Auto-Support/Resistance/Trendlines now available in Investar App Beta…

First of all, we would like to thank our users for making the release of Auto-Support/Resistance/Trendlines a huge success in Investar Software. We received tons of appreciation and applause, along with an array of feature requests, suggestions and feedback. It gives us immense confidence to reiterate that now you can use Auto-Support/Resistance/Trendline features in our mobile App also.

Now, you’ll be able to get hands-on with the beta release of Investar 4.0.3 by typing the following URL into your mobile browser: www.investarindia.com/beta.

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How to identify Long-Term Multibaggers

In this blog, we will find out the factors that are important for finding long-term multibaggers by using an example of HEG and Graphite India. Here’s a chart of HEG which shows a gain of 28x in 2 years.

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Identifying Short-Term Multibaggers with Auto-Support/Resistance

In this blog, we will find out how to find stocks with short-term gains of > 30% by using Auto-Support/Resistance volume breakout strategy on examples of a couple of stocks.

Here’s a chart of Venus Remedies which shows a gain of 55% in 4 days.

Lets start by enabling Auto-Support/Resistance by right-clicking on the chart and then selecting “Enable Auto-SR”.

This draws the Auto-Support/Resistance lines. The dark blue lines are very strong resistance lines and any break of that can be considered a stronger buy signal compared to a light blue one. As we can see, Venus Remedies did a Very Strong Resistance breakout along on very strong volume on 16 Nov, 2018. If you bought it at the opening price of Rs 44, that would be a phenomenal short-term gain of 55%. The question is how can we catch such breakouts.

Venus Remedies Volume Breakout

 

Many of the times though, the stock surges so much above the resistance breakout point that it becomes difficult to chase it afterwards.

So  let’s look at another example of Kesoram Industries. This stock also did a similar breakout around the same time and would have showed up on 21st Nov, 2018, in the “Potential Buys Breakout” scan.

To find out how we can capture a stock surge like that early,  you need to look at the stock chart in multiple timeframes.

When we look at a 2-chart layout in multiple timeframes, we see that the stock actually broke out on a 15-min timeframe first and the volume surge and breakout also reflected in the Daily timeframe after a short while within a few bars, both on above average volume, as shown in the chart below.

 

Both the stocks also exhibited a sideways trend of 1-2 months before they shot up, so that is also a good filter to eliminate false breakouts. And finally, always ensure that the stock has a high risk-reward ratio

To summarize, the following factors are very important to identify short-term multibaggers:

  1. Very Strong Resistance Breakout (Or Supply Zone Breakout) on High Volume.
  2. Long Sideways Trend
  3. High Risk-Reward Ratio (i.e. high reward compared to risk)

But, beware, such short-term volume breakouts can be short-lived and one should always make sure to take profits when it reaches a target. The target can be derived again from an auto-resistance level above the current price. E.g. in case of Venus Remedies, it so happened that the stock started reversing at the auto-resistance level of Rs 68 (as shown by the light blue line in the chart above).

Check out our video on “Identifying Short-Term Multibaggers using Auto-Support/Resistance” (Watch in Hindi/Watch in English)” for an in-depth look into this topic!

 

Lagging Indicators – Types of Indicators – Part 1

Indicators signify a statistical method of technical analysis as opposed to a subjective approach. By looking at money flow, trends, volatility, and momentum, they provide a secondary measure to actual price movements and help traders confirm the quality of chart patterns or form their own buy or sell signals.

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How to identify Trend and why it is important for profitable Trading

Understanding the trend is the most important aspect for a trader to make money in financial markets. While using tools of technical analysis like candlestick patterns and indicators, a prior knowledge of the basic trend of the market is vital to improve odds of success in trading. Let’s get started and first understand what is a trend.

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All you wanted to know about: Muhurat Trading

For the Indian stock markets, Diwali represents the foremost auspicious time of the year. With festivities within the air, there’s additionally hope and aspiration for a lot of robust and more profitable year ahead. To confirm that this aspiration will become actual reality, Indian stock markets celebrate a time worthy tradition – the Muhurat trading.

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