What is Breakout ?
A breakout is a stock price moving outside a defined support or resistance level with increased volume.
Always trade breakouts in uptrend for high win ratios
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What to Look before entering a breakout ?
Look for Volume Spikes on Up days and Down Volume on down days.
Simply Volume Should Dry during Pullbacks
This is a sign of Accumulation by Bigger Sharks.
As they buy in huge quantities they have to buy in parts to avoid price spikes 2/n
They dont only buy on Uptrend but continue holding during pullbacks for bigger gains .
Important thing is pullbacks should always have less volumes . 3/n
SuperTrend :
It is TrendFollowing Indicator That generates Buy / Sell signals based on the ATR value or volatility of the stock
Supertrend also works as a trailing stop-loss for the existing trades Best on daily time frame 2/n
Supertrend Conditions
Works Best on 10 , 3 settings
One can try and backtest on 10 ,2 at own also !
Doesnt Work well in Sideways Zone as it is trend following indicator
Trend Analysis using moving averages !
A mega thread to understand the Use of 21 , 50 and 200 ema.
4 Effective uses of Exponential Moving Averages !
Which can Help you avoid Big Losses
Understanding STAGE ANALYSIS
I read one of the greatest Trading Books so that You dont have to !🧵
Secrets of Profiting in Bull and Bear Markets
by Stan Weinstien
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Comment Yes for another Book Summary :)
Stan Weinstein's Stage Analysis offers traders a powerful methodology to identify trends in the markets while following strict risk management principles.
Stage Analysis is used to identify the longer-term trend of a stock or index. There are 4 different stages
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✅The Basing Area,
✅Advancing Phase
✅The Top Area
✅Declining Phase