Learning to catch High Probability Breakouts

[revendar]

No significant sign of reversal seen in options data.
ECB stimulus. 7600+ coming.

 

[revendar]

Few exits seen in 7000, 7100PE. Once 7300PE and 7200PE liquidates, we may start downside.
FII data good for longs.
7650 max in my POV.

 

[satishvasu]

In a dilemma on the approach to take. There are two approaches I could take.

1.) Pick a set ( approx 5-10 ) stocks and monitor them everyday. By doing so you will get an intuitive edge as well. You can trade at different levels based on the res and sup levels that you observer with the monitoring.

2.) Have a set of rules ( Example : 52 week high breakout). Apply this criteria to all the stocks and see which stocks fit the rule. Trade the stocks that fit the criteria.

Which approach makes sense? Experienced traders - Please help.

 

[revendar]

Some signs of weakness seen in NIFTY.
Options: waiting for clear 7200/7300/7400PE liquidation.
Pharma index as posted earlier broke down.
AUTO/IT as well are topping out.
Energy sector also showing weakness and I see heavy positions on JSWenergy for sub 60 targets.
Only hope BNF.

 

[WaveSurfer]

Some signs of weakness seen in NIFTY.
Options: waiting for clear 7200/7300/7400PE liquidation.
Pharma index as posted earlier broke down.
AUTO/IT as well are topping out.
Energy sector also showing weakness and I see heavy positions on JSWenergy for sub 60 targets.
Only hope BNF.

Only hope BNF ?
What no hope in pharma ?

 

[amitrandive]

In a dilemma on the approach to take. There are two approaches I could take.

1.) Pick a set ( approx 5-10 ) stocks and monitor them everyday. By doing so you will get an intuitive edge as well. You can trade at different levels based on the res and sup levels that you observer with the monitoring.

2.) Have a set of rules ( Example : 52 week high breakout). Apply this criteria to all the stocks and see which stocks fit the rule. Trade the stocks that fit the criteria.

Which approach makes sense? Experienced traders - Please help.

You are confusing two different sets ,

The first applies to Intraday or Swing trading , if you are going to monitor only 5-10 stocks.

The second applies to positional trading or investment if you are going to monitor only 52 week breakouts.

 

[gemat]

@ Rish

Thanks for the charts an analysis.Ranbaxy is a scrip I would trade with much caution.Is capable of wild swings on high volatility.Had a huge gap down in January.Generally this scrip is reacts on US news and has strong reactions in the Indian markets the next day.

As for JubilantFoods , we need to watch out for , might be interesting when it breaks 1100 levels .

what is the value of EMA 1 and EMA 2 in the above chart. thank you amitrandive.

 

[amitrandive]

what is the value of EMA 1 and EMA 2 in the above chart. thank you amitrandive.

You can use any combination , one long term and the other short term.

The MA's in the picture are 20EMA and 50EMA.

 

[amitrandive]

I have found that all the analysis is fine but the price has to be in tune with the analysis....if analysis saying top and market is going up...I wont go short unless the market action confirms my analysis. Price is the KING.

Smart_trade

Note for new traders : The above sentense is very important. In my early days I used to do lots of analysis....EWT,DeMark,Patterns, oscillators,,Gann....various systems and I used to take position based on this analysis. Many times the market used to decide to do opposite action giving me trading losses inspite of all the analysis. It is only when the market action and analysis both are in harmony, I started on the winning path. It took me fair amount of time and trading losses to understand the importance of the above quote.

Smart_trade

:clapping::clapping::clapping:

 

[Somatung]

A good way to trade breakouts is to spot such rectangles you see in the screen shot. I just did make this for once on a Nifty chart for educational purpose:

First I spotted this one on the five minute Nifty chart:

And thats how it worked out so far:

Now caution would be needed, as there is a double top at least on this situation.​