There is a logic that stocks follow when they make big moves. I have tried, to sum up, those concepts in a methodology called Science of Stock Price Action. One of that concept: Gap-up
Science of Stock Price Action Concept: Gap-Up and How it creates a compelling Investment/Trading Opportunity?
I have covered this concept in great detail here with a Video Chapter and Case Studies:
It is in this chapter back in Dec-Jan 2017 - I covered L&T as a Gap-up Oppty Live Case Study when the stock price was at 880 on adjusted basis. Now the stock is trading 40% higher from that level. It's another indicator how these patterns play out eventually
I have rewritten this chapter and here's what I have covered:
How to Play this pattern. There is a link to Video Chapter
1. How L&T formed this pattern and rallied 40%
2. How GNFC formed this pattern and rallied 4x in 1.5 years
3. How SBI has rallied 60% after forming this pattern?
4. It's not all success. Here's how Suzlon disappointed after forming this pattern?
Click on the image below to read the complete article. It's for Premium customer only:
If you find Price Action fascinating - then Science of Stock Price is a good place to start.
Science of Stock Price Action
Science of Stock Price Action is a training course designed to help you understand the price action mechanics with Live case studies and real life applications. It's not a recommendation service but help one understand this fascinating world of how price action results in a sustained trend.
One of the objectives of writing stateofthemarket.net blog posts is to demonstrate how price action works in a very simplistic manner. I have been writing about markets for years now and have developed a unique way of looking at the market. I have developed a course material if you are interested in learning about this whole space which comprises of the following
Do you want to Learn Science of Stock Price Action with more Live case studies covering Indian and Global stocks - www.smarketpremium.com
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