One of the methods I'm currently experimenting with is the equity delivery volume percentage and assisting it with basic technical analysis. I was in Indore, Madhya Pradesh recently during my summer vacation and learned the same technique from my mama ji.
The basics of a BUY signal are:
- Delivery Volume Percentage (DVP) > 65%
- LTP > Rs 100 (Basically any share above Rs 100)
- High volume overall can also help.
These can be assisted with technical analysis such as basic bullish or bearish divergences on RSI, Stochastic RSI, or MACD (which can be seen on Zerodha KITE).
SELL: As I followed my mama, most of the trades he used to close at around +500 Rs. A spike in price usually is seen during the day, when the positions can be closed. Although the sizes were significant, it is comparatively less volatile and riskier than options trading. If implemented correctly, can help generate consistent daily profits.
- If the stocks are good enough fundamentally, these can be held for a longer period too, with less risk of losing much money.
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