8 Tweets 4 reads Dec 24, 2024
Trading IPO bases can make you Millions !!
Let's find out !
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1st let us know what is an IPO.
IPO stands for Initial Public Offering. It is the process by which a company offers shares of its stock to the public for the first time.
What are IPO bases?
Whenever an IPO is listed it forms a base by going into consolidation phase.
The base can be as big as the price wants the base to be. x.com
Lets Find out how you can trade these IPO base and make get RICH๐Ÿ‘‡
There are 3 ways to Trade IPO's.
1.๐Ÿ“ˆ Long bases
2.๐Ÿ“ˆ Momentum Flags
3.๐Ÿ“ˆ Gaps
Lets look at some Examples.๐Ÿ‘‡
1.๐Ÿ“ˆ Long bases
๐Ÿ‘‰After Listing of IPO stock goes in consolidation phase until the price decides to change it character and move up.
๐Ÿ‘‰One has to wait for the stock to come near highs and form tightness near right hand side of the base and catch the breakout.
Examplesโœจ x.com
2.๐Ÿ“ˆMomentum Flags
After Listing of the stock the price Gains momentum and Runs 10 to 30%+ Upside within a short period of time.
After Gaining momentum the price takes rest for a week and runs again.
The rest of the stock is the time where we look for potential entry.
Examplesโœจ x.com
3.๐Ÿ“ˆGaps
After Listing of the stock when price goes into consolidation mode, price suddenly on a random day gaps up and closes near day high.
That unfilled gap acts as an Episodic pivot which can happen due to any reason(news/earnings).
It provides low risk entries.
Examplesโœจ x.com
That's a wrapโœจ
I hope this thread helped you in understanding IPO's and how to trade them.
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