Anilji ....
That's Dilemma
..... during break outs .... there is gaining momentum .....
often post breakouts .... pull back happens(sometimes) and also does not happen (sometimes) and stocks just fly away ...... as it happened in case of Ashiyana Housing / Jet Airways /Raymonds /KEC. ...... On the other hand stock like IOC is now consolidating after breakout ....
In case of Gail .... there seems to be relatively slower momentum after break out ....
I am novice ... dont have well defined system as yet ....
Normally I enter after confirmation of breakout with SL just below previous resistance ...which should now act as support ....
The dilemma of taking a conservative trade at zone of consolidation just below break out is that .... break out may happen or may be not ...
what happened in GAIL is I took trade after breakout .... since 400 was previous resistance broken my SL was at 399.... Gail went high to 310.75 ... thereafter at that level price rejection happened and it fell upto 398 ... thereby just taking out my SL ... in what was then seeming like breakout failure .... but by EOD it just improved to 401.75 ... marginally above Earlier Resistance .... even today now it is trading at 397.
I am as yet still just observing ... not planning fresh trade... as this Stock is confusing me
That's Dilemma
..... during break outs .... there is gaining momentum ..... often post breakouts .... pull back happens(sometimes) and also does not happen (sometimes) and stocks just fly away ...... as it happened in case of Ashiyana Housing / Jet Airways /Raymonds /KEC. ...... On the other hand stock like IOC is now consolidating after breakout ....
In case of Gail .... there seems to be relatively slower momentum after break out ....
I am novice ... dont have well defined system as yet ....
Normally I enter after confirmation of breakout with SL just below previous resistance ...which should now act as support ....
The dilemma of taking a conservative trade at zone of consolidation just below break out is that .... break out may happen or may be not ...
what happened in GAIL is I took trade after breakout .... since 400 was previous resistance broken my SL was at 399.... Gail went high to 310.75 ... thereafter at that level price rejection happened and it fell upto 398 ... thereby just taking out my SL
... in what was then seeming like breakout failure .... but by EOD it just improved to 401.75 ... marginally above Earlier Resistance .... even today now it is trading at 397.I am as yet still just observing ... not planning fresh trade... as this Stock is confusing me
I normally see momentum indicators like MACD...If it is aligned for upward breakout its better... i mean if you are trying for a breakout on hourly MACD i watch on daily charts...
Most of my clues i get are from charts only...the bar formations, closings...spread on the bar...In consolidations normally spreads are narrower with lower volumes...as soon price starts to leave consolidation range, spread expands alongside with volumes..and closings starts to appear stronger..i mean it is near to highs if closing coming on for upside breakouts...
