Breakout Trading Strategy1

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

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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

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