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breakout trading !In technical analysis, a breakout refers to a substantial price movement of a financial instrument, such as a stock or commodity, surpassing a specific level of support or resistance. This occurrence is of paramount importance, as it frequently signifies the initiation of a new trend, offering traders and investors valuable insights for informed decision-making. Outlined below are key aspects related to breakouts in technical analysis: Definition: A breakout occurs when the price of an asset surpasses a well-defined level of support or resistance. The breakout can manifest as either an upward movement (bullish breakout) or a downward movement (bearish breakout). Significance: Breakouts carry significance as they indicate a shift in market sentiment, suggesting that the prevailing trend may be weakening or reversing, potentially giving rise to a new trend. Types of Breakouts: Bullish Breakout: This occurs when the price surpasses a resistance level, signaling potential upward momentum. Bearish Breakout: In contrast, a bearish breakout happens when the price drops below a support level, indicating potential downward momentum. Volume Confirmation: Successful breakouts are often accompanied by an uptick in trading volume, serving as confirmation of the robustness of the new trend. Volume analysis is instrumental in validating the legitimacy of the breakout. False Breakouts: It is important to note that not all breakouts lead to sustained trends. False breakouts can occur, wherein the price briefly breaches a support or resistance level but subsequently reverses. Traders commonly employ additional technical indicators or await confirmation before acting on a breakout. Measuring Target: Traders frequently use the height of the pattern preceding the breakout, such as a triangle or rectangle, to estimate the potential price target. This aids in setting profit targets. Common Chart Patterns Leading to Breakouts: Triangles: Symmetrical, ascending, or descending triangles often precede breakouts. Head and Shoulders: Both inverse and regular head and shoulders patterns can signal potential breakouts. Rectangles and Flags: Consolidation patterns like rectangles and flags can lead to breakouts. Role of Trendlines: Trendlines are commonly employed to identify potential breakout points. The intersection of a trendline with a support or resistance level is deemed a critical zone for a potential breakout. Risk Management: Traders typically incorporate risk management strategies, such as setting stop-loss orders, to safeguard against false breakouts or adverse market movements. In summary, breakouts in technical analysis are pivotal events offering valuable information to traders and investors about potential shifts in market trends. Effective breakout trading strategies involve confirmation, volume analysis, and meticulous consideration of various chart patterns.
NSE:MPHASISEducation
by pratik2358
2
How to know that a double top or bottom will failHello Everyone as you can see here we have made two lines at the top and two lines at the bottom of the same height and you can see how it worked very well and told you very early that where it could be down and have to be cautious but it doesn't mean that everytime you find something like this you should be cautious at there and ready to exit and take the profit. Hope you get something new to learn if than pls like and follow us thanks bye.
NSE:PELEducation
by MAYANKTECHRESEARCHING
6
How to play potential level breakout (From my latest trade)Steps 1) Identify potential breakout zones , crucial supports , resistances ,trend line , Patters like (triangle , rectangle , consolidation ) TATA POWER other examples UJJIVAN ADANIENT BTCUSD BANKNIFTY 2) Wait for breakout "do not enter just seeing the breakout " ,watch carefully the volumes , then wait for a price to retest the level. Many times when the prices make a crucial level , big players tend to exhaust this opportunity and fools us by fake breakout you can see my UJJIVAN idea in the links below. 3) when in price retest and start moving up then enter above just high of recent up swing and keep sl at the low of latest down swing. This three steps are most effective approach for playing out the breakouts.
NSE:TATAPOWEREducation
by TRADEWITHFUN247
18
Rectangle channel breakdown (trend reversal ) at AxisBankBe Cautious Double #Rectangle #channel #breakdown (trend reversal ) at #AxisBank weekly chart. #Rectangle #channel This pattern is formed when there is a tough competition between the bulls and the bears, no body is ready to give up resulting in equal highs and equal lows. That is why this pattern is also known as consolidation zones. Breakout: It can occur in any direction upside or downside. If the breakout is in upside direction, it indicates that the bulls have taken over bears and indicates a buy signal. However if the breakout is in downside direction it indicates selling pressure or victory of bears over bulls and indicates a sell signal. ONLY FOR #educational NOT SEBI REGISTERED. #LEARNEARN (DONT TRUST ANYONE) #nifty50 #sharemarket #BREAKOUTSTOCKS #Multibagger #sharemarket #sharemarketindia #sensex #technicalanalysis #kukiinvest #Chartanalysis #headandshoulders #breakdown
NSE:AXISBANKEducation
by Usemerr
