Learning to catch High Probability Breakouts

[amitrandive]

BAJAJHIND had a similar candle on 28th September 2015 and that also was with above-average volume. Stock has moved up 43% ROC since that day.

It looks kinda like engulfing candle and seems to engulf prices of few prior days ...

MM
Though I do not analyse such stocks,have posted the zommed version of the Daily chart.

A single candle cannot be the criteria for a big upmove.It has to be studied in context with the trend.

You can see similar bearish candles having large bottom wicks indicating a reversal from the downtrend,but is is not the case.

Any candle stick study has to made in conjunction with the overall trend,support and resistance.

Daily chart of BajajHind

 

[vikas2131]

Yes bank prediction came out correct...from 775 to 757 almost 3%

 

[vikas2131]

LIC up 2% already

L&T another stock bottomed out today..we will see wot happens on friday..

 

[sunny_cool]

@Vikas2131

It would be really nice if you can give reason behind your predictions....Posting charts will really be helpful in learning also

 

[mastermind007]

MM
Though I do not analyse such stocks,have posted the zommed version of the Daily chart.

A single candle cannot be the criteria for a big upmove.It has to be studied in context with the trend.

You can see similar bearish candles having large bottom wicks indicating a reversal from the downtrend,but is is not the case.

Any candle stick study has to made in conjunction with the overall trend,support and resistance.

Daily chart of BajajHind

Amit

You are 100% correct. One candle does not make a pattern. If you read my post again carefully, you will see that I also did not treat that one candle in isolation by itself.

In second line of my post, I had said

It looks kinda like engulfing candle and seems to engulf prices of few prior days ...

High Low of the 28 Sep Candle of BAJAJHIND had engulfed High/lows of about 10 candles immediately preceding itself and did so with good volume.

Further, on 6th October, it broke the earlier minor pivot high of 16.5 after which I made a post about it having formed a bullish flag pennant and movement in entire sector.

 

[amitrandive]

MM
Though I do not analyse such stocks,have posted the zommed version of the Daily chart.

A single candle cannot be the criteria for a big upmove.It has to be studied in context with the trend.

You can see similar bearish candles having large bottom wicks indicating a reversal from the downtrend,but is is not the case.

Any candle stick study has to made in conjunction with the overall trend,support and resistance.

Daily chart of BajajHind

Amit

You are 100% correct. One candle does not make a pattern. If you read my post again carefully, you will see that I also did not treat that one candle in isolation by itself.

In second line of my post, I had said


High Low of the 28 Sep Candle of BAJAJHIND had engulfed High/lows of about 10 candles immediately preceding itself and did so with good volume.

Further, on 6th October, it broke the earlier minor pivot high of 16.5 after which I made a post about it having formed a bullish flag pennant and movement in entire sector.

MM

Like I said earlier , context is very important.
Please see zoomed out chart of BajajHind.

It has crossed 200EMA on a Daily timeframe and hence the breakout and bullishness.

Check the ellipses marked where it has happened earlier also.

Interesting to see that the crossover of 200 EMA has happened at the very same support level.

That is why I said context which means overall trend,support/resistance and candle stick patterns at important locations.

Candlestick patterns should not be seen at each and every location.They assume very high importance at support/resistance levels.


The engulfing candle that you spoke about on September 29th also happened at a very important support level.

 

[jain.er]

Risk reward was good at the crossing of 19 levels. Sugar stocks have the tail wind of positive news, this was an easy bet missed....When good technicals are mixed with good fundamentals they make a good cocktail....

 

[nitingosavi]

a possible fast rise setup-
tatasteel/ vedl/ ultracemco/ icicibank/ Grasim/ coalindia /axisbank(?)

 

[sunny_cool]

BANKNIFTY ~ WEEKLY

Will this rally continue or will it face resistance from trendline ?? Be cautious at higher levels

NIFTY ~ WEEKLY

Somehow same kind of story with Nifty also...will be intersting to watch

 

[vikas2131]

BANKNIFTY ~ WEEKLY

Will this rally continue or will it face resistance from trendline ?? Be cautious at higher levels

NIFTY ~ WEEKLY

Somehow same kind of story with Nifty also...will be intersting to watch

Right...Nifty is struggling to go up