We have heard this phrase: Birds of a feather flock together. This is so applicable in the stock market. Stocks not only behave in the same way but they also form a similar pattern on the chart
Let me share one illustration: Tyre stocks in Feb
I covered this trend way back as a Live Case Study @smarketpremium.com: Apollo Tyres and Ceat at 200 dma
1. Apollo Tyres at 200 dma in Feb 2017
2. Ceat at 200 dma in Feb 2017
3. JK Tyre at 200 dma
It was a great opportunity...the stocks were all set up for a good bounce and see where they are 5-6 months later -
Here's What Apollo Tyres stock has done - It's Up 50%
Here's Ceat Tyres stock has done - It's Up 75%
Here's JK Tyres stock has done - It's up 41%
Science of Stock Price Action
The best learning comes from experiential learning. It is with this objective - I have developed "Science of Stock Price Action" Video Book. It's a combination of concepts and then its application in real life situations. The idea is to test how concepts work and why sometimes they don't.
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