December 14th, 2009 by 
Here’s another intraday breakout pattern that occurred today, 12/14/2009.
This is another post adding to my recent articles on Using An Intraday Breakout Strategy.
On the chart below, you can see a couple of the same characteristics that I frequently mention in my articles. The first is that between 9:30 and 10:00, there were higher lows being made which was forming an Ascending Triangle.
I just so happened to be watching as the stock was forming this pattern, and in anticipation of the pattern completing, I was able to enter a long position at $5.33 at the bottom of the trend line prior to the pattern being complete. Unfortunately for me, I sold as prices approached the upper resistance level at $5.40.
Still, this is a classic example to learn from. Higher lows were being made and once a breakout from the triangle pattern occurred, volume began to increase. Then, as momentum continued, prices again made a second intraday breakout. This time moving 4-5% higher within minutes.
Shortly after 11:30 you can see the heavy volume increase and spike in prices. I’m not sure what happened here but for the purpose of this post, I am mainly concerned with the morning pattern. The only way to catch the 11:30 spike would be if you started at your computer screen for several hours at a time. It can be done, just not when you have other things going on.
If you happened to have seen a spike like this occurring, a nice breakout entry point may have been at $5.65 upon reaching new highs for the day on strength. Of course the best entry here would have been near $5.40 prior to the spike. This was the previous resistance level from the early morning so it could have been anticipated with a low risk entry point as well. That’s for another post though.
