How to identify pivot points on

Ed Seykota turned $5k to $15M in just 12 years.

Here are 20 of Ed's key quotes & takeaways to maximize your trading returns 👇🧵

"If you can’t take a small loss, sooner or later you will take the mother of all losses."

"Systems don’t need to be changed. The trick is for a trader to develop a system with which he is compatible."

"Having a quote machine is like having a slot machine at your desk – you end up feeding it all day long. I get my price data after the close each day."

"In order of importance to me are:

1) The long term trend
2) The current chart pattern
3) Picking a good spot to buy or sell"

10 open source indicators & strategies that you use on your charts right now!

Coded by traders & investors from around the world.

Take advantage of these 👇

The VIX Cheat Sheet

Coded by KioseffTrading

Tap and scroll down to read about how it works:

Rolling VWAP: a new tool for VWAP traders everywhere.

Coded by us! ❤️❤️❤️

Get it here:

Moving Averages in 3D!

Chart 10 moving averages at once as a three dimensional tool.

Coded by

The Wedge and Flag Finder

Detect wedges and flags with a single click, on any chart.

Coded by

#USDINR @Ankit_Quant I think selling USDINR weekly options provide a better potential then #Nifty or #BankNifty. Very high probability of not going above 1.5% and not coming below -1.25% in a week. Based on 20 years of Historical data.

Positive skew is quite evident.

/screener.in is a 'Gold-Mine' you dont have to search for stock ideas else-where.
There are ready-made "Popular Stock Screens" available🧵⇣⇟⇣
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2. The Bull Cartel Companies with a good quarterly growth. Specially made to keep a track of latest quarterly

3. Growth Stocks A stock screen to find stocks with high growth at reasonable price. G Factor is a score out of 10. It is based on recent quarterly growth of the company as well the quality of the

4. Magic Formula Based on famous Magic

5. Loss to Profit Companies Companies which had a turnaround and had quarterly results from loss to

THREAD: SAVE YOUR TAX ON TRADING INCOME

Investors and traders want to make big money in the stock market. But what about paying taxes. All of them would like to save some chips.

In this thread, you will learn a few smart ways to save on your taxes

1. Set-Off Your Losses

Losses from speculative trading can be set off against speculative gains made during a year.

You can carry forward these losses for 4 years.

These losses can’t be set off against non-speculative trading income.

Losses from Short Term Non-Speculative trading can be set off against STCG as well as LTCG for the same year.

However, losses from Long Term trading can be set off against LTCG only.

An investor can carry forward such losses for a period of 8 years.

2. Plough Back Your Profits

Exemption on LTCG of up to 1 lac. So, you can plough back these gains to increase your capital.

Example ~

Investment = 5 lacs
Time period = 1 year
Profit = 1 lac

Book this profit after one year and re-invest after a few days.

No tax liability for this 1 lac but this time your new capital invested will be 6 lacs.

A thread on Price Based Systematic Investment Plan (PB-SIP) methodology which I follow for my stock investments 👇

In this thread I write about
- What is price based SIP?
- Features of PB-SIP
- What is the merit of Price Based-SIP over Time Based SIP (TB-SIP)?

Note:
- This methodology is NOT backtested (so, it could be bullshit). I follow this approach because it makes logical sense to me

- This method is not about how to pick the right stocks. This is about how I do SIP in the stocks that I already shortlisted based on fundamentals

What is SIP?

SIP is a methodology where an investor invests in an instrument in a periodic manner.

The metric widely used to define periodicity is time i.e, SIP is done monthly or bi-weekly or quarterly.

However the periodicity could also be dictated by price instead of time.

What is Price Based SIP?

- PBSIP is the type of SIP where you do a SIP instalment when price action gives you a signal to buy

- The time intervals between two PB-SIP instalments is uneven and dictated by price action

- The SIP instalment amount is also dictated by price action

Features of PBSIP:

- SIP amount is proportional to how far the buy price is away from 52 week high

- During downtrend, the SIP amount will be equivalent to martingale type position sizing

- During uptrend, the SIP amount will be equivalent to pyramiding type position sizing

A lot of websites provide you with data for trading.

However, I liked the free website of Icici Direct the most.

Here is a breakdown of what it can do: 🧵

Collaborated with @niki_poojary

Advantages:

1. Quantitative Analysis in one place
2. Easy to find stocks where action taking place
3. Find the exact price levels at which OI is being added.

You can check out this free website by clicking on this

Where is the action taking place?

For eg, Nifty Heatmap Can easily scan for:

- Long Build up = Price Up and OI up
- Long Unwinding = Price Down and OI down
- Short Buildup = Price Down and OI up
- Short Covering = Price Up and OI down

Price levels of OI being added:

• Check 15 mins Built-up in any stock
• Can find Intraday Bullish and bearish trend
• Eg of IBUL who was down 5% on Friday. Short Built-up had started in the morning itself.
• Shows the quantities which are being traded in those intervals.

Time Intervals:

• There are 25, time intervals available every day.

• If a stock has to go up or down a lot it will be heavily dominated in these time intervals.

