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Fakebreakout

SBILIFE- False Breakout gives a SHORT!Attached: SBILIFE Daily Chart as of 21st April 2023 For the Levels, it is already marked in the Chart (SELF EXPLANATORY) Stop Loss > 1136 Downside Target 1= 1074 Downside Target 2= 1054 For the Thesis as to why it is a SHORT: - the 17th April Candle was a Breakout Candle that turned out to be a BULL TRAP Candle, so all the Bulls that entered got Liquidated as the Low of the Candle was taken out - with the 21st April Candle (latest candle) Bears entered the stock giving a Breakdown below POC of the Volume Profile - All Insurance Stocks saw Selling on Friday, even HDFCLIFE is similar and Bears have taken over in that Stock as well. So a Weak Sector too Note: Both SBILIFE and HDFCLIFE have Earnings on 26th April (the coming Wednesday)
NSE:SBILIFEShort
by T_Harth
What is a fake breakout & how to spot one ?Fiem Industries gave a fake breakout in september and this was immediately visible based on the selling that followed the breakout with heavy volume. But the stock gave a breakout again in November & this time it was successful. This time, the successive candle did NOT indicate significant selling. In fact, there was simply no selling which means that there are no sellers in the market. To prevent significant losses from fake breakouts, I would recommend observing the follow through candles & maintaining a strict stop loss to prevent significant downside. I would also highly recommend keeping the stock in your watchlist and wait for a point of re-entry.
NSE:FIEMINDLong
by rjun212
Bankbaroda | Breakout of channel pattern for 66% 🎯⭕ Positional Trading opportunity ! weekly Chart Alert !!!⭕ --Buy above =67.60 or CMP --Target = 112.60 --Stop-loss = 52.20 --R:R =2.92 --Expected Profit = (66 % ) --Expected Holding = 1-3 Months only #ThankU For Checking Out Our Content , We Hope U Liked IT 📌 ====================================================== ⭕Technical Reasons to trade or Strategy applied :- ⭕ 1) Bank of Baroda has given the breakout & possibly retest again so, one can wait for it or else buy a little quantity here & buy more after retest 2) Volume activities in all the psu bank is very large & they can show a big move ahead 3) Target is based on the pattern height 4) 36 weeks of Accumulation with double bottom Guys check out the related ideas as well, it will work really well GUARANTEED ! 🙏FOLLOW for more ! 👍LIKE if think is useful ! ✍COMMENT Below your view !
NSE:BANKBARODALong
by ReviveTraders
14
BREAKOUT vs FAKEOUTTrading breakouts is a most profitable trading strategy that involves buying or selling an asset after a long period of consolidation. Confirming breakouts before jumping into a trade is the key task to become a successful breakout trader. Now lets see about the important key points to consider to confirm such valid breakouts TYPES There are different types of breakouts including 1)Trend line breakouts (diagonal form of S&R) , 2)Horizontal price breakouts, 3)Pattern breakouts (double top, double bottom & other) 4)All time highs/lows breakouts, 5)Fib level breakouts etc., The support and resistance lines that are drawn at potential breakout points "should be seen as area/zones instead of fixed lines" . BREAKOUT : A breakout is when the price of the stock breaches a support or resistance levels that has previously formed followed by a strong candle close. FAKEOUT : A false break or fakeout, as the name implies, is any move above a resistance or below a support followed by a reversal that fails to close above or below the broken level. WHEN THE FALSE BREAKOUT HAPPENS : A false breakout happens when there are no enough buyers or sellers to continue supporting the stock towards the breakout direction. In the examples above,the upper false breakouts happened because there were no enough buyers to continue pushing the price higher & tends to reverse similarly viceversa for the lower false breakout. VARIOUS SCENARIOS OF FALSE BREAKOUT POINTS TO REMEMBER 1)False breakouts can be avoided by waiting for strong candle closure above or below the levels to confirm the breakout strength. 2)Avoid the breakouts with non-stop parabolic movement (without pullback or retest). 3)Instead of using a single line as support or resistance, it is better to have an area/zone that covers all shadows in previous touches. 4)To take entry, always wait for the zone to breach by the candle closing confirmation combined with price action. Hope it was helpful to you, Happy Learning & Profit making :) Thanks & Regards Divyaapugal
