2% swings - 3-4 times a month

1 Jun 2023

Pick a list of 100-200 fundamentally strong stocks - large market cap preferably (Sml market cap only if you dont want to use stop losses and have faith in the stock)

go to the monthly chart

identify the all time high

then draw a line at the wick of the first candle that wipes out the all time high candle completely.

now make another list with all the stocks that are above that pivot line, ideally recovering from a rounding bottom pattern.

1) in case a rounding bottom stock - ensure its broken above the neck line or the point of highest resistance below the pivot line - this would mean the speediest upside

2) in case of other stocks just worry about it being above the monthly pivot

now that your list is made:

Go to the daily chart:

STRATEGY 1)
1) look for higher highs and higher lows atleasat 2-3 consecutive highs and lows
2) Supertrend + just crossed and closed above R1
3) High volume on breakout candle

STRATEGY 2)

BUY AT SUPPORT 1 (S1) = FIBONACCI PIVOT POINTS STANDARD

I tend to have really high stop losses - like 10-15%

cos lots of times people get wiped cos of stop losses and then the stock rallies since its bottomed at the stop loss

also i dont go all in on the capital i have

lets say i have 100,000$ of total capital

Ill invest on 33 for my trades

if the strategy is going well ill increase

If most of my trades get dried and takes time to get to profits i invest the next lot.


be sure to read and follow all your shortlisted companies on twitter or news cos good and bad news beats all technicals atleast for a while