• IBUL had 10 times short built up on Friday. -5.79 %

• ITC had 14 long built-ups on Friday. +2.6%.

How to save tax when income is above 50 lakhs?

Here are 9 benefits of trading in a corporate account: 🧵

Collaborated with @niki_poojary

1. Make a Pvt Ltd Company.

Form a company with family members and trade under it. The family members should be directors of the company. Will explain why later.

Why form a company?
You will only need to pay 25% flat tax. Individuals have to pay 30% tax above 10 lakh profits.

2. Surcharge Benefits:

You will be charged a lower surcharge in a corporate account.

Check the picture below:

Total Tax Outlay:

The total tax outlay for individuals is 30% plus surcharge. If you really earn a lot (10 cr +) then you will be paying 42% tax.

Whereas in a company you'll be paying a maximum of 28% tax.

This is how rich people save a lot of their money by paying low taxes.

3. Expenses can be deducted.

All expenses can be deducted from a company account.

Companies:
1. First make a profit.
2. then deduct the expenses
3. & Pay tax on the remaining income

Individuals:
1. First Profit
2. Then Pay tax
3. Expenses with whatever is left.

Nano Course On Python For Trading
==========================
Module 3-B (Bonus)

In this Bonus Module, I will attempt to teach you how to write an algorithm to create a Stock Screener based on @markminervini 's Trend Template from his book Trade Like A Stock Market Wizard.

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Some of the readers asked about how to create a stock screener. So, I thought before jumping to the cloud and deploying an algorithm on the cloud, I should address this. Whatever algorithm we develop in this module, we will deploy it on the cloud in Module number 4.

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Pre-requisites:

• Read Module 2, so that you can download the historical data. A small assignment for you - write code to automate EOD data download and save it in the folder. We need to have the latest data for the screener. Hint: set end_date =

The rules are:

• The LTP of the stock > 150 SMA & 200 SMA
• The 150 SMA > 200 SMA
• The 200 SMA must be greater than 200 SMA 30 days ago.
• The 50 SMA > 150 SMA & 50 SMA > 200 SMA
• The LTP > 50 SMA
• The LTP must be greater than 30% of 52-Week Low

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• The LTP is close to 25% of the 52-Week High
• The Relative Strength(RS) should be greater than 70

SMA = Simple Moving Average
LTP = Last Traded Price

Let's get started with its coding.

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Nano Course On Python For Trading
==========================
Module 3

In this post, I will attempt to teach you how to write an algorithm in python to automatically find support and resistance. We shall use the data we downloaded in module 2.

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To visualize price action, I have used the daily candlestick chart. To quantify the meaning of support and resistance, I have taken below definitions:
In a series of 5 continuous candles, if the first three candles make increasing high and then 2 decreasing highs, then the

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high of the third candle is considered resistance. Similarly, if the first 3 candles make lower lows and the next 2 make high lows then the low of the third candle is support.

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The above explanation is for the sake of quantifying support and resistance at a very basic level. These are called fractals. Now let's get started with the code.

mpl_finance is the new module here. We will use its candlestick_ohlc function.

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Now, if you remember, you downloaded data for nifty 50 stocks in module 2. We shall use that data. Let's work on ITC data this time.
We will use data from 1 Jan 2021 to 30 June 2021.

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1 Crore term plans have become quite popular these days - after all, it just costs INR 400 per month for a huge 1 Crore life cover, right?

WRONG!

'1 Crore' might look good on paper but when you actually do the math, you’ll realize that it won’t be sufficient for your family.

So, how do you calculate the appropriate cover amount? And what should you do if you’re not eligible for the amount you need?

Find out - in this article

A Mega Thread on RELATIVE STRENGTH

A method to improve
Stock Selection and Conviction in trades

Retweet 🔄And Follow
@JayneshKasliwal

What is RELATIVE STRENGTH?

Relative strength is a strategy used in momentum investing and in identifying value stocks.

It focuses on investing in stocks or other investments that have performed well relative to the market as a whole or to a relevant benchmark.
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For example, a relative strength investor might select technology companies that have outperformed the Nifty50, or the Nifty 500.
This is basically used for Identifying the strongest sector , stocks , asset class by comparing the relative performance
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How to apply it in tradingview?
Type
“Relative Strength”
Choose any
By bharattrader
By traderlion
By Modhelius
I use by bharattrader
In setting use 65 period
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Formula for Rs
Using 65 as period and base as NiftyOne can use 123 or 250 as period depending upon your time frame of holding
If your view is short term then 65 works great and mid to long term can use 123 and 250 .
@kuttrapali26
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Trading using Relative Strength: https://t.co/HeZT7B0MOv

A thread (🧵)...

Relative Strength(RS) has emerged as one of the most sought-after indicators by Indian #traders. But, what makes it so special? 👇

In simple terms, Relative Strength refers to the measure of the price #trend of a #stock, compared to its Benchmark index/Sectoral Index👇

Indexes like #Nifty, #Sensex, or Sectors like #Banking, Automobiles, can be used. The data can be of a period of 55 days, for example, 👇

RS is calculated by dividing the percentage #price change of a stock over a specified period day by the percentage change of a #market index or sector over the same period👇