
- Closing well off lows
- Tight price action compared to $SPX
- RS line ⬆️
- Pullbacks are on low vol
So now how should you use RS?

- Pick stocks with increasing RS Lines + other Signs of RS
- On red days track what is showing RS
- During corrections cut weak stocks first
- During Bear Markets track RS signs- Future Leaders
I hope you found this thread helpful and if so feel free to check out my other ones and retweet:

https://t.co/gCwio1qYWX
https://t.co/4nYwV8Zu2A
https://t.co/ZKQPFIVrWu
https://t.co/INUSXTYoGo

More from Richard Moglen 📽️🦁🚢

Richard Moglen \U0001f4fd\ufe0f\U0001f981\U0001f6a2
Richard Moglen 📽️🦁🚢...
@RichardMoglen
“Sudden rises in price and volume, out of the ordinary relative strength, and movement against the general market trend are all giveaway signals which reveal the presence of a stock about to take off”

Nicolas Darvas
SCREENERS
Richard Moglen \U0001f4fd\ufe0f\U0001f981\U0001f6a2
Richard Moglen 📽️🦁🚢...
@RichardMoglen
A brief introduction to trading/investing for beginners and why you should start right now (Thread)

A goal of mine is to introduce as many people as possible, especially my own age, to sound methods of how to trade/invest for their futures. Despite the stock market being open to all, in practice, not everyone is taught the value of it or how to use it to build wealth over time

This thread will hopefully help remove the knowledge barrier of how to get started. It will cover briefly:

Why you should invest (Start now!)
What even is stock?
Roth IRAs versus Traditional IRAs
ETFs+ Mutual Funds
How to buy/sell individual stocks.
Types of Investing/Trading

Now before we go further, I am not a financial advisor, I am speaking from my own experience and there are significant risks with the stock market so please consult a financial professional before getting involved. Alright let’s get to it.

First, why should you get involved and start ASAP, like tomorrow. The simple answer is compound interest and time.
TRADERLION
Advertisement
Richard Moglen \U0001f981
Richard Moglen 🦁...
@RichardMoglen
Technical Green Flags

Gap up after Earnings
Relative Strength vs the market
Higher Highs, lows
Retaking MAs
Respect for logical support
Stage 2 Uptrend
Breakouts through resistance on HV
Pocket Pivots
Strong DCRs
Orderly price action
Near or at ATHs
Weekly Vol Spikes

What else?
SCREENERS
Richard Moglen \U0001f4fd\ufe0f\U0001f6a2\U0001f981
Richard Moglen 📽️🚢🦁...
@RichardMoglen
In the fall of 2018, I signed up for a class called "Introduction to the Stock Market and Technical Analysis" taught by Dr. Eric Wish

This class changed my life.

Here are 10 Lessons Dr. Wish taught me from his over 50 Years of Trading.

(Thread)

Before this class I had absolutely no knowledge about investing, trading, or how to read a stock chart

Today, trading & studying the commonalities between the greatest performing stocks is my passion, and what I’ve spent the past 1000+ days focused on

Now onto the first lesson

Financial Literacy

The first lesson Dr. Wish taught me was the importance of overall financial literacy.

Roth IRAs, interest rates, budgeting, building credit the right way.

You need to master money management before thinking moving on to trading/investing.

Overall Strategy

Throughout the class, Dr. Wish repeated his trading mantra.

As you gain trading knowledge and experience, you'll appreciate the simplicity and depth of this one sentence:


Determine the Market Trend

The vast majority of stocks follow the overall trend of the market. This is why the mantra begins with “In a Rising Market”

"At least 50% of the whole game is the general market."

-William O'Neil
TRADERLION , MARKET TREND
Richard Moglen \U0001f4fd\ufe0f\U0001f981\U0001f6a2
Richard Moglen 📽️🦁🚢...
@RichardMoglen
What is a True Market Leader / TML (Thread)

(And how to find them)

In one sentence a TML is an institutional quality stock in a leading industry group with superior fundamentals and technicals

These are monster stocks which over the course of weeks and months increase +100% to +5,000%

TMLs are popular with traders/investors whose methodology is based on the CANSLIM system developed by William O'Neil.

He called them Model Book Stocks. Huge winners worth studying to identify common characteristics that they all share

O'Neil studied over 1000 model book stocks going back to the 1880s.

Many are shown and discussed in these must read books

How To Make Money in Stocks, O"Neil
https://t.co/S2sShZedUm

Monster Stocks, John Boik @monsterstocks1

A Few Examples courtesy of @SystematiCK_

Pic N Save
TRADERLION

More from Traderlion

Richard Moglen \U0001f4fd\ufe0f\U0001f6a2
Richard Moglen 📽️🚢...
@RichardMoglen
As Traders, Technical Analysis allows us to Judge Potential, Identify Accumulation, and Manage Risk.

It allows us to see through the noise and interpret price action.

Here is How To Read a Stock Chart For Beginners (Thread)

Let's start with the basics.

