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Identify the market trend whether it is positive or negative.
Observe the Global markets – Asian markets during morning section and European markets during noon section.
Observe FII activities.
Adv/Dec Ratio.
Note Market breadth – Price wise.
Note Market breadth – Turnover wise.
Come to a conclusion whether the market is positive or negative or mixed. Do not trade if the market is mixed.
Based on the above trend, identify top 2 sectors. Pick top 5 stocks by price wise and top 5 stocks by turnover wise.
Identify the top 1 or 2 companies in above result and take position accordingly.
Identify the market trend whether it is positive or negative
Look at the global markets
Advance / Decline ratios
Select the top two sectors / three sectors which is responsible for market trend
Identify top companies in those sectors and take position.
Top-down approach is used in identifying the movement of stock in intraday:
- Look for global market and qualify them as negative or positive.
- check FII activity
- check Indian market
- check Market breadth (advanced/decline ratio) price and turnover basis.
- select top two sectors responsible for prevailing market direction
- filter top 4 stocks
- filter stocks that is traded with hight volume.
- According to trend create long or short position.
Top down approach is used to identify the intraday price movement
1. Look for global market and identify as positive or negative (Asian market and European market)
2. Check FII activity and Indian market (Nifty)
3. Check market breadth (advance/ decline ratio) and depth (Turnover details)
4. Based on the above select 2 sectors responsible for the prevailing market trend
5. Filter 5 stock based on the price and 5 stocks based on the volume
6. Now select 1 or 2 companies based on the above
7. Based on the trend create long or short position and entry and stoploss position pre-defined and stick to that.
To identify stock momentum in intraday we have to follow the top down approach.
Follow the global market to ensure which is positive or negative.
Check FII activity
Check Indian market
Check market breadth (advanced/decline ration)pricewise and turnover basis.
Index contribution
Filter 4 stocks using the above trend.
Now select 1 or 2 stocks based on the volume.
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