If u are looking to enter a scrip just before the breakout
what would u look for?
How would u identify scrips just before breakout?
Here are a few pointers
Carefully understand the them and use at ur own discretion
(All comments r compiled from a question i posed)
But now in recent times it's forming multiple candles near the same resistance with low volume.
Observe it and see for opposite move.
As soon as u get a positive candle, get in to it.
2. On LTF, price stalling around breakout area for at least 1-2hr.
3. No major events.
Contraction of price and volume near it especially near 20 days ma.
If there is any breach of the latest HL it should be followed by a bullish candle with good volume.
Left side of the chart has a rally with a very steep slope of ma.
If stock is at its ATH then it adds more conviction bcz there wont b supply after that point
Consolidation below the resistance, volume of the candles & strong bullish candle closing at near highs just below the resistance
Relative strength of the index.
Supertrend turning positive/Ichimoku Conversion line crosses base line or Price crosses above cloud.
Gain from 52 Week low.
Final rally in narrow range before breaking out should supported with high volume moves.
Above resistance there should not be any important moving average.
2. If there is any consolidation on ltf & if price break down consolidation & that candle if close again in consolidation area will buy on that candle itself.
1) HL formation
2) Volatility contraction
3) Buildup near resistance
2. How the current Candle formed compare to last 6-8 weeks
3. If able to cross Monthly/Weekly Resistance
4. Recently any stake increased by Promotor/ Others
5. Need to wait for Pull back and sustain followed should close by above BO candle
It must already be in stage 2
The base should be spread out at least over a month
The ATH has been tested at least 1-2 times
Volume contraction on right side near ATH
Favorable market and sector
An outsider candle at bottom may also be considered as an odd enhancer.
HH & HL should be there on higher time frame.
Stock outperforming sectoral index
Volume dry up on small pullbacks
2. Many or atleast one long wick candle with less volume in higher low areas
3. Nice consolidation with volume buildup in lower time frame near the resistance.
2. Rsi greater than 60
3. Volume increasing trend
Consolidation near the resistance.
If the consolidation is tight and over 20ema, it generally explodes.
2 - Price within a constructive base pattern
3 - higher than normal delivery %
4 - Pocket pivot
Draw a horizontal line and see how many times the stock has reversed from there the more the resistance the higher the probability of a breakout
Stock is making higher low?
Stock is contracting well?? I meant volatility
Stock is having more of red or green volumes.
Look for rising volume, at least higher than last BO point.
Also look at the broader market performance, test of supply and shakeout candle for perfect breakout to happen.
Drying vol during consolidation
Final shakeout to absorb weak longs
Unusual activity by insiders before a big move (Price & Volume actions)
2: wide range closing
3: Price holding levels near to breakout for sometine
4: Volume increasing
5: Round number price action.
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Start fibo retracement from swing high, not the other way around. Simply 0 point should b where retracement started
The base should b chosen as major swing low. Can't just pick a random point
How would u assess trend is still intact
u can scale into the trade to maximize the profitability ?
HH HL formation and pin bar with good vol at vwap or just abv previous low. ADX greater than 25
Low volumes on counter trend move and price not closing below Vwap
HH and HL formation on 5 min time frame. Volumes expanding when making HH and low volumes when in LL. Price above vwap
SuperTrend 10,2, for scale in at ST retracement
a). Bullish PA when candle is at VWAP
b). Minimal Overhead resistance (Volume Profile can help) helps in making the stock to trend more easily
c). Can Scale in when Price retraces to VWAP during low volume period mid-afternoon and forms a Bullish candlestick
a). Trend still intact: Slope of 20 or 21 EMA moving higher
b). Upscale: Price pullback to EMA with less volume followed by upmove with good volume
a). Should cross 5 EMA
b). Above yesterday VWAP
c). Possibly Ascending Triangle Break Out.
d). If continued trend dont add
e). If re test confirmed in intraday will add more
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Yesterday was brutal for some people...
Losing life-changing money sucks, losing any money sucks...you can chase the market or you can change your strategy.
2/ The original thread is gone but you can read it here.
- Traded $32k to $1.2m
- Thought I was a genius
- Made poor investments
- Didn't conserve capital
- Peaked at 150 BTC
- Lost nearly all of it
2 weeks from losing my house + no income. Oops.
3/ I am going to assume you are in it for the money rather than the tech. Yeah, you might Tweet about the amazing blockchaining of cross-border payments and oracles yadda yadda...really, you are in it to make money.
If you are really in it for the tech, go and build something.
4/ Okay, so if you want to make money, trading is super hard, you are trading against:
- Better traders than you
- People who can move markets
- Unknown information
And if you are trading with leverage you might blow up your account with the volatility.
5/ If you are not trading, you are investing. Okay, so what are you investing in?
