- prior to breakout there is 5 to 20 days of shallow pullback or sideways move
- during the pullback or sideways move there is range contraction
- prior to b/o day stock has very narrow range bar or negative bar
- stock is not up 3 days in a row
- the move prior to correction/sideway action should be linear
- on b/o day there is volume and price surge
- closes near high
If you setup the scans I discussed yesterday and look for setups like these , you will find some good setups.The key is to be selective and focus only on good setups.