🧵EMA + VWAP STRATEGY

Every trader has a go-to strategy that works best for them. My trading is all about keeping it simple stupid and revolves around two indicators - Exponential moving averages and vwap.

Here's the strategy that I utilize on nearly 80% of my trades.

👇

What are Exponential Moving Averages?

EMA's are a type of moving average that places a greater weight on more recent data points.

8EMA = Exponential Moving Averages of the last 8 candle closing prices.

EMA's adjust with respect to chart time frame.

What is VWAP?

Volume Weighted Average Price - A key intraday indicator in my trading that offers the true average price based on price & volume.

Calculation: (Price x # of shares traded) / total shares traded

EMA's I use

- 8
- 21
- 50

While I do utilize the 50EMA, the 8 & 21 EMA are most important for this strategy. Some people use the 9 and 20 which are essentially the same thing. REMEMBER: EMA'S adjust with respect to time frames.

A+ Set Up Criteria - (What I look for)

SJS Enterprises Ltd: Business Analysis

"A high ROCE cash-generating business, with a moat"

A thread 🧵

1. Company's Background:

• Incorporated in 1987, Company is a leading decorative aesthetic parts supplier to Auto and Consumer durables Companies in India.

• It is basically a design to delivery player in the industry.

• The end markets served are 2W, PV, CD, CV, Medical devices, Farm equipment & sanitary ware.

• It supplied over 115 million parts with more than 6,000 SKUs in FY21 to around 170 customer locations in approximately 90 cities across 20 countries.

• Product offerings include decals and body graphics, 2D & 3D appliques/dials, 3D lux badges, domes, overlays, aluminum badges, IMD/IML, lens mask assembly & chrome-plated injection molding plastic parts apart from 2-W & PV aftermarket accessories under ‘Transform’ brand.

2. Products:

One of the few aesthetics product manufacturers in India which offers advanced technology products such as Capacitive Overlays, Optical plastics, 3D Dials, and IML/IMD’s.

Divi’s Lab Analysis🇮🇳

A detailed thread 🧵👇🏻
#investing #StocksToBuy

(1/17)

About:

DLL was incorporated in 1990 by Dr Murli K Divi. DLL is engaged in manufacturing of generic APIs, Nutraceutical, Custom
Synthesis of APIs & Intermediates for innovator companies

Divi's Lab is the leading manufacturer of APIs, supplying to over 95 countries.

(2/17)

Global Pharma Industry:

The pharma industry will be closely
monitored by govt in all countries in times to come.

The industry is expected to grow at 3–6% CAGR through 2025, reaching about $1.6 trillion in total
market size in 2025.

(3/17)

Indian pharma industry:

India ranks 3rd worldwide for
pharmaceutical production by volume & 14th by value.

The Indian active ingredients industry has progressed
from being an industry manufacturing simple
molecules to manufacturing high
value and complex APIs.

(4/17)

The Man behind Divis Lab!

Dr. Murli K. Divi is a postgraduate in Pharmaceutical Chemistry from College of Pharmacy, Manipal

He has over 30 years of experience in this field

He has previously worked with Trinity Chemical Corporation, Schuylkill Chemical & Fike Chemicals

It's the weekend!

Grab a cup of coffee, in this thread I will explain

1. What is a Yield Curve?
2. Why is it an important indicator of Recession?
3. Is an Economic Recession around the corner?

Lets dive right in!

Before we understand a Yield Curve, lets get some of the basic terminology out of the way

1. What is a Bond?

A bond is a fixed income financial instrument which represents a loan made by an investor to a borrower

The investor typically receives payment in the form of interest and a lumpsum (principal) on maturity

The interest rate on a bond is known as coupon rate.

There are many types of bonds like

1. Zero Coupon : Pays both interest and principal at maturity
2. Sovereign Bonds : Issued by a Government or a Quasi Government Institution
3. Corporate Bonds : Issued by corporate like banks, established companies etc.

Coupon (Interest Rates) on a bond are decided based on the issuer's credit rating

The higher the credit worthiness of the issuer, the lower the coupon rate

Credit Rating on a Bond is usually assigned by credit rating agencies like Moody's or Standard & Poor's (S&P)

Thread : Trading Applications that I use on a daily basis🧵

1) After putting a detailed post on hardware & multi-monitor setup. Few asked for softwares I use for trading.

So I am listing softwares/apps which I find the most useful for trading & investing

2) Trading View or Kite app

I use trading view for intraday charts.

As I trade intraday, I use the 5 min time frame.

My chart is simple with 20 sma plotted on it along with CPR(central pivot range)

Price > 20 sma & CPR indicates bullish trend for intraday & vice-versa

3) Icharts

As I majorly trade option premiums(short volatility or theta decay strategies)

I keep a track of combined premium of strangle using @iChartsIndia

Combined premium should be trending down & below VWAP to create a strangle

4) QuantsApp

As I need to provide analysis on TV channel.

I need to analyse overall market breadth, futures data & option chain activitiy.

@quantsapp provides

Futures Data : Long Builtup/Short Builtup
Options Data : Max Call OI/ Put OI
Market Breadth : For overall sentiment

5) Spider

I used @SpiderSoftIn to scan momentum stocks for intraday.

Spider helps in identfiying :

stocks hitting 52 week high/ low
Stocks making day high/low
Stocks with large buying single orders