How I Find Big Movers Using RSI & Moving Average | Best Swing Trading Strategy | RATHOD DARSHAN

Finance-focused summary (RSI + Moving Average swing trading strategy)

Core idea

A monthly-timing swing trading strategy that uses:

• an “unconventional” RSI range for entries, and
• a 20-period moving average (EMA/SMA) for exits.

The goal is to capture large upside moves (swing to multi-month), with risk controls triggered by moving-average breakdowns.

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Instruments / tickers mentioned

• City Union Bank (monthly chart example)
• Laurus Lab (referenced alongside a “Lets” chart)
• DVLabs (DV Lab example)
• TVS Motor
• BHEL / BEL (“BHE or BEL” / “B Electronics”)
• Bajaj Auto
• Index universes referenced for filtering/scan: Nifty 200, Nifty 400, Nifty 500
• Universe/cash mentioned: “cash” / cash segment selection

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Methodology / step-by-step framework (as described)

Indicator settings

• RSI (14-period)
• Custom RSI levels (described as converting conventional RSI to custom thresholds):
  • Upper threshold = 60
  • Lower threshold = 40
• Moving average:
  • 20-period EMA or 20-period SMA (choice is not strictly fixed in the text)

When to scan

• End of month: run the scan at the last day of the month (monthly candle close).
• Before market opens next morning: scan runs around 5–6 PM (after the monthly candle completes).

Entry criteria (RSI for entry only)

1. Identify stocks where the monthly RSI closes ABOVE 60 and BELOW 65.
2. The text also references “should not be older than 65” / RSI staying within the specified band (subtitle wording is unclear, but the intent appears to be RSI between 60–65 on that qualifying monthly close).
3. On the chart:
   • Mark the high of that qualifying monthly candle.
4. Place a buy limit at the marked high.
5. Trigger:
   • If in the next month the stock breaks above the marked high, the entry activates.

Exit / risk rule (moving average for exit only)

• After entry is taken (triggered by RSI conditions), do NOT use RSI for exit.
• Exit if the stock:
  • Closes below the 20-period moving average (EMA/SMA), and
  • subsequent action includes “breaking lows” (mentioned in the examples/subtitles).

Swing-trader adaptation

• After entry, refine exits using the weekly timeframe to identify the first logical exit after the entry (subtitle advises moving to weekly for refinement).

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Key numbers / thresholds

• RSI (14-period) custom levels
  • Entry zone: RSI > 60 and RSI < 65
  • Custom RSI range described: 60–40 (lower/upper thresholds framework)
• Moving average exit filter
  • 20-period EMA or SMA
• Timing
  • Monthly candle close (end of month)
  • Scanner run around 5–6 PM
  • Orders prepared before next day market opens

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Performance / examples cited (approximate, from subtitles)

These are presented as illustrative outcomes; exact dates/values are partly unclear due to subtitle errors.

• City Union Bank

  • RSI crosses above 60 after being below it in April.
  • Entry at the prior month high; exit on MA breakdown.

• Laurus Lab

  • RSI initially below 60, then RSI above 60 triggers.
  • Price move described: ~562 to 1861 (~3x).

• DVLabs

  • RSI above 60 triggers entry after RSI returns above 60.
  • Price move described: ~4610 to 8744.

• TVS Motor

  • Entry triggered after RSI returns above 60; monthly high marked.
  • Move described: ~665 to 4420 (~5–6x).

• Bajaj Auto

  • Entry around ₹4435.
  • Later reaches ~₹12000.
  • Retraces and closes below the 20-EMA; “low broken” language mentioned.
  • Subtitles also mention: entered ~4000, exited ~₹7900.

• BHEL / BEL (B Electronics)

  • Move described as: “went up to ₹400” and later “today four almost five times”.
  • Another figure appears near entry/action: ₹756 (starting price unclear due to ambiguity).

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Explicit recommendations / cautions & disclosures

Disclaimers

• Mentions: “This was not my recommendation… educational and learning purposes.”
• Risk disclosure:
  • “Investments in the Securities Market. Subject to market risk. Read all the related documents carefully before investing.”

Strategy boundary (repeated rule)

• RSI used only for entry
• Moving average used only for exit

Position sizing

• No explicit position-sizing rules are stated, though it mentions risk management and selecting scan universes (Nifty 200/400/500).

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Presenters / sources

• Darshan Rathore
• Channel/company mentioned: Incred Money Broking