One trade cannot make you rich, therefore it is important to not run behind every breakout trade and risk too much on a single trade.
By working equaly on all the 3Ms of trading we can balance our emtions and trade effectively.
Let's see how with the help of 3M framework we can trade above range breakout pattern.
1- Method Management
Simple range breakout...
The quality of our life depends upon the quality of the question we ask.
I think it's the same with trading also, successful traders ask better questions, and as a result, they get better answers. They get answers that help them to know exactly what to do in any situation to produce the results they desired.
Below are the 5 questions that will help you to stay...
Look for Low risk, High reward, and High Probability setups. – Richard Weissman
Many traders get destroyed by fighting the trend, insisting that the market is due to reverse itself or they try to chase the market. They may try to catch short-term countermoves in hopes of making a few quick points, or they may always look to catch tops and bottoms in...
JSW Steel Daily chart.
Range contraction is happening, once we break above 773-775 levels , we can see good upside move in this.
The Ascending triangle most often appears in an uptrend and it is considered a continuation pattern.
The analyst must simply look to see the direction of the previous trend and then make assumption that the previous trend will...
As soon as we see a breakout on the chart we form a basis ( or have a belief ) that the stock will burst and go upside.
We should not try to predict the market. Instead, we should wait and let the market tell whether the breakout is false or true.
You can crosscheck with other indicators. I personally use PRICE ACTION data i.e. after breakout the upper trend line...
LARSEN & TOURBO INFOTECH
Rectangle breakout. LTI after consolidating in a rectangle pattern gave a breakout on the upside with huge volume.
Note- False breakouts are possible (traders need to manage risk accordingly)
My personal tip is to risk only 2% of your trading capital. Buy 30% of your position at CMP & if price respect...
A breakout trade will work almost right away from the start, if the breakout happens with huge momentum and then you see Doji candles or hammer then there is a problem with follow-up. A bullish breakout must always be accompanied by a good follow up, else it cannot sustain. Bullish breakout needs good bullish candles, not Doji.
Note-As soon as you enter a...
Orient Electric -Triangle pattern formation
Orient Electric after trading in a consolidation triangle pattern on Friday gave huge momentum on the upside with good volume.
How to identify false breakout?
On the initial breakout from a range or other chart pattern, a rise in volume indicates strength in the move. Little change in volume or declining volume on a...
OBEROIRLTY: Swing trade
Ascending Triangle Breakout
In Ascending triangle pattern the upper trendline is flat, while the lower line is rising.
This pattern indicates that buyers are more aggressive than sellers. It is considered a bullish pattern and is usually resolved with a breakout to the upside. The pattern is completed on a decisive close above the upper...
Bullish Flag Chart Pattern: Tata Chemicals
The flag represents a brief pause in a dynamic market move & one of the requirements for a flag pattern is that it should proceed by a sharp and almost straight-line move.
It represents situations where a step advance or decline has gotten ahead of itself, and where the market pauses briefly to "catch...
SBIN: Positional & Swing Pick!!!
Symmetrical Triangle breakout.
Risk management :
Enter 30% of your position at CMP, if the price respects the level of 425 then execute your 70% position.
Place your stop loss below the recent swing low, at 416
Go for risk-reward of 1:2
The key is capping the downside risk when you’re wrong, but leaving the upside...
Setups are a very small part of what is necessary for a complete trading system, yet people still claim their setup conditions are their systems.
When you see the setups in stock, you have an increased probability that the stock will go up. But it is through position sizing strategies &
managing the ratio of risk to reward throughout the trade that produces great...
DABUR : SWING Pick!
Simple Channel Breakout.
The bottom line is called the Basic Uptrend line & the upper secondary line is called the Channel line.
The failure to reach the bottom end of the channel is often an early warning that the upper line will be broken, usually indicates a strengthening trend.
Risk Management :
Risk only 2% of your...
SKF India: SWING Pick!!!
Support & Resistance role reversal
Risk only 2% of your capital
Buy 30% of your position if price respect levels of 2700, and wait for the pullback, if tested with heavy buyers then execute your 70% position.
Note= Trade with probabilistic mindset, no matter how much analysis you do...
AXIS BANK : Swing Pick !!!
Simple Symmetrical triangle breakout
Risk management :
Risk only 2% of your trading capital.
Enter 30% of your position at CMP and if the trade goes in our favor then execute your remaining 70% position.
Be patient. Don't bet too soon.
If this trade goes wrong then you will lose only on your 30% position.
The whole idea...
Infosys: Swing pick
Simple channel breakout
Risk management :
Remember odds of trade failing are the highest when the setup is just completed. Wait for the confirmation and be mentally prepared to buy slowly. If you scale in too quickly, you will end up losing more than you should
Buy 30% of your position at CMP, and wait for the pullback, if...
Cipla: Positional and Swing pick!!!
Method: Top-down approach
The uptrend on the monthly time frame,
Upside channel breakout on weekly time,
Symmetrical triangle pattern on the daily time frame
Enter if price closes above triangle pattern confirmed by good volume
Remember the rule: Trade what's happening...not what you think is gonna happen