SECRETS OF A FAKEOUT

The markets were/are in a state of frenzy. Any strategy with a long bias would have had a positive expectancy, even the ones that don't have an edge. It is vital for traders to build good habits because bull runs don't continue forever. Right now, you can buy the highs and still get away with it because the market is flush with liquidity and inexperienced, new coming investors. When this euphoria will die down, one has to understand the difference between real trading and jumping on the bandwagon. This tutorial is an attempt to de-mystify a simple classical chart pattern combined with statistically tested indicators and tools. Hope this helps.

Here are some examples of a bad breakout:

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I also have a scanner that I use to scan very tight compressions beforehand. This is what my current list looks like:

Comment:

The post suggested that TATAINVEST was a good breakout. Anyone who bought into the breakout must have made a fortune. GPPL, BIRLACORP came close to the MA and starting moving here ( just as I suggested). It is important for those who learned from here to have a look at the charts again to assimilate the learnings. JUSTDIAL broke out and failed, which is also something you should look at to understand how breakouts fail so you can cut your losses when you have to.
Thank you.

Comment:

Please check my latest post for trading ideas. If anyone wants to work with me, they can msg me.