Trading based on technical indicators has become a widely popular strategy among retail and professional traders alike. One of the tools that traders frequently use for short-term strategies is Chartink, a powerful online stock screener known for its real-time scanning capabilities. Among various techniques, the ‘Chartink 15 Min Breakout’ strategy has gained considerable attention, especially for intraday traders looking for quick movements. This method focuses on identifying stocks that are breaking out of a range or resistance within a 15-minute interval, signaling potential entry points with momentum.
Understanding the 15-Minute Breakout Concept
What Is a 15-Minute Breakout?
A 15-minute breakout refers to a price movement where a stock breaks above or below a defined resistance or support level based on 15-minute candlestick charts. This time frame is popular among intraday traders because it balances frequency and reliability providing enough data to form patterns while remaining responsive to real-time market shifts.
Why Use the 15-Minute Time Frame?
The 15-minute chart is ideal for:
- Capturing early trends before they fully form on longer time frames
- Reducing market noise compared to 1-minute or 5-minute charts
- Allowing multiple trade opportunities in a single session
This timeframe is especially effective for traders who want to avoid overnight risks and close all positions by market close.
How Chartink Helps with 15-Minute Breakouts
Real-Time Scanning and Filters
Chartink allows traders to build and use custom scans that update in real time. By using conditions specific to 15-minute intervals, users can filter stocks that are breaking their high or low levels, increasing volume, or showing bullish/bearish candlestick patterns. These scans can be scheduled to run every 15 minutes, giving traders timely alerts.
Custom Scanning Formula Example
Here’s an example of how a simple Chartink 15-minute breakout scan might be structured:
- Current candle’s close >previous 3 candles’ high
- Volume >2x average of last 3 volumes
- Price above 20 EMA
This formula filters for stocks showing strong momentum with volume confirmation and trend support.
Benefits of the Chartink 15 Min Breakout Strategy
Quick Entry and Exit Opportunities
One of the primary benefits of this strategy is the ability to capitalize on short-term price movements. Once a stock breaks out from a 15-minute range, it often continues in that direction, allowing traders to catch early moves.
Better Risk Management
Since the time frame is relatively short, it allows for tighter stop-loss placement. Traders can define their risk more clearly by setting stop losses just below the breakout level or candle low. This makes it easier to calculate risk-reward ratios.
High Liquidity Picks
Most 15-minute breakout scans on Chartink are filtered for volume, ensuring that the selected stocks are actively traded. This means better liquidity and less slippage for entries and exits.
Key Indicators to Combine with 15-Minute Breakouts
Volume Indicators
Volume is critical when validating a breakout. A breakout on low volume may be a false signal. Traders often look for volume that is at least 1.5x to 2x the average of previous candles. This confirms that the breakout has strong participation from market participants.
Moving Averages
Using moving averages like the 20 EMA or 50 SMA helps confirm the trend. If a stock is breaking out above recent highs and is also trading above key moving averages, it adds further reliability to the signal.
Relative Strength Index (RSI)
RSI can help filter overbought or oversold stocks. A breakout with RSI around 50-70 may indicate healthy momentum, whereas an RSI above 80 might be a sign of exhaustion.
How to Create Your Own Chartink Breakout Scan
Steps to Build a Custom Scanner
Creating a custom 15-minute breakout scan in Chartink involves the following steps:
- Go to the Chartink scanner page
- Select ‘Create Scan’
- Choose the 15-minute time frame
- Add conditions such as:
- Current close >previous 3 highs
- Volume spike condition
- Price above moving average
- Run the scan during live market hours
Once you have your scan set up, you can bookmark it or receive alerts if using a premium plan.
Trade Setup and Execution
Entry Criteria
Enter the trade when the stock breaks the high of the previous 15-minute candle with a volume surge. Wait for candle confirmation if needed, or enter on the breakout if momentum is strong.
Stop Loss Placement
Common stop loss strategies include:
- Below the breakout candle’s low
- Below a nearby support level
- ATR-based dynamic stop
Target Setting
Targets can be set based on:
- Previous resistance levels
- Fibonacci extensions
- Risk-reward ratios of 1:2 or 1:3
Exiting partially at different targets can also help lock in profits while letting the rest run.
Common Mistakes to Avoid
Chasing the Breakout Without Confirmation
Entering a trade too quickly without confirmation can lead to losses, especially during false breakouts. Always look for supporting signals such as volume or candlestick confirmation.
Ignoring the Broader Market Trend
Even if a stock breaks out, it may not perform well if the overall market is bearish. Always check the market sentiment and indices before executing trades.
Overloading with Too Many Trades
Since Chartink may show multiple breakout stocks during volatile sessions, avoid entering too many trades at once. Focus on quality over quantity.
Tips for Success with 15-Minute Breakout Trading
Backtest Your Strategy
Before going live, backtest your scan results with historical intraday data. Check how often the breakout led to a successful trade and refine your conditions accordingly.
Paper Trade First
Practice your strategy in a simulated environment to build confidence and learn how price reacts around breakout points.
Be Disciplined
Stick to your entry and exit rules. Avoid emotional trading decisions. Have a plan for every trade before entering the market.
The Chartink 15 Min Breakout strategy offers a powerful way to capture short-term price movements with high precision. By combining well-defined technical indicators and strict risk management, traders can improve their chances of consistent profits. Whether you’re a beginner or a seasoned trader, this method provides a structured approach to intraday trading. With practice, observation, and patience, the 15-minute breakout setup can become a key part of a successful trading routine. Remember to always adapt your strategy based on market conditions and keep learning to refine your edge.