Himanshu Patil Profile picture
Dec 13, 2022 9 tweets 8 min read Twitter logo Read on Twitter
In a #Bull #Market, new stocks break out on high #Volume every day. One of the challenges of a #breakout trader is find the best #BreakoutStocks to buy because they go up so fast that often it is hard to get a low-risk entry.

Here's a thread on one way to go about doing it.
1) To find the best #breakoutstocks, one has to focus on the right sector and then monitor #stocks within that sector for #volume #breakouts. Eg. #PSU Banks did a very strong #breakout recently with most of the stocks within #NIFTYPSUBANK index giving a 50% gain in a short time!
2) First let’s see what happened in this sector in terms of the sequence of #breakouts. #NIFTYPSUBANK broke out of a sound base on 24th Oct, 22 as below. The leaders within this sector broke out even before the index broke out, e.g. INDIANBK, CANBK, UNIONBANK, BANKBARODA. Image
3) After that, one by one, stocks did a high #volume #breakout as follows:
MAHABANK: 24th Oct-22
UCOBANK: 2nd Nov-22
SBIN: 4th Nov-22
IOB: 4th Nov-22
PNB: 9th Nov-22 Image
4) So, how would one go about catching #breakouts at the right time in this sector. One of the favorite scans I use to find #volume #breakouts in Investar is either the “Resistance or Supply Zone Breakout on strong volume” or “Multi-timeframe Daily-75min Volume Breakout”.
5) As soon as you see more than one stock that is breaking out in one sector, it is a great idea to put a Scan Alert on the entire sector. E.g. in this case, a) Add “NIFTYPSUBANK” as Industry Index, 2) Then put a “Scan Alert” by right-clicking on it, and “Set Scan Alert” Image
6) Let’s say you put a scan alert as mentioned on 21st Oct-22 when #NIFTYPSUBANK broke out, you would still be able to get alerts on all the stocks that broke out after 24th by a pop-up and sound alert in @investarindia in market as and when they happen and enter at right time. Image
7) To summarize, once you see a narrow index that’s breaking out,you will always see #stocks in that index breakout one after the other. Set alert on all stocks in the index! Even if you miss a #breakout, you can always find another good breakout by setting up the right alerts!
8) Most #breakout #traders face #FOMO (Fear of Missing Out). Maybe the technique shown above will help you avoid that and capture the maximum profits!

Hope you found this thread useful, if so, please RT the first tweet so that it can benefit the maximum no of investors/traders.

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More from @himanshugpatil

Nov 27, 2022
#Volume is one of the simplest indicators in #Technical Analysis but when used properly it is also one of the most powerful confirmatory indicators out there. It's all the more important in the current #market. In this thread, we'll take a detailed look at volume with examples.
1) Volume is the total no of #shares that are bought/sold. Huge volume can be associated with accumulation/distribution by FIIs, while small volume can be associated with retail investors. When #PriceAction is combined with #volume, you get some interesting Price Volume patterns.
2) If #Price goes up with increasing volume, that's a sign that big guys are accumulating, hence, a #Bullish sign. When Price goes down with declining volume, that's a sign that the small retail #investors are exiting. Nothing to worry, again a Bullish sign.
Read 10 tweets
Nov 24, 2022
Many traders ask me how to trade #volume #breakout stocks profitably. Not all breakouts succeed in the #StockMarket. So, how does one get into good #breakoutstocks? Here's a thread explaining how I filter out good #stocks with reference to $RCF that I posted yesterday (up 12%).
1) Ensure that the stock is breaking out simultaneously in 2 timeframes. You choose the timeframes based on whether you are day-trading, swing trading or long-term investing. Ideally use the timeframes separated by a factor of 5 e.g. Daily and 75min is a good combo for short-term
2) Stock should have above average #volume for atleast 2 bars when the breakout is happening. Also, make sure that in the base before the breakout, majority green volume bars are above avg vol, while the red volume bars are below avg vol (avg vol is 50-SMA of volume). Image
Read 8 tweets

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