FAHEEMSAM

IGL - How to avoid false breakout??

NSE:IGL   INDRAPRASTHA GAS
The stock is in a clear cut indication of consolidation. It has given some false breakouts.

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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