3
3-Wire Convergence (Chirag Rathod)
Chirag Rathod
Analysed 01 Jul 2026, 11:31 PM IST
Detected components (auto-read from transcript)
Claims it makes (quotes pulled from the transcript)
- “On the hourly chart, wait for three lines — VWAP, the 20-SMA (Bollinger middle) and a 9-SMA of the highs — to converge. When a candle closes above all three, buy a call (target = upper Bollinger Band, stop = VWAP); below all three, buy a put. “A single candle is enough.””
Verdict
The 'three wires touching like a live current' image is memorable, and the cherry-picked examples (Titan, Paytm, Godrej) look explosive.
How we tested it
Mechanized on 48 Nifty-50 stocks, 5-min resampled to hourly, 2 years, with the real Zerodha intraday cost model + slippage. One trade per stock per day, squared off intraday.
But systematically it's one of the worst we've tested: −0.60R per trade, −₹2.2M over 6,450 trades, negative every single year including 2026. The flaw is the stop — VWAP sits right at the entry, so the micro-stop is shredded by noise (only 25% of breakouts reach the upper band) while costs eat a tight-risk trade alive. Loosening the convergence filter only makes it worse. The 'single candle' profits are real on the winning 25%; the other 75% quietly bleed.
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