2/ What is RETEST ?
When a stock Breaks out of a range that is called a breakout point .
The resistance that it was facing should now act as support .
Retest means after the Resistance is broken the stock comes back to take support in that region
3/ MAJORITY of time stock comes back to test the previous breakout region .
I have seen that 90% of The breakouts gets tested again !
And most REWARDING EXPERIENCE for me is during Retests only
4/ LETS ANALYSE #KPITTECH CHART 1. Stock has broken out of range and rallied quickly in momentum. 2. The best place to enter in breakout stocks is not at the top where most retailers get trapped but again at retest. 3. In this case the retest that happend was after 50 days
5/
4.There is no fixed rule that stock will come to retest immediately after breakout . 5. It can be after days , months or even years before it retests the prev breakout region . 6. Here the #KPITTECH retested immediately in 4 to 5 days.
6/
7. Here the stock has been respecting the breakout region and not breaking down. 8. This explains the strength of buyers in that stock unlike #VGUARD
Where the support is broken โ ๏ธ
7/ Sometimes the breakout is retested after years #TATACONSUMER
Retesting after 518 days or sometimes it can be just touch and go like #TATAELXSI
8/ BREAKOUT NOT RETESTED
Sometimes the stock does not retest its breakout region but that happens very rarely #LAURAS#BALAJIAMINE
BUT THAT HAPPEND ONLY ONCE
After everybreakout there was a retest .
This can be ignored and moved on
The best Risk Reward you find is AT the exact breakout point or retest point.
Anything in between is just a higher risk and you will observe that generally whenever you buy breakouts the price comes down at the end of day .
โข โข โข
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Swing Trading Strategy with Chartink Screener and Live Examples
A Thread๐งต
Step 1 : Run this Screener
โ Filters Out Stock which are in 5% range of their 52 Week High
โ ROE, ROCE > 15
โ Above 21 ema chartink.com/screener/stockโฆ
Step 2 :
After running the Screener you will find 100 Stocks in the list
If you want you can change Market Cap Filter , ROE , ROCE Filter which changes the no of Stocks in the Screener
Step 3 : Open each chart one by one
Assuming you take 1 min per chart , it will take only 90 mins per day for Stock screening which comes down to 45 min if you do it regularly
Step 4 : We will only trade 2 patterns
How to keep Emotions in check ?
๐ธ ๐๐ฒ ๐ฅ๐ฒ๐ฎ๐น๐ถ๐๐๐ถ๐ฐ : Donโt Expect 10% in a month or doubling your account every 6 months , Anywhere between 2 to 5% per month is a great return
๐ธ Keep a Trading Journal : helps you identify your weakness , strengths.