ADA reversal when?Hey everyone, Here is a detailed analysis of Cardano . It has been in a downtrend since September first week. We might consider this downtrend as a correction if it takes support on the 0.786 level of Fibonacci . Let's get into the history of ADA and what happened in the past few weeks. ADA retraced from the golden zone of Fibonacci of the previous wave and went for a new high at 3.097 USDT . Since then, it is in the downtrend. It has made some chart patterns too. Let’s look into it. The Bearish Rectangle Formation The rectangle figure is a trading pattern which can appear during bullish and bearish trends. The pattern consists of tops and bottoms, which are parallel to one another. The other key point to illustrate is that the highs and lows are all horizontal. I have shown the figure of the bearish rectangle at the top of the chart. After recognizing the chart pattern, you have to wait for the breakout and pullback. The pullback candle should not close inside the rectangle. Once the pullback is done, you can see a massive downward movement. I have marked the pullback with a green eclipse. We can set 2 profit targets for this pattern. First can be equal to the height of the rectangle and second can be equal to the length of the trend above the rectangle. I have marked the profit targets with the price range arrows . Reversal When? According to the trend-based Fib Time reversal , the trend might reverse around 26 December, if everything goes right. You can comment down if you wan to learn how to make it. When to buy the dip? According to me, you shall consider these 2 prices for the same: 1.46 to 1.55: It is the 0.786 level on Fibonacci with a major support and resistance zone. 1.02 to 1.21: This Is the zone between the previous low and the 2nd target of the bearish rectangle. Does ADA have good fundamentals? Ofcourse! Cardano’s purpose is somewhat same as Bitcoin’s purpose, but it is slightly faster in making payments. It works on blockchain, and it operates in 2 layers. The current market cap is around $50B and it was once ranked 3rd in the total market cap, which has now decreased to 6th. The social media following and team behind the project is also good. Hope you like the idea. I might not be able to post the photos of analysis of different timeframes in the same idea, as I don’t have TradingView Premium. The reason for the same is that I’m a teenager and I’ve been trading the markets with the borrowed money from my parents. I can’t afford to buy the premium, hence I request TradingView to unlock some features for some traders like me. Do check my previous education idea on cup and handle chart pattern through the link given below.
Education
by theTAguy
how rectangle pattern works ?rectangle pattern 1. price moves in range on side ways to form a rectangle pattern. 2. as a result , a firm resistance on upper side and support on lower side formed . 3. stock will have either a distribution phase or continuation phase till breakout of resistance or breakdown of support happens 4. an impulsive move at resistance with volume will suggest a breakout for steep , fast movement of the stock to next resistance levels . 5. an impulsive move at at support with volume will suggest a breakdown for steep , fast movement of the stock to next support levels . 6. trade setup : a.buy above resistance of rectangle pattern keeping support levels as stop loss . b.sell below support of rectangle keeping resistance level levels as stop loss . 7. mostly a tussle happens in between resistance & support for good period . and fast breakouts and breakdowns happens 8. usually volume will be dry during consolidation phase of the pattern . volume spike will happen at breakout / breakdown zone for trade confirmations. for education purpose cadilahc taken one hour time frame .... same applies for all times and tgts too.
CEducation
by HARMONICSANAND
5
NIFTY WEEKLY ANALYSIS (17/7/21)Trendline still not broken (price near trendline and in consolidation mode around 15600 to 15900 This week the nifty closed at ATH and managed to close at upper levels. Making small momentum candles (can break either side, p.s. Major trend is up) Strong support at 15300 levels A decisive close above 16000 with a catalyst is needed to enter new territory. This weak midcap/ Smallcap and many other stocks blasted (realty/ pharma / broking) stocks did well.
NSE:NIFTYEducation
by Stockupy
How to trade based on Zones?This is an example of how I mark my charts while taking trades. Defensive trading strategies are very good for sideways markets. The indices around the world are sideways and not making any fresh highs or lows. The principle that I have explained on the charts is ideal for protecting your capital and has a higher chance of succeeding. When the price moves to either of the extremes, you should look at taking a trade on the opposite side. This means that once the price approaches the higher boundary, you should be looking at selling and when the price approaches the lower boundary, you should look at buying. This does not mean that you blindly set that marked price as the entry point, but you should wait for an extreme to be created and then take a trade only after the confirmation of your bias. Trading such markets requires patience and entries should only be made on the boundaries. If you enter a trade in any direction in the middle of the zone, you are likely to get trapped. What I mean by trapped is that your stop loss will become larger and probabilities are starting to move against you. Trade only with capital you are willing to lose and maintain proper money management. Feel free to ask questions, if you have any! :)
NSE:M&MEducation
by ArcherDAVIS
!!CANARA BANK ON THE WATCH!!TECHNO WATCH CANARA BANK IS LOOKING GOOD FOR A POSITIONAL TRADE AS RSI HAS REVERSED FROM OVERSOLD ZONES WITH STRONG FORCE AND MACD IS ON THE VERGE OF A POSITIVE CROSSOVER RESISTANCE IS NEAR 210-214 WERE ONCE TAKEN OUT WILL LEAD TO RE-ENTRY INTO THE CONSOLIDATION ZONE OF 213-293 SO GOOD POTENTIAL RETURNS AHEAD !!WATCH OUT!! !!FOR TRADE CALL!! !!PLEASE NOTE TRADE WITH CAUTION AND AT YOUR OWN RISK PROFILE!! !!PLEASE DON'T OVER TRADE!! !!LIVE TO FIGHT ANOTHER DAY!! !!HAPPY TRADING!!
NSE:CANBKEducation
by manavtechresearch