Rohan Das

@rohaninvestor

7 Tweets • 2023-02-12 •  See on Twitter

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Thread: How to Know if it’s the Right Time to Start

Buying Stocks Again.

(1) The Reliable Follow-Through signal.

A follow-through day is a reliable indicator for re-

entering stocks after a major correction. It occurs
when the stock market index gains 1.5% or more on
higher volume, 4 days after a bullish reversal attempt
from the lows.
(2) 5-EMA Bottom Catcher.

Don't rush to buy at market bottom. Wait for a major

index to close above its 5-day EMA. If price falls below
5-day EMA, look for quick bounce back. Weakness
below 5-day EMA may indicate more selling or short-
term chop.
(3) 10-Weekly EMA Trend Reversal.

The 10-WEMA may not signal market bottoms as

quickly, but it provides a highly accurate signal. When
any major indexes close above the 10-WEMA, it's a
sign to invest in leading stocks with a good base.
(4) Nifty/RSI Divergence.

Double bottom and triple bottom divergences in Index

charts indicate a strong and reliable sign of trend
reversal. When Nifty or Bank Nifty hits a new low but
the RSI shows a positive divergence, it's a good time
to invest in strong stocks.
(5) Nifty/Market Breadth Divergence.

When the Nifty index reaches new lows but the

breadth indicator shows signs of improvement, it's an
early indication of momentum in the market and a
good opportunity to invest in leading stocks with
favorable risk-reward.

Follow me on: @rohaninvestor

I regularly update my latest stocks ideas, strategies,

sector rotation, and market breadth analysis, so be
sure to follow me for valuable insights and updates on
the world of investing.

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