Here’s a step-by-step strategy taught in our courses to help traders find and ride strong price moves effectively:

1. Spot the Right Asset

Look for stocks, cryptocurrencies, or indices that are already in motion—these are your best candidates.

Key tools:

• RSI above 60 signals ongoing bullish momentum

   

• Price above 20-day and 50-day Moving Averages confirms an uptrend

   

• Scan for stocks making new 52-week highs or showing consistent volume spikes

   

2. Confirm with Volume

Momentum is powerless without volume.

• Rising prices backed by strong trading volume confirm real demand

   

• Look for volume spikes on breakout days, which indicate institutional interest

   

3. Enter on Pullbacks, Not Peaks

Don’t chase the price. Wait for a short-term pullback or sideways consolidation near a support zone like:

• 20-day EMA

   

• Recent breakout levels

   

• Trendline support

   

This approach gives you a better risk-reward entry point.

4. Use Technical Indicators Wisely

Our trainers recommend combining multiple signals for a stronger setup:

• MACD Bullish Crossover: When the MACD line crosses above the signal line

   

• RSI between 60–70: Avoid overbought zones above 80

   

• Volume Oscillators: Confirm price action with momentum surges

   

We cover this in-depth in Capital Varsity’s Technical Analysis Workshop.

5. Set Clear Stop Loss and Target

Every successful trade begins with risk control.

• Set a stop loss just below the most recent support

   

• Use a 2:1 or 3:1 risk-reward ratio for your profit target

   

• Example: If you risk ₹500, your target should be ₹1000–₹1500

   

This is how professionals stay consistent—protect capital first, profits follow.

6. Trail Your Stop Loss as Price Moves

Once your trade is in profit:

• Adjust your stop loss to lock in gains

   

• Use a trailing stop method to ride large trends

   

Exit only when the momentum weakens, not just because you hit a pre-set number