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PRICE CYCLE

BREAKOUT
TRADING
By CA Devang Maheshwari
Understanding stocks

To make money in stocks you need to break it


down in steps for clarity & consistency. The
webinar is divided into steps

Step 1 - Understanding Stages of Stocks


Step 2 - Identifying price cycle
Step 3 - Why breakouts are important
Step 4 - Price patterns that work
Step 5 - Common Mistakes
1) Stocks move in cycle
1. Stocks Moves In Cycles
Example 1 Indiamart
Example 2 Balaji Amines
Example 3 Sequent Scientific
2. Identifying Price Cycle
2. Identifying Price Cycle

- Use of Moving Average EMA 10/20


- Time frame Weekly - Larger the time frame lower the noise
2. Identifying Price Cycle
Example Rain Industries
Example Rain Industries
3. What are breakouts
124 Rs

89% run in
4 months
Breakouts are the 'WIN' of
demand of stock over suppliers
of stock
i.e
Buyers win over Sellers 59 Rs

Base & Breakout -2nd Leg up


457 Rs

226% run in
4.5 months

Base & Breakout -3rd Leg up


137 Rs
4. Price patterns & Breakout
1. Cup & Handle BO
1. Example : Rain Industries
2. Example : Deepak Nitrite
1. Volatility contraction pattern
1. Indiamart
2. Birla Soft
Learn + Earn together Get access to my Long term trend
& Swing trades

Continued......
Failed Breakouts
1. Dixon Tech
2. Nitin Spinners
3. MCX
4. Indiabulls real estate
5. Common Mistakes
Common Mistakes

1. Buying Breakout on Wrong side of Price Cycle


2. Not factoring chances of Failed breakout
therefore not doing risk management
3. Following news channels rather than chart
Learn + Earn together Get access to my Long term trend
& Swing trades
THANK YOU

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