Thread by @learntotrade365

Here is the Key Learning takeaway from yesterday's Twitter space @chartmojo @sunilgurjar01 and team

Topic - Breakout trading strategy

Watch the video for learning -

Also read the Twitter thread 🧵

#StockMarketindia #stockmarkets #trading

https://twitter.com/learntotrade365/status/1477513140258545666

ATH ( All time high ) BREAKOUT

- Check Higher High formation
- Find stocks consolidating at ATH before breakout
- Consolidation before breakout removes weaker hand traders

Chart Example - Monte Carlo , PIX Transmission ( weekly chart )

Video -

52 week High Breakout

- Again check for consolidation before breakout
- During the consolidation phase we can find any chart pattern or Continuous pattern (i.e Ascending triangle , Rectangle/box pattern etc...)
- Pattern creates conviction.

Moving Average Breakout

- Now will focus about reversal pattern
- Stock getting a decent correction 20 to 25% from 52 week/ATH HIGH . Confirm the reversal pattern (Double or triple bottom formation + price crossing it's 20 & 50 DMA is a plus sign )

Chart example Balrampur chini

VCP PATTERN

- SOMANY CERAMICS , RAJESH EXPORT.
- The pattern develop skews formation to remove weak hands
- Check the volume ( Strong volume during VCP breakout means SMART MONEY , If volume is lagging during vcp breakout means more retail traders )

DARVAX BOX

- Formation of Rectangle / Box pattern
- Basically it is a Continuous pattern

Chart Example - SOMANY CERAMICS

Find stocks which is closer to 52 week or ATH HIGH in a range of 5 to 10 %

- Look for consolidation before breakout
- Check volumes on breakout ( Good volume is better )
- Identify Continuous pattern during the consolidation phase
- ADANI ENT
- ASTRAL
- POWER GRID
-TIMKEN

Continuous Chart Pattern

- Ascending Triangle
- Rectangle /Box Pattern etc...

Reversal Pattern

- Double or Triple bottom
-Rounding bottom

Develop a Habit to cut your losses earlier
and ride the winning trades

Develop a exit strategy based on your trading style and ride the winning trades until your exit
strategy

Profit should not be a reason to exit trades

Watch the video -