HOW TO PICK 5X STOCKS

WITH CHARTS
NOTE

In all my charts
Red line is 21 ema
Green line is 50 ema
RS : 52 on weekly and 65 on Daily
Black Line 30 wema
DTF: daily time frame
SCREENER
Excel Link for List of Stocks that became 5X
https://docs.google.com/document/d/1J-DNTbgjTotI6
7P3zsh5SsSWfTOMsRzkQYzkZBUj-Sc/edit?usp=sh
aring
CONCEPTS
Relative Strength
Stage analysis
Price Action With Volumes
STOCK DISTRIBUTION IN VARIOUS SECTORS
RELATIVE STRENGTH
Relative strength is a strategy used in momentum
investing and in identifying value stocks.
It focuses on investing in stocks or other investments
that have performed well relative to the market as a
whole or to a relevant benchmark.
For example, a relative strength investor might
select technology companies that have outperformed
the Nifty50, or stocks that are outperforming the
Nifty 500
This is basically used for Identifying the strongest
sector , stocks , asset class by comparing the relative
performance
IN INDICATOR SECTION
Type
“Relative Strength”
Choose any
By bharattrader
By traderlion
By Modhelius
I use by bharattrader
In setting use 52 period
RS WHY?
Helps to filter out stocks in good momentum and
that are giving better returns than nifty
These stocks tend to outperform the market for a
long term
These are potentially superstocks
52 period signifies 1 Year of trading
In 1 Year we have around 52 trading Weeks
OUTPERFORMANCE ON DTF
UNDERPERFORMANCE ON DTF
STAGE ANALYSIS
Stan Weinstein's Stage Analysis offers traders a
powerful methodology to identify trends in the
markets while following strict risk management
principles.
STAGE 1
Stage 1: The Basing Area This stage occurs at the
bottom of a longer term base or during the first
primary base a stock forms after it’s IPO. During
this stage the stock is oscillating under a
declining 30 week moving average.

Traits in Stage 1 Buyers and sellers start to

balance each other out There is a volume dry up,
signaling major selling has subsided Volume will
start to increase towards the end of the period
without significant price concession
IEX CHART
STAGE 2 : INVESTING
Stage 2: Advancing Phase This is the stage where
we should be looking to take long positions in a
stock or index. Buyers are now in control and the
balance of power is now in line with demand

Stage 2: The Ideal Buy Point for Investors

Investors should watch for the first breakout on
volume just as the stock begins a new Stage 2
uptrend. Investors can buy the breakout or the
retest of the pivot point
TRADING STRATEGY
Let us now summarize everything and apply the
whole concept in real trading
What are we looking for ?
Stock breaking out of stage 1 and above 30 wema
Relative strength > 0 and increasing
The more time RS was positive before the
breakout the better .
Enter on Stage 1 Breakout
Look for rising Volumes on right side of base
3 types of entries

Stage 1 Breakout
52 week high Breakout
All time / Multi Year Breakout
NAHAR POLY
ELECON
PG ELECTROPLAST
OLECTRA
OBSERVATION
Most Stocks doubled Before entering into Stage 2
Uptrend
52 week RS was positive in stage 2
90% stocks even gave all time high breakout after
Stage 2
Only ¼ of the stocks were trading above 100
before they became 5X
Out of 85 Stocks only 20 were above 100 rs
Even now 50 Stocks are having market Cap less
than 5000 Cr that means they were having
market cap of around 1k cr before they become
5X
20 Stocks are having market cap above 20k cr
now
66 Stocks have market cap 10k Cr now !
Only 11 Stocks had ROE and ROCE >20 That
means Fundamentals didn’t matter that much

https://chartink.com/screener/stage-2-uptrend-sto
cks-1
STOPLOSS HIT
PRAKASH INDUSTRY
Risk Reward Will always be > 1:10 As if we ride
the complete trend till stage 3 Breakdown then
stocks become 2X 3X easily
Small Losses should be Booked and Re entry
should be Taken if stock regains momentum
BSE
ONWARD
CENTURY PLY
SCREENER FOR STAGE 2 UPTREND STOCKS
Stage 2 Screener Link :
https://chartink.com/screener/stage-2-uptre
nd-stocks-1
DAILY CHART: GANESH HOUSING
HOW TO ENTER
POTENTIAL CHARTS FOR NEXT MULTIBAGGERS
Shankara Building
Ruchira Papers
20 microns
Mrpl
Chennai Petro
RUCHIRA
20 MICRONS
ORBIT EXPORTS
SHANKARA
EPS GROWTH
Understanding Bases:
https://www.investors.com/ibd-university/how-to-
buy/bases-overview-1/

https://marketsmithindia.com/post/how-to-count-
bases-why-you-should-3
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