Learning to catch High Probability Breakouts

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amitrandive

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Thanks dear Amit.....now attempting to upload my first ever chart here. Do you agree, KEC INTERNATIONAL currently in Ew 3, having retraced 61.8% from EW 1 top 155 ?

Regards
Khurshed
KhurshedJi

I cannot comment .I do not rely on EW analysis.It is extremely complicated and esoteric.They look much better in hindsight.
Any single wave is made of many substructures which in turn are made up of subparts.

I am saying this because I had done an entire course of Tony Hansen on Elliot waves.

I like to keep my analysis very simple based on support resistance and trendlines.The only Indicator I use is 20EMA for trend gauging.:D

Posting a generalized structure and naming of parts of an Elliot wave for your reference.



 

amitrandive

Well-Known Member
Source: Trader's Wheel

20 GOLDEN RULES FOR TRADERS

Markets echo similar patterns over and over again.
The science of trend allows you to build systematic rules to play these repeating formations and avoid the chase:

1. Forget the news, remember the chart.
You're not smart enough to know how news will affect price. The chart already knows the news is coming.

2. Buy the first pullback from a new high.
Sell the first pullback from a new low. There's always a crowd that missed the first boat.

3. Buy at support, sell at resistance.
Everyone sees the same thing and they're all just waiting to jump in the pool.

4. Short rallies not selloffs.
When markets drop, shorts finally turn a profit and get ready to cover.

5. Don't buy up into a major moving average or sell down into one.
See #3.

6. Don't chase momentum if you can't find the exit.
Assume the market will reverse the minute you get in. If it's a long way to the door, you're in big trouble.

7. Exhaustion gaps get filled. Breakaway and continuation gaps
don't.
The old traders' wisdom is a lie. Trade in the direction of gap support whenever you can.

8. Trends test the point of last support/resistance.
Enter here even if it hurts.

9. Trade with the TICK not against it.
Don't be a hero. Go with the money flow.

10. If you have to look, it isn't there.
Forget your college degree and trust your instincts.

11. Sell the second high, buy the second low.
After sharp pullbacks, the first test of any high or low always runs into resistance. Look for the break on the third or fourth try.

12. The trend is your friend in the last hour.
As volume cranks up at 3:00pm don't expect anyone to change the channel.

13. Avoid the open.
They see YOU coming sucker

14. 1-2-3-Drop-Up.
Look for downtrends to reverse after a top, two lower highs and a double bottom.

15. Bulls live above the 200 day, bears live below.
Sellers eat up rallies below this key moving average line and buyers to come to the rescue above it.

16. Price has memory.
What did price do the last time it hit a certain level? Chances are it will do it again.

17. Big volume kills moves.
Climax blow-offs take both buyers and sellers out of the market and lead to sideways action.

18. Trends never turn on a dime.
Reversals build slowly. The first sharp dip always finds buyers and the first sharp rise always finds sellers.

19. Bottoms take longer to form than tops.
Fear acts more quickly than greed and causes stocks to drop from their own weight.

20. Beat the crowd in and out the door.
You have to take their money before they take yours, period
 
Thanks dear Amit.....now attempting to upload my first ever chart here. Do you agree, KEC INTERNATIONAL currently in Ew 3, having retraced 61.8% from EW 1 top 155 ?

Regards
Khurshed
Hello Khurshed, thanks for the chart.

To upload the charts/images, please post them on an external website and paste the link here. Check my signature for instructions about the same.
 
amitrandive,

In Intrasoft Technologies, It was create triple top...next fall down to support of 270, also there was a gap near 240,

But candle breached 300 level break triple top, reached 52 week high..In this case, How to predict next resistance level?

 

anilnegi

Well-Known Member
Dish tv



it seems a good breakout, the price can be seen on retracement, amit ji your view pls

thanks
 

anilnegi

Well-Known Member
Vinati organics



looks very attractive a hammer around support area is also very good, moreover, price never closes below 20 DMA since october 2013, which is very attractive

thanks
 

raul12

Active Member
amitrandive,

In Intrasoft Technologies, It was create triple top...next fall down to support of 270, also there was a gap near 240,

But candle breached 300 level break triple top, reached 52 week high..In this case, How to predict next resistance level?
Dear Sizzle,

While Amit Ji will answer....I'm just sharing my thoughts.

Typically once a stock breaks out of a range then post the breakout the stock should move at-least the distance equal to that of the range. So the distance of range projected upwards from the point of breakout will give you one resistance area.

 
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