Quick Question Regarding the BOLD BULLS Strategy
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@Brijesh-Bhatia ji , greetings. Being a passive investor, I am a big fan of your investing strategies like the laid back and vridhi. Learning how to trade after retirement is both exciting and eye opening and in the meantime while I am learning the tricks of the trade, using your strategies to use my spare capital generate income is quite motivating. While reading through the definedge blog, I came across another such strategy presented by you , the BOLD BULLS. Being a big fan of momentum myself and seeing the flavor of it being used in both laid back and vridhi, this makes sense as a perfect small/medium term holding strategy.
Had a quick question though, the conditions to enter and exit is perfectly understood, however, does one need to buy on a specific price pattern/breakout pattern/ or market price as soon as the instrument pops in on a multi time frame scanner (maybe around previous day's closing price, on similar grounds of laid back and vridhi?). Also, as this strategy works on a multi time frame logic, the entry will be based on EOD levels can one use a DTB on probably 0.25% box size on a P&F chart ? ( dipping my feet into P&F as well).
Would appreciate if you could help.Thanks
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@Brijesh-Bhatia
another obsertvation, if one was to draw analogies to a daily,weekly,monthly TF for OHLC with respect to RSI, the result was a bit skewed on a P&F on 3%,1%,0.25% with respect to RSI. Can one use only 1 TF in P&F (0.25% or 1%) on a follow up pattern as long as the RSI on that chart/percentage is above 60 ?
Thanks in advance -
@Amit Tuli Thanks for following the strategy and sharing your experience.
Regarding Bold Bulls on Candlestick (OHLC) and P&F, both have different calculations for RSI. I would suggest to stick with one. The RSI on multi-time frames is recommended on the OHLC chart.
For entry, you can implement based on 0.25%, but if you think about the setup, it will qualify when the stock is in the momentum+trend. Hence, when the stock qualifies for the Bold Bulls, it will likely be with the DTB pattern.
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Dear @Brijesh-Bhatia
Thank you for your reply. This is what I have been observing since I have dwelled deep into the BOLD BULLS strategy. I realized after observing that one cannot draw analogies of RSI on OHLC (Daily/Weekly/Monthly TF) and P&F (0.25%/1%/3%) the behavior is completely different. Additionally, you are absolutely correct in stating that once an instrument is flagged in daily scan of bold bulls (the weekly and monthly being locked) it will be result in a bullish pattern on P&F (a DTB on 0.25% or stay in column of X in 1%).
Would adaptive RSI (a bullish crossover or the bullish stance of adaptive RSI) be an appropriate indicator to be used on P&F as a confirmation of momentum rising in an instrument?
What I have been noticing is that after comparing both charts side by side (approximately for the same calendar time period) when RSI on an OHLC goes let's say hypothetically from, a zone of 80 to 60 the adaptive RSI gives a negative crossover and the moment the RSI rises back hypothetically from 60 (once momentum increases) it results in a bullish crossover on P&F.
Any other momentum indicator which you can suggest I could observe on P&F in case my observation is incorrect.
@Prashant-Shah would appreciate if you could comment please