When you first pull up a stock chart you will see Price and Volume plotted versus time.


Each price bar represents one period of whatever timeframe you are on

Some people like candlesticks, I personally think Open/High/Low/Close (OHLC) Bars are more intuitive

For each bar/candle, the four important data points of each period are represented:

High
Low
Open
Close.


For each bar, we want to be able to determine whether buyers or sellers are in control and how much conviction they have.

To do this we use our tools: Price and Volume

Thing about turning a price Bar 90 degrees counter clockwise so the high is now on the left and the low is now on the right.

Then picture a game of tug of war with participants representing buying pressure on the left and selling pressure on the right.
TRADERLION
Ray \U0001f981
Ray 🦁
@RayTL_
10 truths I wish I knew when I started trading:

Trading always was, is, and will always be a game against yourself. Nobody can make it happen for you, and there’s nobody to beat.

Your only chance of winning is to practice being a better version of yourself today than you were yesterday.

/1

Traders waste so much energy lamenting on "I missed this" - if all that energy was spent on fixing a problem they just identified — many of them would be better off than they are today.

Be a good problem solver, not a complainer. That negative energy is no bueno.

/2

Performance is a byproduct of position sizing.

Position Sizing stems from conviction.

Conviction is built by doing deep dives and studying specific setups in the markets, especially ones that tap into its structural tendencies consistently.

/3

Have a few setups you know really really well.

I have hundreds of examples on each, done deep dives & can trade them when I see them instinctively.

You have to know exactly what ur looking for…so u can repeatedly execute those setups & make them sources of income.

/4
TRADERLION , TRADING , RAYS TRUTHS
Advertisement
TraderLion \U0001f981
TraderLion 🦁
@TraderLion_
A Guide to Position Sizing

--- Thread 🧵 ---

To perform in the market, position sizing needs to be the main focus.

This is what ultimately separates the good from the great.

It will make no difference on your account if you have a 100% gain in a name with only 1% of your equity.

It will make a huge difference on your account if you have a 100% gain in a name with 20%+ of your equity.

There are 2 consistent ways to position size in the markets 👇

1️⃣ Position Size Based on Risk
2️⃣ Position Size Based on Number of Edges

1️⃣ Position Size Based on Risk

Before you take a position in a stock, you must know how much you are willing to lose on a trade.

We recommend never risking more than 1% of your overall account equity on any single trade, especially if you are in the consistency phase.
TRADERLION
TraderLion \U0001f981
TraderLion 🦁
@TraderLion_
8 Chart Patterns by William O'Neil

Let's break them down one by one🧵


Perhaps the most famous basing pattern found in the market is the Cup with Handle pattern.

✅ Chart resembles a cup with a handle
✅ Base length: Minimum 7 weeks
✅ Base depth: 20-30%
✅ Buy point: high of the handle
✅ Handle length: 1 week
✅ Handle depth: no more than 15%


There is also a Cup without Handle pattern.

✅ Chart is just a cup, no handle
✅ Base length: Minimum 7 weeks
✅ Base depth: 20-30%
✅ Buy point: High of left side of cup


The Double Bottom chart pattern is also very common & is one of the most powerful patterns to learn.

✅ Base resembles a "W"
✅ Base length: Min. 7 weeks
✅ Base depth: < 40%
✅ Buy point: middle of "W"
✅ Second low must undercut first low


The Flat Base pattern is another well known structure coined by William O'Neil.

✅ Base resembles a shallow consolidation
✅ Prior uptrend must be greater than 30%
✅ Base length: Minimum of 5 weeks
✅ Base depth: < 15%
✅ Buy point: High of structure
TRADERLION , ALL , CHARTS
TraderLion
TraderLion
@TraderLion_
An Introduction to CANSLIM (Thread)

CANSLIM is a growth stock investing strategy developed by William O’Neil.

O'Neil was the founder of Investor's Business Daily and in 1964 he became the youngest person to ever purchase a seat on the New York Stock Exchange at age 30.


O’Neil's success came from studying the greatest winning stocks of all time and the methods of the most successful investors of all time including Bernard Baruch, Jesse Livermore, Gerald M. Loeb, Jack Dreyfus, and Nicolas Darvas


From this research, he distilled 7 key characteristics which showed up again and again in the top-performing stocks of every market cycle.

Together they form the acronym CANSLIM

Current Quarterly Earnings Growth
Annual Earnings Growth
New Products/Services/Management/Price Highs
Supply and Demand
Leader Versus Laggard
Institutional Sponsorship
Market Direction
TRADERLION

You May Also Like

Jaynesh Kasliwal
Jaynesh Kasliwal
@JayneshKasliwal
A simple #swingtrading strategy
1. Whenever you see a stock in strong uptrend it will tend to take support on its 21 ema.
2. Always look whether the stock has taken support previously.
@kuttrapali @rohanshah619 @chartmojo @chartworldat
#adaniports #balajiamine #jswsteel


3. 21 ema will act as dynamic support in a trending market
4. Risk: Reward is favourable in such setups
5. 50 ema can also act as support which can be kept as stoploss for swing trading
6. Volume should be less during pullbacks .
#nifty50 #stockmarket #CHARTS
STOCKLEARNINGS , ALL
Mitesh Patel
Mitesh Patel
@Mitesh_Engr
Again sharing bank nifty intraday weekly straddle. How to play by selling straddle.
Mostly will work on Monday to Wednesday. Sometimes on Friday.
Why to pay your money to learn this if u can get it here.
U need only practice.
Let’s go.

