My favorite setup for part-time trading is the breakout-pullback setup. It is the bread and butter setup for swing traders who can not follow every tick in the market. While it is a simple setup, there are a number of variations of the setup that need to be understood. The variation we are discussing today is what I call the "breakout-remount".Three steps are necessary for the breakout-remount:1. A strong breakout clearing resistance with strong price and volume action.2. A breakout failure, with price violating the bottom of the breakout bar, former resistance and a moving average (20, 50 or 200 day moving average)3. A remount of the moving average on strong volume.This setup often leads to powerful moves as the initial "weak" entrants are shaken out of the trade. In this two-minute video I go over the breakout-remount setup using the recent breakout-remount setup in $NFLX.
Now that you have watched the video, find some "breakout-remount" setups and post them in the comments below, and I will give you my feedback. New readers can review Part 1 of the series, the breakout-pullback setup.
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