The stock is in a clear cut indication of consolidation. It has given some false breakouts.
How to avoid false breakout??
When and where can entry be taken??
Note:
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How to avoid false breakout??
- No spike in volume
- Breakouts only happened after 3pm
- After gap up opening, it couldn't sustain above the levels
- Entry was not given by the stock as the price never crossed the high of the 15min breakout candle
When and where can entry be taken??
- Upside : once their is a volume spike after breakout, entry can be taken when the the price crosses the high of the 15min breakout candle
- Downside : once their is a volume spike after breakdown, entry can be taken when the the price crosses the low of the 15min breakout candle
Note:
- Avoid the stock if a big gap up or gap down is seen
- Enter after the breakout happens and not before it
- Do not chase the market, i.e., do not get involved in late entries
- Only enter with strict stop-loss and target
- This is not a recommendation and is for educational purposes only.
- always follow risk-reward and quantity management for the 100% of the times
- The above mentioned idea may not work, so beware of the risk you are taking
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Happy Trading!!