Breakout Trading Strategy

SESSION ON ADVANCED SWING
TRADING STRATEGY
Breakout trading strategy
By JAYNESH KASLIWAL
(Telegram :Techno_Charts)
NOTE
 In all my charts
 Red line is 21 ema
 Green line is 50 ema
 MACD as normal settings

HOW TO SET TARGETS
 Always set targets based on resistance on charts
 There shouldn’t be target blindly without any
logic
 Always have multiple targets based on time
horizon
 Short term targets are near resistances and long
term targets are far resistance
 Example AMARARAJA BATTERY trade was
shared
HOW TO ENTER A TRADE
 Never enter more than 50 % of quantity in single
go
 Why ?
 If stop loss hits then loss will be minimal
 If price advances in your favour then you can add

more 50% in tranches
 As and when resistances get cleared you can keep
adding quantities at pullback to resistance
 Never add more QTY on breakouts always use
retests
LETS CHECK HOW TO ENTER LIVE
IRB INFRA BREAKOUT DONE
 Now add 50% at breakout region that was 140

 If stock goes max 3% above breakout avoid
adding
 If stock goes to 147 then that is a wrong place to
add stocks
 Your adding should be done at breakout point
only using alerts
 Use alerts to not miss these price ticks
 DO NO ADD ABOVE THE BREAKOUT !

STOP LOSS RULES
 Generally stop loss should be considered as
previous swing
 As long as stock is holding the swing it is good to
go upside
 In IRB the it should be 120-123 region
 If the stop loss is too big then its better to avoid

the trade
 Check the risk by using position sizing calculator
 If its in limit then only enter a trade

NEXT 2 DAYS
 Pullback should always have less volumes
 After confirmation of bullish signs at breakout
region you can further add some 30% more near
140 to 145
 So the total position is now at 80% and hold
 If stock moves up then keep holding and you can

add more 40% once some resistance breaks
 Else keep holding the cash and add when stock
falls some
 Stock went around 15% up and then corrected
again this can be region to add some more 10%
 As long as it doesn’t show weakness the stock
 Should be held
 Check overall market whether there is

bearishness everywhere if yes then hold the
stock.
 The stock has huge volumes and stock is in huge
demand
 Stock touches high of 167 from 140 levels
 Once the base is formed at these levels that is

consolidation then more quantity can be added
using trailing stop loss
 Always add stock in consolidation as they are
cheaper and not in news
TARGETS
MAXIMIZING PROFITS
 Use weekly time frame for marking bigger
targets
 And keep adding at higher levels
 Always maximize your profits in trending stocks
 These stocks will give highest returns and make

wealth for you
MOTHERSONSUMI
 Stock breakouts from resistance
 Resistance at 250 region so you take position at
this level added 50% qty
 Never ever take trade at higher level during
breakout
 You will get trapped 90% times and be sitting at
huge loss
 Most of the retailers get trapped at these
momentum based trades
STOP LOSS
 You stop loss is near last swing that is near last
swing that is around 230 rs
 Check RISK REWARD in each trade
 Whether the risk is handle able and the loss can

be bared
 So risk is around 20 Rs reward should be 40 min
NEXT DAY
 Candle is formed at pullback but is it bullish or
bearish?
 Its completely bearish candlestick
 Bearish marubuzu with no tails at prev breakout

region
 Position shouldn’t be added at this point
REVERSAL SIGN
 Stock forms doji at breakout point
 Time to add some qty around 30 % so total
position is at 60%
 Now having cash for more adding
SOME DAYS LATER
 Stock falls near our stop loss and you can see it
reverses exactly from those levels
 Now is the time to add at near support as risk is
minimun at this point add 40%.
 Your qty at 100%
 Now you have averaged it and minimized your

price
 If stop loss hits exit at loss on 60% qty
 So your loss is reduced and you exit it

CDSL ADDED 50%
ONLY 50% POSITION RUNNING
BSE: ADDING 50%
ADDING REST 50%
TRADE COMPLETE
EXIT RULES IN ALL STOCKS
 Exit depends upon your time horizon to hold the
stock
 If for swing trade then exit at resistances
 Exit some 50% at 1st resistance and keep holding

the stock
 If the resistance breaks then 50% exit the stock
at 2nd resistance
EXIT RULES 2
 If medium to positional trader
 Then keep adding stocks at resistance level
retests
 This will help you to give larger returns
 If you see trend reversal like LL LH
 Then that is time to exit the stock
 Try trading trending stocks for positional trading
 As sideways stock will take time and returns are

minimal

Breakout Trading Strategy

Uploaded by

Copyright:

Available Formats

Breakout Trading Strategy

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Breakout Trading Strategy

Uploaded by

Copyright:

Available Formats

SESSION ON ADVANCED SWING

Breakout trading strategy

 Green line is 50 ema

 MACD as normal settings

 If stop loss hits then loss will be minimal

 If price advances in your favour then you can add

 Now add 50% at breakout region that was 140

 DO NO ADD ABOVE THE BREAKOUT !

 If the stop loss is too big then its better to avoid

 If its in limit then only enter a trade

 If stock moves up then keep holding and you can

 Check overall market whether there is

 Once the base is formed at these levels that is

 Always maximize your profits in trending stocks

 These stocks will give highest returns and make

 Whether the risk is handle able and the loss can

 Bearish marubuzu with no tails at prev breakout

 Now you have averaged it and minimized your

 So your loss is reduced and you exit it

 Exit some 50% at 1st resistance and keep holding

 If you see trend reversal like LL LH

 Then that is time to exit the stock

 Try trading trending stocks for positional trading

 As sideways stock will take time and returns are

You might also like