4 factors to measure the performance of a trading system:

1 - Accuracy
There is no such thing as 90% Accuracy without compromising on other factors (like profit factor, etc)

Fact - A good trading system will have only 35-60% accuracy without compromising other factors.

(1/n)

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 -

You don't need to pay someone ₹50,000 or even ₹25,000 to know CPR Indicator.

This thread will show you how...for Free.

Here's My 16-Points For Using CPR Indicator Into A Profitable System in Intraday Trading:

Thread 🧵

The Central Pivot Range (CPR) indicator is a technical analysis tool that is used by traders to help identify potential trading opportunities

The CPR indicator is based on the concept of support & resistance levels. It can be used to help identify potential entries/exits

(1/N)

CPR is developed by Frank Ochoa. It is similar to Pivot Points but with additional lines (TC & BC).

As per Frank,

CPR is the Swiss Army Knife of pivots, and Like the Moon, the central pivot range controls the tides of the market.

(2/N)

Pivot Points Formula

Pivot point (PP) = (High + Low + Close) / 3
R1 = (2 x PP) – Low
S1 = (2 x PP) – High
R2 = PP + (High – Low)
S2 = PP – (High – Low)

(3/N)

CPR Indicator Formula

The CPR Indicator consists of 3 components:

Pivot = (High + Low + Close)/3
BC = (High + Low)/ 2
TC = (Pivot – BC) + Pivot

(4/N)

Breakout Trading is the most underrated trading technique in the trading community!

Every trader (intraday, swing, positional, or scalper) should know how to differentiate between a genuine breakout and a false breakout.

Do you know why?

Read this thread!

(1/N)

It’s important to understand two herds that exist in the market:

1. Smart Money &

2. Dumb Money

‘Smart Money’ refers to big sharks who have money & information power who give direction & momentum.

‘Dumb Money’ refers to retail traders who often try to make quick money.

(2/N)

You should know one secret now.

Participation from smart money creates a "genuine breakout."

And the absence of smart money participation results in a "false breakout."

Hence, it is always a good idea to follow smart money (by knowing real or false breakout)

(3/N)

What is Breakout?

As per Investopedia

“A breakout is a stock price moving outside a defined support or resistance level with increased volume. A breakout trader enters a long position after the stock price breaks above resistance.”

(4/N)

The price broke the resistance trend line with high volumes in this image.

Similarly, few recognize it as a breakdown if the price breaks the support trend line.

To keep it simple, we will focus only on the breakout.

(5/N)

6 Free Tools and Platforms Every Day-Trader Should Be Using!

Why pay, when they are available for FREE?

Along with 'Price' and 'Volume', 'TIMING' plays a crucial role in Intraday Trading.

One will not get back the missed opportunity in day trading.

Hence, many tools are beneficial to encash these opportunities.

Below are the Top-6 FREE

𝐂𝐡𝐞𝐦𝐢𝐜𝐚𝐥 𝐏𝐫𝐢𝐜𝐞 𝐓𝐫𝐞𝐧𝐝 𝐔𝐩𝐝𝐚𝐭𝐞

6 Free Tools and Platforms Every Day-Trader Should Be Using!

Why pay, when they are available for FREE?

#Nifty and #EEMA
Friends forever

Seeing a lot of people making triangles with just 2-3 touchpoints offlate

An ideal triangle shall have at the minimum 5 touchpoints in order to give a good trending move post that

Here are few examples 👇

BHEL may come of F&O ban for tomorrow’s trade -Open interest as of now at 79% of MWPL

PNB also very close to coming out of ban - OI at 80% of MWPL

Note- OI has to fall below 80% for a stock to come out of ban

#stockmarkets #Nifty #stocks