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Anticipate the Breakouts: Time-Volume-Momentum Relationship

NSE:NIFTY   Nifty 50 Index
Hi fellow

Thanks for your response to my last post in which we discussed what happens after a breakout.

In this post we will discuss better ways to anticipate a breakout.

Although the types discussed are ideal that doesn't mean they are not possible in real time. That's why I have been posting some examples.

However, anticipating a breakout does not mean that it will surely happen and you would end up in profit. That's the harsh part of trading and we should accept it. The least we can do is to have a plan and execution of that plan.

These types of breakouts are common on lower time frame charts. But if and when they occur in larger time frame, their magnitude and effect multiplies.

Rest of the notes are on the chart. Have fun.

Your likes are the only motivation to post better analysis in future.
Trade safe, stay healthy

Best Regards
Afraidtotrade
Comment: For more examples hit the like button

Comment: Previous post on how to trade breakouts

Comment: For those who have problem reading from chart:

TYPE 1

> In this type up waves are high momentum high volume waves and take less time to touch the resistance

> Momentum is faded in down waves; volume declines and these waves take longer time to end than upwaves

> In Simple terms angle of inclination is steeper in up waves and less steeper in case of down waves

> Best buying opportunities could be in earlier segments of wave e and wave g with SL below the low of wave d and f resp. (just an e.g.)



TYPE 2

> In this type up waves are less steeper, have less momentum and take more time to touch the resistance

> Momentum is strong in down waves which are steeper; volume increases and these waves take lesser time to end than the up waves

> Buy only if upside momentum has been strong in higher timeframe (buy in same manner as in type 1)

> Its better to avoid these setups or else one can carefully observe price action if breakout actually happens
Comment: More examples will be posted soon.
Comment: e.g.
Comment: e.g.

Comment: Bar by bar price volume analysis may also help in anticipating breakouts, see 👇

Thank you!!! Nice learning, will definitely help traders to trade break-outs.
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@kmr_amr, welcome
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Very very awesome Afraidtotrade. Best ever
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Bravetotrade Tradersview49
@Tradersview49, Thanks
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Sir, This wk.& month,Similar breakout has happened in GIPCL .. on lt.monthly chart at breakout lvl of 116.5 with highest monthly volume in last 10 yrs. Respected sir is it possible it will come Dwn.to retest 116.5 next week/month ? June closing is at 122 lvl on NSE. Tkank you awating for your valuable reply.
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@Yp2303, Very nice observation, i am pleased that u got it right. Just on the basis of monthly chart surely a Type 1 break so chances are good on upside. But friend, on monthly basis things don't happen overnight, ups and downs will follow.
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Yp2303 Bravetotrade
@Afraidtotrade, Agree sirji, thanks for your instance reply , your true reply has raised my confidence lvl. Wish you good health n peace of mind .
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@Yp2303, always welcome.
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Sir, The text is barely visible. Kindly save as image & upload.
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Bravetotrade rajenvyas
@rajenvyas, quite visible.. Yet i ll upload.
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