Special Gift: Highly Profitable Premium RS Strategy सभी के लीए। #Learn2Trade Session 31
Welcome to the 31st session of learn to trade I am Vivek Bajaj and I am teaching trading to you and Annapurna Hello! Hello Sir! How are you? I'm good Sir. We're done with 30 sessions now There are 30 stocks in Sensex and those stocks represent India. We have completed 30 sessions which has built your base, let's do a quick recap of those 30 sessions the first session was beginners guide then we learnt the charts then the terminal then how do we identify stocks and create our own watchlist then we learnt the tradingview the software to track charts then how do we identify stocks to trade, then how do we do sector analysis in stock market beginners guide on futures trading as you wanted to know more about future so I had given you a basic conceptual but we have not went into details beginners guide to commodities that is my favourite topic, then beginners guide to commodities part 2 it's an extension of my favourite topic Forex trading and currency trading it is again my initial career builder as a trader moving average which is the oldest and yet it is the best, volume and delivery as an add-on tool open interest, Fibonacci, how do we set stop loss. This is one of the most important videos out of all the 30 videos of how to put stop loss
trade using candlestick, I hadn't shown you the patterns I had explained the concept and what can you infer from each candlestick relative strength that I follow, average true range which shows stocks volatility, bollinger bands which shows how a stock typically works in a band and how can we benefit VWAP, an important tool, RSI that helps in measuring a stocks momentum trading journal, Karma. It was one of the best videos, I really enjoyed recording that video and a lot of people have messaged me and given their Excel to me and told me that this is there Karma for week or month I am happy to see people doing so well using this. Intraday trading opening market strategy that a lot of people who are in need A doctor called me yesterday and told me that he only does the open market trading his chamber opens around 10:30 to 11 so he trade in the morning puts the position and it gets squared off automatically around 12:30 and he continues with his work He has been making money month on month by using this strategy. Eagle scans, eagles who are above the clouds stocks that do fall but their possibility of going up is very high, so how can you work with Eagle scans multi time frame trading- mother and daughter. Technofunda trading, Good stocks with good fundamentals and how can we check the technicals to trade
combining price delivery and open interest, that was my paid webinar which I offered for free price delivery and open interest 2 which was the extended part of the paid webinar distributed in two videos I have given you everything literally for free. Now you need to support me by trading and making more money, subscribing to StockEdge. Already subscribed. I didn't earn money through this. So you will support me in some way if you feel that you did benefit from this and who is able to earn more money and build more knowledge and if you want to contribute in some way I cannot on just by making videos on YouTube if you subscribe to StockEdge and use it for your own benefit then you will earn more money even that has Karma. No one can digest anything for free. If you pay some when you will go long way fields from 31 to 50 is completely blank, but it is all set in my mind of what all to share with you in the next 20 videos I will stop at 50. Even now you might be feeling that you can start trading. I think you have reached a stage where you have gained a bit of confidence. In the upcoming sessions I will go deep into the concepts
and hopefully will give you more confidence. Relative strength is a topic which is very close to my heart And we have already spoken about it in the session 19 if you haven't seen the video, or If you haven't watched any of the video, then it's not my fault watch the series, I will provide the link to the playlist in the description. It is completely free watch all the videos one by one. If you don't start watching from session 1 then you might not be able to understand the current 31st session watch all the 30 videos. Make sure to share with your friends, family members, any youngster, teenagers, homemakers this is a very big segment where we can teach them trading and they can use their time to make money and utilise the time share the playlist with them and ask them to understand the entire process of trading in the 31st session I am going to open up another webinar for you. I have already opened up one webinar for you
it was 1000 rupees webinar which I gave it to you for free. I requested you to subscribe to the webinar if you like the content why do you need to subscribe to the webinar? You tell me. So that if you have any follow on queries you will add it as comment in YouTube. How many replies can I add in YouTube? If you take the webinar we have a support team who has the obligation to reply to all your queries. It's like you become a part of the family when you take the webinar we will do anything for a family. When you pay, you support us, and with that money we support our team members and their family they have the obligation to answer to any question that you have. If you do not want any support or clarification
if I have done a very good work and you do not require any clarification, then it's lottery for you but if you do need some clarification, then take the webinar and our team will support you the 31st session is about RS and advanced RS. The RS discussed in the previous video was a concept that I wanted to tell you if you evaluate a stock with its benchmark, then you will get a confidence that the stock is rather weak or strong as per the benchmark Nifty was the benchmark as Nifty is highly traded, highly followed and highly benchmarked by other people let's go to the chat that I had created for you. We have added RS here, that is stocks price divided by NIFTY this is an indicator in tradingview developed by our friend. We have added that
