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The Grandfather Son (GFS) Strategy: A Technical Analysis Trading Strategy



In the world of trading, strategies play a crucial role in identifying profitable opportunities and managing risks. One such strategy is the Grandfather Son (GFS) strategy, developed by Vishal Malkan. This technical analysis trading strategy is based on the Relative Strength Index (RSI), a momentum oscillator that measures the magnitude of recent price changes. By utilizing the GFS strategy, traders aim to identify stocks that are overbought on monthly and weekly time frames but are exhibiting signs of weakness on the daily time frame, indicating a potential reversal.

The Concept Behind The Grandfather Son Strategy

The GFS strategy takes advantage of the RSI indicator to pinpoint stocks that are likely to reverse their current trend and move higher. Let’s explore how the strategy works in a step-by-step manner:

  1. Identifying Overbought Stocks: The first step of the GFS strategy involves finding stocks that are overbought on the monthly and weekly time frames. An RSI value greater than or equal to 60 is often used as a threshold to determine overbought conditions.
  2. Spotting Weakness: After identifying overbought stocks, the strategy shifts focus to the daily time frame. Traders look for signs of weakness, such as the RSI crossing above 40, indicating a potential shift in momentum.
  3. Anticipating Reversal: When a stock meets the criteria of being overbought on the monthly and weekly time frames while displaying weakness on the daily time frame, it suggests a potential reversal is on the horizon. Traders can use this information to position themselves accordingly.

Utilizing Chartink for GFS Strategy

Chartink, a popular website, offers a useful screener that simplifies the process of identifying stocks that meet the criteria of the GFS strategy. The screener filters stocks based on the following criteria:

  • Monthly RSI (14) greater than or equal to 60
  • Weekly RSI (14) greater than or equal to 60
  • The latest RSI (14) crossed above 40

By utilizing this screener, traders can quickly identify potential candidates for the GFS strategy, streamlining their decision-making process.

Risks Associated with the GFS Strategy

While the GFS strategy has demonstrated its effectiveness in identifying stocks poised for a reversal, it is essential to acknowledge the risks involved:

  1. False Signals: Like any trading strategy, the GFS strategy is susceptible to false signals. This means that the strategy may identify stocks that are overbought on the monthly and weekly time frames but fail to reverse their course and move higher. Traders should exercise caution and employ additional analysis to confirm the signals provided by the strategy.
  2. Trading Overbought Stocks: The GFS strategy can sometimes lead to trading stocks that are already overbought. If the stock price continues to decline instead of reversing, losses may be incurred. Proper risk management and monitoring of price action are crucial to mitigate this risk.

Despite these risks, the GFS strategy remains a viable trading approach, especially when applied in the appropriate market conditions. Traders should combine it with other technical indicators, fundamental analysis, and risk management techniques to maximize their chances of success.

How Effective is the GFS Strategy?

The effectiveness of the GFS strategy can vary depending on market conditions. Vishal Malkan conducted a study that revealed the GFS strategy successfully identified stocks poised for a reversal in 60% of cases over several years. However, it’s important to note that market conditions are dynamic, and past performance may not guarantee future results. Traders should adapt their strategies to current market dynamics and exercise prudent decision-making.

The Vishal Malkan Grandfather Father Son Strategy is a technical analysis strategy that uses RSI (Relative Strength Index) to identify stocks that are likely to trend upwards. The strategy is based on the following three rules:

  1. The monthly RSI must be above 60.
  2. The weekly RSI must be above 60.
  3. The daily RSI must cross above 40.

When all three of these conditions are met, it is considered a bullish signal and the stock is likely to trend upwards.

According to the Vishal Malkan grandfather-son strategy, a stock is considered to be a buy if it satisfies the following conditions:

  • The monthly RSI (14) is greater than or equal to 60.
  • The weekly RSI (14) is greater than or equal to 60.
  • The daily RSI (14) has crossed above 40.

As to give you Examples  the following stocks meet these conditions :

  • Angel One Ltd (NSE: ANGELONE): Monthly RSI (14) = 61.83, Weekly RSI (14) = 62.06, Daily RSI (14) = 47.26

IndusInd Bank Ltd (NSE: INDUSINDBK): Monthly RSI (14) = 63.94, Weekly RSI (14) = 64.14, Daily RSI (14) = 48.08

Bharti Airtel Ltd (NSE: BHARTIARTL): Monthly RSI (14) = 64.33, Weekly RSI (14) = 64.53, Daily RSI (14) = 48.42

These stocks are all trading above their 200-day moving averages, which is a bullish sign. Additionally, they are all trading in overbought territory, which suggests that they may be due for a pullback. However, the grandfather-son strategy is a long-term strategy, so investors should not be concerned about short-term fluctuations in the price of these stocks.

It is important to note that this is just a technical analysis of these stocks. There are other factors that investors should consider before making a buying decision, such as the company’s financial health and its future prospects.


