The Only Setup You Need to Know - The Breakout-Remount - Bulls on Wall Street

The Only Setup You Need to Know – The Breakout-Remount

My favorite setup for part-time trading is the breakout-pullback setup.  It is the bread and butter setup for swing traders who can not follow every tick in the market.  While it is a simple setup, there are a number of variations of the setup that need to be understood.  The variation we are discussing today is what I call the “breakout-remount”.

Three steps are necessary for the breakout-remount:

1.  A strong breakout clearing resistance with strong price and volume action.

2.  A breakout failure, with price violating the bottom of the breakout bar, former resistance and a moving average (20, 50 or 200 day moving average)

3.  A remount of the moving average on strong volume.

This setup often leads to powerful moves as the initial “weak” entrants are shaken out of the trade.  In this two-minute video I go over the breakout-remount setup using the recent breakout-remount setup in $NFLX.

Now that you have watched the video, find some “breakout-remount” setups and post them in the comments below, and I will give you my feedback.  New readers can review Part 1 of the series, the breakout-pullback setup.

My focus list is, market analysis and trade alerts are all featured in the Market Speculator Part-Time Swing Trade Report.  If you would like to receive the swing trade report and alerts, sign up for the free trial.  Follow me on twitter or email me at SinghJD1@aol.com

Paul Singh Administrator

10 thoughts on “The Only Setup You Need to Know – The Breakout-Remount”

  1. Here are some:

    adsk – has remounted the 20dma and the 50dma is in its sights.

    kate – has snapped back from huge failure after earnings; 50dma and 20dma are closeby but not sure if it will fade

    dks – failed on day 1 after earnings but remounted on day 2 and has steadily churned up since; maybe too late to enter

    zbra – a more gradual decline after brakout and then a steep breakdown but has been edging upward last few sessions

  2. ABB has a gap up 7/22/14. A breakout failure thru both 50 ma and 20 ma and then a remount on the 20 ma but not on the 50ma

  3. I thought the first video was the ONLY swing set up we needed to know. hah. j/k. Thanks for sharing. curious though why this NFLX chart not calling it a cup n handle? Or maybe its both. Anyways, thanks again for sharing, good stuff. Keep em coming. Looking to take your trial soon.

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