Here is his best setup to get you started on swing trading.
- Print this chart structure in your mind
Stock made one-sided move and starts consolidating.
You won’t need any other setup, we promise
Let’s discuss one by one.
Condition for stock selection
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Stock should be up by more than 30% in last 1/3/6 month
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Stock should consolidate with pullback not more than 50%
3.Volume should dry up during consolidation
4.During pivot point breakout volume should pick up again
Lets discuss
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a/2 Stock up by 30%
There is no limit but min it should be up by 30% with big candles and large vol bar
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b/2 Correction is less than 50% .
Correction means % of original move.
If the stock is up by 100 points, it should not correct by more than 50 points
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c/2 Low volume during correction
Volume should dry up during correction.
There should be a stark difference in volume during correction and trend leg
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2/2 Big volume again during BO
You need to understand the pivot point.
Volume should pick up during pivot point break.
Pivot points is identified with big volume
- How to find stocks
Go to chartink and create the below scanner we have made
Since small-mid cap stock give these kinds of movement. We are focussing on them.
Every weekend , see if there is setup formation in from watchlist.
If you don’t understand the logic, let us know
- How to enter.
Entry should be above the BO candle on the daily chart.
SL below the day low of BO candle.
- How to Exit
You should always trail the SL below 10/20 SMA.
In this way, you will capture the whole movement.
If you notice here, Mazagon dock is still going strong based upon above setup
Example : FACT
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Things to keep in mind
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This is a momentum setup
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It works mainly in bullish market
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During bearish market if you find this setup, book profit early
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Always enter after 3 pm, so that Daily candle is almost complete
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In Lower TF also this setup works
- How to maximize the returns
Use MTF at lowest rate with AsthaTrade to get maximum out of it.
Without MTF, your return will be diminished.
Also do not use full margin.
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What’s method for choose of stock shere for swing trading buy.