The Grandfather Father Son (GFS) strategy, developed by Vishal Malkan, is a technical analysis trading strategy that utilizes the Relative Strength Index (RSI) to identify stocks poised for a reversal. By combining the concept of overbought conditions on monthly and weekly time frames with signs of weakness on the daily time frame, traders aim to capitalize on potential market reversals.

While the GFS strategy offers opportunities, traders must exercise caution and remain aware of the associated risks. False signals and trading already overbought stocks are among the challenges traders may face. It is recommended to use the GFS strategy as part of a comprehensive trading approach, incorporating risk management techniques and additional analysis.

Investing and trading in financial markets carry inherent risks, and traders should always conduct thorough research and seek professional advice before making any investment decisions.

Key Takeaways:-

1. Is the GFS strategy suitable for all types of markets?

The effectiveness of the GFS strategy can vary depending on market conditions. It is important to adapt trading strategies to match the current dynamics of the market.

2. Can the GFS strategy guarantee profitable trades?

No trading strategy is perfect, and the GFS strategy is no exception. While it has demonstrated success in identifying potential reversals, traders should employ additional analysis and risk management techniques.

3. How frequently should I use the GFS strategy?

The frequency of using the GFS strategy depends on individual trading preferences and market conditions. Traders should evaluate their trading goals and adjust their strategy accordingly.

4. Can the GFS strategy be automated?

Yes, the GFS strategy can be automated using trading software or platforms that allow for the implementation of technical analysis indicators.

5. Where can I find more information about the GFS strategy?

For more detailed information and guidance on the GFS strategy, it is recommended to refer to Vishal Malkan’s work and other reputable sources dedicated to technical analysis and trading strategies.


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  1. Dileep Kumar Patel

    September 29, 2023 at 11:46 am

    Very useful strategy

  2. Tariq M Kayani

    November 5, 2023 at 1:34 am

    Great strategy but use with caution. Other things should remain the same to be successful

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Profit Making Idea

Infosys ADR Up 5% Despite Weak Results: What Should Indian Investors Do?



Hey investors! Let’s talk about Infosys and its recent ups and downs. Despite some not-so-great results, their ADR (American Depositary Receipt) is up by 5%. It’s a bit of a head-scratcher, right? So, what should you, as an Indian investor, do in this situation? Let’s break it down.

The Latest with Infosys

  • ADR Up by 5%: Even though the results weren’t strong, Infosys’ ADR went up. It seems like the market had already anticipated this, and maybe some short sellers got caught off-guard.
  • Q3 Results: The revenue barely budged, and net profit actually fell by 7% compared to last year. Not the best news, honestly.
  • In Semi Acquisition: A big move by Infosys, acquiring In Semi, a big name in semiconductor design and embedded services. This could be a game-changer in the long run.

Analyzing the Numbers

  • Profit and Revenue: The net profit is down, and revenue growth is almost flat. High interest costs are partly to blame here.
  • New Deals Dropped: New deal signings took a nosedive from $7.7 billion to $3.2 billion. That’s a big drop.
  • Attrition Rate: Good news here – it’s down to 12.9%. Less employee turnover is always a positive.
  • Guidance for FY24: Infosys expects revenue growth of 1.5%-2.0% and an operating margin of 20%-22%.

What’s the Deal with Insemi?

Insemi’s acquisition is quite a highlight. They’re leaders in the semiconductor design space. This market is booming and expected to hit $800 billion by 2028. With Insemi, Infosys could become a significant player in this field.

The Mixed Bag

  • Sector and Geographic Performance: Financial services and North America are still not performing well, but there’s some rebound in Europe.
  • Cash Flow: Infosys has a healthy free cash flow, which is a good sign for its financial health.

So, What Should You Do?

  1. Understand the Big Picture: Look beyond just this quarter. Infosys is making moves that could pay off in the long run, especially with the Insemi acquisition.
  2. Diversification: Don’t put all your eggs in one basket. It’s crucial to have a diversified portfolio.
  3. Stay Updated: Keep an eye on how Infosys performs in the coming quarters, especially in their new ventures and market segments.
  4. Risk Assessment: Be aware of the risks involved. Infosys is facing some challenges, and you need to decide if you’re comfortable with that level of risk.

Final Thoughts

Infosys’ results were a mixed bag, and the stock’s reaction was a bit surprising. As an investor, it’s essential to stay informed and make decisions based on a comprehensive understanding of the company’s performance and potential. Keep watching the market and adjust your strategy as needed. Remember, investing is a marathon, not a sprint!

Since we talked about this IT giant Infosys, Lets explore some AI based companies as well.

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Edelweiss NCD Issue: Secure Investment Opportunity



Edelweiss Financial Services Limited has announced a public issue of Secured Redeemable Non-Convertible Debentures (NCDs) worth Rs 2,500 million, offering an effective yield of up to 10.46% per annum. With credit ratings from CRISIL A+/Stable and ICRA A+, these NCDs provide a safe investment avenue.

