Traditional Break out Strategy

Hi Friends,
In this Thread I am trying to share my Break out Strategy and at the same time I would like to take your suggestions to fine tune my Strategy so that it will be helpful to all.
Below are the sequential Steps that I Used to follow when posting a Signal
1. I trade on only Equity Cash segment
2.I opted 12 EMA and 16 EMA on 1 Hr Time frame to generate Signals
3.I used ADX for secondary confirmation
Rule for Entry:
As shown in the below diagram,
1. At point A, Chart formed first bottom. We need to wait till our chart form second Base. At Point B it formed second base.
2. Make sure that Point B should not below Point A.
3. Once second base is confirmed at Point B, then be Ready for Entry Level. Now Entry should be immediate resistance of Point B. Also make sure that 12 EMA should ready cross 26 EMA.
4. For Secondary confirmation, ADX should be 20 or above and ADX + pointing towards upwards by crossing ADX –
5. Finally Take Profit would be point C where highest trsistance.
6. I have taken an Example of recent chart of Ashok Leyland .

Your Suggestions will be Appreciated.
Thank You,


New Member
Hi Friends,
Unfortunately, My first signal went other way and triggered Stoploss as ApolloTyres posted mixed Results yesterday.

Last edited:
Take Profit Triggered at 518.45. Reduced the target as it took the resistance at 521 Levels. Havells is in uptrend as it took support at our entry level.


Keep looking at this space for more signals...Happy Trading.

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