Every stock that goes up 5 times or more follows a fixed pattern .

Here's a thread 🏷

This will help us identify such stocks with a systematic and simple investing approach.

I use the following concepts to identify stocks which can move 5 times
-Relative Strength
-Stage Analysis
-Volume Analysis

1/n
I believe that every stock must outperform Nifty before it becomes a multibagger. I use relative strength to identify stocks that are outperforming Nifty.

2/n
I then divides stocks in to four phases. I pick stocks that are in stage 2 or uptrend phase. I use moving average to identify stocks that are entering stage 2 advance.

3/n
Finally, I look at price and volume action to confirm entries and exits from the stock.

I have given several examples of stocks like Yes Bank, IEX,HSCL, Elecon Engineering, JSW Energy etc.

4/n
https://t.co/jhUSaDC87i

Watch this complete Video for More understanding

5/n
I insist that investors must not try to find bottoms or tops with this strategy…rather they must focus on riding the trend.

6/n
I am certain this episode will provide you an additional edge in the markets while picking right stocks that can go up 5 times or even higher.

7/n
Read this Complete Thread !
https://t.co/nLi5MOVtVL

Follow @JayneshKasliwal for more such insights

End

More from JayneshKasliwal

Detailed Study of Stocks that became 5X in past 2 Years
A Mega Thread🧵

Concepts :
Relative Strength
Stage Analysis

Retweet and Comment If you want a PDF

We have Got around 86 Stocks that became 5X in 2 years
These Belonged to various sectors and Groups
Excel Link for List of Stocks
https://t.co/jESOUMlbpd
( As on 30th March 2022)

[1/n]


All stocks had few things in common :

Stocks doubled Before entering into Stage 2 Uptrend
52 week RS was positive in stage 2
90% stocks even gave all time high breakout after Stage 2
60 Stocks had market cap less than 1000 Cr

Examples : OLECTRA , PGEL
[2/n]


So 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.
[3/n]

How to Apply ?
Type
“Relative Strength”
Choose any
By bharattrader
By traderlion
By Modhelius
I use by bharattrader
In setting use 52 period
Use Weekly Chart
4/n

You May Also Like