How to use the Homma 'Khela Hobe" signal effectively?

Checking these 2 things before entry doubles the hit rate.

Dec 02, 2023

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"I fear not the man who has practiced 10,000 kicks once, but I fear the man who had practiced one kick 10,000 times" ~ Bruce Lee

Read this article which explains the Khela Hobe scanner: (link)

Once you have the “Khela Hobe” signal,

These are the following questions you will be grappling with.

In this article, I will answer all of them.

Which ones of these are high-probability setups?
When do I enter the setup?
What now, that I have missed the setup on entry day?

What makes the setup a high-probability setup?

Breaking out of a pivot:
As BBHV is a breakout setup, the most important condition is that the price breaks out of a pivot high.

This can be breaking out of an O Neil pivot, a Low/Cheat pivot (i.e. any tight range below the actual base high pivot), or a DTL (Down Trend Line) pivot.

See this tweet below where I marked the different breakout pivots around a base:

https://x.com/SakatasHomma/status/1730458757044334945?s=20

Examples of BBHVs with valid Breakouts:

Examples of BBHVs with invalid Breakouts:

Closing at the Top 25% of the candle range:
The higher the better. 20% is good. 10% is peak.
But at the very least, make sure the wick is not longer than the candle body.

A close at the day’s high means huge strength.

You need huge strength.

Following this rule will dramatically increase your hit rate.

When to enter the setup?

If the candle has broken out of the pivot, an entry is open.

If you want a confirmation, you can wait for it to close.

But there is a trade-off.

The buy point might get further extended from the optimal buy point and you have a large Stoploss (hence smaller the size).

The downside?

If you enter early, by the end of the candle it might be a fakeout (squat).

My advice!

If you are a swing trader, don’t wait for a close. Get the smallest risk (SL).

If you are a positional trader/investor. Wait for a confirmation and therefore, closing of the breakout candle.

What if you missed the setup on entry?

That’s okay.

Here are the 4 possible outcomes post a BBHV breakout:

Breakout failure:
In which case you will be glad that you missed it. Lol
Follow-through immediately:
In this case, you missed the entry and simply wait for another one.
Pullback to the Breakout zone:
This is a normal price action behavior. More than 50% of the time, BBHVs don’t follow through immediately. They either pullback (this can last 1-10 days in general) to the breakout zone. Or,
Get tight around the upper range of the breakout candle:
Especially if the breakout candle had a big range (>10%).

The 3rd and 4th outcome presents the most lucrative entry. Better than the actual pivot breakout entry.

The only mehnat (hard work)!

You have to track them after the breakout.

This is laborious and time-intensive.

Examples of the different outcomes post BBHV:

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Summary:

To summarize,

A “khela hobe” candle, that breaks out of a base and closes above the Top 25% of its daily range is a high-probability breakout.

Once “khela hobe” appears, it may not follow through immediately but rather pullback to the breakout zone and/or form a tight range around the top half of the “khela hobe” candle. This provides an even more lucrative entry when the price finally breaks out of this zone.

But! you have to track it.

That's all for today.

Btw, if you noticed that my “khela hobe” candles are differentially coloured.

That’s because I use a custom-made trading view indicator exclusive to my HPA community members (and my Masterclass participants).

I also send handpicked alerts to the group when a peak BBHV breaks out real time. This helps catch them at the perfect entry point.

Checkout the offer below:

They have successfully helped 100s of traders be consistently profitable at a bare minimum fee:

The Sakatas Homma TA masterclass for beginners:
A monster course 8-10 hours. Hourly sessions on weekends. Twice a year.
Please register for the next batch using the link below.
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Watch my 1st session of the Autumn 2023 batch.

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