WE all have diverted from the real topic of scanning stocks.Since its time consuming to analyse each and every stock, so we scan and filter the list to sort out best long and short candidate.After soring we the look for trade setups on them.
Some,scan and filter stocks on the basis of overbought oversold conditions in indicators like RSI, MACD ,ROC etc.....some scan stocks on the basis of breakout & close above a specific moving average like 5EMA 13 EMA etc.
After sorting out the stocks, some will look for trade-setups like FLAG, traingle etc some may look for trade setups based on pitchfork and some may look for fib levels trade setups.
SO,
How and on what is ur way of sorting and filtering stocks??
Which is your favourite trade set up???
My fav trade setup is a FLAG Breakout.When ever i see a flag breakout bullish or bearish , I enter the stock with a traget = hieght of the pole and stop loss being the low of the breakout bar
Hope my query is clear.
Trade setups
&
Sacning stocks to find out those trade setups.
I have attached the file of TATA MOTORS.
I scanned this stock on the basis of close above 5EMA.
Till, 9th march the stock was below 5EMA, on 10th march it closed above 5EMA.
I started monitoring this stock,and as soon as I got the first correction on 13th march,I drew a pitchfork
and waited for a bullish breakout.
On 16th , the stock closed above the pitchfork and so in the last 30 min I went long in it
On 17th I placed an exit order around 938(since 941 was the earlier top and wanted to book rather than waiting)
My trade got exited on 17th at 938 long of 918
20 points off.
Risk was 13 points
Reward 20 points( This reward is the after book reward so dont confuse with 1:3 risk reward.When I considered the trade , it was indeed 1:3
but I booked weak hands...)
