The main criteria for stock selection includes :
1. The stock should be in long term up trend,
2. Medium term trend should still be positive and
3. The short term trend should have reversed from oversold position.
The overlaying of multiple TO on the same indicator give a highly accurate point of entry for such stocks, which are on the verge of breakout.
Taking the example of ABNUVO which was indicating a reversal and was pointed out our post dated June 19, 2015 when the stock was trading at Rs. 1745 :
The stock has appreciated to Rs. 2183 on July 28, 2018, an appreciation of Rs.438 (25%) in about a month i.e. return of 300% in a year.
This a totally risk free return base on delivery trade. Needless to say a Futures trade with tight risk management can increase the return multi fold.
