Learning to catch High Probability Breakouts

[indianbank]

J But I will miss many trending stock if I but on the correction

Yes some time if we wait for correction... We may miss big bulls...

Yearly breakout trades can be a failure... and its called Turtle soup pattern:thumb:

 

[saravkarun]

Any one please tell me where to find the historical price data of indian shares, say for the past 15-20 years....

 

[amitrandive]

Any one please tell me where to find the historical price data of indian shares, say for the past 15-20 years....

Will not let you select more than a year's data at one time
http://www.nseindia.com/products/content/equities/equities/eq_security.htm

 

[newuser_RK]

Sorry guys I am still confused like any thing.
So there are two approaches 1. Just buy a breakout you trust will be profitable
2. But on the pullback to region of breakout.

Need opinions on these which one is better. Somethimes price pullback but sometimes they don't. Sometimes pull back results in full correction is a false breakout

 

[amitrandive]

Sorry guys I am still confused like any thing.
So there are two approaches 1. Just buy a breakout you trust will be profitable
2. But on the pullback to region of breakout.

Need opinions on these which one is better. Somethimes price pullback but sometimes they don't. Sometimes pull back results in full correction is a false breakout

There are breakouts and there are breakout failures(traps).None is superior over the other.

Pure breakout trades are slightly riskier,retracement breakout trades are less riskier.

If you are not comfortable trading breakouts , trade as per your own style of trading retracements.

If a particular stock does not retrace let it go , search for another trade.How can you have best of both worlds with mindset for only one pattern ?

 

[anil_s_trivedi]

There are breakouts and there are breakout failures(traps).None is superior over the other.

Pure breakout trades are slightly riskier,retracement breakout trades are less riskier.

If you are not comfortable trading breakouts , trade as per your own style of trading retracements.

If a particular stock does not retrace let it go , search for another trade.How can you have best of both worlds with mindset for only one pattern ?

Dear newuser_RK,

There is no rule guide that will say breakout will be actual one or a fake one. Its a process result of many things. Many investors wary of stocks hitting 52weeks highs. But let me tell you all the great minds of past have made fortunes from stocks hitting newer highs.

But you need to study on it. Those stocks which are posting good results QoQ or YoY, will most likely hit 100%...200%....500%...thats a story. Imagine if you have are afraid of those stocks hitting 52weeks highs, and just stayed away. There are many examples in our indian market. ...Lupin is one...

So in short stocks with good fundamentals and better prospects will likely break and sustain breakouts. I am not saying you need to study fundamentals for this. But yes the list of stocks you are studying daily or want to trade must be ok with fundamentals. That much you can do...

Observing volumes is must on breakouts. Institutions cant hide their volumes in stocks.

Last but the only important thing is, The 'base' before breakout....It may be any base formation like....Flag...Wedge...or triangle may be....the time taken in base...volume during base...mostly near to boundaries...will give you a clue...stock is attracting volumes for upside or readying for a failure...


With proper SL and risk management you can trade breakouts...Its better to protect you capital for long innings...

 

[amitrandive]

Dear newuser_RK,

There is no rule guide that will say breakout will be actual one or a fake one. Its a process result of many things. Many investors wary of stocks hitting 52weeks highs. But let me tell you all the great minds of past have made fortunes from stocks hitting newer highs.

But you need to study on it. Those stocks which are posting good results QoQ or YoY, will most likely hit 100%...200%....500%...thats a story. Imagine if you have are afraid of those stocks hitting 52weeks highs, and just stayed away. There are many examples in our indian market. ...Lupin is one...

So in short stocks with good fundamentals and better prospects will likely break and sustain breakouts. I am not saying you need to study fundamentals for this. But yes the list of stocks you are studying daily or want to trade must be ok with fundamentals. That much you can do...

Observing volumes is must on breakouts. Institutions cant hide their volumes in stocks.

Last but the only important thing is, The 'base' before breakout....It may be any base formation like....Flag...Wedge...or triangle may be....the time taken in base...volume during base...mostly near to boundaries...will give you a clue...stock is attracting volumes for upside or readying for a failure...


With proper SL and risk management you can trade breakouts...Its better to protect you capital for long innings...

Thanks Anilji

For your excellent advice.Do post in this thread when you have the time

:clapping::clapping::clapping:

 

[ethan hunt]

Good learning thread but execution in real time (=catching) is a totally different game.

 

[amitrandive]

Good learning thread but execution in real time (=catching) is a totally different game.

Thanks, if you dig deep enough you will find many examples of intraday trades.

Currently Forum rules prohibit posting trades.

Check this one and again search this thread deep ,

http://www.traderji.com/general-tra...6368-general-trading-chat-10.html#post1089900

Anyways we traders don't have to prove anything to anyone except ourselves.

Best of Luck to you for your trading.

 

[indianbank]

Dear newuser_RK,

Imagine if you have are afraid of those stocks hitting 52weeks highs, and just stayed away. There are many examples in our indian market. ...Lupin is one...

..

Anilji, your correct,
some traders think we should enter exact price point of 52 week breakout.. and rally will be over 20-30% above the break out...
But its not true... above 52 week breakout rally begins.. and it can reach big big highs.. Lupin is one of the examples...

And as Amit sir said, go through fundamentals of the company.. if your ok with it then invest in it...