Learning to catch High Probability Breakouts

[amitrandive]

Amit, I have posted the the chart of Ambuja Cements with notes in my thread, but this patterns qualifies as Low Risk High Probability breakout, hence posting here as well.

DSM

Thanks for the image.I think around mid February the following listed scrips made similar breakouts and were good Buys , with a very low risk.
(Feel free to add to the list)

For Longs

ABB,ACC,AmbujaCem,AshokLeyland,AsianPaints,AxisBank,BajajAuto,BankBaroda,BankIndia,BankNifty,Bata,BEL,Bhartiartl,Bhel,Bosch,BPCL,CanBank,CoalIndia,Concor,CrompGreav,CumminsInd,DLF,Exide,HDFC,HDFCBank,HDIL,HeroHonda,Hindalco,HindUnilever,IciciBank,IDBI,IDFC,IndusIndBank,ITC,JIndalStel,JpAssociat,JswSteel,Kotak Bank,LicHsgFin,LT,M&M,Maruti,McDowell,Nifty,ONGC,OrientBank,PFC,PNB,POwerGrid,Reliance,Relinfra,SBIN,Siemens,Titan,Ultrachemco,UnionBank,YesBank

For Shorts

Divislabs,DrReddy,HclTech,Infy,Sunpharma,

The reason why I have given such a long list that we can observe that most of the stocks have followed the pattern as indicated by Somatung in his post.
http://www.traderji.com/technical-a...ch-high-probability-breakouts.html#post951452

This is an ending diagonal triangle pattern which is seen in many of the scrips listed above or also similar to a falling wedge pattern.
So we need to analyse these kinds of breakouts and be ready for them next time around.

 

[Somatung]

Amit, I have posted the the chart of Ambuja Cements with notes in my thread, but this patterns qualifies as Low Risk High Probability breakout, hence posting here as well.

I would say here you can add this little tool beside what you gave on information. Having your description in the head and using the shown simple stuff directly on the chart should do good for any entry ideas:

 

[sherbaaz]

Potential Breakout Candidate

Aditya Birla Nuvo
BSE: 500303 | NSE: ABIRLANUVO | ISIN: INE069A01017 | SECTOR: TEXTILES - MANMADE

Current CMP:1070
Action:Buy
Stop Loss:1030
Probable Targets: 1160,1200
52 Week High:1291
52 Week Low:930.15

Reasons for trade:Above 20 day Moving average,Rising Volumes,Price forming Higher Low.

Hi,

I dont know what is your holding time frame if u go long in this stock. But as per me this is not the stock to play a breakout trade (although it may move up from here).
relative strength of the stock is significantly low as compare to index and that to way index is in strong uptrend. secondly after a fall its in a sideway mode may be an accumulation is going on but volume is not suggesting any such thing 1099-1091 zone has strong resistance . 1133 could be the breakout zone if it breaks then consider going long at the re test of this level (if any happen).

regds,
S

 

[amitrandive]

Hi,

I dont know what is your holding time frame if u go long in this stock. But as per me this is not the stock to play a breakout trade (although it may move up from here).
relative strength of the stock is significantly low as compare to index and that to way index is in strong uptrend. secondly after a fall its in a sideway mode may be an accumulation is going on but volume is not suggesting any such thing 1099-1091 zone has strong resistance . 1133 could be the breakout zone if it breaks then consider going long at the re test of this level (if any happen).

regds,
S

sherbaaz

Thanks for your views.But is Relative strength a fundamental parameter.I would preferably go by the technical parameters and charts.

Thanks for providing your views on support and resistance levels.

 

[sherbaaz]

sherbaaz

Relative strength a fundamental parameter.

Hi,

No RS is not a fundamental parameter.

Regards.
S

 

[amitrandive]

Hi,

No RS is not a fundamental parameter.

Regards.
S

Yes, got it from investopedia

Relative Strength
http://www.investopedia.com/terms/r/relativestrength.asp

Relative Strength Index
http://www.investopedia.com/terms/r/rsi.asp

 

[amitrandive]

Potential Breakout Candidate

Hindustan Zinc-I

BSE: 500188 | NSE: HINDZINC | ISIN: INE267A01025 | SECTOR: METALS - NON FERROUS

Current CMP:129.15
Action:Buy
Stop Loss:115
Probable Targets: 136,142


Reasons for trade:Above 20 day Moving average,Slightly Rising Volumes,Price already formed Higher Low.

PS:Actually the entry should have been at 124 on 28th March.

 

[sherbaaz]

Yes, got it from investopedia

Relative Strength
http://www.investopedia.com/terms/r/relativestrength.asp

Relative Strength Index
http://www.investopedia.com/terms/r/rsi.asp

if u r int in knowing about it. forget this invertopedia and all. look into wyckoff stuff.

regds,
S

 

[RajaRam9]

Amit, Thanks for initiating a thread , on such important topic, :clapping: inputs have started pouring in ! Looking forward to learn from all seniors. Will follow this thread.

 

[Rish]

Potential Breakout Candidate

Hindustan Zinc-I

BSE: 500188 | NSE: HINDZINC | ISIN: INE267A01025 | SECTOR: METALS - NON FERROUS


PS:Actually the entry should have been at 124 on 28th March.

Actual Breakout is, as you said on 28th March is perfectly right...today it has hit the first target 128.56, further breakout above 130.40 for a target of 135.20 and 142.90....

Now s/l 120.70 (EOD closing).