ULTIMATE GUIDE TO 21 and 200 Moving Average
SUNDAY THREAD 🔖
A trend Following System That will Help You Improve Trading immensely.

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Moving averages
EMA and SMA
1. Exponential Moving Average (EMA) is similar to Simple Moving Average (SMA), measuring trend direction over a period of time.
2. However, whereas SMA simply calculates an average of price data, EMA applies more weight to data that is more current
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21 EMA : SHORT TERM TREND
1. Calculates the Average Price of past 21 days
2. A stock above 21 ema is in strong momentum , which will give pullbacks to 21 ema again and again.
3. Stock above 21 ema should never be shorted so as to stay with the trend
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3. A stock which moves 10-15% above 21 ema will be too extended and hence will generally pullback
Stocks take dynamic support on 21 ema
4. You can Short only if its too extended like 15 to 20% from 21 ema ( Not advised )
#ADANIPOWER:
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1. Whenever 21 ema is sloping upwards its called uptrend
2. Whenever 21 ema is sloping downwards its called dowtrend
3. Whenever 21 ema is sideways its called consolidation
⏫Buy in uptrend
⏬Sell in downtrend
Examples:
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A simple #swingtrading strategy
1. Whenever you see a stock in strong uptrend it will tend to take support on its 21 ema.
2. Always look whether the stock has taken support previously.
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3. 21 ema will act as dynamic support in a trending market
4. Risk: Reward is favourable in such setups
5. 50 ema can also act as support which can be kept as stoploss for swing trading
6. Volume should be less during pullbacks .
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UNDERSTANDING CHART PATTERNS IN REAL CHARTS!

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Swing Trading Strategy
That can help you generate 3 to 5% Monthly
A thread 📕
Using RS , MACD , 21 EMA and Price Action
All Concepts Explained !

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UNDERSTANDING MACD
Moving average convergence divergence (MACD) is a trend-following momentum indicator that shows the relationship between two moving averages of stock.
It is calculated by subtracting the 26-period exponential moving average (EMA) from the 12-period EMA.
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The result of that calculation is the MACD line. A nine-day EMA of the MACD called the "signal line," is then plotted on top of the MACD line, which can function as a trigger for buy and sell signals.
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Traders may buy the security when the MACD crosses above its signal line and sell—or short—the security when the MACD crosses below the signal line.
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UNDERSTANDING RELATIVE STREGTH
1.Relative strength is a strategy used in momentum investing and in identifying value stocks.
2. 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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Swing Trading Strategy
That can help you generate Monthly Income !
A thread 🧵
Using RS , MACD , 21 EMA and Price Action
All Concepts with charts Explained !

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UNDERSTANDING MACD
Moving average convergence divergence (MACD) is a trend-following momentum indicator that shows the relationship between two moving averages of stock.
It is calculated by subtracting the 26-period exponential moving average (EMA) from the 12-period EMA.
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The result of that calculation is the MACD line. A nine-day EMA of the MACD called the "signal line," is then plotted on top of the MACD line, which can function as a trigger for buy and sell signals.
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Traders may buy the security when the MACD crosses above its signal line and sell—or short—the security when the MACD crosses below the signal line.
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UNDERSTANDING RELATIVE STREGTH
1.Relative strength is a strategy used in momentum investing and in identifying value stocks.
2. 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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How to Trade Momentum Stocks ?

A Thread on
Stock Selection
Relative Strength and Moving Average Use

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What is momentum trading ?

Momentum investing is a trading strategy in which Traders buy stocks at high price and sell even at higher price .
The goal is buying opportunities in short-term uptrends and then sell when the Stock starts to lose momentum.
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Skilles Required:
Skilled traders understand when to enter into a position, how long to hold it for, and when to exit; they can also react to short-term, news-driven spikes or selloffs.
Risks of momentum trading include moving into a position too early, closing out too late
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Identify the trend
Moving Averages Plot the Averge Price of a particular Period
Example : Whenever 21 ema is sloping upwards its called Shoterm uptrend
Whenever 21 ema is sloping downwards its called dowtrend
Whenever 21 ema is sideways its called consolidation
Refer image
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Rules :

Use this simple trend following system to buy and sell stocks
Works well in trending market and trending stocks
Ideal place to sell a stock is its moved more than 15% away from 21 ema in 3 days
Risk increases the farther you buy from 21 ema

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A Mega Thread on RELATIVE STRENGTH

A method to improve
Stock Selection and Conviction in trades

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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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What is HEIKIN ASHI i and How You
Use it ?

A Small Thread
Understand New type of Price Representation on charts.
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What is Heikin Ashi?
1. Heikin-Ashi, also called Heiken-Ashi, is translated as an "average bar" in Japanese.
2. The Heikin Ashi strategy is a useful tool used in identifying market trends and
predicting the future prices of assets.
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3. The Heikin Ashi can be used alone or in conjunction with candlestick charts.
4. These charts can be very useful as they make it easier to read candlestick charts
and analyze market trends , without noise
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Heikin Ashi vs Candlestick
1. The Heikin Ashi has a few differences with the traditional candlestick chart.
The candles on traditional candlesticks usually change from green to red (up or
down), making it difficult for some traders to interpret.

Candlestick vs Heikin Ashi chart

2.However, the candles on a Heikin Ashi chart display more consecutive colored
candles, making it easy for traders to identify past price movements and current
trends.
3. With Heikin Ashi, charts usually stay green in an uptrend and red in a downtrend.

