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Chetan Kumar
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Price Volume Breakout

From : Chetan Kumar at 01:42 PM - Jun 12, 2010 ( )
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Breakout trading is one of the most popular trading methods used by traders.

What is Breakout? - A breakout is a pattern in which stock price moves outside a defined support or resistance level with increased volume. It sets the stock for a much bigger price action.

What happens in a breakout?

The stock moves past the resistance area. You can imagine a situation as if stock has broken the chain and is ready to run. It alters the perception of traders on the stock and now the same resistance becomes a huge buying point and stock gets propelled by new momentum. Example: Chart Pattern Below. The stock was struggling at 57 but the moment, it went past it - the stock just zoomed to higher levels.


Source: ChartAlert [www.chartalert.com]

As you can see in the chart above, a breakout is a pattern in which stock price moves outside a defined resistance level with increased volume. It then gets followed by more trading action and strong price move in the direction of the breakout.

In markets, there is nothing called certainty. The breakouts also fail i.e. stocks breakout and then fail to follow through and slip back in the range. Hence, one should keep a 3% stop loss below breakout level as a protection strategy. Having said that, the probability of success is generally quite high in breakout; especially in bullish market conditions.




In Reply to above Message (1 to 14 out of 14) -- Latest Replies are put on Top | First | << Previous | Next >> | Last |
paulam patel
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From : Paulam Patel at 07:17 AM - Jun 13, 2010 ( )
Dear all, price and volume increase list are availablon --www.icharts.in/check this


Mohamed Idris A R
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From : Mohamed Idris A R at 01:07 AM - Jun 13, 2010 ( )
Hi all. I am new to Mudraa. I am aiming at emerging as a information service provider. I am looking at direct market access. And some information about volumes is that 1. Most of our brokers rather all brokers give delayed volume data. We need some special data base to track the volumes. So until or unless some one has direct market access and an extremely fast server it cannot reach anyone. 2. Quantitative traders as they called are traders take volume into consideration for trades need some process wherein the trade is executed during the momentum automatically. It cannot be manual so they use ATR (Automatic Trading Robots) for the same. Break out trading is slightly different. I shall be obliged to write articles regarding the same in a different forum but. However I thought this might be useful for people eying at volume breakout trading wrt data.


Chetan Kumar
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From : Chetan Kumar at 12:35 AM - Jun 13, 2010 ( )
gr8 Karan ji............hope you will also provide the volume details to all the mudra members............so that they can also judge the scripts from the article provided from state of the market. As no one will go for any paid service. 


karan kapoor
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From : Karan Kapoor at 04:14 PM - Jun 12, 2010 ( )
CHETAN JI THE ARTICLE IS GOOD AND DEFINATELY WILL ENHANCE KNOWLEDGE BUT THE ARTICLE IS INCOMPLETE AS PRADEEP JI MENTION ABOUT THE VOLUMES.. IT WILL ONLY BE COMPLETED FOR PAID SUBSCRIBERS OF THE OWNER OF THAT PARTICULAR SIGHT, WHO IS AN ANALYSIST WHO SITS ON TV AND GIVES RECCOMENDATIONS , THE SUCCESS CAN BE JUDGED FROM HIS PERFORMANCE ON CHECKING THE HISTORY, THOUGH I AM NOT VERY IMPRESSED WITH HIS RESULTS. THIS SITE SHOULD ONLY BE VISITED FOR ENHANCING ONE'S KNOWLEDGE ONLY.


karan kapoor
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From : Karan Kapoor at 04:04 PM - Jun 12, 2010 ( )
hmmm.. volume chart kahan se milega pradip ji... state of the market par tho nahin hai.


pradip ray
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From : Pradip Ray at 03:42 PM - Jun 12, 2010 ( )
Can we get the volume frm this chart?


kumari rengasamy
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From : Kumari Rengasamy at 03:34 PM - Jun 12, 2010 ( )
VERY NICE SUBJECT SIR THANKS KEEP IT UP


Barun Biswas
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From : Barun Biswas at 03:19 PM - Jun 12, 2010 ( )
kEEP IT UP SIR.


karan kapoor
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From : Karan Kapoor at 03:17 PM - Jun 12, 2010 ( )
hmmmm..... state of the market...


anush amate
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From : Anush Amate at 03:11 PM - Jun 12, 2010 ( )
Thanks a lot. Great to learn such Hard core lessions from you. thanks are due to MUDRAA also for providing this platform.


suryabhan singh
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From : Suryabhan Singh at 03:00 PM - Jun 12, 2010 ( )
very good


sanjay Tiwari
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From : Sanjay Tiwari at 02:45 PM - Jun 12, 2010 ( )
Photobucket


karthik v
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From : Karthik V at 01:46 PM - Jun 12, 2010 ( )
Nice article .Thanks for sharing


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