Breakouts come in all shapes and sizes and many are afraid of trading them because of uncertainty, fear of failure, and bad experiences of Breakout Failures.
Buying Breakouts from bottoming patterns can be even more treacherous because the consolidation is a downtrend is often just that – a consolidation in a downtrend – as opposed to a trend change prior to a new uptrend.
Today we will review a No-Brainer Breakout Setup in a bottoming pattern that often results in a quick swing gain despite it developing into a new uptrend or not.
Breakouts are among the most powerful and profitable setups in trading—if you know how to spot the right ones and execute like a pro.
Discover how we consistently turn these setups into high-probability money-makers. You’ll learn how to leverage Master Trader Strategies (MTS) to buy breakouts and maximize gains with laser-sharp precision.
No-Brainer Entry is a Buy Setup following a Breakout with a Void
- The Setup: Although CNR is in a prolonged downtrend (notice the declining 200-MA), the multi-month consolidation (see the flat 20- 50-MAs) showed stabilization and equilibration of supply and demand; thus, we began monitoring for a Breakout setup.
- On 7/14, it traded through Major Resistance, making a higher high (step one of a potential new uptrend, which is two or more HHs and HLs).
- CNR then retraced and reversed above the rising 20/50-MA. We call this a Master Trader Buy Setup, where you buy over the high of the reversal with a stop under the reversal. Since it already broke out, this pullback and reversal after the Breakout is a very high-probability Setup since we are expecting another HH, which is precisely what happened.
- MTF Alignment: Weekly and monthly charts were also bullish Breakouts with a Price Void, giving us the confidence to strike.
Execution + Results = PROFIT
With our clear entry and trail management strategies, we sold partial lots into strength and trail stopped the final position for an easy-to-manage six-day swing trade.
Our Spreadsheet calculates position size based on a hypothetical $300 Max Loss per trade.
Based on that, as you see, 90 Shares generated an impressive $264 Gain, which was a 11.7% return on capital.
Example Profit: Had you bought 500 shares, as shown and managed as we recommended, you would have booked a tremendous gain of $2,275!
Profits Like These Are Just the Start.
This is just one example of the profit potential waiting for you. Here’s what you’ll gain with Master Trader Strategies (MTS):
- High-Probability Trade Setups for swing trading stocks, ETFs, and options.
- Daily Trade Ideas and Alerts in our Swing and Options Trader Letter, tailored to thrive in any market.
- Real-Time Guidance in our Green Trading Room to help you spot and seize profit opportunities.
Don’t Wait to Make Money. The Next Breakout is Coming—Will You Be Ready?
Join the Advisory Letter and start profiting from proven strategies that deliver results. This is your moment to trade with confidence, precision, and success.
Sign up today for the Advisory Swing and Options trader and let’s trade the setups that count!
Don’t Wait to Make Money. The Next Breakout is Coming—Will You Be Ready?
Join us now and start profiting from proven strategies that deliver results. This is your moment to trade with confidence, precision, and success.
Sign up for the Swing Letter and let’s trade the setups that count!
Buy the Swing Course, the Position, and the Money Management Course is 50% off! Click Here
