Are you afraid to trade Breakouts because of the risk of them failing?
Breakouts are among the most powerful setups in trading—but only if you know how to spot the right ones and read the “tells” like a pro. In our upcoming Master Trader Breakout session, you’ll learn exactly how we turn these setups into high-probability, profitable trades. Master Trader Strategies (MTS) reveal how to buy/short the initial breakout/breakdown, capitalize on retracements to key support/resistance levels, and leverage continuation patterns (like the one with WT) — all designed to maximize gains with precision.
Real Setup, Real Profit: Let’s Analyze the Breakout Setup!
Here’s a winning example that could have been yours, which it was for many of our subscribers:
WT Breakout Setup:
- Setup: On 11/6, WT had an Igniting Gap from a sideways trend into the 20- and 50-MA, which stalled at the prior high (Major Resistance). The gap was excessive and we don’t buy Breakouts that run from the bottom of the base through the top of the base. But we had a bullish bias, monitoring it for the perfect setup.
- Trigger: After the Igniting Gap, what did WT do? It consolidated at resistance for two more days with very little retracement into the gap, which is bullish price action. Master Trader Tip: Consolidations through time versus retracement are stronger because the demand is so high that it is not able to retrace lower for buyers to accumulate at lower prices.
- On 11/11, WT gapped over the high of this 3-bar consolidation which was our entry (either a 5-Min. high or a bullish setup on a retracement on a smaller time frame). This secondary gap Breakout from consolidation was the “tell” to buy WT stock (or liquid call options) for high-probability profit potential.
- MTF Alignment: Weekly and daily charts confirmed the bullish uptrend and Price Void (i.e., insignificant resistance to the left), increasing our confidence.
Execution and Profit Potential:
Our strategy recommended buying the stock where shown with a stop loss under the low of the 3-bar consolidation. With our straightforward trail management and selling into strength, the trade locked in a generous profit. Here’s the impact:
- Sample Profit: Assuming a modest max risk of $300/trade, you’d have pocketed $750 managing it the way we recommended.
Master Trader Strategies (MTS): Your Blueprint for Profits in Any Market Condition
This is just one example of what’s possible with Master Trader’s time-tested strategies! Want results like this? Join us to discover:
- Precise, High-Probability Trade Setups for swing trading stocks, ETFs, and options.
- Daily Trade Ideas and Alerts in our Swing and Options Trader Letter, designed to maximize gains across market conditions, as well as in our Real-Time Green Trading Room.