Learning to catch High Probability Breakouts

[Somatung]

Dan

My favourite patterns are Rectangular breakout,Double Top,Double Bottom,Pin Bars and Channels.

I am also open to learning new patterns.But not too complex.The other simple patterns may be Flags,Wedges,etc.

Ok, Now why this specific five patterns?

I can understand the "Rectangle", the "Double Top and Double Bottom".

I can see the Pin Bars.

Now is the channel a pattern or could we not even trade a channel with P^F or with an MA mix?

As you know me: I always ask stupid questions.

Take care / Dan

 

[amitrandive]

Ok, Now why this specific five patterns?

I can understand the "Rectangle", the "Double Top and Double Bottom".

I can see the Pin Bars.

Now is the channel a pattern or could we not even trade a channel with P^F or with an MA mix?

As you know me: I always ask stupid questions.

Take care / Dan

Dan

Channel is a pattern I use for trend following.To understand the long term trend of any stock or Index.


Daily Chart of Spot Nifty

 

[Somatung]

Any other channels you use? (Short time frames?)

 

[amitrandive]

Any other channels you use? (Short time frames?)

Hourly Channel

Just took a trade in SBIN

Buy @291.3
Exit@ 301.7

Hourly Chart of SBIN

 

[Somatung]

@Amintradive

Above is a nice chart and as you told, it is a one hour chart time frame.

If you allow: Now let me go a step further and point into the direction of: What about a flexible range chart of 30 or even 5 minute chart.

The following is a question and points in no direction, nor does it value any thing posted in the past nor what is coming.

You have an idea about how to trade such ranges in the time frame you show. Without asking about any details, what would be your recommendations for those who are fresh in the market and want to trade such ranges daily by using any of your posted tools until now on a five or 15 min chart time frame?

Here we do not talk about chart patterns, instead about strategies. Now I am not sure if I go over the limit with such a post of mine or if you even want to correspond on such a complicated post of mine?

If not, it is fully accepted and you still have my full support for your thread. I just try to level out the limits or the "Go deeper" in your thread.

Dan /

 

[amitrandive]

@Amintradive

Above is a nice chart and as you told, it is a one hour chart time frame.

If you allow: Now let me go a step further and point into the direction of: What about a flexible range chart of 30 or even 5 minute chart.

The following is a question and points in no direction, nor does it value any thing posted in the past nor what is coming.

You have an idea about how to trade such ranges in the time frame you show. Without asking about any details, what would be your recommendations for those who are fresh in the market and want to trade such ranges daily by using any of your posted tools until now on a five or 15 min chart time frame?

Here we do not talk about chart patterns, instead about strategies. Now I am not sure if I go over the limit with such a post of mine or if you even want to correspond on such a complicated post of mine?

If not, it is fully accepted and you still have my full support for your thread. I just try to level out the limits or the "Go deeper" in your thread.

Dan /

Dan
Have not used 30 min time frame.I use 5 min chart for entries.See the 5 min chart below for my entry.SBI has a high of 289 and low of 278.3 of previous day.So when it goes above 289,it is an ideal candidate for going long.

In the one hour time frame it breaks the channel,so I went long.In that case the stop is the slanting upper line of the channel which it has broken out.
Exited around 301 ,as it was earnings today and stock would be volatile.

Even I am a newbie , learning something new in the markets everyday.I try to follow simple things in charts and do not like to make them complicated with too many indicators.

Trading time frame depends on your risk appetite and trading psychology.Everyone has to work that out for himself/herself.

5 min Chart of SBI.

 

[Somatung]

Dan
Have not used 30 min time frame.I use 5 min chart for entries.See the 5 min chart below for my entry.SBI has a high of 289 and low of 278.3 of previous day.So when it goes above 289,it is an ideal candidate for going long.

In the one hour time frame it breaks the channel,so I went long.In that case the stop is the slanting upper line of the channel which it has broken out.
Exited around 301 ,as it was earnings today and stock would be volatile.

Even I am a newbie , learning something new in the markets everyday.I try to follow simple things in charts and do not like to make them complicated with too many indicators.

Trading time frame depends on your risk appetite and trading psychology.Everyone has to work that out for himself/herself.

5 min Chart of SBI.

Hi

Some times my question post seems to be a bit harsh or complicated or out of the box. Some, like you can take it, and others flip out.

All of my questions have a deeper ground and all have been part in the past in a way I asked or being asked them to my self in the past to find the next step or have proved to be part of must knowing to pass some option and even future trading problems.

I am not sure if it even makes sense to show how old fashion option market makers would trade todays market, as algo trading has taken over most segments. Will think about it and let you know if I further post on those subjects.

By the way: I am not an option market maker, but was told from one of them in the past.

 

[amibrokerfans]

Now is the channel a pattern

LETS GO DEEPER..

HOW and WHY price move in that way (pattern)?

everyone know these moves. but WHY this type of moves?

after big buy/sell r over price create its own unique wave pattern , depend on the energy given by the big boys.

so like horizon support resistance, channel is also a support/resistance zone.
infact its most used support resistance tool as price hardly move horizontally.

 

[amitrandive]

ONGC weak structure confirmed as per our analysis.ONGC closed at 345.
Candlestick formation should be near important support/resistence zone.
Check the spinning top around 370 levels on 4th Feb 2015.
A great reason for shorting the next day.
Daily Chart of ONGC.

Lesson learnt : Price Action is the Ultimate indicator and a Holy Grail.
Candlestick formations are significant but they should occur near important support or resistance zone.

ONGC Weakness continues.Closing at 339.55 on 13/2/2015.

Daily Chart of ONGC.

 

[amitrandive]

Intraday Trade in MRF


5 Min Chart of MRF on 13/2/2015.

Generally I do not trade MRF,but tried on 13/2/2015.Went long on the formation of a pin bar @40,510.Traded only 2 stocks.

Stop was around low of two consecutive candles @ 40,380.Have to be careful in these high priced stocks as the spread is very high.Difference between bid and ask was 50 rs at the time of entry.

Exited at resistance zone @ 40,950.Stock made a high of 41,160 in the same candle.Could have booked more profit,but chose to exit after candle close.