entry
essential
Breakout
Price closing above a defined resistance level (pivot) — the trigger that turns a setup into a trade.
A breakout is the moment a stock's price closes above a defined resistance level, signaling that the prior supply at that level has been absorbed and price can move higher.
What makes a breakout high-quality:
- Tight base below the pivot for several weeks.
- Volume expansion on the breakout day (≥1.5× the 50-day average).
- Strong close — the candle should close in the upper third of its daily range (no wick rejection).
- Aligned weekly trend (Stage 2) and strong relative strength.
Failed breakouts ("false breakouts") happen when a stock pokes above the pivot but closes back below within a few days. This is one of the most common mistakes — buying breakouts without volume confirmation. Swing Edge's Breakout scanner specifically filters for setups with high follow-through probability.