if the RS trend is up, this is the basic RS. Let's draw a trend line, if the basic RS trend is up and the stocks trend is also up then the stock is in uptrend and if the RSI is above 50, it means the car is fast and is running, it's not in Burra Bazaar but in Byepass if it is above 50 then the car is running. I use one notch advanced RS that I will teach you today the simple formula for this is price of the stock / Nifty, it is doing a simple mathematics formula this / this. the difference in price divisibility is plotted here daily. There a different movement if RS is plotted daily
so let's normalize it. We had learnt concept call logarithmic concept. We have learnt arithmetic progression, geometric progression there is a concept called logarithmic which explains the relativity very well. You do not draw a straight line from point a to point B you covered a distance from 1 to 2, there might be same distance from 2 to 3 but the strength or weakness distance from 2 to 3 will never be the same as the strength or weakness from 1 to 2. So logarithmic scale is a very important scale in the financial market where you can judge the relativity better I will not go deep in logarithmic as I am trying to explain the concept simply advanced relative strength. Now start using the word advanced relative strength. What's the logic behind it? I need the data to calculate the logic. Let's go to NSE website. Give me a stock. Emami
do you use Emami products? Sometimes. a person who uses Hindustan Unilever products will only use Emami products sometimes let's download Emami’s 1 year historical data from NSE website. You must be comfortable with this site now let's download it. Let's sort it. This data is from 2nd July 2020 till now. I'll select it, copy it and I will create an Excel for myself I will paste this data in my excel and name it as RS. This is just for explanation you do not have to create it this is to explain the concept of Advanced RS. We have the Emami data here. I need Nifty data to compare it
you need to look for Nifty data so I googled it. It gave me the relevant site where I can get all the data I need the data from 2nd July 2020 till today. I will download it in csv. I need a closing price so I will just pull the entire data I have both the stock data and Nifty data, I am only interested in the closing price, so date, Emami closing price, Nifty closing price we had just divided this by this in the simple RS. But in the advanced Rs I want to compare Emami's return vis a vis Nifty' return over a certain time period
if the stock return is higher than it means that they are out performing and if it is less than it is under performing return is 307 - 224. Return is either calculated by deducting or by dividing. 100 went to 150, it is 50% return but if you actually see then it is 1.5 times the return it's the same thing but the perspective of two different. When I see the relative strength then I will calculate the relative strength as per the return not the price this is an advanced step which is also known as the logarithmic scale. Read about the logarithmic scale if you get time everyone has their own time frame to calculate RS. Let's Zoom in so that we can see the data do I want to compare from 10th August to 2nd July, or from 23rd July to 2nd July, as the number of days will be different you can have a different set of bucket. if you remember we had discussed about the delivery of five day's average you can choose to keep it for a seven days. Everyone can choose a different time period
I have decided to compare the past 55 days rolling data to compare. I feel that if a stock is outperforming the market for the past three months on an average then it's a strong stock 55 is approximately 3 months and it is also Fibonacci number hence I use the Rs 55 some use 123 some use 21 you can use your own I used 55. The formula is 2nd July plus 55 days that will be 26th August. It's price on 26th August divided by the price on this day Emami has become 1.58 Times, same Concept for Nifty. Nifty has become 1.09 times whereas Emami was 1.58 Times
so Emami is strong over 55 periods. You can change it to 21 or whatever you feel is right so we will calculate RS by this / this minus one. So RS is 0.44. As long as the RS is above zero then it's strong stock as soon as the RS Falls below zero it's week stock, let's pull it down. You don't need to make the excel and it is already there in the software I will teach it to you it is there in both tradingview and StockEdge. I have explained it in details in my webinar so if you like this then please do support me This is rolling for every 55 days. Rs is calculated every day. Here it is in minus as it has started under performing as per Nifty
now I will show you how to do the same thing in tradingview. Lets move out of excel and go to tradingview search for relative strength in tradingview indicators. It is free. One of my friends Bharat trader his name is not Bharat trader but he's been very generous and made this and shared with us you will get the relative strength of a stock in public library you will see Rs here in Red and Green, so let's say bye to the old RS. We need to use the advanced and not the old RS we will adapt this Rs go to the settings it is already set as 123 we will change it to 55 we do not need the label reference so we will remove it. There is a moving average I don't use it you can if you want some people think that if the moving average Rs is up, then they will get convinced whether Rs is strong or not let's save it. Now we have made the final model and I have given my entire knowledge to you completely you can see that there is green and red if it is green then it is strong vis-a-vis Nifty over a period of 55 days And red means weak. Till the stock is strong, super trend is also positive the RSI is above 50, then trade in uptrend
you can book when the combination becomes distorted. Let's track all your stocks. Have you added more stocks? Yes I have added Tata coffee, you had added Tata Elxsi very well it had gone up a lot. It recently gave a break out I have added Subex, Laurus Labs. I'm just following you. Let's just see Tata Elxsi. There is another stock that I wanted you to track, Powergrid power sector is looking good in India. Let's discuss Tata Elxsi first. The RS is positive when its price was 990
