For traders, pick the right momentum stocks using RMI and techno-funda for investors

While technical and fundamental analysis are two different disciplines, there are certain conditions when it is worth combining them. There are many times when signs of a long term break out on technical charts and the stock moves up sharply. Recently some of the auto sector saw this phenomenon. So, for a trader, focusing on momentum is fine, but for an investor, even charts can give good indications of how things are shaping up. The trouble is that investors think that charts are not them, but the fact is that charts are for everyone and if used in right context. To help traders and investors pick the right momentum stocks, ET Markets is hosting a live interactive session with Dalal Street veteran Rohit Srivastava, who is the Founder of Indiacharts.com and Strike.money.

The online workshop, to be streamed on ET Markets Livestream, on July 13 from 11 am to 2:30 pm will have Srivastava explore 'Rohit Momentum Indicator' (RMI), a proprietary tool that provides early signals to help traders pick the right stocks as momentum begins.

You can register for the event here.


Using the RMI tool, traders can generate signals for buying or selling stocks based on bullish or bearish momentum crossovers that occur above or below the zero line.

The expert will also explain to traders how to identify winning stock ideas with a better margin of safety and then combine the two tools of RMI and valuation parameters.

As value stocks can often turn out to be a trap, a combination of both RMI and valuation parameters can help market participants time their entry efficiently. The valuation setup parameter combines the RMI with PE and EV/EBITDA.

During the session, participants will also be taught about how to plan exits using the combination of RMI and valuation parameters so that traders can ride the trend with confidence and not exit every stock that looks overvalued.


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