Learning to catch High Probability Breakouts

Check one of my earlier posts on 25th May 2015.
Had already talked about the abnormal breakout in Amtek India now known as Castex.

Is it so difficult to see in that charts that this is a highly manipulated counter and current result was already expected ?????

Dear Amit,

I beg to differ here. Many of scrips are trading into fresh zone and they cant be classified as hitting 52 weeks highs.As it doesnt mean you can go long here. Because the 52 week high breakout levels are already passed by these stocks. And stocks are logged into uptrend.

For ex. Maruti...

Ideally when stocks rising from a solid base and then clearing 52 weeks highs has something to offer.

Yes Anilji

I totally agree with you on this.
Just that we generally notice stock breakouts on some event like Price shock,volume shock,result reactions,moving average crossover.

Difficult to track which stock is breaking out of consolidation which goes on for years like HLL , which kept on consolidating for years and fooling investors finally when it gave a breakout in the year 2012.

Another example is Auropharma.Consolidated for years till breaking out in the late year end of 2013.

One of my friends noticed it when it broke 52 Week high around Rs 150.He bought it then and is still holding.

Any stock breaking 52 Week high cannot be immediately buy,obviously we look into the chart before making any decision.


52 Week High/Low should not be taken as a standalone system.

The only point is there is no harm in looking at the new 52 Week Highs/Lows regularly to get a starting point.

Dear Amit,

The base i mean, if stock is in already uptrend as seen from maruti's charts, what little sense it makes to try at every 52 weeks highs.

Yes, one need to take another point which 52 weeks are best tradeable. Many test systems on this and then cry 52weeks highs are not a good system.

I dont trade 52 weeks highs or like, but surely watch it shows strength the stock exhibiting.

Anilji

Is this metastock?

Also the indicator which you are using , is that related to new highs and lows ?

Dear Amit,

Yes its a metastock. The indicator i plotted shows, when price tests 52weeks highs(240 trading days) and 52weeks lows. The dashed lines on same panel is 12weeks(60 trading days) high-lows...

Hi,

Looking for Doji symbol can give many times powerful trend reversal signals. The presence of doji after a sustained uptrend and downtrend can often mark the indecision of participant traders. But it is better if it is on the upper or lower bollinger band.

It will avoid false signals many times.

Thanks ,
Can you post some examples ,weblinks ?

pls post some example

Hi Vikas

Hindpetro i feel 15th July 2015 was Doji Symbol (i am not sure)...if so...then how would have entered in long....

Interesting subject...