since then the Rs is up, the supertrend did become negative once but it is positive again and the Rs is up Had you track this and maintained this then you would have earned so much even now Rs is above 50 Rs is positive, prices in breakout. Price is very important and we cannot neglect it as it is God these are all indicators and can betray you anytime. If the price is also giving you confirmation that there is strength then we will continue our trade price with volume and delivery if possible, so this stock is a strong stock for us we can also use the mother-daughter strategy in this if the stock is strong in both daily chart and to our teacher then I will trade in the stock and if there is weakness in the 2-hourly chart then I will exit. I will Re enter because the daily still positive I will exit when the super trend is negative and Rs goes below zero. Don't exit just if one of them is negative
the other one might still give you a conviction. What is is the ideal time to enter this stock as per RS when it is giving price break out. I had recorded video what what to do if the that you bought fell down I had explain the concept that a stock never just goes up, it will go up then come down it will go up again so ideally you should track it when it starts going down, and wait for the next breakout, so if it gives a breakout on previous swing high, then enter if you want to enter into it actively, but if you want to do it passively then hold onto it till the model tells you to sell it happened with me recently when I entered the stock because it was giving a breakout but as soon as I entered it went down while giving a breakout. False breakout. Which stock? Powergrid you bought Power Grid at Breakout point. The breakout point was previous swing's high
let's convert it to Line Chart once. Let me just remove few things and convert candle to line you must have entered here when it broke the swing high. I entered on 10th June this was the swing high, then it went down and then it broke the previous high and if you entered then you would have made money this was the previous swing high, if you entered your then you would have made money you must have face the problem here that the stock went up the swing high and became false the RS was also strong here. You faced this false breakout. Is there any way of identifying a false breakout?
you cannot identify everything. There will be false breakouts. Characteristics of a Breakout are weather the stock is strong, RS is up is there volume with breakout? Yes and it reversed again and the stop loss got hit. 4 out of 10 trades will be wrong even five out of 10 might be wrong, so mentally be prepared that when you are trading on Breakout trades than 40% of your trades might be wrong even if all your criteria are meeting, so do not worry. If you I want to avoid this then you need to increase the number of trades and multiple stocks even if a Breakout fails in one stock then you have other trades. You cannot put in all your money in one trade diversification is not investment portfolio theory it also works in trading and we have to understand that never put all your money in one or two stock. 5 or 6 positions should be there, as one or two positions can go wrong but you have other positions but what is the return that you expecting from the market? I was expecting higher but you told me not to expect more than 5% 5% is a good expectation and your only 50 to 60 per cent you should not be expecting more than that If you keep that expectation in your mind then even if one break out failed in a trade then it does not matter let's come back to RS. Now whoever attends my live session will not be confused
now follow this RS. This RS is also there in StockEdge. If you want to know which is the stock where the RS is getting fulfilled and there can be momentum if you go to price scans in StockEdge, here we have relative strength scans (55 days). If you click on it you will get multiple scans, strongly outperforming benchmark index that is any stock whose Rs is above 0.1 any stock with Rs above 0.1 will come here. Stock underperforming benchmark index any stock whose Rs is below - 0.1 Increasing relative strength benchmark index that is Rs is increasing in the past three trading sessions decreasing means it is decreasing in the past three sessions, strongly outperforming sectoral index if you do not want to compared to the benchmark index but if you want to compare to this sector index underperforming sector index, increasing relative strength in sector index and decrease in relative strength in sector index let's look for stocks, let's go to the first one strongly outperforming benchmark index where the RS is above 0.1 these all stocks have RS above 0.1. First is Angel Broking with an RS of 1.7, it's too much
HFCL 1.54, these stocks have outperformed the market a lot, Venky's Lux this is completely sorted based on RS. There are so many strong stocks in the market let's filter it and see Nifty 50. You can use the filter mechanism to filter rate price wise Let's just look at the NSE stocks and filter it market cap wise only show me those stocks whose market cap is between 100 to 1000 crores the smallest stocks have more potential to become largest stocks. Let's apply it. The RS of GTL is 3.72 let's focus on the stocks with lower RS and go down. The best way is to create a combination go to my combo scans. I have already created RS strong combo. high delivery quantity, increasing RS vis-a-vis the benchmark index
increasing RS vis-a-vis the sectoral index, SRS or ARS going above zero. SRS and ARS are also a type of RS Premal Parekh who is one of our favourite RS practitioner, we have also created his scans. He also has a webinar it's called Tendulkar webinar, I will provide the link in the description definitely attend the webinar if you want to know more about the RS It is elearnmarkets.com/rswarriors. It is one of the best community and I would want you to look at that there is no Perfect Match in this. I will remove the SRS and keep it simple. High delivery, increasing Rs vis-a-vis the benchmark index and increasing Rs reserve is the sectoral index these are the perfect match Aditya Birla, Deepak Nitrite. Let's look at the latter
