// Swing Trading 101๐งต
Nearly 5000 stocks are publicly traded, this would help you zero down to best names which are likely to go north.
And no, you don't need to know what company does or actively track news to make a killing.
Price + Volume = All you need
Long read ahead..
๐งตMarket Breadth 101
It is a broad approach to overall market analysis that helps traders to realize the underlying strength or weakness associated with a market move
Thanks
@PradeepBonde
for the blogpost &
@iManasArora
for making breadth tool in context of Indian Market
(1/n)
Study big movers, notice price action and if you can boil water, then you'll find many similarities and be able to develop 3-4 setups, pick any one of them and master it.
An example:
#BSE
(1/n)
Biggest month ever!
#ADANIENT
- Trading this beast whole month. Both LONG & SHORT
Was way late to the party, should have been on this thing way earlier.
Gross return : 30%
Net return: 26.75% (excluding brokerage, taxes and losses from other trades)
// timeline of news events
#DELHIVERY
- Gains Delivered!
3 entries, big allocation (78% allocation), sold well into strength.
Retraced a bit intraday, shook out many. Got tight, added more to my position.
Kept selling small pieces at every leg higher.
Portfolio up 5.30%
What a valuable investing course
My mind is boggled!!!!
They are so passionate, taking 12+ hours of teaching and query session every week & always available to guide us.
Surely one of the best decisions of my life.
Thank you so much๐๐
@Rishikesh_ADX
sir
@ash_lodha
sir
Big winners like
#AARTIDRUGS
,
#DEEPAKNTR
&
#HAPPIESTMNDS
had sharp pullback to 10/20 day, undercut them, went tight with volume contraction prior parabolic moves
Studying past breakouts, will keep adding the best ones below.
Why?
Spreading trading awareness, especially to those who mental masturbate thinking of Barren Wuffett! Okay, I'm kidding.
Just couldn't refuse the opportunity to increase engagement.
๐งต
Tools you need: Price Chart, Volumes & Moving Averages. That's it!
There are extensive permutation & combinations to make a setup out of it.
Specimen:
#CDSL
#RITES
- Risked 2.2 points for 68 point gain, holding full
#ENGINERSIN
- Risked 1.2 points for 11 point gain, sold 1/5th, rest running so far
#LAMBODHARA
- Risked 5.35 points for 62 point gain, holding last size
Unrealized gains stand 18% as of now
Price action characteristics prior clean breakouts:
Not more than 20%+ away from 50 Moving Average
2-3 Narrow Range Bars (Net Change < 2%)
Contracted Volumes
Selling Rejection/Shakeout
No recent buying rejections/Down days with high volumes
High relative volume at start
(1/n)
Wonky 3WTC๐งจ
#RICOAUTO
- 3 WTC followed by outside week
- Below 10/20/50 DMAs
- Formed a tight range right under rising 50MA
Reclaimed the moving averages, ended up moving 50% in 10 trading days
Open Positions:
#IBREALEST
- Leading stonk, sold half into strength
#CASTROL
- Reclaimed 50 day, broke out on high vols, letting it work
#DATAPATTNS
- Prior monster move, defense theme acting solid, free trade
Your edge is what makes you money and helps you cut your losses short.
It's your ability to anticipate how buyers/sellers might react at a particular region.
If you're a long-biased trader, there aren't many opportunities to exploit your edge currently.
Massive trading resource coming your way! Covering the intricacies relating to setup selection, execution, from sizing to stop. Discussing anatomy of breakouts, concept of higher lows, undercut& reclaim, busting myths about tight stops and much more.
In a totally non-BS way.
Eeeez. Normally I refrain sharing pictures but couldn't resist this time. Finally a picture with someone who looks, trades, fumbles and little schizophrenic like me. "5 Star" buoy, lol.
Jokes apart, was lovely chatting with you, thanks much for the opportunity
@AnkurPatel59
// Swing Trading 101๐งต
Nearly 5000 stocks are publicly traded, this would help you zero down to best names which are likely to go north.
