Learning to catch High Probability Breakouts

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amitrandive

amitrandive

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#2,061
#2,061
Tavnaz said:
Over my years trading, i have learn't a few standard templates for trading days,i just pull them up from the back of my mind when i want to understand a particular bar.
Now the templates are easily applicable on any time frame,be it weekly,and also they are interlocking,meaning you can put one inside other and form up scenerio for a complicated days which don't fit the description for normal days.
You can divide a pin bar day into two bull bear day and apply that template,the constituent bars forming the pinbar will be halved to the time frame they were before.

I hope you catch my drift.
Please see attached image for reference,i have created few simple ones.
You can reproduce this image ,if you want to and post in other threads i don't mind.

In addition to this image you have to be creative,and imagine all the scenerios possible within the confines of price principles.
Imagination is key,simplification is a necessity.



Warm Regards
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:clapping::clapping::clapping:
 
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mindgames

Well-Known Member
#2,065
#2,065
amitrandive said:
Divergences do not work every time , many times the indicator goes in the direction of the price.
That is what an indicator is initially designed for.:D
Click to expand...
Thanks. Was wondering if I missed the elephant in the room - both charts were making 52 week highs, both had similar divergences and yet both acted differently (of course Airtel also has dropped after THAT swing high).

On a related note - the setup is from Mastering the Trade - first example in the book.
 
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mindgames

Well-Known Member
#2,067
#2,067
amitrandive said:
Can you elaborate this one ?
Click to expand...
- The setup is on fading.

- You look for stocks making 52 week highs.

- Plot 7 day RSI and look for divergence vs. Price.

- Enter when stock closes below previous 52 week high with SL just above latest 52 week high.

- Once in, you stay in the trade until the hourly chart makes a reversal and close above a swing high.

Of course may/will not work at all times. But makes for interesting reading.
 
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