Jesse Livermore new high breakout setup
One simple breakout setup idea Livermore discusses in this book is breakout to a high from a range near high.
" Say for an instance , a stock is selling around 25 and has been consolidating within a range of 22 to 28 for a considerable period. Assuming that you believe it should sell at 55, and it is at 25 currently. Then buy it the moment it goes above the 28 high."
That is how he explains the setup idea.
This is a classic breakout setup. Day in and day out you will find setups like this on stocks with momentum. Stocks with momentum have their first up leg. Then go sideways for few weeks to month and have a second breakout.
How can you design a scan for these.
Setup needs to be converted in to trading methods. Ideas for setups are everywhere. The skill is in converting the idea in to a working method and scan.
If you know Telechart or any of the software you should be able to put this kind of setup scan very easily.