Sharing Another Strategy For 'Trading Breakouts n Breakdowns'.
Using and Back-testing this For a while. Will try to Explain it's logic simple way.
Posted for Educational Purpose. No investment advice.
Using and Back-testing this For a while. Will try to Explain it's logic simple way.
Posted for Educational Purpose. No investment advice.
This Chartink Scanner will Scan the stocks which are Trading above their previous 20 days Highs and Below previous 20 days low.
chartink.com/screener/break…
chartink.com/screener/break…
Today it has scanned 3 FNO Scrips.
JUSTDIAL, CUMMINSIND,
UJJIVAN.
I'll try break down each Setup.
JUSTDIAL, CUMMINSIND,
UJJIVAN.
I'll try break down each Setup.
The scenario of these stocks is "
1) They will be trending because, they've broken their 20 days high or lows.
2) Finding a Good Trade will be entirely based upon your skill of understanding the Price Action after the breakout.
1) They will be trending because, they've broken their 20 days high or lows.
2) Finding a Good Trade will be entirely based upon your skill of understanding the Price Action after the breakout.
1) JUST DIAL
Clear Support of 650 on DAILY Chart.
When It broke with Volume and Price got accepted Below this Level, It became No-Brainer Short.
Clear Support of 650 on DAILY Chart.
When It broke with Volume and Price got accepted Below this Level, It became No-Brainer Short.
2) CUMMINSIND
Support Zone of 557 On Daily Chart.
Broken n Closed Below it with good Volume.
Again, Good Short Opportunity.
Support Zone of 557 On Daily Chart.
Broken n Closed Below it with good Volume.
Again, Good Short Opportunity.
3) UJJIVAN
Resistance Zone Of 325 on daily Charts.
Clear Rejection Of candles Above this zone.
Conclusion- No trade. Candle didn't closed comfortably above it + No Follow-up Volume.
No-Brainer - Stay the Hell away. Do Not Buy Signal.
Resistance Zone Of 325 on daily Charts.
Clear Rejection Of candles Above this zone.
Conclusion- No trade. Candle didn't closed comfortably above it + No Follow-up Volume.
No-Brainer - Stay the Hell away. Do Not Buy Signal.
To Summarize,
How to Trade this Setup...???
Well, Just like any other Breakout. If price Sustains (Volume Supported Candle closes above Resis.) Breakout, It's a comfortable buy. Same goes For Breakdown. Short After Confirmation Of Broken Support.
How to Trade this Setup...???
Well, Just like any other Breakout. If price Sustains (Volume Supported Candle closes above Resis.) Breakout, It's a comfortable buy. Same goes For Breakdown. Short After Confirmation Of Broken Support.
Only problem with this setup would be A False Breakout.
To be safe, keep ur stops around S/R.
ACCEPT POSSIBLITY OF FALSE BREAKOUT EVEN PRICE SUSTAINS.
Fear can get Minimized Out this way. Manage the POSITION SIZING.
Wide SL may not result in desired outcome.
To be safe, keep ur stops around S/R.
ACCEPT POSSIBLITY OF FALSE BREAKOUT EVEN PRICE SUSTAINS.
Fear can get Minimized Out this way. Manage the POSITION SIZING.
Wide SL may not result in desired outcome.
Recent Examples For this Strategy...