Issue Details and Tenures

The NCDs offer ten series with fixed coupons and tenure options of 24, 36, 60, and 120 months, presenting diverse interest payment frequencies. The effective annual yield for these NCDs ranges from 8.94% to 10.46% per annum, catering to different investment preferences.

Offering Timeline and Utilization of Funds

Scheduled to open on January 9, 2024, and close on January 22, 2024, at least 75% of the raised funds will be directed towards repaying/prepaying existing borrowings, ensuring financial stability. The remainder will support general corporate purposes, aligning with SEBI NCS Regulations.

Investor Incentives and Ratings

Investors holding debentures/bonds from the company or related entities may enjoy an additional incentive of up to 0.20% p.a. These NCDs carry ratings of CRISIL A+/Stable and ICRA A+, indicating stability despite negative implications.

Lead Managers and Listing

Trust Investment Advisors Private Limited and Nuvama Wealth Management Limited are the lead managers for this NCD issue, aiming to list the NCDs on BSE Limited. This listing will provide liquidity and ease of trading for investors.

About Edelweiss Financial Services Limited

Edelweiss Financial Services Limited, established in 1995, operates in investment banking and holds a prominent position in the financial sector. Starting as an investment banking firm, it later expanded its operations, reflecting strong credentials in financial services.

Edelweiss Financial Services Limited has unveiled a lucrative investment opportunity through its NCD issue, promising secured returns and prudent utilization of funds. As the issue opens for subscription, it’s an opportune moment for investors seeking stable yet high-yield investment avenues. With a diversified range of tenure options and regular interest payments, this offering aligns with different investor preferences. The company’s extensive experience in the financial sector adds credibility to this investment opportunity, promising reliable returns.

Key Takeaways

  • Lucrative Investment Avenue
  • Secured, High-Yield Returns
  • Diverse Tenure Options
  • Prudent Utilization of Funds

This blog introduces an investment opportunity provided by Edelweiss Financial Services Limited, shedding light on its NCD issue’s specifics and the company’s background. With its high yield and secure nature, this offering presents a compelling choice for investors seeking stable returns. Learn more about financial goal planning.

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Profit Making Idea

Allcargo Terminals Hits 20% Upper Circuit: Stock Analysis



Allcargo Terminals Limited has recently hit the headlines with its stock price soaring to a 20% upper circuit. This remarkable surge raises an intriguing question: can we expect this rally to continue? Let’s dive into the company’s recent performance and sector trends to uncover insights. The upper circuit today was followed by a trendline breakout, shared by a user on twitter a few days ago.

The Catalyst Behind the Surge

Allcargo Terminals’ stock hitting the upper circuit is not just a random spike; it’s backed by solid performance and strategic moves. The company’s recent financial results for Q2FY24 show a robust 13% year-on-year increase in Container Freight Station (CFS) volumes, outpacing industry growth. But what does this mean for the stock’s future trajectory?

Analyzing Q2FY24 Performance

In Q2FY24, Allcargo Terminals demonstrated strong sequential improvement. The company not only witnessed a 6% quarter-on-quarter increase in CFS volumes but also reported revenue growth of 3% and a notable 12% increase in EBITDA. These figures indicate a positive momentum, which could be a key factor in driving the stock’s rally.

Digital Initiatives and Customer Experience

A significant aspect of Allcargo Terminals’ strategy is its focus on digital initiatives aimed at enhancing customer experience. This progressive approach is gaining traction, potentially contributing to the ongoing volume momentum. Such forward-thinking strategies are crucial in determining whether the rally has the legs to continue.

all cargo terminal analysis

Leadership and Financial Health

The induction of Mr. Pritam Vartak as CFO marks a strategic strengthening of the leadership team, potentially boosting investor confidence. Furthermore, the company’s robust balance sheet and net debt-free status provide a solid foundation for sustainable growth, which could be pivotal in maintaining the rally.

Allcargo Terminals in the Wider Logistics Sector

Allcargo Terminals, with its extensive network and digital prowess, is well-positioned in the logistics sector. As the industry navigates through a period of transformation, ATL’s innovative approach and strategic expansions could play a crucial role in sustaining its market rally.

The Road Ahead: Predicting the Rally’s Course

While Allcargo Terminals’ recent performance is impressive, predicting the stock market is always a complex endeavor. Factors such as broader market trends, economic conditions, and company-specific developments will influence the stock’s trajectory.

In conclusion, Allcargo Terminals Limited’s recent upper circuit hit reflects its strong performance and strategic initiatives. While the current indicators are positive, the sustainability of the rally will depend on continued performance excellence and favorable market conditions. What’s your take on Allcargo Terminals’ future in the stock market? Let’s engage in a discussion about the exciting possibilities ahead for this dynamic company! 🚀💹📈

We like Adani ports as well in the shipment and cargo field. Keep following us for more such technical analysis.

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