Day 2 Morning Breakout

One of the keys to consistent profitability is the ability to recognize repeating patterns. Because the market trends are always changing, one must adapt, and have the conviction to pull the trigger on new, developing patterns.

One trend I have noticed recently while watching earnings winners is that they are getting stuffed on their day one breakouts, then breakout big in the morning of day 2. This pattern isn’t new, but I haven’t really seen it since last summer. Here’s a good video that explains the setup, and here are a few recent examples:
BDBD 5d 5m.png
CZR 2d 5m.png
LGCY.png
AOI.png
LAYN.png
ONVO.png

 
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Now read this

The Best Long Setup for Trading Around Your Day Job

I outlined the best breakout charts for swing traders back in August 2015, then featured a few more charts in Q1 2016 since they’re still relevant and profitable. This pattern is so reliable, Sykes outlined it 6 years ago, and many of... Continue →