BREAKOUT BUY AND SELL – INTRADAY CONCEPT BASED ON OHLC

BY SANTU BABA

1. GET OPEN, HIGH, LOW AND CLOSE VALUES OF A STOCK AT EOD, FOR ANY STOCK

2. CALCULATE X = (O+H+L+C)/2

3. BREAKOUT BUY = X – LOW

4. BREAKOUT SELL = X-HIGH

5. FOR BUY, STOPLOSS WILL BE BREAKOUT SELL LEVEL AND VICE –VERSA FOR SELL

6. FOR ENTRY NEXT DAY, CHECK TOP 3 STOCKS FOR BUY & BOTTOM 3 STOCKS FOR SELL

EXAMPLE: SBIN (AS ON 4-MAY-18)

1. OHLC VALUES :

a. OPEN : 243.5
b. HIGH: 243.9
c. LOW: 240.35
d. CLOSE: 241.95
2. X = (O+H+L+C)/2 = (243.5+243.9+240.35+241.95)/ 2 = 484.85

3. ENTRY:

a. BREAKOUT BUY = X – LOW = 484.85 – 240.35 = 244.5

b. BREAKOUT SELL – X – HIGH = 484.85 – 243.9 = 240.95

i. STOPLOSS FOR BUY = 240.95

ii. STOPLOSS FOR SELL = 244.5