RS is above zero both 2-hourly and daily. In your template, RS is above zero and the price has given breakout there was volume during Breakout and let's check the delivery. There has been good delivery in the past two days so the stock should be the part of the buying radar, we should create a small position with a small stop loss you can create the same chart in StockEdge using edge chart. You can create your own template and if you see
we have given you indicators where we have added RS indicators, RS market, RS Sector, Relative Strength. I will add it here and save The RS is above 0, with good volume and here we have both volume and delivery, RSI is also but 55 and trading above all moving averages so this is a good stock to trade in RS of any stock is below zero, then should I enter as soon as it becomes green or should I wait for it to go up check the price the indicator is telling you that you are about to reach God. the indicator will only help you in taking position but it can betray you, what is important to make friends with price that is the ultimate truth only happen if you continuously track the prices. The only way to become friendly with prices to only focus on few stocks for the first 10 to 20 months
then you will learn the art of becoming friends with the price. I had made a combination for you where I had added fundamental Good stocks Let's add RS here, Price Scan, Relative Price Scan. Let's add strong outperforming benchmark index whose Rs is above 0.1 this fundamentally Good stocks have good RS. Let's add delivery as well. We have added new weekly high delivery
the stock where the delivery is high weekly. Persistent System. Let's see that. it has been showing up trend since 1550 and right now it is at 3000 had you followed this logic blindly, super trend has been green and even Rs has been green there has been buying opportunity at every fall so be happy for strong stock is falling, but if this becomes weak then do not listen to anyone and quietly square it off when the RS falls down at this point then we will exit. If the super Trend and Rs both are negative then exit then enter once the supertrend is also positive and RS is also above 0.1. This is the daily chart if you track the 2-hourly chart then you will be able to enter and exit early if you want to trade for a longer period of time then converted to weekly so you will not get worried for small movements we would have entered at 700 and right now it is at 3000. Same with CDSL, it went from 300 to 990 it gave you opportunity. We might have exited when the Super trend became negative
we would not have as the RS still up. RS was strong and super trend was negative but I will not exit I will enter here but I will only exit when both give a negative sign. It will only fall down when the price goes down so you might incur loss the best way is to keep booking, if you took a position of 10000, there would be some point where there is appreciation where you can be happy whenever you feel happy book 50%, it might go up again and if you feel happy again then book another 50% so you have booked 25% over all, keep going the same way and booking profits so I book the profit after it went up but a should I enter again when the price retraces? Yes the objective to sell that 50% was because the stock will fall down, but the strong stock will go up again when it falls down and trades near the demand zone and the Rs is strong, then buy another 50% you can generate extra returns in the uptrending market through active trading, and if the stock falls down then you would have at least book 50% at a good rate I hope I have been able to explain you the advanced RS and this is what I follow use the RS in tradingview. If you use the free version then it is available, But the more indicator you use it becomes more expensive
the good point is that we have already collaborated with tradingview you so I will provide the link in the description start your trial using that link, then they will email you the special offer later. It's not very expensive if you are serious in the market you need to keep the combination of tradingview and StockEdge. SockEdge gives access to all kind of data and Analytics and tradingview helps you to design your Technical Study based on your individual objective whether it is intraday or swing take my webinar if you want more advanced study, you can practise whatever I have taught you if you need any more assistance from US than you can take the webinar and my team will connect with you to help you understand you can do one more thing we have a community called stockedge Club where there are around 2800 members this is a private graded community where all my research team are blue tick holders and resolve all the queries by our members there is ongoing conversations on RS and we help people on real-time basis so you can become a member of StockEdge club if you want you can complete your journey of learning through our club but if you are self motivated and my free content is enough for you then use it but if you need help for us then communities something that will help you in succeed in for trading or investing or learning it's like a club where there are different rooms like billiards and TT, so it’s very helpful for our members Go to stockedge.com, where you will see all the pricing. I will provide a special offer for you in description of the video you can take the yearly plan of club using that offer. This was a long video but if I need to share my entire knowledge of the webinar then I have to make this long but I hope you like the video. There's a good news for the people who are here till the last hopefully you will not require subscription, but do join the club I guarantee that you will benefit a lot and there is another feature in the club you can speak to me anytime as I am available for my club members anytime it gets difficult to reply to all the questions in YouTube but if you are a Club member then I am always available to answer all the questions that you have thank you so much for watching this video and I hope this will be an important milestone in your trading journey and you will be able to trade much more effectively thank you for watching this video and keep sharing my work
2021-07-20 05:29
