There are two kinds of Price Action move that happens in a market:
2. Text Book style
As a Science of Stock Price Action follower, I cover the stocks that make a textbook style move. One textbook style move:
Strong Trending Stocks develop a strong base at 200 dma and then take off like crazy resulting in 50-70% gains in following 4-6 months.
Let me share few illustrations which I covered here:
2016: Paint Stocks
As you can see in the chart above - Berger Paints consolidated at 200 dma for months before taking off in a grand style. I did cover Berger Paints right when the stock was at 200 dma (see Point 21)
Asian Paints at 200 dma
I did cover Asian Paints too around the same time. The stock formed a similar pattern and again similar outcome
2017: Tyre stocks
I covered both Appollo Tyres and Ceat -
Apollo Tyres at 200 dma
As you can see in the chart above: Apollo Tyres bounced from 200 dma but then slipped below it. Should one have triggered Stop loss. Well, here's how I covered it in my blog - smarketpremium.com. Do read comment section
Ceat Tyres at 200 dma
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- Triveni Engg: 50% Returns in 20 days in a classic Text Book Style.
- Before Hitting the Stop Loss - What should one look for: One Case Study
- How a down and out stock becomes buy again? Let me explain with a Case Study of SBI.
- Here's why momentum is building up in few infra names
- Following New Breakouts
The objective of the Premium Case Study is to learn from real stock price movements on regular basis and then look for similar text book opportunities in current environment. It helps one form a strong conviction in price action.
If you find my work interesting - I will encourage you to buy the book and access Premium Case Studies. The idea is to demonstrate live how patterns unfold and work. They succeed, they fail but the whole process is real fun. I invite you to be part of it.
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers