Important Concepts from Power of Stocks— Subhasish Pani 7+ years of trading experience in 14 tweets Collaborated with @Nikita Poojary

1/— Inside Candles Inside Candle, breakout strategy has very good accuracy. There are two candles in the inside candle, the mother candle, and the baby candle. He trades the breakout of the high/low of the baby candle with the opposite level as a stop loss.

When to pyramid the trade if it goes right? The next level to add more quantity is the mother candle's high or low, depending on a breakout or breakdown. The stop loss will remain the baby candle low during a breakout and vice versa during a breakdown.

2/— Big Gap up If the market is bullish, next day if it opens a big gap up then the buyers are already in profit. Most traders don't want to see their MTM reduced in such times. Wait for the first red candle and short the first 5 min red candle with a day high stop.

The R:R is too good in such setups. There are multiple videos of him catching the day high with this setup. Everyone's looking for selling puts and he makes money selling calls.

3/— Unusual movements don't sustain Have you seen his videos of him predicting the bitcoin fall? Did the same with Reliance after the covid crash. I remember multiple more examples.

Any movement that is unusual in nature has a good probability of not being sustained. Majorly, this applies to a series of red candles or green candles after which a reversal comes. (For INTRADAY) In positional terms, it could be 3 continuous green or red days.

One should become very cautious if unusual movements are happening. Avoid being trapped in these. Look for these opportunities, especially in the monthly expiry week.

4/— Selling Options in a Trending Market If the market has to go down it will makes lower lows while going down. Once you have a short, you want to make more money playing directional in case its a trending day. You can pyramid your trade at every breakdown in a downtrend.

How to shift your stop loss? Your stop loss should be the most recent swing high. You should lower your SL when pyramiding for the first time to reduce risk. With this logic, for the same risk now you can make more returns.

5/— Breakout Structure Not every breakout is going to work the same way. To trade breakouts, certain structures are more effective and superior. For instance, it can be very difficult to overcome a significant resistance after a significant run-up.

If the market has corrected multiple times while going up, this is a healthy breakout structure. When more time is spent near resistance, the breakout is powerful. Note this while trading breakouts. Also, deploy half qty first and then pyramid so the risk is low.

6/— Expiry Days When the market comes down on expiry, option sellers start selling puts that are inflated in value. When the market goes up the same way option sellers enter and sell calls. Hence there are dojis on most expiry days.

7/ Use EMA Strategy to catch good R:R trades Check this thread out to know the strategy in detail. https://twitter.com/niki_poojary/status/1543482051256799233…

If you enjoyed these tweets here's another I think you'd love: https://twitter.com/AdityaTodmal/status/1541640032007516161…

Hit the like button agar aapko ye sab points samaj me aa rhe he toh. Follow us to never miss them. See past threads here: @Aditya Todmal & @Nikita Poojary