The all-time high breakout is easily my favorite trading setup. Why

What we want to see for this setup to work best:

Trading this setup subsequent to an earnings is my favorite setup, especially when the market comes during market hours as opposed to pre- or post-market. A catalyst plus an all-time high breakout give some of the most explosive moves you’ll see in the stock market.

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Take a look at some of them below…

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This AMD trade had a long between for about 10 months between 70 and 95-100 dollars per share leading into earnings. The day price crossed $95 was the first trading day following the report. AMD was set to gap-up, but it filled the gap and more at the open. Then volume came in pushing it through $95 which was out entry.

Despite the long consolidation period, notice how the EMA trend flipped leading into the ER breakout. This gave us technical momentum leading into the report. The earnings beat gave us fundamental momentum.

This was a no-brainer trade. The consolidation is easier to see on the weekly chart shown below:

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