Learning to catch High Probability Breakouts

[amitrandive]

Support Trading

Daily Chart of RelianceInfra

Reliance Infra bouncing from an important support level.
Will it sustain this upmove or go down along with the Channel/Trendline?

 

[amitrandive]

Downward Sloping Channel

Daily Chart of SesaSterlite

SesaSterlite touching Trendline ,will it breakup or break down?

 

[Sunnyraj]

Downward Sloping Channel

Daily Chart of SesaSterlite

SesaSterlite touching Trendline ,will it breakup or break down?

Amitji , how do we draw the parallel line above the downward sloping trendline ?


Should the parallel line be drawn connecting lower highs ? or any rule of such kind...?

 

[Sunnyraj]

Amit ji i was watching ITC on daily charts. Today it has broken a resistance level of 380. Do you think it can sustain the upward momentum ?

 

[mterminator]

Hi Amit
Really impressed with your Charts, i am interested in learning how to draw trend-lines. Could you please share some insights, links, notes? I always get confused from where to start the line? Recent top/bottom, or join higher tops and lower bottoms?

 

[amitrandive]

Hi Amit
Really impressed with your Charts, i am interested in learning how to draw trend-lines. Could you please share some insights, links, notes? I always get confused from where to start the line? Recent top/bottom, or join higher tops and lower bottoms?

mterminator

Trendlines can be drawn and redrawn to adjust as per price action.Once a trendline is broken we can draw another trendline.

Some good references for drawing trendlines.

http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:trend_lines
http://www.swing-trade-stocks.com/draw-trend-lines.html
http://www.dailyfx.com/forex/educat.../2013/08/20/3_Tips_For_Trendline_Trading.html

 

[amitrandive]

Amitji , how do we draw the parallel line above the downward sloping trendline ?


Should the parallel line be drawn connecting lower highs ? or any rule of such kind...?

Sunnyraj

Yes , the lower line of the channel should connect lower lows and it should be parallel to the upper trendline.

Some good references for Channel drawing.

http://www.investopedia.com/articles/trading/05/020905.asp
http://www.dummies.com/how-to/content/how-to-draw-trading-chart-channels-by-hand.html
http://stockcharts.com/school/doku....sis:chart_patterns:price_channel_continuation
http://thepatternsite.com/3PointChannels.html
http://www.stocktradingtogo.com/2009/05/05/trading-stock-chart-channels-technical-analysis/

 

[amitrandive]

Amit ji i was watching ITC on daily charts. Today it has broken a resistance level of 380. Do you think it can sustain the upward momentum ?

Sunnyraj

ITC looks very beautiful on a Monthly time frame.But on a Daily chart of recent it is seen very erratic price movements.Made a lifetime high of 400.Can sustain only if it takes support around 400 levels.

Monthly Chart of ITC

Weekly Chart of ITC

Daily Chart of ITC

 

[timepass]

Amit, can you tell us something about Redington ?

Thanks.

 

[amitrandive]

Amit, can you tell us something about Redington ?

Thanks.

Timepass

This stock does not look very special.On a Monthly time frame it is ranging between 60-140 levels.

The only time it trended was in the bull markets of Sept 2013.During this period any and every stock shot by sentiments than by fundamentals.

Has not been trending in either bull or bear markets from the year 2007.Looks weak and unable to cross the resistance of 140 on a Weekly and Daily levels.

Has to cross and take support at 140 levels to indicate strength.

Monthly Chart of Redington.

Weekly Chart of Redington.

Daily Chart of Redington.