I made the decision that the crypto with the best opportunity of existing in 10 years is #Bitcoin:
- Solves a genuine problem
- The right tech
- A proven track record
1. Clarity- When the mind is free from fear and ego
The first step to successful trading is to be clear about everything you do.
BUT, the reality is that most traders don't even know what they are doing.
And because of this-
They don't have any goals.
They don't have any Trading plan
They don't know what is suitable for them
And the list goes, on and on.
If you are among the people as described above, don't worry, There is nothing wrong with you, almost 90% of Traders are like that.
So, what do you have to do to get CLARITY in your Trading-
Find one style that is suitable to your personality and double down on it.
In this world where we have plethora of information just one click away, most people are distracted and see a Glowy thing every time they go over the social media.
They Find something new every now and then, jumping from one strategy to another, searching for Holy grail.
Was looking at the landscape of the world & quite concerned where we are (I do not share your optimism for a shinny happy future). I am a Bond guy + Cycles & my view approach is ALWAYS what is the worst that can happen (that is how I was taught to trade & manage money) As a Bond
Money manager you never every want to apologize for a negative year, most people don't understand bonds can lose lots and lots and lots of money. So my view on life is always negative & fuck you approach.
The others are similar but have more equity exposure and FX, one other is really good via commodities so the conversation was from a top down look with some bottom up approaches. So.....after looking at the notes of the great conversation this is how it looked:
basically the world changed 2007/2008 especially North America. The GFC set in motion financial engineering games and here we are. The issues pre this (2000 to 2007) set ALL this up so lots of blame to go around but to pin point certain things the real problems started with QE &
$TPGY $SBE $CLII $BLNK $NBAC $BEEM $STPK $TSLA $IDEX
According to the International Energy Agency, which forecasts that there may be 300-400 million EVs (cars + commercial) on the road out of approximately 2 billion vehicles by 2040.
The global electric vehicle charging infrastructure market size was valued at USD 15.06 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 33.4% from 2021 to 2028.
In 2019, there were about 7.3 million chargers worldwide, of which about 6.5 million were private. US alone needs about 2 million EV charging stations for the 40 or more electric car models that are likely to be on the roads in their multitudes by 2025. China leads the market.
According to the Open Charge Map, there are almost 200K charging stations across about 100K locations around the world.
This is important to realize. The way many of these firms are structured is that they have a pure MM book (keep inventory low, stay hedged, clip spreads) and prop books to express a view. The prop book can trade with the MM book at (to first approximation) mid and a lot of their— macrocephalopod (@macrocephalopod) February 15, 2021
A “pure” market making operation is based on clipping spreads, ie buy low, sell high, keep inventory low, keep risks (eg greeks) tightly hedged. Skew your bid/offer based on your inventory to try and offload it as quickly as possible without impacting your profit too much.
This kind of trading has enormous risk-adjusted returns (Sharpe > 10, ~no down days) but it’s hard to scale it because your P&L is a function of two things — volume and volatility — that you don’t have any control over.
This is a problem because the costs of running a pure MM firm (mainly infrastructure and employee comp) are increasing and profit margins are decreasing. So many firms turn to prop trading as a way to increase P&L at the cost of some Sharpe.
One way to approach this is to make your price skew dependent on factors other than your inventory, eg if you think the market is going up you skew prices a little higher to encourage people to sell to you and discourage them from buying from you.
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Once, he visited Kailasha along with other Rishis. All the Rishis did parikrama of Shiva and Parvati both except Rishi Bhringi.
The same situation continued whenever Rishi Bhringi visited Kailasha. Mata Parvati decided to teach him that Shiva and Parvati are one and inseparable.
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Rishi Bhringi finally realised that Shiv and Shakti are one and the same.
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Why Gain/loss ratio is important that the batting average
• More than the Win Loss ratio check the total Gain /loss ratio
• If your avg loss is 1% and avg gain is +5% then even if you are losing in 7 positions and winning in 3 out of 10 still you will be net profitable
Treat Trading as a business:
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• Any trader should atleast experience 3 scenarios i.e. bull, bear & consolidation
• Target 4% per month i.e. 48% p.a.
• Option buying requires skill, everyday there wont be huge momentum, so buying options won’t yield good results, but high chances of falling into a bad habit
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Which options to sell in weekly expiry according to @Mitesh_Engr?
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Position Sizing by @Mitesh_Engr Sir.
How to deploy your capital?
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Some important tweets of @Mitesh_Engr Sir
• What Data to look at
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• Max risk per day
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I came across this beautiful story that I would like to share
#Hanuman ji is believed to live in the foothills of Himalayas. But once he spent a lot of time in Sri Lanka
Where Ravan's brother ruled for many years..
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He gave Darshan to them. The chief of the tribe asked him to keep coming back to guide their generations
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