

When setting up a screener for breakouts, there are several factors you can consider to identify potential candidates. Here are some ways to set up a screener for breakouts:12
1. Technical Indicators: You can use technical indicators such as moving averages, relative strength index (RSI), and MACD to identify stocks that are showing signs of a potential breakout. For example, you might look for stocks that are trading above a key moving average, or stocks that have an RSI reading above a certain threshold, indicating that they are overbought but still showing momentum.
2. Price Patterns: Another approach is to look for stocks that have formed specific price patterns that are associated with breakouts. These can include patterns like the cup-and-handle, the double bottom, or the triangle consolidation pattern. By identifying stocks that are in these patterns, you can focus on those that are most likely to break out.
3. Volume: Volume is an important factor to consider when setting up a breakout screener. You can look for stocks that are experiencing an increase in trading volume as they approach a key level of resistance or support. This can indicate that there is strong interest in the stock and that a breakout may be imminent.1
4. Breakout Confirmation Signals: Finally, you can look for stocks that have given you a breakout confirmation signal. This can include a break above a key resistance level or a break below a key support level. By focusing on stocks that have already shown some evidence of a breakout, you can increase your chances of finding successful candidates.
Remember that the best setup for your breakout trading strategy will depend on your individual preferences, risk tolerance, and market conditions.3 It's important to experiment with different approaches and find a setup that works best for you.
