Is this a valid breakout ? Banknifty Plan 04/02/2025
My plan is to short tomorrow as we are at key resistance zone. ( Consider the points below ).
Look for price to test key resistance zones
Wait for a failed breakout or rejection candle
Enter short after confirmation (such as a bearish engulfing or candle close below support)
Use a trailing stop once the trade moves in your favor
Short at or near resistance, exit at support
Place stop-loss just above recent highs or resistance level
Consider a multi-timeframe analysis: Watch 5-min, 15-min, and hourly charts
Monitor global cues and sentiment (if Bank Nifty is correlating with global market weakness)
Set realistic targets: 200 points, then reassess
Scale in once the move gains momentum
Avoid taking trades if market is too choppy or indecisive
Use caution if price is too close to major support
Consider volume: Ensure breakout is supported by increasing volume to confirm the move
If market conditions change, exit early to lock in profits
Look for price to test key resistance zones
Wait for a failed breakout or rejection candle
Enter short after confirmation (such as a bearish engulfing or candle close below support)
Use a trailing stop once the trade moves in your favor
Short at or near resistance, exit at support
Place stop-loss just above recent highs or resistance level
Consider a multi-timeframe analysis: Watch 5-min, 15-min, and hourly charts
Monitor global cues and sentiment (if Bank Nifty is correlating with global market weakness)
Set realistic targets: 200 points, then reassess
Scale in once the move gains momentum
Avoid taking trades if market is too choppy or indecisive
Use caution if price is too close to major support
Consider volume: Ensure breakout is supported by increasing volume to confirm the move
If market conditions change, exit early to lock in profits
Trade active
150 Points done from top.As i told focus on short and easy trade of 150 points in banknifty done.
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