Calcluation Shared
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Learn All About ETF Investing for Brighter Future
Thread on Nifty BeES
A Path on Passive Wealth Creation

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1️⃣Nifty BeES is an ETF (Exchange Traded Fund) by Nippon India, which tracks the Nifty Index.

2️⃣To explain in simpler terms, Nippon India takes your money and uses it to buy the equivalent number of all 50 stocks that the component of Nifty Index.
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3️⃣ Each single share of Nifty BeES is priced approximately 1/100th of the Nifty Index.

4️⃣If Nifty is at 17000, the price of Nifty BeES would be (about) Rs.170 to 180
So if you buy 1 stock of Nifty BeES, the ETF would have invested in all of the 50 shares in Nifty
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5️⃣But you can say one can’t buy all of the stocks with just Rs.180. Right, but when lakhs of people buy it, the fund can buy enough stocks and your returns will be weighted according to your investment.
6️⃣ Will you return be exactly like Nifty ?
ANS: NO !
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7️⃣As Nifty bees is traded like stock
All the charges are applied . Nippon Nifty etf has a expense ratio of 0.05%

9️⃣ If you are looking for safe and benchamark returns Nifty etfs are best suited.
1️⃣0️⃣ Etf is better in terms of expense ratio
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Difference Between :

The Darvas Box Trading Strategy
A Detailed Thread 🔖 + 1 Book Give Away !

Rules For Giveaway :
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About Darvas :
In the late 1950s, Nicolas Darvas was one half of the highest paid dance team in show business.
Darvas turned a $36,000 investment into more than $2.25 million in a three-year period.
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It was on a two-year tour of the world that he initially developed his ‘Darvas Box’ method of screening stocks – a method of picking stocks based on the stock’s price and volume .

Read more About his life :

Trading Style :
TREND FOLLOWING MOMENTUM TRADING
📌Darvas was tracking stocks only making new high
Trading stocks breaking 2-3 year high.
📌But 52-week high is mostly tracked for this theory
📌Emphasized very much on Huge volume Breakouts

A typical Darvas Box Chart :
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Rules to Follow :
Stock Price Should be within 15 to 20 % of Highs
Overall trend of the stocks should be up and greater than 200 ema
Preferably 100% up then the 52 week low
Look for Industry Leaders , with High Growth
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𝗕𝗮𝗻𝗸𝗻𝗶𝗳𝘁𝘆 𝗙𝘂𝘁𝘂𝗿𝗲𝘀 𝗧𝗿𝗮𝗱𝗶𝗻𝗴 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝘆
Complete Strategy With Backtest

𝟭𝟬𝟬𝟬 𝗥𝗲𝘁𝘄𝗲𝗲𝘁𝘀 𝗳𝗼𝗿 𝗜𝗻𝗱𝗶𝗰𝗮𝘁𝗼𝗿 𝗟𝗶𝗻𝗸 ( 𝗙𝗥𝗘𝗘 )
🧵 Thread 🧵
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What is Rule Based Trading ?

In rule based trading you don’t take trades based on what you think is going to happen , rather depend on data to tell you what can probably happen.
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𝗜𝗻𝗱𝗶𝗰𝗮𝘁𝗼𝗿𝘀 𝗨𝘀𝗲𝗱
  1. Supertrend (5, 4.5)
  2. EMA( 21 Period) 
3. Volume(20 MA Period)
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Indicator Setting
(Refer Pics)
𝟭.𝗘𝗠𝗔:
Use 21 Period on 5 min time frame
𝟮. 𝗦𝘂𝗽𝗲𝗿𝘁𝗿𝗲𝗻𝗱 ( 𝟱, 𝟰.𝟱 )
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𝗕𝘂𝘆 𝗥𝘂𝗹𝗲𝘀
Time Frame: 5 min
Buy only when :
🔸 Banknifty is above 21 ema
🔸 Supertrend gives buy and candle closes above supertrend
🔸 Enter on next candle opening
🔸 Volume>20 MA on Supertrend Buy Signal
🔸 Take Entry only from 9:20 to 3:15
🔸 Max 2 Entries per day
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Basic Fundamentals that I look for Short Term Trading
1. D/E < 1
2. Promotor Holding > 50%
3. Sales Increase
4. ROE, ROCE > 20%
5. Little to no pledging
6. Fii + Dii holding > 10%
7. Preferably Low Valuation than Industry

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What is Inside Bar ?

A thread 🔖 on IB candlestick and its strategy !

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What is the Inside Bar Pattern?
The inside bar pattern is a one candlestick pattern where price forms completely within the previous candlestick.
For an IB to be considered valid both the high and the low of the
candlestick or need to be completely inside the previous candle
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There is often confusion around the wicks or shadows of the candlesticks
NOTE : the inside bar takes into account the candlestick wicks.
This means that the high and low, including the wicks of the candle must be within the high and low of the previous candlestick.
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Is the Inside Bar Bullish or Bearish?

The inside bar is an indecision candlestick pattern.
The inside bar is formed because price was not able to break either the high or the
low of the previous session. .
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A trend continuation pattern

1. If an inside bar forms in a strong trend, for example a trend higher, then it could be signalling a quick pause before price continues on with the trend.

2. It simply means some Volatilty contraction and hence price moving in small range .
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