A 52-week-high breakout routine (Hindi video)

Name: A 52-week-high breakout routine (Hindi video)
Uploaded: 2023-07-15T22:11:00-07:00
Duration: 14 min 23 s
Channel: Techno Charts
Description: A swing-trading routine: screen for stocks near their 52-week high, review each chart, and trade only volatility contractions and short flat bases with a planned stop.

Hindi · 14:23 · Published 2023-07-15 · From Techno Charts, the founder’s YouTube channel · On YouTube as “Best Chartink Screener for Swing Trading Strategy | Breakout Trading Near 52 Week High”

A swing-trading routine: screen for stocks near their 52-week high, review each chart, and trade only volatility contractions and short flat bases with a planned stop.

A 52-week-high breakout routine

The video is in Hindi. The method, in English:

Step 1: a strict screen. The routine starts with stocks that are both technically and fundamentally sound:

the close is within 5% of the 52-week high;
the price is above ₹100;
the close is above the 21 and 50-day averages, so the stock is already in an uptrend;
daily volume is above 50,000 shares;
return on equity (ROE) and return on capital employed (ROCE) are both above 15%.

The thresholds are a starting point: raise the volume floor, add a market-cap filter or switch the 21-day average for the 50-day to suit your style. Futures-and-options stocks are skipped; the cash segment is where the setups are traded.

Step 2: open every chart. A typical run returns 80 to 100 stocks. That sounds like a lot, but with practice each chart takes about 30 seconds to judge, so the whole list takes about 40 minutes. The aim is not to trade every stock but to find the few that show one of two patterns.

Step 3: trade only two patterns.

Volatility contraction. After an uptrend, the stock forms a base in which each pullback is smaller than the last, for example 15%, then 10%, then 7%: sellers are drying up. The last contraction should be under 7 to 8%, because the stop goes below it; if it is wider, skip the stock. Entry is on the breakout above the last high, with an alert set at that level. A cup with handle is a common variant and is traded the same way.
Short flat base. After a sharp run-up, the stock moves sideways in a tight rectangle, usually for a month or less. The range between the top and bottom of the base should be under about 10%, and smaller is better: a small range over a short consolidation is the setup to look for; a wide, loose range is not.

Step 4: check the volume. In a healthy base, volume on up days is larger than volume on down days, and it increases on the right-hand side of the base as the stock approaches the breakout.

Step 5: plan the risk first. With the stop below the last contraction, aim for at least two units of reward for every unit of risk: a 7 to 8% stop implies a target of at least about 15 to 20%. If the base is too wide to allow that, there is no trade.

Doing this in Market Strength. Open the Near 52-week high screen and set “Within % of high” to 5. In the custom screen builder, add the price, moving-average and ROE/ROCE filters (India fundamentals come from NSE results filings). Two differences to know: the scanner’s liquidity filter uses traded value (₹10 crore a day) rather than a share count, and its VCP and Flags screens use their own published rules (the VCP screen now uses the same 8% limit for the last contraction, and shows wider ones as Forming). Today’s matches are on the stocks near 52-week high today page.

Read the guide: 52-week high scanner for NSE stocks

A 52-week-high breakout routine (Hindi video)

A 52-week-high breakout routine

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