Getting many questions related to Breakout Trading.
Hence thought to share all the info in one place:
Breakout Trading Book - https://t.co/iLkePBPA2x
Breakout Trading Screener - https://t.co/3teN7Jtuyk
Steps to use the screener -
More from Indrazith Shantharaj
"VOLUME is the ultimate Trading cheat code" PART 2
Please read the FIRST Thread Before Reading this!
https://t.co/IV1HrDlzqk
#StockMarket #stock #volumeintrading
#1 Volume Color Can Create a False Illusion
At first look, it looks like a big volume spike.
But if you notice the price candle, it has a big selling wick.
It indicates "SELLING PRESSURE" is high at that time.
We can easily avoid this false impression using the "BLACK" color code across all the volume bars.
Now your mind doesn't assume it is a bullish volume spike!
(If you don't want to use the black color, then view the chart without getting any bias based on the volume color)
#2 Analyze Each Volume Spike Carefully
In this image, the price is breaking the resistance trendline.
How do you say whether it is a genuine breakout or false breakout (from a volume perspective)?
Observe the major Volume Spikes.
A is Bullish (Price moved upside on the next day)
B is Bearish (Price fell on the next day)
C is Bearish (Price moved sideways and fell)
D is Bearish (Price fell on the next day)
So High Probability of FALSE BREAKOUT!
Please read the FIRST Thread Before Reading this!
https://t.co/IV1HrDlzqk
#StockMarket #stock #volumeintrading
VOLUME is the ultimate Trading cheat code.
— Indrazith Shantharaj (@indraziths) August 6, 2022
But, most people never use it in the right way \u2013 because no one ever taught them how.
Here are 10 psychological triggers to knowing Volume in a better way :
#1 Volume Color Can Create a False Illusion
At first look, it looks like a big volume spike.
But if you notice the price candle, it has a big selling wick.
It indicates "SELLING PRESSURE" is high at that time.
We can easily avoid this false impression using the "BLACK" color code across all the volume bars.
Now your mind doesn't assume it is a bullish volume spike!
(If you don't want to use the black color, then view the chart without getting any bias based on the volume color)
#2 Analyze Each Volume Spike Carefully
In this image, the price is breaking the resistance trendline.
How do you say whether it is a genuine breakout or false breakout (from a volume perspective)?
Observe the major Volume Spikes.
A is Bullish (Price moved upside on the next day)
B is Bearish (Price fell on the next day)
C is Bearish (Price moved sideways and fell)
D is Bearish (Price fell on the next day)
So High Probability of FALSE BREAKOUT!
A Gap Open is a Big Headache for Intraday Traders.
Nowadays everyday market is opening with big gaps.
Solution?
Shifting to Stocks!
But How to Pick Good Stocks for Tomorrow's Trading?
Presenting 11 FREE Screeners to scan Stocks for the Next Trading Day!
Thread 🧵
(1/N)
MYFNO - To Know the Stocks Which Received High and Low Open Interest (OI)
https://t.co/FURZDTArKK
(2/N)
Shortlist Bullish Momentum Stocks
This Screener shortlists all the bullish momentum stocks from NSE for the next day's trading (based on price action).
https://t.co/3teN7JLDMs
(3/N)
Screeners Based on Price (ex: Previous Day Breakout, Weekly Breakout, Monthly Breakout, etc.)
https://t.co/Y5naQIx967
(4/N)
Volume Shockers - Stocks that received a huge volume
https://t.co/u9LTY5Yiir
(5/N)
Nowadays everyday market is opening with big gaps.
Solution?
Shifting to Stocks!
But How to Pick Good Stocks for Tomorrow's Trading?
Presenting 11 FREE Screeners to scan Stocks for the Next Trading Day!
Thread 🧵
(1/N)
MYFNO - To Know the Stocks Which Received High and Low Open Interest (OI)
https://t.co/FURZDTArKK
(2/N)
Shortlist Bullish Momentum Stocks
This Screener shortlists all the bullish momentum stocks from NSE for the next day's trading (based on price action).
https://t.co/3teN7JLDMs
(3/N)
Screeners Based on Price (ex: Previous Day Breakout, Weekly Breakout, Monthly Breakout, etc.)
https://t.co/Y5naQIx967
(4/N)
Volume Shockers - Stocks that received a huge volume
https://t.co/u9LTY5Yiir
(5/N)