POSITIONAL TRADING Strategy...
...based on CCI in Multiple timeframes!
Ready to learn?🤓
Let's go...🧵
...based on CCI in Multiple timeframes!
Ready to learn?🤓
Let's go...🧵
1⃣ CCI Basics
• CCI > 100 = Bullish
• CCI < -100 = Bearish
Wanna learn more about this indicator? Watch this video 👇
youtu.be
• CCI > 100 = Bullish
• CCI < -100 = Bearish
Wanna learn more about this indicator? Watch this video 👇
youtu.be
2⃣Entry criteria
• CCI(34) on Weekly crossed above 100
• CCI(34) on Daily >100
• Entry: above weekly swing high
• Stoploss: Recent swing low on daily chart
• CCI(34) on Weekly crossed above 100
• CCI(34) on Daily >100
• Entry: above weekly swing high
• Stoploss: Recent swing low on daily chart
3⃣Exit criteria
• CCI(34) on Daily < -100
• Holding period: Few days to many months
Pyramiding your winners should be considered to make your winners big.
• CCI(34) on Daily < -100
• Holding period: Few days to many months
Pyramiding your winners should be considered to make your winners big.
4⃣ Why trade using multi-timeframe?
• This is a top-down approach where we observe the larger trend of the stock before we take entries on the smaller or medium trend of the stock
• This concept can be compared to tides in the sea
Details in video👇
youtu.be
• This is a top-down approach where we observe the larger trend of the stock before we take entries on the smaller or medium trend of the stock
• This concept can be compared to tides in the sea
Details in video👇
youtu.be
5⃣ A larger wave in the sea will overpower the smaller waves, no matter what, simply because the larger waves have more velocity and force.
In a similar way, a stock trending in the larger TF will overpower the smaller TF trend and will eventually take the stock price higher.
In a similar way, a stock trending in the larger TF will overpower the smaller TF trend and will eventually take the stock price higher.
6⃣ While trading this strategy we presume this will work & buy stock in the shorter TF just when the larger TF is showing bullishness. This ensures we are in the right direction.
In case the stock reverses, we exit based on the stop loss or based on the exit criteria.
In case the stock reverses, we exit based on the stop loss or based on the exit criteria.
7⃣ Just to be clear, this is NOT a holy grail strategy but helps one catch the shorter/medium trend very well.
You WILL have losing trades.
So, it is important to consider proper position sizing and assess your risk before entry.
Let's look at some examples 👇
You WILL have losing trades.
So, it is important to consider proper position sizing and assess your risk before entry.
Let's look at some examples 👇
8⃣ Ex: SBIN & Reliance
The larger trend turned bullish. So, we enter just above the weekly high and hold on until the stop hits or exit criteria is met.
Note that by buying just above the high, you skip that initial short term downtrend or you might even skip many bad trades
The larger trend turned bullish. So, we enter just above the weekly high and hold on until the stop hits or exit criteria is met.
Note that by buying just above the high, you skip that initial short term downtrend or you might even skip many bad trades
9⃣ Ex: Axis Bank and Maruti.
Once CCI daily goes below -100, you need to exit the next day at open. You never know how deep the stock can correct.
Once CCI daily goes below -100, you need to exit the next day at open. You never know how deep the stock can correct.
🔟Ex: Bajaj Finance and HDFC Bank - Good Profits.
You never know much a stock can rally. So, identify a strategy that can keep you in the trade for as long as possible.
Remember, 80% of your profits come from such 20% of trades. Such trades make up your PnL in the long run.
You never know much a stock can rally. So, identify a strategy that can keep you in the trade for as long as possible.
Remember, 80% of your profits come from such 20% of trades. Such trades make up your PnL in the long run.
This strategy can also be applied on Smallcap & Midcap stocks! Do run this strategy over many stock to understand how it works.
Do run this strategy over many stocks to understand it!
If you loved this strategy👇
1. Retweet the first post in this thread
2. Follow @dmdsplyinvestor
3. Subscribe to my YouTube channel for more content! youtube.com
If you loved this strategy👇
1. Retweet the first post in this thread
2. Follow @dmdsplyinvestor
3. Subscribe to my YouTube channel for more content! youtube.com
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