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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USING RELTAIVE STRENGTH
Type
“Relative Strength”
Choose any
By bharattrader
By traderlion
By Modhelius
I use by bharattrader
In setting use 65 period
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More ABout RS + EMAs
:https://t.co/IaIJIT4kkx
Conditions of Relative Strength :

Relative Strength has a reference zero line
Line >0 Stock is Outperforming
Line <0 Stock is Underperforming

RS period 65 as we have around 65 trading days in 3 month
RS reference as Nifty50 as benchmark index

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Stock Selection Criteria :

Stocks near 52 week High
Stocks near All time High
Stocks staying above 21 ema
Stocks where the Relative Strength Line is making new Highs
Stocks that are giving Volume Burst

Screener 1 : 4 year High Breakout Stocks https://t.co/Hsp5t0WObj
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Buy Rules
Enter Stocks on Breakout of 52 Week High
Stock Should be in uprend and have HH HL formation for better Win rate
Volume Should be High on Breakout
Stock generally retest the breakout area hence add 50% position on breakout and 50% position on Retest

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Momentum is highest in RS+ Stocks where RS is increasing and is positive from long time
Momentum stays only for 2 to 3 days and then fades away or stock pulls back to breakout area to take support

Screener 2 : 52 week breakout Stocks https://t.co/hnXMiBmPZo

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Hence main aim as momentum trader is to catch that quick movement in 2 to 3 days and get out before pullback
Selling as price goes up is important for momentum trading
One shouldn’t wait for price reversals otherwise you may loose all your gains
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Quick Momentum Trades for 10% gains
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Momentum trading for a bigger time period :

Keep holding stocks till it is above 21 ema
Exit as soon as stock breaks 21 ema even if RS is positive
Momentum fades a little when stock breaks 21 ema and now another stock should be picked
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Loss Making Trades Example :
Keep Stoploss at Max 5 to 8%
Have Risk Reward Ratio of 1:2 Min

Youtube Video Of the Same Topic :
https://t.co/GHeKtrir9I
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END
To LEARN More Join
Swing Trading MentorShip Program
✅4 sundays of 2 hours with recording
✅Covering Pure Price Action , Relative Strength, Risk Management, Moving Average and How to find Super Stocks
✅ Screener Dashboards , Usage

LINK FOR ENQUIRY:
https://t.co/Y6WIyuU9hx

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A thread of threads on 3 indicators

1. Moving Averages Ultimate Guide
2. All About ADX
3. Super Performance Using RELATIVE STRENGTH

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Super Performance Using RELATIVE STRENGTH
The Ultimate Guide to moving averages !
A mega thread to understand the Use of 21 , 50 and 200 ema.
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Retweet and Share 🔄
#stockmarkets #nifty
@kuttrapali26 @caniravkaria

Once Can refer the use of Moving Averages Throught this thread


4 Popular uses of moving averages

1. Identifying the direction of trend
2. MA crossover
3. Dynamic Support and Resistance
4. Price Crossing above Key EMAs

Note : In chart 21 ema is red , 50 ema is green and 200 ema is black

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Why EMA and not SMA ?
EMA is fast , accurate and prices in recent data !
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Use 1 : Identifying the trend of stock on dtf

The 21 ema will tell us the Short term trend of a stock , while the 200 ema will tell us the long term trend of a stocks

Any EMA that is sloping
:upwards trend is BULLISH
:sideways trend is NEUTRAL
:downwards trend is BEARISH
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𝟱 𝗧𝗿𝗮𝗱𝗶𝗻𝗴𝘃𝗶𝗲𝘄 𝗜𝗻𝗱𝗶𝗰𝗮𝘁𝗼𝗿𝘀 𝗮𝗹𝗹 𝗧𝗿𝗮𝗱𝗲𝗿𝘀 𝘀𝗵𝗼𝘂𝗹𝗱 𝗸𝗻𝗼𝘄 𝗮𝗯𝗼𝘂𝘁:
𝗣𝗮𝗿𝘁 𝟮

🧵 Thread 🧵
Retweet And I will Link a 36 Page PDF

𝟭. 𝗔𝗱𝗱 𝗙𝘂𝗻𝗱𝗮𝗺𝗲𝗻𝘁𝗮𝗹𝘀 𝗼𝗻 𝗰𝗵𝗮𝗿𝘁
🔸 Link:
https://t.co/HcIXT7V002
🔸 Click on the above link -> Add to Favourites -> Add on Chart from favourites and start using it !
2/20

You can add financials from many fundamental criteria's like
🔸 Cashflows
🔸 Income Statements
🔸 Balance sheets
🔸 PE,PB ratios
🔸 Marketcapitlization
🔸 Statistics
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How to change Settings:
🔸 There are 8 columns you can basically select any financial you want
🔸 You can select quarterly or Yearly values and can also write
🔸 The names of the financiaLS Example : EPS Qtr3
🔸 You can Change colours , font size 
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𝟮. 𝗜𝗻𝗱𝗶𝗰𝗮𝘁𝗼𝗿 𝗥𝗮𝘁𝗶𝗻𝗴𝘀
You cannot track each and every indicator like ( 𝗠𝗼𝘃𝗶𝗻𝗴 𝗔𝘃𝗴𝘀 , 𝗥𝗦𝗜 , 𝗠𝗔𝗖𝗗 ) etc , you can use plot this custom strategy to understand whether the trend is positive or negative of those indicators
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1 - open trading view in your browser and select stock scanner in left corner down side .

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3. Then, start with 6% gainer to 20% gainer and look charts of everyone in daily Timeframe . (For fno selection u can choose 1% to 4% )

4. Then manually select the stocks which are going to give all time high BO or 52 high BO or already given.

5. U can also select those stocks which are going to give range breakout or already given range BO

6 . If in 15 min chart📊 any stock sustaing near BO zone or after BO then select it on your watchlist

7 . Now next day if any stock show momentum u can take trade in it with RM

This looks very easy & simple but,

U will amazed to see it's result if you follow proper risk management.

I did 4x my capital by trading in only momentum stocks.

I will keep sharing such learning thread 🧵 for you 🙏💞🙏

Keep learning / keep sharing 🙏
@AdityaTodmal