Tim Bohen LOVES to buy breakouts — it’s one of his setups. But you can't buy just any stock that's at a high. So how do you know when it’s a real breakout? Find out how you can refine your criteria and avoid false breakouts.

🔴 Subscribe for more free Stock Trading tips:    / stockstotrade  

Share this video with a fellow Trader:    • 5 Ways to Avoid False Breakouts  

✅ Links we mention and recommend:
Try StocksToTrade for $7: https://stockstotrade.com/14daytrial/
Get our FREE weekly watchlist here: https://stockstotrade.com/watchlist
Check out the SteadyTrade podcast: https://steadytrade.com

✅ Recommended video:    • How to Identify Breakouts in Trading ...  
✅ Recommended playlists:
Stock Trading 101: A Day Trader's Guide:    • Top 5 Costly Mistakes New Traders Make  
Advanced Stock Trading Tips:    • How To Capitalize With The January Ef...  
StocksToTrade Software Tips and Tricks:    • 5 StocksToTrade Features That Will Sa...  
Weekly Trading Recap Videos:    • Stock Watchlist and Live Trading Reca...  

✅ Follow StocksToTrade on social media:
Instagram:   / stockstotrade  
Facebook:   / stockstotrade  
Twitter:   / stockstotrade  


If you want to find solid breakout patterns, you need to hone in on your criteria. Look for high-volume breakouts … But if it’s just breaking out an average, there probably aren’t enough buyers to continue the move.

Look at the 60-day average volume. If the stock isn’t trading double or 5–10 times the 60-day average volume — avoid it.

Here’s where scans and charts can really come in handy. Focus on clean charts. But also remember to check for catalysts. If there’s no news behind the breakout, how solid is it? Without news, the chance that new buyers will continue to step in is pretty slim.

You want something meaty, something that will excite traders. So focus on substantial news — earnings, big-name contract wins, new products, and hot sectors.

Also, you generally wanna try to avoid stocks that aren't in a hot sector. Here’s one of the great things about the stock market: it’s rarely boring. Every day, there's something new. And there’s almost always a hot sector … All kinds of things can move stocks: medical breakthroughs, cancer, bitcoin, weed, biotech, Ebola, and so much more.

This next tip really applies to afternoon breakouts, but try to avoid buying a stock if it's under VWAP. A lot of these stocks will tempt you with those first three components — volume, sector, and news. But if it's under VWAP late in the day, often that stock can have a weak open the next day. That’s when it might bounce, so you might be able to buy it at a better price later.

Last — and this is simple — look at multi-year breakouts. Look at one-year, five-year, and 10-year charts. Don’t be fooled by the five-day, 30-day, or 90-day chart … It might look like a breakout, but you need to zoom out. Look for resistance points, areas of long-term consolidation.

Remember, the more things you can line up in your favor, the stronger the case for your trade. Get into your sniper mindset. Focus on only the best setups.


#StocksToTrade #StockMarket #Breakouts
----------------------------------------------------------------------------------------------------------------
*Tim Bohen teaches skills others have used to make money. Most who receive free or paid content will make little or no money because they will not apply the skills being taught. Any results displayed may be exceptional. We do not guarantee any outcome regarding your earnings or income as the factors that impact such results are numerous and uncontrollable.

You can lose money trading stocks. Do not invest money you cannot afford to lose. You understand and agree you will consider the important risk factors in deciding to purchase any of our products or services.