Breakout Trading Strategy

How to Trade Breakouts Effectively?
How to Avoid Big losses in Failures ?
What to Look before entering into Breakouts?

A THREAD🔖
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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
Source : Google
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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
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They dont only buy on Uptrend but continue holding during pullbacks for bigger gains .
Important thing is pullbacks should always have less volumes .
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Rules For entering a Breakout .
1. Never enter more than 50 % of quantity on Breakout Region .
2. Most of the time the stock Pulls back to Breakout Region Giving a Good Reward opportunity.
3. Use Alerts to buy exactly at Pivot Points / breakout Regions to avoid extended stocks
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4. Keeping Alerts is important and once can use @tradingview or @zerodhaonline or other Platforms to keep alerts .
5. Stock That is extended more th 4% above BO region shouldnt be bought as they dont provide Good RR .
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Entry Rules :
1. Enter 50% Qty on Breakout os stock
If Stoploss Hits Your Loss is only on 50%
2. Wait for Retest and add the next 30%
3. Add Further Qty on way up
4. Always add on Winners Rather than Loosers
5. Protecting Capital Is utmost imporant in this case
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Retests Also Fail and no one can Avoid this scenarios and Loss has to be booked Definatley
Example : Radico
Look for Volume Breakouts with Price Breakouts the probability of Winning Increases
Stocks Breaking out in Uptrend have High winning Chances then in DownTrend
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Range Breakouts VS Trendline Breakouts
Range Breakouts have Higher Winning % Compared to Traingle , Pennant Trend Breakouts due to over head Resistance .
As Buyers Are Trapped at Higher Prices they will Try to exit at every bounce at Min loss or Breakevens
Example :JindalSaw
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Stoploss Rules :
Follow Maximum Stop of 8 to 10% in trades as Losses Work Against You .
If you are not getting Small Stop Trade move on to next trades as opportunities are endless .
Breakout Failures are common and hence Risk has to be managed
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Target Rules :
Target Should Be arounf 15 to 20% when your risk is 8 to 10 %
You can reduce this risk by entering at correct buy points and keeping stops at 5% .
Risk Reward of 1:2 is Great with 50% win Ratio
Book Partially at 1st targets and Keep Stop at cost.
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More from JayneshKasliwal

𝟱 𝗧𝗿𝗮𝗱𝗶𝗻𝗴𝘃𝗶𝗲𝘄 𝗜𝗻𝗱𝗶𝗰𝗮𝘁𝗼𝗿𝘀 𝗮𝗹𝗹 𝗧𝗿𝗮𝗱𝗲𝗿𝘀 𝘀𝗵𝗼𝘂𝗹𝗱 𝗸𝗻𝗼𝘄 𝗮𝗯𝗼𝘂𝘁:
𝗣𝗮𝗿𝘁 𝟮

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Retweet And I will Link a 36 Page PDF

𝟭. 𝗔𝗱𝗱 𝗙𝘂𝗻𝗱𝗮𝗺𝗲𝗻𝘁𝗮𝗹𝘀 𝗼𝗻 𝗰𝗵𝗮𝗿𝘁
🔸 Link:
https://t.co/zG165Xa3JB
🔸 Click on the above link -> Add to Favourites -> Add on Chart from favourites and start using it !
2/20

You can add financials from many fundamental criteria's like
🔸 Cashflows
🔸 Income Statements
🔸 Balance sheets
🔸 PE,PB ratios
🔸 Marketcapitlization
🔸 Statistics
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How to change Settings:
🔸 There are 8 columns you can basically select any financial you want
🔸 You can select quarterly or Yearly values and can also write
🔸 The names of the financiaLS Example : EPS Qtr3
🔸 You can Change colours , font size
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𝟮. 𝗜𝗻𝗱𝗶𝗰𝗮𝘁𝗼𝗿 𝗥𝗮𝘁𝗶𝗻𝗴𝘀
You cannot track each and every indicator like ( 𝗠𝗼𝘃𝗶𝗻𝗴 𝗔𝘃𝗴𝘀 , 𝗥𝗦𝗜 , 𝗠𝗔𝗖𝗗 ) etc , you can use plot this custom strategy to understand whether the trend is positive or negative of those indicators
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12 TRADING SETUPS which experts are using.

These setups I found from the following 4 accounts:

1. @Pathik_Trader
2. @sourabhsiso19
3. @ITRADE191
4. @DillikiBiili

Share for the benefit of everyone.

Here are the setups from @Pathik_Trader Sir first.

1. Open Drive (Intraday Setup explained)


Bactesting results of Open Drive


2. Two Price Action setups to get good long side trade for intraday.

1. PDC Acts as Support
2. PDH Acts as


Example of PDC/PDH Setup given