Breakouts are probably the easiest trades for new traders. Breakout trading is a very simple concept and one I thought I would mention again because these are the easiest types of plays out there and ones you definetly don’t want to miss. We took both of these trades (SCI and RYL) and made nice profits off of them today
SCI had tapped that 13.2 level 3 times before finally breaking out. Remember, the more times a stock taps an area, the more powerful the breakout is gonna be when it finally happens. It essentially formed a “flat top” making the breakout very easy to see. We bought the stock at13.23 in the boom room right as it was breaking out. The breakout caused the volume to pour in and the stock to pop. Perfect entry for this type of trade. We sold off shares in the 13.4’s and 13.5’s for a nice daytrade.
RYL was another flat top breakout that we traded today. We bought this stock at 26.98 as it was breaking on multiple time frames (1 min intraday chart and the daily chart). Remember round numbers usually make for big breakout spots on bullish charts. So I knew I wanted to be in this stock around that 27 mark. take a look at the daily and intraday charts and see if you can understand why we enetered it there.