Pidilite Inds Breakout Trade

[unknown_07]

We bought a call option for PIDILITE INDS after seeing it give a breakout in the daily time frame. We also checked the volumes were above average on daily as well as 5min timeframe. It also met other parameter but still the trade failed.

I would like to know your thoughts on why this breakout trade failed? Please refer to the chart attached.

Trade Details :
Trade Type - Options
Script Name - Pidilite CE 3240 Aug
Lot Size - 250
Date & Time - 8th Aug 2024, 09:25
Entry Price (Target) - 93.3 (90)
T1 - 110
T2 - 120
SL - 70
Potential Loss - 5825
Potential Profit 1 - 4175
Potential Profit 2 - 6675
Risk to Reward - 1.40

Trade Parameters :
Is there a breakout? - Yes
Volumes above avg - Yes
Is it in line with the long term trend? - Yes
Consolidation time - 2 months
Low volume before breakout - Yes

 

[newtrader101]

It was ranging on daily.
In the hourly it was overbought.

Shouldn't the buying be when it crosses above RSI 50 on hourly?

 

[primitivetrader]

We bought a call option for PIDILITE INDS after seeing it give a breakout in the daily time frame. We also checked the volumes were above average on daily as well as 5min timeframe. It also met other parameter but still the trade failed. View attachment 51246 View attachment 51246 I would like to know your thoughts on why this breakout trade failed? Please refer to the chart attached.

Trade Details :
Trade Type - Options
Script Name - Pidilite CE 3240 Aug
Lot Size - 250
Date & Time - 8th Aug 2024, 09:25
Entry Price (Target) - 93.3 (90)
T1 - 110
T2 - 120
SL - 70
Potential Loss - 5825
Potential Profit 1 - 4175
Potential Profit 2 - 6675
Risk to Reward - 1.40

Trade Parameters :
Is there a breakout? - Yes
Volumes above avg - Yes
Is it in line with the long term trend? - Yes
Consolidation time - 2 months
Low volume before breakout - Yes

probably 3 reasons:-

1) Price action in the impulse leg (up trend) before the formation of a trading range is very choppy.
2) BO happened from the low of the trading range. low probability BO.
3) about point 2 there is no build-up before BO. Build-up broadly means tight price consolidation before BO.