My trading style is all about keeping it simple. I’ve tried every type of indicator, overlay, and complex system out there. But I always come back to the basics – price and volume. They simply work, and my record reflects that.
One of my favorite strategies is the breakout. There are always breakouts occurring, and if you can identify them before they’ve played out – and if you can sort the good from the bad – you’ll always have a wealth of great trading opportunities at your fingertips.
There are just two key components to these breakout trades: price breakout and volume expansion. I want to see a stock that is breaking over a resistance level on the chart. I’ll identify what I think is a resistance level on the chart, then pull up Level 2 to confirm. I’m looking for big offers at the resistance price level.
When a stock passes that first test, I think look for volume expansion. This is not a particular number, but rather an increase in relative volume. For example, if a stock is usually average 500k shares a day, then it shoots up to 1.5 million a day, you have volume expansion.
For years, I’ve done nightly scans to look for stocks that meet these criteria. This is where Trade Ideas comes into the equation. Trade Ideas provides me with two huge benefits. First, I can now save some of that nightly scanning time, as Trade Ideas does much of the work for me. Second, I get ideas in real time. Rather than coming up with a list every night, Trade Ideas alerts me with 100 – 150 opportunities in real time, throughout the day. This helps me make a lot of great trades I would have otherwise missed.
Watch this video to learn more:
I didn’t know how to create the scan, but that didn’t matter; Trade Ideas has top notch customer service, and they worked with me to build and tweak until I had a scan that met my exact needs. Once you’ve become a Trade Ideas customer (use this link to get discounts!) you can get my expanding volume scanner for free! Just click here for instructions (SCANNER LINK)
If you’re a Traders Toolbox swing trading subscriber, you’re benefiting from this scan too. I send an alert for every expanding volume stock I trade, BEFORE I enter. These are real, actionable alerts. If the ideal entry has already passed, I don’t alert it. It’s that simple. Since I started this service six months ago, it’s up 40%! To signup for my alert service, click here or I can be reached via email me at firstname.lastname@example.org