Technical Analyst | Trend & Price Action Follower | Equity Trader | RSI Enthusiast | Sharing insights for educational purposes only
Guwahati, India
Joined July 2012
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The Strongest Stocks Often Show Relative Strength Before They Break Out
My 5-step relative strength framework
1️⃣ Start with Stage 2 stocks.
Look for stocks trading above a rising 50 EMA and 200 EMA, preferably with the 21 EMA above the 50 EMA.
2️⃣ Compare the stock against NIFTY 500/NIFTY 50.
3️⃣ Observe the RS line.
Look for a rising RS line or one approaching a new high while the stock price is still consolidating.
4️⃣ Wait for the price breakout.
Mark the resistance or pivot. Look for a decisive breakout accompanied by supportive volume.
5️⃣ Manage your risk.
Plan your entry, structural stop-loss and position size. If the breakout fails, exit according to your predefined trading plan.
@ChartMantra_
The best breakouts are often prepared long before the breakout candle appears.
When analysing your watchlist, look for:
Strong prior price advance.
Successively shallower corrections.
Tight price action near the highs.
Declining volume during contractions.
A well-defined breakout pivot.
Supportive broader market conditions.
Don't chase expansion after it has already happened. Learn to recognise contraction before expansion.
Find strength. Wait for tightness. Buy confirmation. Protect your capital.
@ChartMantra_
Jammu and Kashmir's Chief Minister Omar Abdullah is engaged to journalist Nidhi Razdan.
Hey @grok , what are their ages, and is this Omar Abdullah's first marriage? – at Chibinang, India
The Iranian leader, Mojtaba Khamenei, was killed in the US airstrike.
@grok is this true? – at Chibinang, India
Poland is facing a serious constitutional crisis involving its government, president and Constitutional Tribunal (top constitutional court).
@grok please verify – at Hatsingimari, India
When building your watchlist, don't look only for stocks that are already breaking out.
Look for stocks that are showing strength even when the broader market is struggling.
My preferred combination:
Stage 2 market structure (on weekly chart Price must be above 21 EMA and trending Up).
Price above 21, 50 and 200 EMA on daily chart.
Weekly RSI above 60.
Constructive base formation.
Breakout supported by volume.
The objective is to identify leaders before the crowd starts chasing them.
Remember:
Buy strength. Track relative performance. Wait for the right entry. Protect your capital.
@ChartMantra_
AEGIS LOGISTICS is a recent example of why having a stop loss is so important.
Look at what happened after the stock breached the stop-loss level.
A stop loss is not your enemy. It is your best friend in the market.
It protects your capital, limits your losses and keeps you in the game for the next opportunity.
Remember: Protecting capital is more important than being right about a stock.
Respect your stop loss. Never fall in love with a stock.
@grok explain to new traders why a small loss is always better than holding on to a losing position.
BREAKING: NORTH KOREA FIRES MISSILES TOWARD JAPAN!
@grok please confirm
A breakdown tells you that support has failed. A failed breakdown tells you to question whether sellers can sustain control.
When price reclaims an important level, stop and reassess the evidence. Don't remain bearish just because you initially expected a breakdown, and don't turn bullish simply because price bounced.
Let the market confirm the change in behaviour.
Mark the level. Observe the reclaim. Wait for confirmation. Control the risk.
@ChartMantra_
ChartMantra🇮🇳 retweeted
Foreigners may still have reasons to not come back to India,but Indians staying in India and already paying heavy taxes will surely get excited if some rationalisation is done.
Finally every money saved, is money earned and it adds to the economy via consumption.
#RemoveSTT
🚨 ‘Cutting a tax rate doesn’t lift returns’: Ridham Desai on whether an LTCG cut can bring FIIs back
Morgan Stanley India’s managing director argues that a lower long-term capital gains tax may improve sentiment briefly, but foreign investors will return only when Indian equity returns and earnings momentum improve
Read More:
moneycontrol.com/news/busine…
ChartMantra🇮🇳 retweeted
Dear Indian Traders,
This is floating around on whatsapp. Active trading is gradually becoming unviable occupation with poor peace adjusted return and I feel this is not going to improve any further, not until 2029.
Please plan your life accordingly.
Yours
Truly
Never let your attachment to a stock become stronger than your trading rules.
A stock that once gave you a beautiful move doesn't owe you another one. Let it rebuild its structure, reclaim key moving averages, and show fresh strength before considering another entry.
A darling stock deserves a place on your watchlist, not an exception to your risk management.
Don't ask only, “Is this stock a good stock?” Ask, “Which stage is this stock in right now?”
A fundamentally strong company can still have a technically weak chart. A good stock in the wrong stage can tie up capital while better opportunities develop elsewhere.
Your job is to align your strategy with the prevailing market structure.
Stage first. Setup second. Risk management always.
@ChartMantra_
The US asked India to stop buying oil from Iran. India made a big effort and completely stopped buying Iranian oil
US asked India to stop buying oil from Venezuela. India had already invested about $6 billion in Venezuela, so the request was difficult.
Now the US is again asking India to stop buying Russian oil
@grok please confirm – at Chibinang, India
Netanyahu is wining or losing elections in Israel.
@grok verify – at Chibinang, India
When a stock approaches resistance, stop asking only, “Will it break out?”
Ask instead:
Can buyers push price above resistance?
Can price sustain itself above that level?
Does the resulting setup offer a sensible risk-to-reward ratio?
A breakout creates the opportunity. Price acceptance above resistance builds confidence. Risk management determines whether the trade is worth taking.
@ChartMantra_
Don't analyse volume in isolation.
Ask three questions whenever a stock pulls back:
Is price holding an important support zone?
Is selling volume contracting or expanding?
When buyers return, does price respond with strength?
A quiet pullback in a strong stock deserves attention. A confirmed recovery deserves analysis. A properly defined risk determines whether the trade is worth taking.
Remember: you don't need to predict the next move. You need to recognise a favorable setup and prepare for both outcomes.
@ChartMantra_
