Learning to catch High Probability Breakouts

[Rish]

Its tough strategy to implement. Stop losses could be quite low. There is no way to backtest it. Indian Bank is really doing superb...Kudos to him...

Its not a tough strategy..if you able to follow cyclical market pattern...I will put some example with chart in the afternoon...

 

[Apacheindian]

Check Buy Sell signals..!!

 

[mindgames]

Check Buy Sell signals..!!

Your ADX settings - is it 7 period average for both ADX and DMIs?

 

[Apacheindian]

Your ADX settings - is it 7 period average for both ADX and DMIs?

Yes its 7 Period average

 

[amitrandive]

Check Buy Sell signals..!!

Are these buy sell signals ?

Seem to me like they are pivot /fractals.

They will always repaint.

 

[amitrandive]

In trading, the money is not made in the entry, it is in the exit. The art of the exit is crucial to a trader’s success in the markets. Profits can disappear if you do not take them at the right time, and small losses can become huge losses if you do not cut them short. Small profits can become huge profits if you let them run until they truly stop moving in your favor. Keeping capital tied up in a trade going nowhere can cause you to miss out on other great opportunities.

http://www.newtraderu.com/2013/09/07/7-good-ways-to-exit-a-trade/

 

[amitrandive]

where do you put your SL, in breakout stock, many took different approach, toward sl normally its below breakout candle.

thanks

Seniors can guide you better in this area... There are lots of stoploss methods written by varies traders and you can pick a good one...
You can take advice from Seniors like Smart trade , because they are proven traders...
I am a novice so i am also learning this art of trading....

Great article regarding exits,from where I shared the above quote.

1. Use stop losses. Only risk losing 1% of your total trading capital on any one trade through the placement of stops and position sizing, and when you have lost that 1%, get out. Position sizing, stop losses, and understanding volatility is the key to proper risk management.
2. Enter trades at break out points to new highs, off key price support levels, or key moving average support levels. If it loses that support later and fails to retake it, then sell it.
3. Buy when a stock is one ‘R’ multiple above a key support level, and sell if it falls back and loses that support level. (One ‘R’ multiple = 1% of total trading capital).
4. Use a ‘stale’ or ‘time’ stop: Set a time limit on how long you will give a trade to move a certain amount, if it fails to move enough fast enough, get out.
5. Volatility stop: Stop out if the market or your stock has a big expansion in its daily price range, or starts moving against you the full daily range. You either cut your position down in size, or get out due to increased risk based on volatility expansion.
6. Trail a stop loss behind your winner. When it reverses and hits that stop, you sell. A trailing stop can be a moving average or a percentage you your gain.
7. Sell your position because you have found a much better trade with a better probability of success, or a bigger upside.

The key is to always have a plan to get out of every trade before you get in. Before each trading day begins, think about what you will do based on where your trade is at, and where it may go.

http://www.newtraderu.com/2013/09/07/7-good-ways-to-exit-a-trade/

 

[Mercedes]

Check Buy Sell signals..!!

Which AFL is this. Can you please share...

 

[Rish]

Its not a tough strategy..if you able to follow cyclical market pattern...I will put some example with chart in the afternoon...

Normally...If you want take breakout trades...Nifty Trend is more Important..

You can't take trade every time 52 week high...you will be caught....because there is high risk involved (and s/l will be high)....

Moreover...all 52 week breakouts will not perform in same pattern...

I will take Indian Bank Script (Shilpi) for example...How I will trade....(No way I am saying Indian Bank strategy is wrong or right....In his view and based on his experience he is trading with his money management)

Nifty - When First Break out happens ...I will see breakout of Midcap and Buy instead waiting for 52 week Breakout ....


Nifty Chart

Shilpi India (My Entry breakout point will be like this)

Stoploss will be always previous level (closing basis)..

This is my view.......Decisions may differ person to person based on experience....

Just to share my view.....not against anything to Indian Bank...

Any criticism welcome.

 

[indianbank]

Hi friends... good morning as always
-----------------------------------------------
I think all are enjoying weekned...

One of my stock performed so well... it dont mean that i have done anything extra ordinary... For me it was just LUCK....... I am not much bothered about a single stock...
Seniors like Amit/Rish shared their view on exit and entry... Vikas always share very very important global events....
i welcome everyone to spend their small time on posting new charts/ideas share their view... so that others may benefit from it...

Happy trading