One of the most successful stock trader with special focus on cash stocks and who has a very creative mind to look out for opportunities in dark times Covering one of the most unique set ups: Extended moves & Reversal plays Time for a 🧵 to learn the above from @iManasArora
What qualifies for an extended move? 30-40% move in just 5-6 days is one example of extended move How Manas used this info to book profits https://x.com/iManasArora/stat...
Post that the plight of the stock: https://x.com/iManasArora/stat...
Example 2: Booking profits when the stock is extended from 10WMA 10WMA = 50DMA https://x.com/iManasArora/stat...
Another hack to identify extended move in a stock: Too many green days! Read below https://x.com/iManasArora/stat...
When you buy a stock, first check whether they are extended from the MA, if yes then the probability of those stocks performing is lower Read this entire thread, to know the rules of extended https://x.com/iManasArora/stat...
Check you trade journal now, and go through the trades that didn't work, now check whether those were extended?
Positional/Swing traders are always have one question, when to book profits? Ans: Exit partial qty when the stock gets extended Simple yet Effective!
How extended move on the upside can be used to Short a stock: Example 1: Shorting #JSWSTEEL on the basis of Extended move https://x.com/iManasArora/stat...
Example 2: Shorting #ADANIENT on the basis of Extended move https://x.com/iManasArora/stat...
And this is how @iManasArora shorts Index #NIFTY basis extended move https://x.com/iManasArora/stat...
Not many traders short, especially the newbies, so here is an imp note: Disclaimer: These stunts are performed by a pro @iManasArora , pls dnt jump directly into shorting without knowing the basics
So far you have understood two things: 1. Never enter an extended stock 2. Use the extended info to book profits or go short But then, long only traders in cash segment think they cant utilize the opportunity in a down trending market
Time to bust this myth, @iManasArora shows how one can use the extended info to go long - REVERSAL PLAY! Look for stocks down 4-6days in a row. Then look for reversal signs on a much lower frame to enter. Manas believes: Excessive weakness offers a good long opportunity!
Thinking out of the box! Lets see how @iManasArora Walks the Talk
How to use extended moves on the downside for reversal plays Example 1: #BAJAJFIN https://x.com/iManasArora/stat...
How to use extended moves on the downside for reversal plays Example 2: #BSE https://x.com/iManasArora/stat...
How to use extended moves on the downside for reversal plays Example 3: #NBCC https://x.com/iManasArora/stat... Spot extended moves in your P&L as well, and know when to slow down https://x.com/iManasArora/stat...
How to use extended moves on the downside for reversal plays Example 4: #ASHOKLEY https://x.com/iManasArora/stat...
How to use extended moves on the downside for reversal plays Example 5: #DREDGECORP https://x.com/iManasArora/stat...
How to use extended moves on the downside for reversal plays Example 6: #JSL https://x.com/iManasArora/stat...
How to use extended moves on the downside for reversal plays Example 7: #AFFLE https://x.com/iManasArora/stat...
How to use extended moves on the downside for reversal plays Example 8: #DRREDDY https://x.com/iManasArora/stat...
Lets check how to play reversals on fresh listed stocks i.e. recent IPO's
How to use extended moves on the downside for reversal plays Example 9: #NYKAA https://x.com/iManasArora/stat...
How to use extended moves on the downside for reversal plays Example 10: #PAYTM https://x.com/iManasArora/stat...
Be creative and have an open mind! https://x.com/iManasArora/stat...
When to fold in Reversal Play, https://x.com/iManasArora/stat...
A lot of people have a question, what if it falls further? Ans: You can always get out with a small SL, but but but, remember the opportunity is only gonna get more sweeter
Since, @iManasArora enters a trade with tight stops of 1-2%, he has studied the behavior of his trades in past, and from experience he knows how much time they take to perform or fail! You can use this info to build a system of yours!