Hi friends
New traders looking for finding good stocks to buy & sell.
what an afl can do for them is very useful.
scheme
Instrument = equity-stocks(not penny stocks below Rs 5)
1)UNIVERSE OF STOCKS= fix it first
nifty50 stocks? have 50 scrips and scan only these
Nifty100 group
Nifty futures group-you have 200 plus scrps here.
Exchange made the list of good stocks for futures trading with volume,turnover etc.
Why not use it instead of struggling to make new list of stocks?
2) Timeframe = daily charts
3) CAPITAL = FIX AT RS 5000 PER TRADE
4) RISK = MAX 5%
5)REWARD = 5% OR MORE
6) TRADING SYSTEM TO USE
7) THINGS NOT TO BE DONE
DONT BUY ON WAY DOWN-FALLING STOCKS.
DONT AVERAGE DOWN. IF IT FALLING,FIRST MARK YOUR EXIT LEVEL, DONT BUY MORE.
RISK CONTROL FIRST-PROFITS NEXT
DONT BUY AFTER PRICE ROSE A LOT.
DONT CHASE THE PRICE.
8)STOCK SCAN FACTORS
A) STOCK MUST BE IN UPTREND
(ANGLE OF PRICE MA need to be at 30 degrees or more upwards
b)PRICE ABOVE OR BELOW moving averages MA20,MA50,MA200-Check how these are
price crossed above MA200,MA50,MA20=Confirmed uptrend
price crossed below ma200,ma50,ma20=downtrend confirmed
MA must be rising and price to be above it for buying
c) Compare ma
if MA20>MA50>MA200 UPTREND
IF MA20<MA50<MA200 DOWNTREND
D)VOLUME -LOOK FOR A VOLUME RISE ABOVE MA60 OF VOLUME
a volume spike normally marks beginning of new trends sometimes
spike is when volume rises 2 times above average volume.
heavy volumes indicate institutional interst if price is rising.
E)make sure price has stable moves-no gaps-no wild moves. when a whale is swimming,slow & steady-that is what we want to see.
Make sure you buy stocks which have range of movement that is decent
ATR(60) TO BE T LEAST 10 RUPEES.
It means the distance between high and low over 60 days is at least 10 rupees
What use if you trade a stock that moves 2 rupees or 3 rupees up or down?
it is easy to make profit of 30% of the range or movement.
Call this price appreciation,if you use high & low over a 22day or 65 day period.
IDEAL LOW RISK BUY POINT
IF already trend is on its way,try to buy after price pulls back to ma20 or ma50 and begins rising from the ma
SOME TRADERS LOOK FOR PRICE RISE BY X% AND VOLUME RISE BY Y%- as starting point for their trading.
step-1
I would like to make an afl to use above factors.
Special considerations step-2
1 RS -relative strength-(not RSI)to be good and above its 21ma
2.OBV can be seen as rising
3.CHECK ACC DIST just to make sure positive side is running
New traders looking for finding good stocks to buy & sell.
what an afl can do for them is very useful.
scheme
Instrument = equity-stocks(not penny stocks below Rs 5)
1)UNIVERSE OF STOCKS= fix it first
nifty50 stocks? have 50 scrips and scan only these
Nifty100 group
Nifty futures group-you have 200 plus scrps here.
Exchange made the list of good stocks for futures trading with volume,turnover etc.
Why not use it instead of struggling to make new list of stocks?
2) Timeframe = daily charts
3) CAPITAL = FIX AT RS 5000 PER TRADE
4) RISK = MAX 5%
5)REWARD = 5% OR MORE
6) TRADING SYSTEM TO USE
7) THINGS NOT TO BE DONE
DONT BUY ON WAY DOWN-FALLING STOCKS.
DONT AVERAGE DOWN. IF IT FALLING,FIRST MARK YOUR EXIT LEVEL, DONT BUY MORE.
RISK CONTROL FIRST-PROFITS NEXT
DONT BUY AFTER PRICE ROSE A LOT.
DONT CHASE THE PRICE.
8)STOCK SCAN FACTORS
A) STOCK MUST BE IN UPTREND
(ANGLE OF PRICE MA need to be at 30 degrees or more upwards
b)PRICE ABOVE OR BELOW moving averages MA20,MA50,MA200-Check how these are
price crossed above MA200,MA50,MA20=Confirmed uptrend
price crossed below ma200,ma50,ma20=downtrend confirmed
MA must be rising and price to be above it for buying
c) Compare ma
if MA20>MA50>MA200 UPTREND
IF MA20<MA50<MA200 DOWNTREND
D)VOLUME -LOOK FOR A VOLUME RISE ABOVE MA60 OF VOLUME
a volume spike normally marks beginning of new trends sometimes
spike is when volume rises 2 times above average volume.
heavy volumes indicate institutional interst if price is rising.
E)make sure price has stable moves-no gaps-no wild moves. when a whale is swimming,slow & steady-that is what we want to see.
Make sure you buy stocks which have range of movement that is decent
ATR(60) TO BE T LEAST 10 RUPEES.
It means the distance between high and low over 60 days is at least 10 rupees
What use if you trade a stock that moves 2 rupees or 3 rupees up or down?
it is easy to make profit of 30% of the range or movement.
Call this price appreciation,if you use high & low over a 22day or 65 day period.
IDEAL LOW RISK BUY POINT
IF already trend is on its way,try to buy after price pulls back to ma20 or ma50 and begins rising from the ma
SOME TRADERS LOOK FOR PRICE RISE BY X% AND VOLUME RISE BY Y%- as starting point for their trading.
step-1
I would like to make an afl to use above factors.
Special considerations step-2
1 RS -relative strength-(not RSI)to be good and above its 21ma
2.OBV can be seen as rising
3.CHECK ACC DIST just to make sure positive side is running
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