Breakout in Finolex industries?

sh50

Active Member
#1
Finnolex industries seems to be on the verge of an upside breakout at more than seven months resistance of 70 after a consolidation phase since July onwards.The prices are also not approaching the lower line of the rectangle which could be indicative of bullishness.

At the same time there seems to be some bearish divergence with RSI. What is your view, traderji? My first graph post-please don't mind mistakes.
 

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Traderji

Super Moderator
#4
sh50 said:
By that do you imply continous close for two days succesively or 3% filter.
As I prefer to be in the thick of the action, I generally scale in on the first breakout by buying 25% of my position and keep adding on to my position on every confirmation of strength of that stock!
 

sh50

Active Member
#5
That is interesting. Does that imply that you take your 25% as soon as there is a breakout(first day) without any percentage filter? Perhaps that depends upon the scrip?
 

sh50

Active Member
#7
Thanks for sharing this because this is against what a lot of books advocate- either percentage filter or 2-3 days closing.

In books, it is also given that a majority of breakouts are false. Can you please give some tips on detecting false breakouts. Low volume seems to be obvious but that apart, what else can one keep in mind- previous resistance levels and volumes at those levels or whether weekly chart is not suggesting a sell?
 

Traderji

Super Moderator
#8
sh50 said:
Thanks for sharing this because this is against what a lot of books advocate- either percentage filter or 2-3 days closing.

In books, it is also given that a majority of breakouts are false. Can you please give some tips on detecting false breakouts. Low volume seems to be obvious but that apart, what else can one keep in mind- previous resistance levels and volumes at those levels or whether weekly chart is not suggesting a sell?
It is very difficult to detect false breakouts! If you are convinced with the trade go with it using proper risk management.

You cannot avoid losses by careful planning or brilliant strategy. Numerous losses are part of the trading process. "Trading is a business of making and losing money. Any trade, no matter how well thought out, has a chance of becoming a loser. Many people think the best traders don't lose any money and have only winning trades. This is absolutely not true. The best traders lose a lot of money, but they eventually make even more over time."

There is no point trading if you cannot handle the psychological discomfort of making losing trades. While people tend to take losses personally as a sign of failure, good traders shrug them off. The best trading plans result in many losses. Because of the amount of randomness in market price action, such losses are inevitable.
 

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