Breakout list for tomorrow, Technical Analysis Scanner (2024)

FAQs

How do I know which stock will break out tomorrow? ›

Identifying breakout stocks requires analysis of technical indicators, market trends, and catalysts. Knowing how to find breakout stocks for tomorrow by the trader is by analysing technical indicators, chart patterns, and market trends to identify potential candidates.

Monitor volume and price

One way to identify potential breakout stocks is by looking for those with increasing volume and price momentum. Breakout stocks often have a sudden surge in trading volume, which may indicate growing investor interest.

Bollinger Band breakout stocks

You can also use Bollinger Bands​​, which are a technical indicator for trading strategies, to help identify breakout stocks. On a candlestick chart, Bollinger Bands move with the price, forming an envelope around it.

Technical analysis: Traders can take the help of advanced technical charts and various tools to spot the stocks that show the potential for a breakout. These tools also aid in determining a strong trading strategy. Indicators such as Moving Averages, RSI and MACD can be used to measure the strength of the breakout.

Choose price points from the weekly chart. Observe daily chart for additional patterns. A descending channel should be traded mostly for breakouts, otherwise avoid them. Volume at the breakout should be more than the volume of previous candles.

Indicators such as the Relative Strength Index (RSI), MACD , and Bollinger Bands can help traders identify potential fake breakouts. For example, when the RSI is in the overbought zone, and a price breakout occurs, it may indicate a fake out, and a reversal is likely to occur.

The most efficient way to identify breakouts is to use a technical stock screener such as ChartMill. This allows you to scan a lot of stocks simultaneously for potential setups. The best setups occur when the price breaks out (or is about to break out) of a sideways trading range, called a consolidation zone.

Volume. One of the most important breakout indicators to use is volume. In most periods, a breakout is confirmed when there is higher volume and vice versa.

How to spot breakouts before they happen? ›

The first step in trading breakouts is to identify current price trend patterns along with support and resistance levels in order to plan possible entry and exit points. Once you've acted on a breakout strategy, know when to cut your losses and re-assess the situation if the breakout sputters.

Continuation breakout strategy

Traders start by identifying a trend, then look for a 'consolidation' phase – the strategy starts delivering returns when the price breaks out of consolidation and moves beyond the key level of support or resistance.

Breakouts are commonly associated with ranges or other chart patterns, including triangles, flags, wedges, and head-and-shoulders. These patterns are formed when the price moves in a specific way which results in well-defined support and/or resistance levels. Traders then watch these levels for breakouts.

If a stock is undervalued, it will likely go up. If a stock is overvalued, it will likely go down. Before you learn how to predict stock prices and how to predict the stock market in general, you need to determine which camp you're in.

The easiest way to find pre-market gappers is to use a stock scanner. Simply search for stocks for which the current day's opening price is greater or less than the previous day's closing price. You can further refine your search by adding filters for the magnitude of the price gap.