Hello Hitesh Sir,
I had a query regarding the breakout volume. As you have discussed earlier and has been stated in many books on technical analysis that volume during the breakout week should exceed the average of past weeks by a good amount.
My query is on how to judge the volume with respect to deliveries for the day/week. Nowadays, many high frequency trading LLP do intraday trading in huge volumes, which gives an illusion of volume breakout but as per the textbooks, the volume breakout signals big institutional entries while this is not the case with these high frequency trading companies. The chart seems to show a perfect breakout with extremely high volumes but the volumes end up being intraday spikes.
Do you have any criteria to avoid /filter these kind of actions.
I hope my question was clear and thanks in advance.
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