Combined Scenario of Volume, Delivery Percentage, and Price to Know Entry and Exit Point for A Swing Trade

 

1.      Volume, Delivery Percentage, and Price all increase: Entry Point

Reason: There may be heavy buying by FII and DII through bulk or block deals.

 

2.      Volume decrease but Delivery Percentage and Price both increase: Confusing State, better not to buy.

 

3.      Delivery Percentage increase and Price decrease: Sell Entry

Reason: The giant investor who is holding the stock begins to sell it slowly. The reason to sell slowly is that they don’t want to make retail investors aware of the selling. In this scenario, Volume doesn’t affect much.

 

4.      Delivery Percentage decrease and Price increase: Sell entry

Reason: Delivery Percentage decrease because the giant investor is selling their stock and, in the market, the speculator begins to dominate and drive the price somewhat upper level.

 

5.      Delivery Percentage decrease and Price decrease: May early sign for Buy (keep such stock on watchlist)

Reason: Speculator begins to sell their position.

Checklist for entry to Stock or Future

	LONG	SHORT
Future Open Interest		Increase by at least 20 %
Option Open Interest at ATM	Put OI Increase	Call OI Increase
Delivery Percentage	Increase	Increase
Price	Increase
Volume	More the 20 days Average	More the 20 days Average

Disclaimer: This blog is just for educational purposes and it represents my view. Don’t Consider it as advice as I am not SEBI Registered research analyst or advisor. Before taking trade do your research or consult your financial advisor. I am not responsible for any profit or loss that arises due to trading or investing.