My millionaire students and I, we all trade with the same framework.
Volatile stocks like to follow this framework because the people trading the stocks are predictable during times of high stress.
The framework consists of 7 main steps.
You can see the entire framework here.
The most explosive part of the movement comes from steps 2 and 3 …
The move is called a stock breakout.
It happens when the chart shows obvious resistance from a previous spike. Then, the price shoots past that level violently to make new highs.
I have three breakout examples from this year to show you. In the image below, every candle represents one trading day:
There are stocks that spike like this every week.
For example, earlier this week we watched Regencell Bioscience Holdings Limited (NASDAQ: RGC) breakout past March 13 highs of $14.85.
On the RGC chart below, every candle represents one trading minute:
We CAN trade these breakout patterns!
The Next Breakout Trade
It all starts with a watchlist of recent spikers …
We need to find the level of resistance from the chart of a recent runner.
Like FST Corp. (NASDAQ: KBSX), the stock spiked 330%* on March 18 and put in a top around $6.
Look at the chart below, every candle represents on trading day …
Firefly Neuroscience Inc. (NASDAQ: AIFF) is another good example of a possible breakout past $6, coincidentally.
On the AIFF chart below, every candle represents one trading day:
But identifying these possible breakouts, and trading them, are two very different things.
We need to ensure that we follow the strategy and get a good entry. Otherwise we could get stuffed by a fake/weak breakout like 908 Devices Inc. (NASDAQ: MASS) …
Look at the cart below of MASS when it tried to push past $4.50 resistance. Every candle represents one trading day:
It’s essential that traders know how to play this pattern. Otherwise they could get stuck buying shares at the top of a failed breakout.
How To Enter A Breakout Trade
Every stock spike is a little different, like a snowflake.
But within the breakout price action, there’s a common thread that we can follow to get a good entry on any stock that’s about to shoot higher.
And today, Friday, March 21, we have a perfect opportunity to see these patterns in action, LIVE.
Fridays are especially volatile, especially toward the afternoon. We could see a huge breakout!
Join my team LIVE, at noon Eastern TODAY, to look for the next breakout trade.
Take advantage of this world-class instruction from verified traders! My team and I are comfortable with this explosive trade strategy.
We’ll teach you how to trade the next breakout TODAY!
Cheers.
*Past performance does not indicate future results
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