Learning to catch High Probability Breakouts

[amitrandive]

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.​

Thanks Dan !!!

Any point range for such rectangles ?

 

[anil_s_trivedi]

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.​

Dear Dan,

Rightly said...Flat consolidations are always need to be watch for...The more silent those consolidations are, more furious move ahead...

 

[Somatung]

Thanks Dan !!!

Any point range for such rectangles ?

No, as you do it on the candles shown in the chart. If the vola is higher, then your rectangle will be different, as the candles define the support and resistance levels. Important is to recognize when on any time frame the market starts to show sideways tendencies. Next is the amount of candles who start to show off in such a rectangle. As more as you spot, as better the BO can be.​

 

[anil_s_trivedi]

No, as you do it on the candles shown in the chart. If the vola is higher, then your rectangle will be different, as the candles define the support and resistance levels. Important is to recognize when on any time frame the market starts to show sideways tendencies. Next is the amount of candles who start to show off in such a rectangle. As more as you spot, as better the BO can be.​

Just want to add few cents to above by Dan...

If one is spotting on 5min, it should have atleast 1.5-2 hour of consolidation...so that move coming out of it is meaningful...Also when price coming out of the base, volume should be on higher side...preferred is above average volumes...

 

[timepass]

Today's nifty chart looks like a bowl/cup formation. I guess a retracement to 7450-60 could be bought for greater upside.

comments please.

 

[satishvasu]

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.

Thanks Amit. I am looking for positional trading. Don't think I can spare the time for intraday. I can do analysis over the weekends and everyday for 1-2 hours.

Does 13 week, 26 week, 52 week high strategy work well in your experience

 

[vikas2131]

US Industrial Production Collapses Most Since 1952 Outside Of Recession

The current decline in US manufacturing would be the first time since 1952 that Industrial Production has declined for four straight months without the US economy not being in recession.

http://www.zerohedge.com/news/2016-...s-industrial-production-doing-something-it-ha

 

[Somatung]

Here a simple, little update on the rectangles. This one is seen on the daily from Nifty. Here you can implement any ideas which you know which do work in sideway markets. And there are many.

 

[Mercedes]

Here a simple, little update on the rectangles. This one is seen on the daily from Nifty. Here you can implement any ideas which you know which do work in sideway markets. And there are many.

Chacha,

As you marked rectangle on daily TF. But only after when it proves.
could you mark it when the very first green bar inside rectangle or after one two bars........???
then how one know it's sideways or trending...?
just curious don't take any offense

 

[Somatung]

Chacha,

As you marked rectangle on daily TF. But only after when it proves.
could you mark it when the very first green bar inside rectangle or after one two bars........???
just curious don't take any offense

The crux is the first support and the first resistance levels. It is not some thing you just see and know: Aha, here it happens. You must check your charts and search for possibilities. Then keep an eye on it, like I showed for learning purpose on the five minute chart. But you have to see occurring it and recognizing it by YOUR self. Take care / Dan​