Say bank nifty future is at 32000.
Sell both 32000 call and put.
Considering current volatile market lest say premium on Monday morning is 350 on both sides.
Sold with 700 points combine premium.
If bank nifty will trade in narrow range say +\- 100 hold it.
If moving 200 points

then exit previous sold straddle. Sell new one. Let’s say BN moved +200
Now sell 32200. If bank nifty will move here within range then u will get profit through theta decay. Follow same procedure for next 150-200 pts move.

This is only for single straddle sell position.

Now in second case sell three straddle. 31900/32000/32100
In case of 100 points move no need to change.
If 200 + then future is 32200.
Exit 31900 and sell 31200 straddle.
If moving another 100 then exit 32000 and sell 32300. Continue same with 100 points move.
If no move then

it will consolidate between 32000-32200 or 32100 to 32300 and u will get theta decay.

This is for normal move. Sudden big move may come anytime. So keep SL in system.
If u r selling at 350-350 then keep SL in system 475 for both legs.
Practice it. No need to attend webinar.
BNF , MPATELOPTIONSLEARNINGS , OPTIONSLEARNING
Advertisement
Stephen Fasenfeld \U0001f600
Stephen Fasenfeld 😀...
@fasenfeld
1. “Who Are Ireland’s Members Of The World Economic Forum Implementing The Great Reset In 2021 ? 🧵1/28

🕵️🔎 Politicians, Musicians, Clergy, Bankers, Journalists, Human Rights, Artificial Intelligence, Sustainability, Corporations & Agriculture


2. In previous threads I have looked at 🇮🇪 key players in the Trilateral Commission as well as 🇮🇪 people who have attended the Bilderberger meetings. I also looked at the 🇮🇪 in the Young Global Leaders which is a site run by the WEF. You will see a lot of crossover between them.

3. The purpose of this thread is to compile all the Irish members into one thread for ease of access and reading rather than having to dive through the WEF site. This is by no means definitive and I will be adding more over time when they pop out of the woodwork.

4. Ireland’s WEF members are drawn from all walks of life but can be split into 2 separate areas. The WEF calls the first category “people” and the 2nd one “agenda contributors”. In total Ireland has a minimum of 61 members. Some of the names will be familiar and others will not

5. In this thread I’m just going to concentrate on the 21 people (there are probably a lot more). There are also 40 “agenda contributors” which I will cover in a separate thread. The agenda contributors are those who write articles or do research for the WEF site.
ECONOMY
Simon DeDeo
Simon DeDeo
@SimonDeDeo
"I lied about my basic beliefs in order to keep a prestigious job. Now that it will be zero-cost to me, I have a few things to say."


We know that elite institutions like the one Flier was in (partial) charge of rely on irrelevant status markers like private school education, whiteness, legacy, and ability to charm an old white guy at an interview.

Harvard's discriminatory policies are becoming increasingly well known, across the political spectrum (see, e.g., the recent lawsuit on discrimination against East Asian applications.)

It's refreshing to hear a senior administrator admits to personally opposing policies that attempt to remedy these basic flaws. These are flaws that harm his institution's ability to do cutting-edge research and to serve the public.

Harvard is being eclipsed by institutions that have different ideas about how to run a 21st Century institution. Stanford, for one; the UC system; the "public Ivys".
LIFE
Robin Berjon
Robin Berjon
@robinberjon
Recently, the @CNIL issued a decision regarding the GDPR compliance of an unknown French adtech company named "Vectaury". It may seem like small fry, but the decision has potential wide-ranging impacts for Google, the IAB framework, and today's adtech. It's thread time! 👇

It's all in French, but if you're up for it you can read:
• Their blog post (lacks the most interesting details): https://t.co/PHkDcOT1hy
• Their high-level legal decision: https://t.co/hwpiEvjodt
• The full notification: https://t.co/QQB7rfynha

I've read it so you needn't!

Vectaury was collecting geolocation data in order to create profiles (eg. people who often go to this or that type of shop) so as to power ad targeting. They operate through embedded SDKs and ad bidding, making them invisible to users.

The @CNIL notes that profiling based off of geolocation presents particular risks since it reveals people's movements and habits. As risky, the processing requires consent — this will be the heart of their assessment.

Interesting point: they justify the decision in part because of how many people COULD be targeted in this way (rather than how many have — though they note that too). Because it's on a phone, and many have phones, it is considered large-scale processing no matter what.
TECH