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failed breakout technique |
ajit123 White Belt
Joined: 11 Oct 2006 Posts: 65 Location: bokaro,jharkhand
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Post: #1 Posted: Sun Jan 11, 2009 6:55 pm Post subject: failed breakout technique |
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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 |
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ajit123 White Belt
Joined: 11 Oct 2006 Posts: 65 Location: bokaro,jharkhand
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Post: #2 Posted: Sun Jan 11, 2009 9:37 pm Post subject: addendum |
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i will be posting elaborations on this technique with real examples very soon when i get free time,
thanks |
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ajit123 White Belt
Joined: 11 Oct 2006 Posts: 65 Location: bokaro,jharkhand
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Post: #3 Posted: Mon Jan 12, 2009 8:10 pm Post subject: example |
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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. |
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gautammohapatra White Belt
Joined: 04 Mar 2008 Posts: 21
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Post: #4 Posted: Mon Jan 12, 2009 10:08 pm Post subject: |
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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 |
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ajit123 White Belt
Joined: 11 Oct 2006 Posts: 65 Location: bokaro,jharkhand
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Post: #5 Posted: Thu Jan 15, 2009 7:41 pm Post subject: reply |
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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. |
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ajit123 White Belt
Joined: 11 Oct 2006 Posts: 65 Location: bokaro,jharkhand
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Post: #6 Posted: Thu Jan 15, 2009 7:43 pm Post subject: example |
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today also see the failure at around 2732 and then all the way to 2678.
everyday one trade guys.40 points wow. |
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ajit123 White Belt
Joined: 11 Oct 2006 Posts: 65 Location: bokaro,jharkhand
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Post: #7 Posted: Wed Jan 21, 2009 8:06 pm Post subject: |
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did you notice the pattern today???? wow this is giving money each day. |
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