This stock has everything one should look for in a good breakout setup.
- Stock in orderly uptrend pre breakout
- series of narrow range day pre breakout
- orderly sideways consolidation near high
- high volume breakout
- close near high
- low float of 7.4 million
How do you find these breakouts
By everyday running the a breakout scan and matching the best setups to your criteria. In order to do that you must have at least 25 to 30 past examples of what to look for in a good breakout. If you have 100 plus examples of good setups , it is even better.
Once you run the scan entering as soon as it shows up in your scan and meets your scan condition is key as it will help you profit from rest of the days gain.
Where does the stop go on these
Because we are buying them for immediate follow through, it should be at low of the day.
What kind of profit potential this setup offers
The profit on these kind of trades can be 8 to 40% in few days to week.
If you want to make money trading this kind of setup study my post on momentum burst.