breakout

Discussion in 'Technical Analysis' started by cmlee, Aug 17, 2005.

  1. cmlee

    cmlee Member

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    hi,
    can i know what are the indicators to look at to spot a potential breakout?
    thanks
     
  2. billauday

    billauday Member

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    heavy volume on break out is a relaible indicator but never forget to put ur stoploss,this is the most important indicator than anything else.
     
    mukesh1234 likes this.
  3. cmlee

    cmlee Member

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    heavy volume can only be known on the day of breakout itself is it?
     
  4. cooldude

    cooldude New Member

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    Here is a live breakout. KEC intl has broken out of a consolidation. The tgt for this breakout is likely to be 298.
     
    Last edited: Oct 28, 2011
  5. cmlee

    cmlee Member

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    in this case there is no increase in volume.
    how can you be should that it is a breakout?

     
  6. cooldude

    cooldude New Member

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    Checked the close of KEC? Price precedes everything. Price precedes technicals, technicals precedes news :D. Check my post on Radico, very similar breakout it has reached the mentioned targets.
     

  7. cmlee

    cmlee Member

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    how can i use metastock to detect breakout?
     
  8. karthikmarar

    karthikmarar Well-Known Member

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    Here is the Metastock formula for breakout detection

    Consolidation Breakout Upside
    If(Ref(Fml("Congestion Index"),-5),<,10,
    {and} If(Fml("Congestion Index"),>=,10,
    {and} If(CLOSE,>,Ref(HHV(C,80),-5),
    {and} If(Mov(V,5,S),>=,1.5*(Ref(Mov(V,60,S),-5)),+1,0),0),0),0)

    Consolidation Breakout Downside
    If(Ref(Fml("Congestion Index"),-5),<,10{%},
    {and} If(Fml("Congestion Index"),>=,10{%},
    {and} If(CLOSE,<,Ref(LLV(C,80),-5),
    {and} If(Mov(V,5,S),>=,1.5*(Ref(Mov(V,60,S),-5)),+1,0),0),0),0)

    Congestion Index

    ((HHV(C,80)-LLV(C,80))/LLV(C,80))*100

    You can use these formulas in the explorers to screen the stocks
    hope this helps

    Karthik
     
  9. cmlee

    cmlee Member

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    when you use this on KEC is it successful?

     
  10. karthikmarar

    karthikmarar Well-Known Member

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    cmlee

    The formula I gave was from guppytraders.com. After experimenting with this I found that we have to fine tune this to suit the market condition. The formula assumes that during consolidation the congestion index is less than 10% and the consolidation period is quite long. In a fast market like the one we are seeing the consolidation period is short and the the congestion value is rarely less than 10%. So after some fine tuning I found that 15% congestion value is more appropriate for our present bullish market we are seeing. Also I reduced to period to 40. With this the Indicator does show the breakout for KEC. Also for D-LINK which jumped up by 15 points the Indicator showed the breakout. My tuned formula is given below for your reference. Iam enclosed the charts also.

    Consolidation Breakout - Upside
    If(Ref(Fml("Congestion Index"),-5),<,15,
    {and} If(Fml("Congestion Index"),>=,15,
    {and} If(CLOSE,>,Ref(HHV(C,40),-5),
    {and} If(Mov(V,5,S),>=,1.5*(Ref(Mov(V,40,S),-5)),+1,0),0),0),0)

    Consolidation Index
    ((HHV(C,40)-LLV(C,40))/LLV(C,40))*100

    Karthik
     
    Last edited: May 20, 2008
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