A stock that is resting on or near its 50 DMA has a better chance going up than a stock far away from it. Have tried to explain this in the video, hope it helps you with your future trades. Do let me know if like the idea
VCP in Deepak Nitrate was clearly visible with contractions falling down consistently, First being 42% then 11.7% and then finally the tightest one at 5.2%. This is when you take the trade. A contraction below 10% means the stock has now fallen into the strongest hands ( institutional buyers) and that is why i was not worried when it came back down after a day...
KEI - The contraction in KEI dropped from 12 % to 4% over a period of 17 days. This means the weaker buyers were getting out and the stronger ones were accumulating which resulted in the stock shooting up 10% in the next 3 days post getting into very tight movements in the last 3 days of the total 17 days.
#GRSE-bought at 140, after #vcp setup with the volatility drying from 13% to 6% .The Stock though was 80%(100 preferred) up from 52 week low so bought less. It shot up 25% in 14 days. Closed 25% quantity on that day and the rest today.
Total return 20% in 20 days.
Bataindia - Bought it after a volatility contraction pattern formation with the volatility dropping from 14% to 3% in the second contraction (marked by the green curve lines). A drop of 50% in volatility is good but in this case it dropped more than 50%, which means most of the weak buyers were out of the stock.
Institutional buying drove the price higher by 22%...
The Chart shows Volatility in the price movement going down for two consecutive weeks, in week A it is 12%, in week 2 it goes to
8%. Now for us to be sure we need to see a drop of at least 50% from one week to another and from week B to week C we get that too. The contraction goes from 8% to 4% and the stock after going straight for a week goes flying up 14% in a...
Another interesting chart this one. Stock is in a major uptrend. It has been consolidating off-late and the daily price range is contracting steadily. Looks like price is coiling before a big breakout move.
Have this in your watchlist.