Editors' picks
NSE:NIFTYEducation
by Divyaapugal
29
CRYPTO ALTCOINS TRADING FAKEOUTS WITH BIG MONEY (ALGORAND USDT)Nowadays as CRYPTO ERA is going on and we all are watching many ALTCOINS skyrocketing for no reason and most of the people out there are watching it and feel like they are missing out on great opportunities and then suddenly come into the picture to capture some quick gains due to FOMO and by the time they come and participate small shakeouts starts happening and in it they lose all their loved capital. So no one out there can catch all the opportunities in ALT COINS. But we can catch it in some good ALT COINS where the BIG MONEY is involved and it moves the price. Such that the retail people are trapped and BIG MONEY makes profit. So here I am sharing analysis on ALGO/USDT and show you how you can capitalize on BIG MOVE with BIG MONEY with high probability and even if you are proved wrong then how you can take counter trade on the downside and catch the big fall. Trade Analysis is explained on charts. I hope you enjoy and learn something from it👍 - Pranesh Sahoo
by PraneshTrades
BOSCH limited | big volume |30 % profit 🎈NSE:BOSCHLTD Positional Trading opportunity ! Weekly Chart Alert ! Technical Reasons to trade :- 🧢 1> Big breakout 2> Huge volume breakout 3> trendline resistance mentioned 4> Retracement areas are shown through arrow 5> obvious support & resistance 6> RSI trend breakout --CMP =13190 --Lot Size = 50 --Target = 17300 ( 30% ) --stoploss = 11175 --R:R = 2.2 Guys check out the related ideas as well, it will work really well guaranteed ! FOLLOW for more ! LIKE if think is useful ! COMMENT Below your view !
NSE:BOSCHLTD
by ReviveTraders
Potential Good setup in LUPIN - 4 to 8% 👑 Terms used if you don't know : ✣ Contraction pattern: A pattern starting with a broadening high candlestick and low candlestick and converging to a fixed point, these highs and lows created in between them are bulls vs bears fight going on inside the pattern and if it comes to the lower part of it, surely bulls will take it to the topmost point and vice-versa until one of them wins ✣ Structure and trend: Two types of trends that exist in the market today are uptrends and downtrends. Each type of trend tells a different story and has its own impact on a trader's success in the market. While uptrends show a series of higher highs and higher lows, downtrends show lower highs and lower lows ✣Breakout: Breakouts are commonly associated with ranges or other chart patterns, including triangles( HERE WE WILL SEE THIS ONE ), flags, wedges , and head-and-shoulders. These patterns are formed when the price moves in a specific way which results in well-defined support and/or resistance levels. Traders then watch these levels for breakouts ✣ RSI DIVERGENCE: A bullish divergence occurs when the RSI creates an oversold reading followed by a higher low that matches correspondingly lower lows in the price. This indicates rising bullish momentum, and a break above oversold territory could be used to trigger a new long position. ✣ Supply/ Demand: In the supply zone , the prices are higher than the bid price, and in the demand zone , they are lower. The bid price is what a trader is willing to pay for a stock 👑 Important levels - explained well 👑 Comment your thoughts and queries regarding anything on this analysis of mine, feel free buddy :) ⌛ Motivational and psychological area ⌛ ✣Trade only if you are in the right mindset, if you have been emotionally weak for some time, take your time and don't trade, trade with a happy and + mindset only. ✣If you want to make money, firstly be prepared to lose it, only that much which you can afford and that much by which you can make a mistake again, learn from them and grow ✣Don't lose hope and keep grinding ✣I have seen my friends on youtube streaming games with watching 10, constantly they streamed for a year or two and now they are buzzing with 1k to 2k watching daily. ✣Focus on the process, you are here to make money not stupid decisions and lose it all ✣No one will help you climb the mountain, few will tell the path, so follow good people, make good mentors and make good decisions and choices in the stock market. ✣Believe in yourself :) 🎓🎓 Some info about me :) ➼My name is Apoorv and I am a 2nd year Engineering student, I want to pursue trading as my career, and thus whatsoever setups or trades I potentially see on my charting platform, I post it here and share them with you all. ➼I hope you will love my simple analysis style. ➼Feel free to suggest your view on this as learning is earning here :) ➼I take my trades on my Zerodha account :) ➼I don't take all the trades I post ➼These charts are my and only my work, my thought process, just from an educational point of view and no calls. ☃☃☃☃ Thank You Have a Nice Trading Day ☃☃☃☃
