Learning to catch High Probability Breakouts

[raj_jain1]

hello rishi sir...good breakout analysis..
sir can you give your chart pivot points indicator..i also have pivots indicator bt its too much complex lines..
reply sir

 

[amitrandive]

@ Rish

Thanks for the charts an analysis.Ranbaxy is a scrip I would trade with much caution.Is capable of wild swings on high volatility.Had a huge gap down in January.Generally this scrip is reacts on US news and has strong reactions in the Indian markets the next day.

As for JubilantFoods , we need to watch out for , might be interesting when it breaks 1100 levels .

 

[anil_s_trivedi]

 

[amitrandive]

Breakout Difference

Just wondering why there are different breakouts in the same scrip.

TatamotorsDvr-I gave a fantastic breakout but Tatamotors did not gave a similar breakout.

Anil Sir

Can you please analyse , why this difference for the same company ?

 

[anil_s_trivedi]

Dear Amit,

TATA MOTORS and its DVR both are listed. But Institutions who are interested in VOTING rights generally dont take DVR's as they dont have voting rights or have signifiantly lower rights as (1/10), so volume will always be lower than its counterpart.

Generally when main stock get its lead, the discount gets narrowed, as investors are less interested in voting rights, and want to make quick capital gains in it.

So charts of both will not be in same nature, as discount between the two keep moving up/down depending on sentiments prevailing in the market, and volume is another factor in it.

 

[amitrandive]

Dear Amit,

TATA MOTORS and its DVR both are listed. But Institutions who are interested in VOTING rights generally dont take DVR's as they dont have voting rights or have signifiantly lower rights as (1/10), so volume will always be lower than its counterpart.

Generally when main stock get its lead, the discount gets narrowed, as investors are less interested in voting rights, and want to make quick capital gains in it.

So charts of both will not be in same nature, as discount between the two keep moving up/down depending on sentiments prevailing in the market, and volume is another factor in it.

Anil Sir

Thanks for the explanation !!!:clapping:

 

[amitrandive]

Great quote posted by DSM in his thread
Thanks for this post DSM!!!

 

[amitrandive]

Ranbaxy Violent Breakout.....Just See....Today everybody has started saying Delivery Buy.....Not at all....

Technically Breakout, good Move, now we should exit, again i will enter near 377...if it comes, otherwise no regrets....or next breakout we have to enter...

Last almost 20 days i was waiting waiting, today good opportunity.....Always we will not get 10% move...point is that patience is important to enter any trade..

One more point is that always Stoploss is more more important.....

Rish

You caught a fantastic breakout in Ranbaxy.Please share your analysis on that.

 

[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

Where to get the relative strength of a stock online?

 

[Rish]

Rish

You caught a fantastic breakout in Ranbaxy.Please share your analysis on that.

Normally i use to trade positional calls, so, i use to select some scripts, will study entire movement. Once, I will get the entry,strictly take trade,no second thoughts, because we have clear s/l and targets and no torture on small time frame movements.

I am using Fibonacci Levels with Gann (simple logics) and ensure that my entry point is right (not necessary 100% perfect) to enter into trade.

Always in gann Important Days if market reacts, i have seen it will be good move. Above Gann chart of Ranbaxy Enclosed.

For your information, just verify Gold fall, it would have happened on Gann Important Day alongwith Fibonacci Breakdown.

Moreover, my final point, always i will determine Stop Loss first, rest everything is secondary for my trade.

I will share more information in due course.