Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in and Co-Creator of Algomojo (Algorithmic Trading Platform for DIY Traders)

How to Handle Nifty Breakout Trades?

48 sec read

Breakouts

One of the toughest part in trading is you see a trend breakout and not try to trade against it. However most of traders love to short a strong trend for smaller gains and the short sellers keep on piling up every up every upmove. When you are seeing a breakout on your charts one of the questions you have to ask yourself is “is this breakout really strong on weak breakout” and that understanding make you to ride the trend. Else we will be the weaker prey and ends providing liquidity to the strong players!

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Currently Nifty September Futures on the 4 hourly charts are in a breakout and momentum traders are driving this market post the long consolidation.

Questions to ask yourself to get better resolution about the market

So is this breakout strong?
Who is driving this rally?
Are these players who are driving this market strong?
How long they remain strong? Who is shorting this market at every rally?
And why people do so?
Where is the herd mentality?
What is my trading objective with the given situtation?
Am I patient enough to handle this trade?
When i have to prepare to exit if something goes wrong against my opinion?

Possibly asking these questions to yourself will nurture you to become a better trader or even a better speculator.

Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in and Co-Creator of Algomojo (Algorithmic Trading Platform for DIY Traders)

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