Breakout Trader
Buy strength — 52-week highs with volume expansion
The stack
3 screeners stacked together
Range High Breakout (proxy for 52-week high)
Stocks breaking multi-day range highs — closest available to 52w high until dedicated page ships.
Volume Shockers
Confirms the breakout has institutional backing, not retail FOMO.
Price above 50 EMA
Trend filter — only trade breakouts in confirmed uptrends.
Why this stack works
William O'Neil's CAN-SLIM framework heavily weights stocks within 5% of their 52-week high. The rationale: stocks at all-time or 52-week highs have no overhead supply (no one is sitting on losses waiting to sell into the rally), so breakouts run cleaner. Adding volume expansion and a trend filter (50 EMA) cuts the false-signal rate substantially.
Entry rules
- 1Wait for a daily close above the prior range high.
- 2Confirm volume on the breakout candle is at least 1.5x the 20-day average.
- 3Confirm price is above the 50 EMA on the daily.
- 4Enter on the next candle's open or on a pullback to the breakout level.
Stop-loss
Below the breakout candle's low, or below the 20 EMA on the daily.
Target
Use a measured-move target (height of the prior range projected upward), or trail with the 20 EMA.
When this fails
- Breakout volume is weak — that's a trap. Exit immediately.
- Stock gaps up huge on the breakout day — wait for the gap to fill before entering.
- Broader market is in a confirmed correction (>10% off recent highs).
FAQs
Pure momentum (top gainer chasing) catches stocks at random points in their range. This strategy waits for the cleanest setup — break of a multi-day high WITH volume WITH trend confirmation. Fewer trades, higher win rate.