Learning to catch High Probability Breakouts

[anil_s_trivedi]

Bro!!!!!!! Don't think other wise just want to Alert you little pits in your understanding

1.First Fibonnaci levels what you have drawn are not correct..

2.When ever you try to trade Nifty always use NIFTY FUT along with option chain concept of MAXPAIN ... 7850 is the MAx PAIN for yesterday..

3.Risk reward of 1 :1.5 is not good... i have highlighted (yellow line )the breakout candle and it is your risk for this trade and risk reward works out to be 1:2

4.As far as my understanding 38.2 is the bull level and below that is bear level....

Note: iam a PA trader not using above method...

My observations on the chart...Its a little influenced by elliott waves study. As i had read these things in past. Its really a matter of subjective where to draw fibo retracement levels or projection levels.

Anyways, i dont say this is perfect one, but what i understand form my limited knowledge, i had posted it.

 

[amitrandive]

My observations on the chart...Its a little influenced by elliott waves study. As i had read these things in past. Its really a matter of subjective where to draw fibo retracement levels or projection levels.

Anyways, i dont say this is perfect one, but what i understand form my limited knowledge, i had posted it.

Wow !!!

Thanks AnilJi for your guidance.
:clapping::clapping::clapping:

 

[amitrandive]

Researched on the internet and dug out some good stuff on use of Fibonacci ratios in trading.

http://www.youtube.com/watch?v=QwJ-i5xJz8s

http://www.investopedia.com/articles/forex/11/fibonacci-rules.asp

http://www.learningmarkets.com/using-fibonacci-analysis-to-create-trading-strategies/

Worth taking a look at.

 

[amitrandive]

Sectoral Indices Study

It helps very much to study the Sectoral Indices to gauge the market sentiments.

Attaching a Daily chart of CNX AUTO.It formed an NR7 on 21/10/2014, and gave a huge breakout on 22/10/2014.

All the stocks in CNX Auto blasted off and gave excellent day trade opportunities.

Daily Chart of CNX AUTO

Stocks of CNX AUTO

My Intraday Trades today :

HeroMotorCorp :
Buy at 3067,Exit at 3093.
Could have waited till EOD Closed at 3110.

TataMotors :.
Buy at 513,Exit at 519.45.
EOD close at 418.65.

 

[amitrandive]

Trading on Chart Patterns and News

Trading on news can be extremely beneficial only if it is supported by Technical patterns on the Price Chart.
See excerpt of news from Times of India on 22/10/2014 relating to Auto Sector.

http://epaperbeta.timesofindia.com/...anteras-ushers-in-record-sales-22102014027062

Dhanteras ushers in record sales

Festival discounts and positive buyer sentiment propelled Dhanteras sales through the roof on Tuesday .The boom saw some companies and brands experiencing a mammoth 7-8 fold rise in retail sales over the average daily volumes -described by retailers as a record in recent years.

Hero Motor, the country's biggest two-wheeler maker, said retail sales on Dhanteras -a day considered auspicious for purchase of precious metals -zoomed to nearly 1.5 lakh units, compared to an average of around 18,000 units on a normal day . Hyundai's retail sales shot up to 8,100 units against the daily average of 1,200 units.

“Compared to last Dhanteras, the volumes are up 19%. I can confidently say the consumer is back in the market,“ said Rakesh Srivastava, senior VP at Hyundai India.

R S Kalsi, sales and marketing head for Maruti Suzuki, said demand was strong compared to last year. “The traffic at showrooms was heavy as people want delivery on dhanteras.“

CNX Auto formed an NR7 on 21/10/2014.Daily Chart of Hero shows a Bullish Pin Bar formed at 20EMA.So Hero was poised for a breakout once it broke 3000 level.
Same Applies for Maruti Stock taking off from 20EMA and crucial 3000 level support.

Hero gave 3.81% returns and Maruti gave 3.2% returns on 22/10/2014.

Daily Chart of Heromotorcorp

Daily Chart of Maruti

 

[amitrandive]

 

[anilnegi]

To you too sir

anil negi

 

[amitrandive]

My Day Trade in Ranbaxy

5 Min Chart of Ranbaxy of 29/10/2014

 

[amitrandive]

My Day Trade in BPCL

5 Min Chart of BPCL of 13/11/2014

 

[amitrandive]

My Day Trades for 14/11/2014


5 min Chart of SBI

5 min Chart of Ranbaxy