This module detects breakouts from consolidation, one of the most powerful methods employed by the succesful intraday trader. This module detects intraday support and resistance levels. In addition, it automatically uses the principle that strong stocks tend to get stronger and weak stocks get weaker. It takes advantage of this fundamental principle, by automatically filtering the triggers, and presenting the stocks that breakout from stocks that are up from the open for long plays, and for short plays, it presents the breakdowns from stocks that are down from the open.
This module works in concert with the New Highs/Lows and the Strong/Weak Stocks modules by often letting you know of a breakout, many times before it reaches the intraday high or low. In addition, it shows the breakouts from consolidation of the sector indexes. You can benefit from sector breakouts by then concentrating on the stocks in that sector. Each module can be filtered to show just one sector, so for example if the Internet Sector breaks out, you can show only the internet stocks in the Intraday Breakouts module (Sectors)
When an Intraday Breakout alert occurs at the same time as a New High/Low alert, this is an especially powerful trigger, representing a breakout of a stock that has been consolidating at its high/low. These are shown in the Strong/Weak Stocks module. There is no need to set an alarm. This module can alert you to dozens of consolidation breakouts during the day, just as a new trend begins.
TIPS: To restrict triggers to ones that are just coming out of consolidation, set the Trend parameter to 1.5. The higher the Trend Value is set, the more triggers will be shown, but they will be shown as they continue to breakout past the consolidation level
In the afternoon, it's recommended to set the "%Move" parameter to "2". This will cause the module to trigger only on stocks that are up 2% from the days open for long plays, or 2 % down from the open for shorts. By setting this to 2 % in the afternoon, you are restricting the stocks to the strongest/weakest for the day. For long plays, this will trigger on strong stocks that have pulled back, and will alert you as they are rising from a level of consolidation. The reverse is true for the short plays on weak stocks
