Pls explain the strategy of price-volume breakout. how it use in niffty future trading and which time frame is good for niffty trading
Price-volume breakout:
A breakout is a pattern in which stock price moves outside a defined support or resistance level with increased volume. It sets the stock for a much bigger price action..
When you find this pattern on any stock then there will be a trading opportunity.
Check the below image:
Its Nifty Future intraday graph (30 minutes chart). Check for
Case 1:
Nifty future break out intraday 7940 level with increase in volume, so there is a buying opportunity, on can go long here.
Case 2:
Nifty future is not able to break out 7940 level because there is no increase in volume, so no trading opportunity.
One should check the volumes at support or resistance break out for trading opportunity.
1 Like