Yukti Agrawal (@Stockstix) Profile picture
Feb 11, 2023 โ€ข 15 tweets โ€ข 6 min read โ€ข Read on X
๐‡๐Ž๐– ๐“๐Ž ๐€๐•๐Ž๐ˆ๐ƒ ๐…๐š๐ค๐ž๐จ๐ฎ๐ญ๐ฌ & ๐ˆ๐ง๐๐ฎ๐œ๐ž๐ ๐’๐ž๐ฅ๐ฅ๐ข๐ง๐ :
๐€ ๐ญ๐ก๐ซ๐ž๐š๐๐Ÿงต

Let's understand with some examples.

โ™ป๏ธRetweet for max reach.

#StockMarket #bankniftyoption #SGXNIFTY @kuttrapali26 @chartmojo @Stock_Precision
1โƒฃWhat is FAKEOUT/INDUCED SELLING?

A breakout/breakdown that failed to continue beyond a key resistance/support level, resulting in a โ€˜falseโ€™ breakout/breakdown of that level.
2โƒฃSome reasons for FAKEOUTS

1. To trap amateurs/weak hands.
2. Because of weak market depth.
3. To fill large orders of big Institutions (Liquidity).
4. To trap FOMO traders.
3โƒฃCommon things you'll notice after Fakeout:

1. Big body candles on opposite side due to reverse order flow.
2. High chances of trending market on opposite side of fakeout.
3. Fakeout S/R will become stronger coz of Big players' SLs.
4. RBD / DBR candlestick pattern.
4โƒฃWays to avoid FAKEOUT/INDUCED SELLING

๐Ÿ”ธAlways wait for candle closing

When any candle breaches stiff S/R levels in first few mins then chances are high that it's inviting FOMO traders. To avoid this trap, it's better to wait for the closing above S/R level.
๐Ÿ”ธAvoid breakout after trending market

If market is continuously in momentum then most probably it will retrace near it's key levels coz of exhaustion.

For e.g., A runner is running without taking any rest then chances are high that he won't be able to cover large distance.
๐Ÿ”ธLong body candle breaking S/R from distance

When a long body candle directly breaches S/R then chances of FAKEOUT are there coz the trader who entered at the bottom of the candle, will see instant gains so, he will book profits hence we will see a wick formation at the S/R.
๐Ÿ”ธMissing of Volume follow up

If a BO is not supported by volumes then chances are high that market participants are not interested in that direction.

Breakout candle generally form with volume coz of SLs orders so we need to check follow up volume as well for a successful BO.
๐Ÿ”ธDirectly breaking psychological/round levels

Round no.s act as S/R levels.

If a particular stock is in FnO then at round no, OI will also be generated.

So, always wait for price to sustain above/below that level.

A single candle sustain is not enough for successful BO.
๐Ÿ”ธMarking levels on HTFs

Generally, market breaks the level on STF but forms wick on HTF, this is coz, we missed out to check S/R levels on HTF.

So, multi-time frame analysis is important for marking key S/R.
๐Ÿ”ธContra BO/BD in opposite strong trend

When market is in either strong uptrend/downtrend and any contra BO is seen then it it just a factoral retracement on HTF that moves back to trending direction after fakeout.
There are many other ways to avoid Fakeouts with the help of indicators and tools.

โœ…Indicators may start loosing strength or will show divergence at time of FAKEOUT.

โœ…Not appropriate order flow/volume profile, etc.
If you found this thread helpful, do โ™ป๏ธRetweet the first tweet.

โœ…For more such learning content๐Ÿ‘‡

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More from @stockstix

Jul 17
Some useful Scanners to filter out the breakout stocks:
A thread๐Ÿงต

#StockMarketindia #stocks @kuttrapali26 @StocksbyYA
๐Ÿ”นGolden Crossover

To know in which stocks 50 EMA has crossed 200 EMA, positional traders or Long term investors can use this scanner๐Ÿ‘‡

chartink.com/screener/goldeโ€ฆ
๐Ÿ”นMomentum stocks

To know which stock is catching momentum or is ready for the big move, so this scanner is a good choice for swing traders.

chartink.com/screener/momenโ€ฆ
Read 8 tweets
Jan 28, 2023
Fibonacci Retracement, Expansion & Extension.
A thread๐Ÿงต

Let's understand with some examples and confluences with some indicators.

โ™ป๏ธRetweet for max reach.

#StockMarket #StockMarketindia #SGXNIFTY
@kuttrapali26 @chartmojo @sunilgurjar01 @Stock_Precision
1โƒฃWhat is Fibonacci?

Without going in deep, in layman language, fibo numbers are natural numbers which we mostly see in nature like, flower petals, leaves, etc.

The Fib sequence is a set of increasing numbers where each number is equal to the sum of the preceding two numbers.
2โƒฃImportance of Fibonacci

If any stock is moving either upwards/downwards sharply and we want to know that till what levels it can retrace/take pullback.

So, we use fibo tool to know next possible support & resistance levels.
Read 19 tweets

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