It took me 1000+ hours of practice to...
...learn how to NAVIGATE FALSE BREAKOUTS🎯
In this 🧵, I will be sharing 6 techniques...
...as to how I try to avoid getting CAUGHT & LOSING MONEY💰 trading breakouts
Ready to learn?🤓
Let’s go🧵…
...learn how to NAVIGATE FALSE BREAKOUTS🎯
In this 🧵, I will be sharing 6 techniques...
...as to how I try to avoid getting CAUGHT & LOSING MONEY💰 trading breakouts
Ready to learn?🤓
Let’s go🧵…
1⃣ Cardinal rule: Stop chasing breakouts...
- If everyone is talking about it on social media and it has already broken out
- If a stock has moved up already for the last few days
- If a stock is up more than 10% already from breakout zone
- If your SL is deep
- If everyone is talking about it on social media and it has already broken out
- If a stock has moved up already for the last few days
- If a stock is up more than 10% already from breakout zone
- If your SL is deep
2⃣ Enter only on breakout & nowhere else if you're trading breakouts...
Buy only…
- above breakout zones (no entry in no-man land)
- above a key resistance zone after a stock consolidates
- 1-2% above resistance zone
- Identify entry points(set alerts on TV/set GTT in zerodha)
Buy only…
- above breakout zones (no entry in no-man land)
- above a key resistance zone after a stock consolidates
- 1-2% above resistance zone
- Identify entry points(set alerts on TV/set GTT in zerodha)
3⃣ Big bodied candles with Volume...
Buy only…
- If a stock is breaking out with huge volumes
- If entering early check hourly charts for volume increase
- At the eod, the candle needs to have big green body + volumes to increase conviction in breakout
Buy only…
- If a stock is breaking out with huge volumes
- If entering early check hourly charts for volume increase
- At the eod, the candle needs to have big green body + volumes to increase conviction in breakout
4⃣ Larger trend should be up...
Buy only...
- If stock is an uptrend(Higher high & Higher low on weekly/Monthly charts)
- CCI(34)>100 and Relative strength > Relative strength(52 week moving average);
Watch this video to understand Relative strength
youtu.be
Buy only...
- If stock is an uptrend(Higher high & Higher low on weekly/Monthly charts)
- CCI(34)>100 and Relative strength > Relative strength(52 week moving average);
Watch this video to understand Relative strength
youtu.be
5⃣ Never buy a stock after the 3rd base after the major trend change...
Why?
- Chances of a consolidation or correction are much higher
- Base - stock consolidates for at least 5 days before crossing previous highs
Watch this video for more details 👇
youtu.be
Why?
- Chances of a consolidation or correction are much higher
- Base - stock consolidates for at least 5 days before crossing previous highs
Watch this video for more details 👇
youtu.be
6⃣ The only rule that will always work and help you save money...
Buy only…
- a small quantity at first breakout - 0.5% or less risk on capital in the first breakout
- Go full on the follow through breakout - 1% or even 2% risk when there is a follow through coz you are right!
Buy only…
- a small quantity at first breakout - 0.5% or less risk on capital in the first breakout
- Go full on the follow through breakout - 1% or even 2% risk when there is a follow through coz you are right!
7⃣ Want a better explanation?😃
Watch this video where I explain in details how to navigate false breakouts!
Yes, you can't avoid them completely but you must learn how to navigate around it when one occurs😃youtu.be
Watch this video where I explain in details how to navigate false breakouts!
Yes, you can't avoid them completely but you must learn how to navigate around it when one occurs😃youtu.be
8⃣ More concepts available in this
@YouTube
playlist of mine
Learn how...
- to use my breakout & reversal scanners
- I use CCI indicator
- I use 'Trend Following' to catch big winners
- to draw trendlines, understand candlesticks etc.,
youtube.com
@YouTube
playlist of mine
Learn how...
- to use my breakout & reversal scanners
- I use CCI indicator
- I use 'Trend Following' to catch big winners
- to draw trendlines, understand candlesticks etc.,
youtube.com
Learnt something? If yes, please👇
1. Retweet the first tweet
2. Follow
@dmdsplyinvestor
3. Subscribe to my YouTube channel for more content! youtube.com
1. Retweet the first tweet
2. Follow
@dmdsplyinvestor
3. Subscribe to my YouTube channel for more content! youtube.com
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