There are 3 important factors that you need to find breakout signals to buy with high probability of making a profit on a trade.
3 Important Factors
- You must know when the breakout occurs.
- You must know the direction and strength of the trend.
- You must have a higher than average volume.
BREAKOUTS
Breakouts occur when the short term trend changes to:
- Bright Green for a Buy Signal
- Bright Red for a Sell Signal
You can have a Breakout from:
- a pullback or retracement from the trend
- a breakout from a consolidation
- a breakout from a reversal of the previous trend
DIRECTION AND STRENGTH OF THE TREND
Breakouts for the strongest Buy Signals,come from these setups in this order of potential.
- Trends with long term Bright Green and short term Bright Green
- Trends with long term Dark Green and short term Bright Green
- Trends with long term Dark Red and short term Bright Green
- Trends with long term Bright Red and short term Bright Green
VOLUME
Different Breakouts come with different increases in Volume
- Breakouts with low volume are usually false breakouts.
- Breakouts with higher than 50 day average volume increase the possibility of a profitable trade.
- Breakouts with volume percent set at higher than 100% are the best setups.
- Breakout with higher than 150 volume percent are usually from an event of news
- Select the Detailed Quote to find the news on that particular security.
IMAGES BELOW THAT DEMONSTRATE THESE SETUPS.
Setup Screen
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Buy Signals
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With Strong Trends you get these kind of Results
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These same setups work for Sell Signals as well.