Learning to catch High Probability Breakouts

[mindgames]

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

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.

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

You mean breakout of nifty midcap? Or the stock's breakout (any breakout, irrespective of 52 wk) - because here all the breakouts marked were 52 week breakouts as well.

 

[mindgames]

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.

Sounds similar to the strategy mentioned by Andreas Clenow in his book Stocks on the move - Buy a good no. of momentum stocks (he uses example of 20 day highs) when S&P is trading above 200 day averages.

Idea being based on the premise that index / overall market sentiment has an important impact on individual stocks - so if general market is in downtrend, stay invested in cash and don't take any new positions. Start buying once again when the index is above 200 day average.

Not same, but similar. Sharing as it can be useful for passive investors.








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[Rish]

You mean breakout of nifty midcap? Or the stock's breakout (any breakout, irrespective of 52 wk) - because here all the breakouts marked were 52 week breakouts as well.

In one point Both Midcap and Nifty will go parallel.....confirms both are breaking out.....There you can entire...


Nifty Midcap Breakout

Nifty Breakout

The above posts are for knowledge purpose....not a trading call...

Entering trade is, nothing but, waiting for opportunity and execution...(irrespective of external factors)..

 

[Rish]

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

Nothing called Senior or Junior...all our perception and knowledge my dear friend....all the best..

 

[ravi2126]

Can it will break this time ?

 

[indianbank]

Hi friends good evening
------------------------------
All markets are waiting to hear Brexit on june 23....
If Britain exit from EU...
1. Doller and Japanese yen will become more strong
Investing in dollar will be safe play and appreciation of dollar can seriously affect the bull market of India.... IT/pharma company's can get some boost
2. Gold: Money will flow in this precious metal and u can see deep upward movement in Gold in coming days

So i love to trade gold... but avg yearly return on gold for past 15 years is 11%...
it will be tough for me to trade this precious metal in cash market... so i should trade gold mini/gold petal with 20x margin ..
Buying gold petal ie 1gm of goldpetal @ 3000 rs NRML order requires 150 Rs ...
Lets see how things goes....

 

[nikki5_me]

Seems TaTa Motors will be a great catch from here to long and closing above 470.5 on daily would see good long term rally, also with the exit of Rajan, auto sector might see some positive with rate cut expectations, just my view, others views are very much welcome

 

[amitrandive]

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.

This means firstly we need to check whether a stock a Largecap,Midcap or Smallcap stock.Then we need to see whether the major Index is breaking out like.

Nifty50 ,Nifty 100, Nifty 200 indices for large caps stocks.
Nifty Midcap 50 for Midcap stocks and
Nifty 500 for small cap stocks.

Along with these also check the Sectorial Index for it.

Example :Tata Motors

 

[Rish]

This means firstly we need to check whether a stock a Largecap,Midcap or Smallcap stock.Then we need to see whether the major Index is breaking out like.

Nifty50 ,Nifty 100, Nifty 200 indices for large caps stocks.
Nifty Midcap 50 for Midcap stocks and
Nifty 500 for small cap stocks.

Along with these also check the Sectorial Index for it.

Example :Tata Motors

Yes....co-relation will help us to decide and validate our brakeout trade and without emotional we can enter...

But...S/l should be based on price (what chart says) and not based on our risk management...

 

[nikki5_me]

Seems TaTa Motors will be a great catch from here to long and closing above 470.5 on daily would see good long term rally, also with the exit of Rajan, auto sector might see some positive with rate cut expectations, just my view, others views are very much welcome

Seems this is working and with this close there will be a new bull rally is Tata motors as per my view, unless Brexit has effect on JLR, this should move really fast. Today's rally shows the strength as % of deliverable quantity is 50.89 % as per NSE website data. This broke 52 week high with a good up move and deliverable quantity. Hope we all can benefit from this.