Swing traders are always on the lookout for momentum stocks that make explosive moves in a short period of time. The breakout breakaway gap setup is by far the best setup for swing traders looking for explosive price action. It is also great for part-time traders who don't have time to day trade.There are 4 elements to the breakout breakaway gap setup:1) a breakout from a developed range2) a big gap from that range3) high volume relative to previous volume (at least 2-3 average volume)4) the breakout is on tangible news such as earnings, rather than rumors and speculation.In this video we go over $GOOGL to illustrate the power of the breakout breakaway gap setup.
Now that you have watched the video, find some breakout breakaway gap examples in momentum stocks that made explosive moves and share them in the comments below.This is part 3 in the trading breakouts series "The only setup you need to know".Part 1: The breakout pullback setupPart 2: The breakout-remount setupMy focus list is, market analysis and trade alerts are all featured in the Market Speculator Part-Time Swing Trade Report. If you would like to receive the swing trade report and alerts, sign up for the free trial. Follow me on twitter or email me at SinghJD1@aol.com
