Tandem IB Tightness Trading System
Complete System: (Screening-Entry-Exit)
"You dont rise to the level of your goals, you fall to the level of your systems" ~ James Clear, Atomic habits
Today I am going to teach you a complete Trading System based on Tightness
“The Tandem IB system”
What is a complete system?
But before we dive right in.
Let us quickly discuss what is a complete trading system.
A complete Trading system is simply having an answer to each of the following 5 questions in this particular order:
Is this the right time to be in the market? (If so, how aggressive?)
If so, which are the stocks that I should focus on?
On those stocks, where should I enter?
How much should I buy and where should my Stoploss be?
And lastly, where should I exit the stock?
(I have a long and pending article going in-depth on this. I hope to finish that soon).
Now, with this primer on the system, let us discuss the Tandem IB Tightness Trading system in detail.
The Tandem IB (TIB) Tightness Trading System:
The setup is simple. I describe it below:
You will find this setup in Flags or on the right side of a Big Base.
A prior uptrend.
Stock is consolidating with volatility reducing and volume drying up on this consolidation.
Last 5 days tightness is less than 5%. Or
The recent IB range is below 3%, Or
The recent IB range is below ATR(10)
2 tandem inside bars appear in the consolidation/base i.e. 2 consecutive inside bars.
The inside bars should be a small range candle (below 5%).
Best if it is below 2-3%.
Entry Trigger: The price crossing above the recent Inside Bar high.
Additional conditions to improve the probability of setup working.
Stock has a high relative strength (>80 should be good).
Stock is from a high relative strength group.
Let’s complete the system:
Trade only when the Market is on an uptrend (Check Market Breadth for this).
Stock Selection basket: High RS stocks (Prior Uptrned and basing with volatility contraction)
Entry: Breakout of the tandem IB high.
SL goes ~0.5% below the low of the Inside bar.
Position size should not exceed your maximum risk (this is personal so I will not put a number here).
Exit: Sell into strength. Sell 50% when you have a 2R or more (2 times the risk). And trail the rest 50% using a trailing system. Supertrend 10/3 at a 25-minute timeframe is a good option, or use a trailing SL below the recent swing low in a 25-minute timeframe.
Thats it. That’s the TIB-Tightness Trading system for you.
Recent Examples of the Tandem IB setup:
Railtel: 12-July-2024
Ircon: 12-July-2024
PNB Gilts: 15-July-2024
Only 2 names that are in my Tandem IB scan on 15-July-2024 (at the time of writing):
Ahlucont:
Bhagchem:
Scanner: You can access the live scan for the Tandem IB names on my website https://www.sakatashomma.com/scanners
Select Tandem Inside Bars
Till now, we discussed the theory.
The real edge of any trader lies in his/her execution.
Flawless execution requires a meticulous organized system that can be repeated every day.
For example,
How would you enter?
Would you track the setups in real-time?
Or, would you use a GTT?
Would you buy when the price crosses the pivot or wait for a closing?
Questions like these and many more.
You have to find all these answers mate.
In case you missed it,
I am conducting my Annual Beginners Trading Masterclass tomorrow, 20 July 2024.
This year it’s all going to be about Trading Systems.
The Tightness Trading system and the Tandem Inside bar system will be one of the 5 systems that is going to be discussed.
If you find my articles valuable, you will find the Masterclass 50 times more useful.
More details below.
Hope to see you some of you in there.
(PS: All scanners and dashboards including the Tandem IB scanner shown in this article will be provided).
Trading System Masterclass for Beginners
The Annual Sakatas Homma’s Beginners Trading Masterclass is finally here. This year it will be all about the trading system. Your unique trading system. Excited! would be an understatement. Details Below.
That's all for today.
I also help traders build their own personal trading system and show mine live every day in HPA.
(PS: 1-month free HPA access complementary with the Masterclass)
Details below:
Homma Private Access membership:
HPA is a subscription-based educational service (on WhatsApp). Benefits include:
Daily Market Breadth, Momentum, Sector Rotation, and Relative Strength Update.
Access to all my scanners including the BBB (buy before breakouts) scanner, and the Homma Khela Hobe 2.0 scanner.
Access to my proprietary Breadth-Momentum-Relative Strength & Sector Rotation dashboards.
Access to my Trading view indicators: Homma Khela Hobe, Buy before Breakouts (BBB), Homma Endgame, etc.
Access to live Telegram alerts to Homma Khela Hobe, Homma Pullback, and TGP scanners.
HPA Weekly: Hourly weekend deep dives and Q&A.
1-year access to The Technical Take premium.
Live alerts to high-risk-reward setups breaking out.
Live updates on my portfolio and the trading setup rationale.
Access to my high probability watchlist.
Yearly membership of 15000/- INR only.
UPI payment & WhatsApp @ 9481506784.
Yours
Sakatas “Tandem IB” Homma.
Thank you sir ✨
is the mentioned scanner not provided ?