After market hours I scan stocks in the 15 min time frame to find out which stocks have broken above or below a range of say 20 bars behind. Meaning from last 300 mins range of the stock and a break above or below that at day end.
After seeing the breakout I generally see the with which the stock has broken the range either above or below and the closing price at end of the day. If the is above average till the end that gives me an idea that the probability of the stock moving in the direction of the breakout or breakdown is more at the next day opening.
or the plays a crucial role too. In case of a breakout the should be nearing 70 and ready to cross it from below ie sloping upwards. In case of a breakdown should be sloping downwards and ready to go below 40-38-35 levels from above.
When these three factors come into play, I decide the price at which i will keep a buying stop order in case of a breakout and selling stop order incase of a breakdown and place the order after premarket close ie at 9.07am. I immediately place my stops as soon the market takes my orders.
I will wait for 45mins to an hour to see if my trade entered is moving or then i exit at CMP .
Youll can see from the ideas that i have published that mostly i do get good quick trades. except todays HDFC bANK which isnt going anywhere.
Please let me know your feedback!
Thanks for your ideas. I follow you on Youtube and you’ve been very helpful.
Is there any chance you could share with me your screener criterias to see if there’s any way I could look up for similar setups?? I’m struggling with my screening/scanning process and kind of overwelhmed as of where to look at...
Thank you very much in advance.
Never worry about few comments which is questioning you, in public forum those happen, never mind... but You are absolutely on right track, even if the system fails you know how to adapt or tweak something to make it work. In short, you know how to have a trade plan & I really appreciate for what you have, All the Best,Keep going high :)
I still learn something new everyday. but from all the experience which i have ( 5 years only not that great) I have understood that proper risk management and discipline will help even a simple strategy get you good results.
thank you for your encouragement. Hopefully we all together can learn from each other and become better traders!
As for criticism I always try to take something out of what everyone says. It doesnt affect me negatively.
Thanks for the comment though! Really means a Lot!
1) How do you scan the stocks during the after market hours? Do you look at every stocks from NIFTY50 or do you use some kind of a screener like Chartink.com?
2) Also, how do you determine your purchase price, target price and stoploss price?