k314

BIOCON buy setup

Long
NSE:BIOCON   BIOCON LTD
Buy BIOCON above 311.50

T1: 323
T2: 335
T3: 353

SL: 293
Trade active
Trade closed: target reached: T1: 323 achieved on 24 Feb
Trade closed: stop reached

Comments

Good but breakout candle volume is comparatively low
Reply
k314 kkmb
@kkmb,
Whats the volume of breakout candle? What in your opinion is a good volume? Pls elaborate.
Reply
kkmb k314
@k314, The breakout candle volume is 4.2 M and the price is with in a range for about 2 months. According to me Volumes more than 200 MA is good for a breakout. The 200 moving average volume is at 4 Millions. I was expecting a volume more than 5 - 6 Million while it breakout so I thought it is comparatively low. Expecting your corrections if any.
+2 Reply
k314 kkmb
@kkmb,
You already mentioned it in your comment!
Breakout candle volume = 4.2M whereas the average 200 day volume is approx 4M and 20 day avg volume is 4.1M;
Which means breakout candle volume is above average! In volume the absolute numbers do not mean anything. We always see where volume stand with respect to the avg volume (20 or 200 day depending on your analysis). Is it above or below?
Just curious to know what makes 5-6 Million more important than 4.2M? How did you arrive at those figures (5-6M)?
+1 Reply
kkmb k314
@k314, Thanks for your explanation. According to me after a consolidation the more the volume during a breakout the more strong it will be so I expect a 50% more volume than 200 MA. I observed some of the bearish candles within the range are nearly 12 Millions that is the reason I was expecting a breakout above 5-6 Millions.

I learned a lot from your post. Especially your post about H&S in "TITAN". Kindly suggest some book about price action. Thanks a lot
+1 Reply
k314 kkmb
@kkmb,
Fair enough. Well and good if that strategy works best for you.
However I keep my inference from volume data limited to where it stands with respect to 20 SMA. That's given me good results in the past.
Glad to know Titan analysis was useful. Thanks.

Books by Schabacker and Edward & Maher are classic. Do follow Peter Brandt on Twitter. He is a fantastic trader and educator. Ultimately keeping analysis very simple (something even a high school kid also understands) and following risk management rules strictly is the key to long term success.
+1 Reply
kkmb k314
@k314, Thanks for the books and your guidance. If possible and when u get time kindly post some of your analysis and nugget so that some of us can learn from your knowledge and experience. Have a nice time.
+1 Reply