And no, you don't need to know what company does or actively track news to make a killing.
Price + Volume = All you need
Long read ahead..
Base is a pause in price movement for some amount of time. One way to determine if a stock is young, count the number of times the stock has bounced off 10/20 MA or check the magnitude of the move.
The same concept can be applied on different time frames for either direction.
#SJVN
Momentum Stock
Strong gap up open
50%+ rvol in first 15 mins
Opening range high was the entry
Q: But how do you keep tab on the news...?
A: I don't
Gap up open + high rvol is all you need
5 steps to grow a small account, shouldn't skip or mess up the order.
1. Setup Selection
2. Entering right
3. Reducing Stop
4. Sizing Big
5. Selling Right
#ZEEL
Showing relative strength, put in a higher low, bouncing off from 10/20 day
Further tightening action would be preferable, nevertheless looks promising.
Udaipur: Underrated bite-size city!
Spectacular locations, pleasant weather, well maintained (clean) & good traffic sense.
Guides are good until they take you to art and craft museums (they get commission)
Pictures doesn't do justice here, looks way better IRL
If you aspire to trade flags in stocks which are already in momentum, focus on linearity and smoothness of stock, they tend to be technical friendly and easier to trade.
Eg:
#JBMA
Open Positions:
#IBREALEST
- Leading stonk, sold half into strength
#CASTROL
- Reclaimed 50 day, broke out on high vols, letting it work
#DATAPATTNS
- Prior monster move, defense theme acting solid, free trade
Case:
#IRCON
- High momentum stock flagged out on weekly
- 3WTC followed by outside week
- Undercut and reclaimed rising 10/20/50 day moving avgs
Doubled since then!
Recent Case:
#RVNL
- Numerous squats on daily chart
- 3WTC followed by outside week
- Ended up taking out tight range under rising 50MA
Wonky 3WTCs often look like broken structures but has bullish characteristics intact
What does clean setups have in common?
This:
- Linear Up-Move
- Young Trend
- No Recent Rejections
- Narrow Range Formation/ Tightness
- Smooth Quality of Consolidation (preferably near the high)
Pick up any chart and you'll observe similar kind of price action in each of them.
Entertains traders who seek to be process driven and learn a life long skill. Rest those who think market is merely cash generating tool and requires no whatsoever skill, are unwelcomed.
Website is actively under construction and will be made live soon. Will keep you updated.
#HSCL
- W
Fresh 52 week highs, broke out of long weekly consolidation, entering Stage 2. Similarly
#MIRZAINT
broke out few months ago and had a smooth run.
Went LONG in
#ADANIPOWER
at 124.1 with 1% Stop, 8.5R+ trade now.
Allocated 45% of account
Sold majority gains in strength, holding last size.
Portfolio already up 2%+
#BVCL
- At UC!
Its easier to attract twitter crowd by saying I bought this at 38.9 and now its at upper circuit. How does 7R sounds considering its the first day?
Fun fact: If this hits half century, I'll make odd 2% of my account.
Great trade eh?
Not really
What I've started to follow recently:
By EOD, note down the stocks which broke out.
Weed out the ones
- which failed to follow through
- which broke out without a solid setup
- which were difficult to manage according to your trading style
#LAURUSLABS
1st sign of a potential winner, makes a big move in a very short period of time (this was up 70% in 25 days)
Big winners will have simpler setups, break the base with narrower green bars sloping higher.
1/n
Went LONG in
#ELGIEQUIP
at 354.72 (avg)
Clean setup. Entered right at open, added twice on the way up, sold well. Fantastic start of the month.
Carrying some home
4.
Flagging/Basing out, after making a run stock flags out/ forms a base/ consolidates, before the new sets of buyers jump in. There are many variations of a base and consolidation quality. The best ones consolidate near the highs/ in the top 1/3rd area.
New leaders setting up?
After some auto large caps breaking out, many other auto/ancillary stocks are having constructive price action. Money flowing in auto sector is visible.
