note In all my charts Red line is 21 ema Green line is 50 ema MACD as normal settings
How to short stocks ? A complete checklist Look at the Weakest sector Within that sector look for Weakest RS Stock Stock should be in Stage 4 downtrend If volumes rising on selling then more confirmation Sell near Resistance/Pullback near 21/50 ema Min RR 1: 2 Relative Strength Should be Negative on Weekly TimeFrame ( 52 Period)
Stage Analysis
Stage 4 Stage 4: The Declining Phase This stage occurs when sellers take control and outlast the buyers. Price will begin to trend below a declining 30 week moving average. The big money is lost going/staying long in a Stage 4 decline Traits in Stage 4 Price breaks below the bottom of the support zone Don't need overwhelming volume to the downside to enter a Stage 4 No matter how the fundamentals appear, the price trend is all that matters
Major The active trader/investor must take note of the slope of the 30 week moving average. Every time the 30 week moving average flattens itself out The stock is set to make a trend decision. Be ready to act if it enters either a Stage 2 or Stage 4 The trend of the weekly chart and the Stage a stock is in reveal the net accumulation/distribution by institutions. This price trend is looking at the future expectations of earnings and regardless of the current fundamentals must be respected.
What is Climax Selling ? A distribution pattern that generally happens before stock enters into stage 3 Topping period Generally Stock goes into Consolidation after this period or may start Stage 4 Downtrend You will Also see FIIs , DIIs Selling Stocks in this period You will See Highest Volume Bar at the top of the trend
IEX
DMART
IRCTC
Dixon
On Weekly : Look for Stocks that are in Stage 4 Downtrend Look for Stock Near weekly Bases Stocks Should have 52 Week RS Negative On Daily Stock Should be below 50 ema If you see Big Red Volume Bars on Breakdown then prefer that Trade( Climax Selling ) Trading Near Resistance Daily Relative Strength (65 Period )Negative Overall Trend Lower High Lower Low
Dixon
Overall Trend : Naukri
Daily Time Frame
When to Avoid ?
Hindcopper
Daily Time Frame
Deepak Nitrite
Lal Path labs : Daily
Live Trade Shared in Telegram
Telegram link : https://linktr.ee/Jaynesh_Kasliwal Live Trades Given on Free Group Using the Same Concepts : https://tinyurl.com/ShortingStock