Learning to catch High Probability Breakouts

[amitrandive]

My first chart on traderji...

Indiabulls Real Estate
Looks like a breakout from a strong resistance zone with a gap opening on high volume.. likely target @ Rs. 82 which is nearest weekly resistance..

Very thinly traded stock.Look for stock with heavy volumes and liquidity for trading breakouts.Has been in a range from 100-40 for about 4 years.

A stock which is not capable of moving when the entire market takes off is a weak stock.Imagine what will happen to such a stock in a bearish market.

Monthly Chart of Indiabulls Real Estate

 

[amitrandive]

Stock Strength and Weakness

Very often people ask,how to identify whether a stock is strong or weak?
The simple answer is view the Monthly chart of that stock.A monthly uptrend indicates a strong stock and vice versa.


Monthly Chart of a Strong Stock-Bosch

Monthly Chart of a Weak Stock-Kingfisher

 

[amitrandive]

 

[Raghuveer]

Nice post. Thanks Amit. :clapping:

In the second image, after pin bar at support there was a pb/retest and then break out. One entry would be above the red/black candle.

In the first image since there is no pb/retest after bo failure at resistance, I will not be in trade. Where can I get an entry with small enough SL? Entry below previous PL would make SL too large.

 

[amitrandive]

Nice post. Thanks Amit. :clapping:

In the second image, after pin bar at support there was a pb/retest and then break out. One entry would be above the red/black candle.

In the first image since there is no pb/retest after bo failure at resistance, I will not be in trade. Where can I get an entry with small enough SL? Entry below previous PL would make SL too large.

Raghuveer

I have marked my trade and target levels for the first image.Ideally we should trade positional only on the close of a candle.I would assume a reversal short entry only at the break of the fake breakout candle low.

My stop would be at the open of this candle,not at the high.
The reason is that if the price retraces to the candle high,it would not be a false breakout.This would mean that the key resistance level is broken again which signifies that the resistance is becoming a support.

This would be a very high probability trade as it is a double top,with the target being the previous support level as marked in the below post.

 

[amitrandive]

Daily Chart of Spot Nifty

Daily Chart of Spot BankNifty

 

[amitrandive]

Weekly Breakout

Weekly Chart of HCLtech

 

[timepass]

Weekly Breakout

Weekly Chart of HCLtech

Looks tinypic.com is playing tricks

 

[amitrandive]

Looks tinypic.com is playing tricks

???.........

 

[amitrandive]

Interesting to watch out for Coal India, whether it will go up or down from the resistance level after rising almost 3% intraday on 21/1/2015.

Daily Chart of Coal India.

Coal India,still not able to clear the resistance level.Made a high of 394.7 today and closed at 384.Bounced back from a high of 400 on 23/1/2015

Daily Chart of Coal India.