90% of the times, we have been trading only Breakouts - since the last 2 years.
We have compiled a thread on how to avoid FAKE BREAKOUTS. β
[A Thread] π§΅ππ»
Please Like and Retweet to share our experience with maximum traders β»
#BREAKOUTSTOCKS #priceaction #nifty50
We have compiled a thread on how to avoid FAKE BREAKOUTS. β
[A Thread] π§΅ππ»
Please Like and Retweet to share our experience with maximum traders β»
#BREAKOUTSTOCKS #priceaction #nifty50
#Breakout Trading is our favourite form of trading as - We can capture the momentum quickly & we get a defined buying level where we can take an accurate entry. β
Only barrier is - Fake Breakouts.
Here is how you can avoid it maximum times ππ»
Only barrier is - Fake Breakouts.
Here is how you can avoid it maximum times ππ»
1. Always check for high volumes at the key zone.
Eg. If you are planning to buy at a resistance breakout, look out for high volumes whenever the price has touched that particular level earlier. β¬
This acts as a confirmation to your setup.
Example attached ππ»
Eg. If you are planning to buy at a resistance breakout, look out for high volumes whenever the price has touched that particular level earlier. β¬
This acts as a confirmation to your setup.
Example attached ππ»
2. Look for the Sectoral Indices π
If you want to buy 'X' stock, which is from the ENERGY sector, look whether the sectoral index is +ve/-ve.
If stock is not present in any index, look for the smallcap/midcap index as a whole.
Sector should be in direction of your trade. β
If you want to buy 'X' stock, which is from the ENERGY sector, look whether the sectoral index is +ve/-ve.
If stock is not present in any index, look for the smallcap/midcap index as a whole.
Sector should be in direction of your trade. β
3. Your setup should have MULTIPLE TOUCHPOINTS. π
Remember this thing, MORE the Touchpoints, HIGHER the Timeframeβ±= More probability in your trade!
Don't try to catch a setup with minimal touchpoints.
Breakouts are generally big & successful as the TF increases.
An eg. ππ»
Remember this thing, MORE the Touchpoints, HIGHER the Timeframeβ±= More probability in your trade!
Don't try to catch a setup with minimal touchpoints.
Breakouts are generally big & successful as the TF increases.
An eg. ππ»
4. Always look for Consolidation before the breakout. π
Never ever chase a breakout, if there is a parabolic, i.e a one - sided move before the breakout.
Such breakouts would not sustain for the majority of the times and have low probability. π
An example of parabolic move ππ»
Never ever chase a breakout, if there is a parabolic, i.e a one - sided move before the breakout.
Such breakouts would not sustain for the majority of the times and have low probability. π
An example of parabolic move ππ»
5. High volumes during the breakout - (ON LOWER TF)
This is quite self explanatory and quite common, but an important point which should not be ignored. β
High + increasing volumes on lower timeframe - during a breakout is a must.
This is quite self explanatory and quite common, but an important point which should not be ignored. β
High + increasing volumes on lower timeframe - during a breakout is a must.
These points should be at your checklist β
when you are trading breakouts.
This does not mean that you would never be trapped in a fake breakout, but this would increase your probability of winning in a breakout trade surely. β¬
This does not mean that you would never be trapped in a fake breakout, but this would increase your probability of winning in a breakout trade surely. β¬
In the end, it is a game of probability and getting an edge over other traders!
@tushar9590 @charts_breakout @VCPSwing @Puretechnicals9 @Mr_Chartist
Kindly checkout our thread, and share if it feels valuable to you, to spread the knowledge! β»
@tushar9590 @charts_breakout @VCPSwing @Puretechnicals9 @Mr_Chartist
Kindly checkout our thread, and share if it feels valuable to you, to spread the knowledge! β»
Disclaimer: This thread is for educational and knowledge sharing purposes only.
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