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EarningBreakout

Overview

  • In earning breakout stock is making good breakout pattern before it's earning release
  • But breakout is not happen yet due to earning in next 4-5 days, lot of trader don't like to buy stock when earning is due

When to enter

  • Find low risk setup with volatility contraction
  • best time to buy is when quaterly results are annouced, stock becomes very volatile for first 5 min and can give very low risk entry
  • Use intraday time frame to take entry

When to exit

  • just use normal selling rules
  • If you have really large breakout after earning then sell at 2*ADR or close to any resistance zone like ATH line or previous swing high

Chart Samples

  • EarningBreakout1
  • EarningBreakout2