In this thread I am sharing Trading Setup, which can be used to find πΉπππππππ πΊπππππ after a π«ππππππππ
.
I have shared such trading setups in the past as well.
Likeβ€οΈ& Retweetπfor wider reach and for more such learning thread in the future.
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I have shared such trading setups in the past as well.
Likeβ€οΈ& Retweetπfor wider reach and for more such learning thread in the future.
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π΄Crucial Moving Average (#EMA)
Generally, all stocks have tendencies to retrace back to EMA and this is called Mean Reversion.
200 EMA is a crucial one which can be used to find support for stocks during downtrend.
It works on Daily, Weekly and Monthly time frame.
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Generally, all stocks have tendencies to retrace back to EMA and this is called Mean Reversion.
200 EMA is a crucial one which can be used to find support for stocks during downtrend.
It works on Daily, Weekly and Monthly time frame.
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I would prefer to do backtest on the stock and see how it had reacted when it approaches near crucial EMA in the past.
Sharing some examples where stock took support near EMA:
1β£ ICICI Bank - Daily
2β£ TCS - Weekly
3β£ Cipla - Monthly
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Sharing some examples where stock took support near EMA:
1β£ ICICI Bank - Daily
2β£ TCS - Weekly
3β£ Cipla - Monthly
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π΄#Fibonacci Retracement
When a stock is in uptrend and in uncharted territory, then important fibonacci levels can act as support.
Retracement levels are: 23.6%, 38.2%, 61.8% and 78.6%.
Plot Fibo from low to high in the uptrend and Retracement levels will be plotted.
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When a stock is in uptrend and in uncharted territory, then important fibonacci levels can act as support.
Retracement levels are: 23.6%, 38.2%, 61.8% and 78.6%.
Plot Fibo from low to high in the uptrend and Retracement levels will be plotted.
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Again Fibonacci Retracement works on Daily, Weekly and Monthly Time Frame.
Sharing some examples where stock took support near Retracement levels:
1β£ Reliance Ind - Daily
After uptrend from 867 to 2369, Reliance took support at 38.2% retracement level.
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Sharing some examples where stock took support near Retracement levels:
1β£ Reliance Ind - Daily
After uptrend from 867 to 2369, Reliance took support at 38.2% retracement level.
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π΄Price Action
Identifying Stocks that are trading near support line.
DMart was trading near support line on daily time frame. It took support and bounced back.
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Identifying Stocks that are trading near support line.
DMart was trading near support line on daily time frame. It took support and bounced back.
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π΄Bullish RSI Divergence
Price is forming Lower Lows and RSI is forming Higher Lows. This means momentum of downtrend is fading out and reversal is possible.
Shared chart of Reliance Daily time frame where Bullish Divergence was formed and then price rallied.
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Price is forming Lower Lows and RSI is forming Higher Lows. This means momentum of downtrend is fading out and reversal is possible.
Shared chart of Reliance Daily time frame where Bullish Divergence was formed and then price rallied.
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All these simple strategies or trading setup I used to find out reversal stocks for short-term trading or investment.
This I use only for buying in cash for finding out low risk buying opportunity. Trading in futures/options will be risky without a proper trading plan.
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This I use only for buying in cash for finding out low risk buying opportunity. Trading in futures/options will be risky without a proper trading plan.
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I hope everyone understood how reversal stocks can be identified.
These are not a universal rules one must follow. One can create their rule or follow different rules.
Only important thing is one must follow a fix rule with a proper trading plan without tweaking it.
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These are not a universal rules one must follow. One can create their rule or follow different rules.
Only important thing is one must follow a fix rule with a proper trading plan without tweaking it.
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