Thread: How to Know if it’s the Right Time to Start Buying Stocks Again. 🧵
(1) The Reliable Follow-Through signal.
A follow-through day is a reliable indicator for re-entering stocks after a major correction. It occurs when the stock market index gains 1.5% or more on higher volume, 4 days after a bullish reversal attempt from the lows.
A follow-through day is a reliable indicator for re-entering stocks after a major correction. It occurs when the stock market index gains 1.5% or more on higher volume, 4 days after a bullish reversal attempt from the lows.
(2) 5-EMA Bottom Catcher.
Don't rush to buy at market bottom. Wait for a major index to close above its 5-day EMA. If price falls below 5-day EMA, look for quick bounce back. Weakness below 5-day EMA may indicate more selling or short-term chop.
Don't rush to buy at market bottom. Wait for a major index to close above its 5-day EMA. If price falls below 5-day EMA, look for quick bounce back. Weakness below 5-day EMA may indicate more selling or short-term chop.
(3) 10-Weekly EMA Trend Reversal.
The 10-WEMA may not signal market bottoms as quickly, but it provides a highly accurate signal. When any major indexes close above the 10-WEMA, it's a sign to invest in leading stocks with a good base.
The 10-WEMA may not signal market bottoms as quickly, but it provides a highly accurate signal. When any major indexes close above the 10-WEMA, it's a sign to invest in leading stocks with a good base.
(4) Nifty/RSI Divergence.
Double bottom and triple bottom divergences in Index charts indicate a strong and reliable sign of trend reversal. When Nifty or Bank Nifty hits a new low but the RSI shows a positive divergence, it's a good time to invest in strong stocks.
Double bottom and triple bottom divergences in Index charts indicate a strong and reliable sign of trend reversal. When Nifty or Bank Nifty hits a new low but the RSI shows a positive divergence, it's a good time to invest in strong stocks.
(5) Nifty/Market Breadth Divergence.
When the Nifty index reaches new lows but the breadth indicator shows signs of improvement, it's an early indication of momentum in the market and a good opportunity to invest in leading stocks with favorable risk-reward.
When the Nifty index reaches new lows but the breadth indicator shows signs of improvement, it's an early indication of momentum in the market and a good opportunity to invest in leading stocks with favorable risk-reward.
Follow me on: @rohaninvestor
I regularly update my latest stocks ideas, strategies, sector rotation, and market breadth analysis, so be sure to follow me for valuable insights and updates on the world of investing.
I regularly update my latest stocks ideas, strategies, sector rotation, and market breadth analysis, so be sure to follow me for valuable insights and updates on the world of investing.
Loading suggestions...