RSI- commonly used to show whether price is overbought or oversold.
General rule:
𝐑𝐒𝐈 > 𝟕𝟎 -- 𝐎𝐯𝐞𝐫𝐛𝐨𝐮𝐠𝐡𝐭
𝐑𝐒𝐈 < 𝟑𝟎 -- 𝐎𝐯𝐞𝐫𝐬𝐨𝐥𝐝
One becomes cautious once price becomes overbought and optimistic when price becomes oversold.
2/16
#RSI is a common indicator which most of us use in the stock market.
This learning thread would be on
"𝙐𝙨𝙚𝙨 𝙤𝙛 𝙍𝙎𝙄"
Like👍 & Retweet🔄 for wider reach and for more such learning thread in the future.
Also, an investment strategy is shared using RSI in the end.
1/16
RSI- commonly used to show whether price is overbought or oversold.
General rule:
𝐑𝐒𝐈 > 𝟕𝟎 -- 𝐎𝐯𝐞𝐫𝐛𝐨𝐮𝐠𝐡𝐭
𝐑𝐒𝐈 < 𝟑𝟎 -- 𝐎𝐯𝐞𝐫𝐬𝐨𝐥𝐝
One becomes cautious once price becomes overbought and optimistic when price becomes oversold.
2/16
1. It was in overbought zone and after a few days when a small dip was seen from 693 to 588 (15% downside)
2. It was in oversold zone and after a few days when a small rally was seen from 59 to 107 (82% upside)
3/16
When a price is in overbought zone and is in momentum, then it can move up without taking a dip and exiting or shorting stock would prove wrong.
When IRCTC was in overbought zone, price went up from 2718 to 6396 (135% rally).
4/16
When a price is in oversold zone and is crashing, then it can move down without taking an upmove and buying stock would prove wrong.
When DHFL was in oversold zone, price went down from 126 to 11 (91% crash).
5/16
If a price is oversold, then wait for the price to turn towards neutral zone and also check on other setup whether support is available or not.
Other setup can be Price Action, Support Lines, Demand Zones, Fibonacci or any indicators.
6/16
Combine multiple setup for high probability trades.
7/16
Another popular use of RSI by the traders.
Two types of Divergence:
1. Bullish Divergence
2. Bearish Divergence
Divergence is used by the traders who like to take contra trade (i.e. trade against the actual trend)
8/16
Condition-
1. Price should form lower lows
2. RSI should form higher lows and in oversold region
Laurus Labs weekly chart- Bullish Divergence.
It went up from 450 to 740 (60% rally)
9/16
Condition-
1. Price should form higher highs
2. RSI should form lower highs and in overbought region
Neuland Labs weekly chart- Bearish Divergence.
It went up from 2725 to 1500 (45% correction)
10/16
Like two bullish divergence in continuation or two bearish divergence in continuation.
This can be high probable trade setup.
One double bearish divergence is shown in the chart below.
11/16
Simple setup for long-term investment.
Setup:
1. Select Fundamentally good companies
2. Use monthly time frame
3. Buy if RSI is above 50 on monthly closing basis
4. Sell if RSI goes below 50 on monthly closing basis.
12/16
Asian Paints Monthly Chart.
Condition got satisfied in 2008 when it was trading at 108 and still after 13 years exit condition is not fulfilled in Asian Paints.
CMP is 2982.
Returns of 2660% times in 13 years or 29% CAGR.
Easy right!
13/16
RSI crossed above 50 in 2012 when it was trading at 18.
And RSI crossed below 50 in 2016 and the exit was at 56.
Returns of 210% in four years which means CAGR of 33%.
14/16
More from Yash Mehta
In the early stage, most of the traders & investors use indicators in their analysis.
Here is a master thread of how most of the indicators can be used in trading/investing to increase accuracy for free🧵:
Also, the last indicator and strategy is my favourite of all in trading.
1/ Moving Average is a very common indicator.
This thread is on what are the different ways of using the moving average
2/ RSI is one of the momentum indicator for traders.
In this thread, I have shared different ways of using RSI. Also, an investing strategy is shared, which can help you to pick stocks that can give you good
3/ CCI is another amazing indicator that is used by momentum traders.
Shared few strategies with CCI which a trader and investor both can
4/ CPR is one of the most popular indicator in the trading community.
This thread covers everything about the CPR indicator and how to use this indicator in
Here is a master thread of how most of the indicators can be used in trading/investing to increase accuracy for free🧵:
Also, the last indicator and strategy is my favourite of all in trading.
1/ Moving Average is a very common indicator.
This thread is on what are the different ways of using the moving average
Moving Averages is a common indicator which most of us (novice/professional) use in the stock market for trading and investment.
— Yash Mehta (@YMehta_) October 11, 2021
This learning thread would be on
"\U0001d650\U0001d668\U0001d65a\U0001d668 \U0001d664\U0001d65b \U0001d648\U0001d664\U0001d66b\U0001d65e\U0001d663\U0001d65c \U0001d63c\U0001d66b\U0001d65a\U0001d667\U0001d656\U0001d65c\U0001d65a"
Like\U0001f44d & Retweet\U0001f504 for wider reach and more such learning thread.
1/10
2/ RSI is one of the momentum indicator for traders.
In this thread, I have shared different ways of using RSI. Also, an investing strategy is shared, which can help you to pick stocks that can give you good
#RSI is a common indicator which most of us use in the stock market.