NSE:LUPINLong
by Averoy_Apoorv_Analysis
2
How do the Breakout traders get trapped? Part- IIPsychology and Behind the scenes stuff: 1. At the BO, there was a massive bullish candle with a very high volume. This took out the previous resistance level. 2. The retailers saw this opportunity because the price closed above the previous resistance. Hence, they entered Longs. 3. The BO was followed by a Doji and then a Bearish candle. This indicated no Bullish follow-up. 4. The next candle was the last try to trap more longs before breaking down. This is indicated by the good volume on this candle. 5. Finally the price broke down with back-to-back bearish candles and reached the previous swing low. Warning candles: 1. Doji + Big Bearish candle indicating that there is no follow-up on the BO 2. Relatively good volume on doji indicates significant selling pressure. Never a good sign for a breakout. 3. A bullish breakout must always be accompanied by a good follow up, else it cannot sustain. Bullish BO needs good bullish candles, NOT dojis. P.S: I am not saying the fakeouts can be avoided. But there are a few cases where fakeouts can be avoided. Also, this is NOT investment advice. This chart is meant for learning purposes only. Invest your capital at your own risk.
NSE:BANDHANBNKEducation
by johntradingwick
34
10 Star analysis on SUNPHARMA - 10% possible move 👑 Terms used if you don't know : ✣ Contraction pattern: A pattern starting with a broadening high candlestick and low candlestick and converging to a fixed point, these highs and lows created in between them are bulls vs bears fight going on inside the pattern and if it comes to the lower part of it, surely bulls will take it to the topmost point and vice-versa until one of them wins ✣ Structure and trend: Two types of trends that exist in the market today are uptrends and downtrends. Each type of trend tells a different story and has its own impact on a trader's success in the market. While uptrends show a series of higher highs and higher lows, downtrends show lower highs and lower lows ✣Breakout: Breakouts are commonly associated with ranges or other chart patterns, including triangles( HERE WE WILL SEE THIS ONE ), flags, wedges, and head-and-shoulders. These patterns are formed when the price moves in a specific way which results in well-defined support and/or resistance levels. Traders then watch these levels for breakouts ✣ RSI DIVERGENCE: A bullish divergence occurs when the RSI creates an oversold reading followed by a higher low that matches correspondingly lower lows in the price. This indicates rising bullish momentum, and a break above oversold territory could be used to trigger a new long position. 👑 Important levels ( also most of it depends on your entry and mindset during trading hours ) ✣ A 1hr close on 685-687 levels can trigger a breakout as explained in the terms section above ✣ Risk of 3% can be taken at the point = 660 points to be specific from entry ✣ Targets can be 1- 722 and 2- 750 for your 5% and 10% up move profit booking of the initiated swing trade 👑 Comment your thoughts and queries regarding anything on this analysis of mine, feel free buddy :) ⌛ Motivational and psychological area ⌛ ✣Trade only if you are in the right mindset, if you have been emotionally weak for some time, take your time and don't trade, trade with a happy and + mindset only. ✣If you want to make money, firstly be prepared to lose it, only that much which you can afford and that much by which you can make a mistake again, learn from them and grow ✣Don't lose hope and keep grinding ✣I have seen my friends on youtube streaming games with watching 10, constantly they streamed for a year or two and now they are buzzing with 1k to 2k watching daily. ✣Focus on the process, you are here