iCharts Discussions

ajit123 · Posted: Sun Jan 11, 2009 6:55 pm Post subject: failed breakout technique

i am now introducing my new method which i have been using for quite sometime very successfully.this is the failed breakout method.
you might have noticed that 60% of the breakouts fail.so we use this failure as our success.when the market is bullish the success rate of +ve breakout is high and vice versa.these days market is in bearish phase so we are choosing the + breakouts as there failure rate is high.
we place a sell order at the breakout point, and a stop at the recent high of the same breakout.
target is the low of the same range of which we were considering the breakout.
happy trading

ajit123 · Posted: Sun Jan 11, 2009 9:37 pm Post subject: addendum

i will be posting elaborations on this technique with real examples very soon when i get free time,
thanks

ajit123 · Posted: Mon Jan 12, 2009 8:10 pm Post subject: example

here is my first example from real time trade of today.
look at 10 min chart of nifty future today i.e. 12/1/09.
its clear that market is in -ve trend .i was looking for a +ve breakout.
at 12 pm nifty future breaks the 2795 mark. but close at 2785 i.e. below the breakout mark of 2795.made a high of 2809 here.close below the break out mark which is failure of break out. placed a sell order at 2784 which is the low of this bar.stop 2810. you can see a profitable trade there of 40 points.
see it happen again at 1:50. a break of 2773 and a close at 2767.
short at 2758 the low of this bar and stop of 2780 the high of this bar.
again a profit of 25 points.
guys can you see the trades happen.
happy profiting.
thanks.

gautammohapatra · White Belt Joined: 04 Mar 2008 Posts: 21

Thankyou Ajit Sir,

1. Any rules to take profits? How do we know that a downturn (after going short) is over?
2. Same example - would you consider bullish bar at 1:10pm and breakdown bar at 1:20pm also similarly? Then had we gone short below 1:20pm bar we would have been whipsawed? Kindly elaborate this difference.

Thanks

Gautam

ajit123 · Posted: Thu Jan 15, 2009 7:41 pm Post subject: reply

you know the entry point and stop,ok
now the exit!!!!
i calculate the 50% point of previous 10 min candle and put my stop there.
stops are there and take all the trades whipsaws are in every method just calculate the result on monthly basis.

ajit123 · Posted: Thu Jan 15, 2009 7:43 pm Post subject: example

today also see the failure at around 2732 and then all the way to 2678.
everyday one trade guys.40 points wow.

ajit123 · Posted: Wed Jan 21, 2009 8:06 pm Post subject:

did you notice the pattern today???? wow this is giving money each day.