@DeafFrogs Great points. I wanna add a few things according to my experience till now -
1) Depth of base should not be > 30%. A 40%-50% deep base accumulates a lot of overhead supply and needs a big bottom carving to overcome (which afterwards remains no more an #IPOBase). (1/n)
1) Depth of base should not be > 30%. A 40%-50% deep base accumulates a lot of overhead supply and needs a big bottom carving to overcome (which afterwards remains no more an #IPOBase). (1/n)
@DeafFrogs Depth of base is even more bigger contributor to the success of an IPO base comparative to demand we look for before and after listing.
2) Sales growth is an unnecessary criteria and often numbers which were provided of pre listing are not so reliable as well (while they..) (2/n
2) Sales growth is an unnecessary criteria and often numbers which were provided of pre listing are not so reliable as well (while they..) (2/n
@DeafFrogs should be). We often see a big jump or decline in earnings post listing. Rather value at which it is offered matters much more. There are some handles like @ipo_mantra & @aditya_kondawar who posts about the valuation comparative to their listed peers, I find it very useful. (3/n)
@DeafFrogs @ipo_mantra @aditya_kondawar 3) Having tight areas are a very good sign. Because IPOs often have direction less volatility which is the biggest concern for any #IPOBase trader - this volatility reduction (at least on one direction if not both) is an extremely good sign. But there is a saying - "Jaat (4/n)
@DeafFrogs @ipo_mantra @aditya_kondawar na puchho sadhu ki", similarly "color na dekho tight candles ke". Color is immaterial in tight candles as neither bulls or bears are showing signs of dominance in such situation.
4) I didn't understood why you want VCP. You already have tight areas as criteria which is (5/n)
4) I didn't understood why you want VCP. You already have tight areas as criteria which is (5/n)
@DeafFrogs @ipo_mantra @aditya_kondawar characteristically VCP only. Now if you are trying to find VCP as a pattern, this will unnecessarily complicate selection and will cause a lot of opportunity loss.
5) Regarding entry - if you will open your watchlist and look for the #IPObases which formed and worked (6/n)
5) Regarding entry - if you will open your watchlist and look for the #IPObases which formed and worked (6/n)
@DeafFrogs @ipo_mantra @aditya_kondawar you'll find very less actually gave you some handle kind of formation for entry. At most places, we have to accept the #IPObase high as the entry with a % based SL. So again, do not go for too much perfect setup here as desperate setups do not wait to make perfect patterns. (7/7)
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