to make money not stupid decisions and lose it all ✣No one will help you climb the mountain, few will tell the path, so follow good people, make good mentors and make good decisions and choices in the stock market. ✣Believe in yourself :) 🎓🎓 Some info about me :) ➼My name is Apoorv and I am a 2nd year Engineering student, I want to pursue trading as my career, and thus whatsoever setups or trades I potentially see on my charting platform, I post it here and share them with you all. ➼I hope you will love my simple analysis style. ➼Feel free to suggest your view on this as learning is earning here :) ➼I take my trades on my Zerodha account :) ➼I don't take all the trades I post ➼These charts are my and only my work, my thought process, just from an educational point of view and no calls. ☃☃☃☃ Thank You Have a Nice Trading Day ☃☃☃☃
NSE:SUNPHARMALong
by Averoy_Apoorv_Analysis
31
How Breakout traders get trapped? Underlying logic: 1. The market already gave 11% in the impulsive move and created a high. Obviously, the momentum was fading out. 2. If you recall my lecture on market structure, you already know that after the creation of a high, we must come down to create a new higher low. The market cannot keep making new highs without creating a higher low. 3. There was a Bearish divergence. The price was moving up and up but the RSI was creating an equal high indicating that there isn't enough buying pressure. (I have already covered this in my older posts) Psychology and Behind the scenes stuff: 1. At the point of BO, there was only a round bottom, so nobody would have thought of it as the cup & handle pattern. 2. After the BO failed and the price dropped and formed the handle, the retailers thought of it as a cup and handle pattern. Only after the formation of the pattern, you would think of it as a pattern. 3. But the BO traders already got trapped at the top. You aren't aware of this if you don't have knowledge 4. So, in the end, nobody really paid attention to the manipulations done by the institutions. This is how retailers are trapped. Warning candles: Doji + Hammers + Bearish candles indicating that there is a problem with the follow-up. Relatively good volume on hammer & doji, which is never a good sign for a breakout. It indicates significant selling pressure. A bullish breakout must always be accompanied by a good follow up, else it cannot sustain. Bullish BO needs good bullish candles, NOT dojis. P.S: I am not saying the fakeouts can be avoided. But there are a few cases where fakeouts can be avoided. Also, this is NOT investment advice. This chart is meant for learning purposes only. Invest your capital at your own risk.
Editors' picks
NSE:GRANULESEducation
by johntradingwick
250
How to avoid Fake Breakout? A lot of retailers may have gotten caught in this fake breakout in TCS. I provided that rough path (which I anticipated it would follow) in my original idea because I believed the conditions were not right for a breakout at the moment. The majority of the time, we cannot avoid getting trapped in fake breakouts. But in the recent case of TCS, the fakeout could have been avoided. Underlying logic: 1. The market already gave 8% in the impulsive move and created a high. Don't you think it needed a little rest before the next leg up? 2. If you recall my lecture on market structure, you already know that after the creation of a high, we must come down to create a new higher low. The market cannot keep making new highs without creating a higher low. 3. There was a Bearish divergence. The price was moving up and up but the RSI was creating a lower high indicating that there isn't enough buying pressure. (I have already covered this in my older posts) Warning candles: As soon as there was a breakout, there was a series of Hammers + Doji indicating that there is a problem with the follow-up. There was a significant volume on hammer & doji, which is never a good sign for a breakout. It indicates significant selling pressure. A bullish breakout must always be accompanied by a good follow up, else it cannot sustain. Bullish BO needs good bullish candles, NOT dojis. P.S: I am not saying the fakeouts can be avoided. But there are a few cases where fakeouts can be avoided. Also, this is NOT investment advice. This chart is meant for learning purposes only. Invest your capital at your own risk.
NSE:TCSEducation
by johntradingwick
24