Banana Bread Trades
LongDRAFT · replace with your rules

Breakout

A bullish pattern with the daily and intraday charts aligning.

What it looks like

A stock in a clear uptrend on the daily chart. The stock then has a strong open below the key line with momentum. The distance from open to key line is generally 5% or less. A gap of 5% or less is acceptable.

Entry

The stock should clear the key line, pull, hold the key line, then breakout of the prior few candles. Breakouts generally occur in the morning session.

Where I'm wrong

I'm out if the stock fails to hold the key line, or 10-20 cents below.

Targets

Strong breakouts usually preceed a multi-day run. I'll always take some off after hitting a 4:1 risk/reward ratio.