Harsh Soni 🇮🇳
Harsh Soni 🇮🇳

@theharsh_soni

11 Tweets 80 reads Aug 31, 2024
Ever heard of the Squat and Reversal Recovery? 🤔
Don’t let FOMO or panic close your trade early—here’s how to stay strong and profit like a pro! 💪
𝐓𝐡𝐫𝐞𝐚𝐝👇🧵
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What is Squat? 🤔
- No, yaar, it's not about leg squats! 🏋️‍♂️
- This is a simple concept by @markminervini. Sometimes, after a breakout, the price revisits the same level (Pivot) on the same day or the next day. It looks like the breakout failed, and people panic, closing their trades.
- Chalo, let's break down this "scary" thing that’s actually not so scary in real life.
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Why Does It Happen? 🤔
- Before we get into what the Squat is, let’s first understand why it happens.
- It’s just about absorbing the remaining supply from the left side or the general market is weak.
- When some supply is still left or general market is not showing strength, we see this kind of price action (PA).
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What is Reversal Recovery? 🤔
- If you entered at the right time and the market is doing well, the pivot low usually holds even if a Squat happens.
- If a Squat occurs, just stick with your SL and wait for the ‘Reversal Recovery.’
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Are There Any Variations of Squats? 🤔
- Yes, here are some variations I’ve noticed in my case studies:
- Fast Recovery: The recovery happens in 1-2 days.
- Slow Recovery: The recovery takes about a week or 2.
- Shake-out Recovery: The price hits your SL before recovering, often creating a new pivot (we call this a Pivot Rest—more on that later).
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Do you have any real world example to show, or you are just waffling ??
Yes, lets discuss some examples
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Fast Recovery:
- Entered, and the price squats on day one. Don't worry, stick to your stop loss and chill.
- Day two, price stays put. Day three, it closes well, and volume drops—another pivot forming.
- Day four, boom! The price blasts off—classic 'Reversal Recovery'.
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Slow Recovery:
- Entered, and the price dips on day one. Stay calm, trust your stop loss, and hold tight.
- Volume's dead—nothing happening. Just wait.
- A week later, you see the #ReversalRecovery. If you stayed in, it was a chance to add more.
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Shake-out Recovery:
- Entered, price squats, and hits your stop loss—frustrating, right?
- But don’t give up yet. Watch the next couple of days closely. Remember, a failed pivot doesn’t mean a failed setup.
- Within 2 days, it recovers, gives a fresh entry, and flies.
- Check the volume, super low when the price came back inside the range.
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That's a wrap✨
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Peace✌️
#StockMarket #StocksToBuy #stockstofocus #StocksToTrade #StocksToWatch #trading #vcp #ipo #ipostocks #sme #learning #vcp #breakoutstocks #stocks #stockmarketindia #ipoalert

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