Guys, In this post we try to share a short-term trading strategy which works well and can create enormous wealth in short term.
- Look at the companies trading near 52 weeks high
- Check for a breakout.
- Stay invested till the prices are soaring.
- Market cap of the company should be more than 1000 cr.
Now let me give you an example of a breakout. ( All the charts are on a daily time frame.)
How to calculate the target price?
There are multiple ways of calculating target price. I prefer Fibonacci retracement of 0.5% with increasing volumes. You can look at increasing volumes (use OBV indicator) in the scrip. If the weekly volume is fading down then the scrip is on verge of a correction and you need to book profits.