Let's get to them directly
Some large cap auto names are shaping up!
Made multi-week/month base, started making higher lows. Better if it gets coiled up near the range highs and break out on volume.
However, not interested in any of these, will prefer small and midcap auto ancillaries.
3.5% up last week
My Learning: Earning consistently is not easy, have experienced that. Every trader has rough patches. But if you choose to learn, it surely increases your baseline performance. It's You vs You, always.
Only stock basket that has been holding up well currently is: Defense.
They flagged out, made higher lows, undercut key moving averages and reclaimed it back = RS!
While previous potential leading sector (ship building & agrochem) faded when market tanked.
Price action characteristics prior breakdowns:
- Selling Pressure (preferably on high volumes) or Big Base (indicating stage 3)
- Lower Highs
- Buying Rejections
- Not extended from moving averages
- No big green days
- Tight price action near the support area
Price action characteristics prior clean breakouts:
Not more than 20%+ away from 50 Moving Average
2-3 Narrow Range Bars (Net Change < 2%)
Contracted Volumes
Selling Rejection/Shakeout
No recent buying rejections/Down days with high volumes
High relative volume at start
(1/n)
1.
Stocks having underlying buying force, that doesnโt rule out the possibility of breakout of a beaten down name. It simply force represents the upper hand of buyers in the stock. In cases where stock is in a base and has no recent buying force, look out for pocket pivot days
#TATACOFFEE
Selling at resistance is the one thing I'm currently working on. Stock was 3 legs up in short amount of time and approached resistance area, sweet spot for cool off until it builds flag for further up-move.
Moreover, it's important to look for contraction in volumes as well, conforming to the absence of significant trading activity in the stock. Tight action around the previous highs (resistance level) will require less buying force to break through further
You Better not miss this one. Friday 7 pm
@stonkssguy
sharing his Short Trading Journey . I was amazed to witness his mind clarity during this interview.
i normally don't ask for Retweet , But this time i request Please Do retweet for maximum reach.
#TheYoungTradersShow
Such action increases the odds of a successful breakout as it has shaken out the weaker hands out of the stock and even a slight buying force can take the stock higher, resulting into a breakout.
Be wary of big red days with higher than usual volume
#DELHIVERY
reminds me of
#HSCL
, I monitored it for 2 weeks and missed the breakout because I thought it would need 1/2 tight days.
Lesson: Majority of my winners have shaken me out and failed before making me solid money, so it's worth giving a shot to your top priority setup.
Buying breakouts on the 2nd/3rd day is a "blunt edge"
Sizing way too small is a "blunt edge"
Keeping a wider stop is a "blunt edge"
Relying on a high win rate to make money is a "blunt edge"
Your edge is what makes you money and helps you cut your losses short.
It's your ability to anticipate how buyers/sellers might react at a particular region.
If you're a long-biased trader, there aren't many opportunities to exploit your edge currently.
2.
Tight action, contraction in price and volume signifies dried up/bleak buying/selling activity taking the stock nowhere, resulting in tightening price action. Inside Bar is also a type of tightening action.
Something you need to hear today:
To perform well consistently, you need high risk reward system. That's a real edge.
If you need 70-80% win rate to make money, your edge is shit.
Pocket Pivot is day with higher volume than any of the down volume days in the prior 10 days
Stock undergoes price & time correction for months after a massive move, it gets out of hibernation by moving explosively in matter of few trading sessions on higher than usual volumes
8.
Other Nuances..
Look for high ADR names, those are the stocks which tend to move faster.
For encashing longer swing moves, focus on Young Stocks (not more than 3 bases old)
Any extension to the upside/downside often results into mean reversion as the trend is tired, so it is likely to go sideways till the moving averages catch up or pull back to them. Ideally moving averages should be sloping higher, if trading on the long side.
#SJVN
Momentum Stock
Strong gap up open
50%+ rvol in first 15 mins
Opening range high was the entry
Q: But how do you keep tab on the news...?
A: I don't
Gap up open + high rvol is all you need