Nifty intraday charts - Why did Nifty fall at 2:00 PM today? Observe the trendline touch and massive fall after that. Why did nifty reverse again in the last 15 mins. Again, observe how the trendline was formed and the reversal happened.
One can make money just with trendlines, support, and resistances. But, it takes at least a year or two to master trendlines and to take trades based on that. Your eyes should be trained to spot it. And, you need the patience to wait for such trades.
Obviously, this is a hindsight analysis. But, that is how you start to learn. Draw trendlines, Support, and Resistances again and again in thousands of charts and master it. Over a period of time, you will gain confidence.
- 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)