The most important is how to find the breakout levels. This section will tell how to find the breakout levels.
To find the breakout levels for any given day, we take into account previous day’s range. Based on previous day’s range and current day’s fluctuation, we find the breakout levels. Based on previous day’s range, we create 3 areas of trading.
These 3 areas are
1: Best possible Trading
2: Good Trading
3: Useless Trading
Follow the below steps to calculate the breakout levels.

Step 1: Find out the previous day’s high and low.
Step 2: Find out current day’s high and low at any point of time.
Step 3: Note down 2 fractions (0.45 and 0.75)
Step 4: Find the range of previous day. (Previous day high – Previous day low)
Step 5: Multiply the range for previous day with the two fractions from step 3. (0.45 and
0.75). Mark this result as MF1 andMF2.
Step 6: Now find current day’s range (Today’s high – Today’s low)
Step 7: Find out whether current day’s range is below MF1, between MF1 and MF2 or above MF2.
Step 8: If current day’s range is below MF1, then breakout levels are
Upside Breakout = Today’s low + MF1.
Downside Breakout = Today’s high – MF1.
Step 9: If current day’s range is between MF1 and MF2, then breakout levels are
Upside Breakout = Today’s low + MF2.
Downside Breakout = Today’s high – MF2.
Step 10: If current day’s range is above MF2, then DO NOT TRADE.
Step 11: Once we know the breakout levels, we can buy above Upside Breakout and sell below Downside breakout.
Step 12: Target should be 0.7%.
Step 13: Stop loss should be 0.8% or if the underlying is trading below our buy price or above our sell price for more than 10 min, then square off the position.
Step 14: This trading system is best suitable for those who can trade in multiple stocks and are very active in trading. One should not expect more than 1% from this system.
Step 15: You can find the breakout levels for free using the below website
Breakout Calculator
or
Breakout Calculator