— Yash Mehta (@YMehta_) October 22, 2021
This learning thread would be on
"\U0001d650\U0001d668\U0001d65a\U0001d668 \U0001d664\U0001d65b \U0001d64d\U0001d64e\U0001d644"
Like\U0001f44d & Retweet\U0001f504 for wider reach and for more such learning thread in the future.
Also, an investment strategy is shared using RSI in the end.
1/16
3/ CCI is another amazing indicator that is used by momentum traders.
Shared few strategies with CCI which a trader and investor both can
#CCI is an indicator which is used in the #stockmarket
— Yash Mehta (@YMehta_) February 26, 2022
This learning thread would be on
"\U0001d650\U0001d668\U0001d65a\U0001d668 \U0001d664\U0001d65b \U0001d63e\U0001d63e\U0001d644"
Also, an investment strategy and trading strategy is shared
If you appreciate this, a Like & Retweet will go a long way in maximizing the reach of this tweet\u2665\ufe0f
1/19
4/ CPR is one of the most popular indicator in the trading community.
This thread covers everything about the CPR indicator and how to use this indicator in
#CPR is an indicator which is used for #Intraday in Stock Market.
— Yash Mehta (@YMehta_) November 19, 2021
This learning thread would be on
"\U0001d650\U0001d668\U0001d65a\U0001d668 \U0001d664\U0001d65b \U0001d63e\U0001d64b\U0001d64d"
Like\u2764\ufe0f& Retweet\U0001f501for wider reach and for more such learning thread in the future.
Also, an investment strategy is shared using CPR in the end.
1/24
More from Screeners
Took me 5 years to get the best Chartink scanners for Stock Market, but you’ll get it in 5 mminutes here ⏰
Do Share the above tweet 👆
These are going to be very simple yet effective pure price action based scanners, no fancy indicators nothing - hope you liked it.
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52 Week High
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Hourly Breakout
This scanner will give you short term bet breakouts like hourly or 2Hr breakout
Volume shocker
Volume spurt in a stock with massive X times
Do Share the above tweet 👆
These are going to be very simple yet effective pure price action based scanners, no fancy indicators nothing - hope you liked it.
https://t.co/JU0MJIbpRV
52 Week High
One of the classic scanners very you will get strong stocks to Bet on.
https://t.co/V69th0jwBr
Hourly Breakout
This scanner will give you short term bet breakouts like hourly or 2Hr breakout
Volume shocker
Volume spurt in a stock with massive X times
Such opportunities only come once in a few years.
Step-by-step: how to use (the free) @screener_in to generate investment ideas.
Do retweet if you find it useful to benefit max investors. 🙏🙏
Ready or not, 🧵🧵⤵️
I will use the free screener version so that everyone can follow along.
Outline
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2. Practical Example: CoffeeCan Companies
3. Practical Example: Smallcap Consistent compounders
4. Practical Example: Smallcap turnaround
5. Key Takeaway
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Go to https://t.co/jtOL2Bpoys
Step2
Go to "SCREENS" tab
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Go to "CREATE NEW SCREEN"
At this point you need to register. No charges. I did that with my brother's email id. This is what you see after that.
Step-by-step: how to use (the free) @screener_in to generate investment ideas.
Do retweet if you find it useful to benefit max investors. 🙏🙏
Ready or not, 🧵🧵⤵️
I will use the free screener version so that everyone can follow along.
Outline
1. Stepwise Guide
2. Practical Example: CoffeeCan Companies
3. Practical Example: Smallcap Consistent compounders
4. Practical Example: Smallcap turnaround
5. Key Takeaway
1. Stepwise Guide
Step1
Go to https://t.co/jtOL2Bpoys
Step2
Go to "SCREENS" tab
Step3
Go to "CREATE NEW SCREEN"
At this point you need to register. No charges. I did that with my brother's email id. This is what you see after that.
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There is co-ordination across the far right in Ireland now to stir both left and right in the hopes of creating a race war. Think critically! Fascists see the tragic killing of #georgenkencho, the grief of his community and pending investigation as a flashpoint for action.
Across Telegram, Twitter and Facebook disinformation is being peddled on the back of these tragic events. From false photographs to the tactics ofwhite supremacy, the far right is clumsily trying to drive hate against minority groups and figureheads.
Be aware, the images the #farright are sharing in the hopes of starting a race war, are not of the SPAR employee that was punched. They\u2019re older photos of a Everton fan. Be aware of the information you\u2019re sharing and that it may be false. Always #factcheck #GeorgeNkencho pic.twitter.com/4c9w4CMk5h
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Declan Ganley’s Burkean group and the incel wing of National Party (Gearóid Murphy, Mick O’Keeffe & Co.) as well as all the usuals are concerted in their efforts to demonstrate their white supremacist cred. The quiet parts are today being said out loud.
There is a concerted effort in far-right Telegram groups to try and incite violence on street by targetting people for racist online abuse following the killing of George Nkencho
— Mark Malone (@soundmigration) January 1, 2021
This follows on and is part of a misinformation campaign to polarise communities at this time.
The best thing you can do is challenge disinformation and report posts where engagement isn’t appropriate. Many of these are blatantly racist posts designed to drive recruitment to NP and other Nationalist groups. By all means protest but stay safe.
