High Volume Breakout stock - Screener (2024)

FAQs

What is good volume for breakout? ›

For Nifty, high volume is considered to be a candle above 125k volume and for BankNifty it's 50k. This indicator allows you to cut the noise and focus only on the high volume candle.

Indicators such as Moving Averages, RSI and MACD can be used to measure the strength of the breakout. Volume: An important factor to identify a breakout is the trading volumes of the stock. It is essential that the volumes traded should be high on the day of the breakout.

Monitor volume and price

One way to identify potential breakout stocks is by looking for those with increasing volume and price momentum. Breakout stocks often have a sudden surge in trading volume, which may indicate growing investor interest.

One common approach is to confirm a breakout with an increase in trading volume. In this method, traders look for a surge in trading activity concurrent with a price breakout. For example, if a stock's price breaks above a resistance level, traders seek a substantial increase in trading volume during the breakout.

Another signal of a good breakout is if the breakout area holds on re-tests. If the price falls right back through the resistance level, this is not a good sign and traders could look to exit the trade. If there are no positive signals, a trend reversal in the opposite direction is more likely.

I have a very good breakout strategy that I have used for a long time and it average around a 50% win ratio.

Capturing volatility is key for breakout traders, and the forex market offers a plethora of opportunities in this regard. The most popular timeframes to capture short-term moves are 5 minutes, 15 minutes, and 30 minutes. Each timeframe can provide valuable insights as well as potential profit opportunities.

The most efficient way to identify breakouts is to use a technical stock screener such as ChartMill. This allows you to scan a lot of stocks simultaneously for potential setups. The best setups occur when the price breaks out (or is about to break out) of a sideways trading range, called a consolidation zone.

How do you find the target for breakout stocks? ›

While there's no sure way to predict future resistance, chart patterns give you a good starting point for establishing a price target. One of the most popular methods involves measuring the height of the pattern and then either adding it to or subtracting it from the breakout price.

By utilizing the Average True Range (ATR) indicator and Simple Moving Average (SMA), it detects potential breakout conditions and tracks consecutive candles that remain within the breakout range.

The higher than average volume helps confirm the breakout. If there is little volume on the breakout, the level may not have been significant to a lot of traders, or not enough traders felt convicted to place a trade near the level yet. These low volume breakouts are more likely to fail.

Upside breakout with above average volume

When a stock's price breaks through that level, the breakout is generally believed to be more significant if volume is high or above average. A breakout accompanied by low volume suggests enthusiasm for the move may be lacking.

A breakout occurs when the price of an asset moves below a support level or above a resistance level. It indicates that the asset price will move further in the breakout direction – but importantly, a breakout requires higher than normal volume to sustain itself.

The best volume indicator in forex is the On-Balance Volume indicator since it gives close to the most accurate feedback after testing significant highs and lows in the market.