Sequenced volume and golden-cross breakout rules

An ordered sequence, not a single candle

The method first looks for an existing uptrend that prints above-average volume and then looks for a golden-cross several days later. A golden-cross in this method is the 50-period simple moving average crossing above the 200-period simple moving average.

A high-volume-breakout is an upside price thrust in an existing uptrend that prints with above-average volume. The archive does not treat that first thrust as enough on its own.

Watchlist and sequential-confirmation

Charts showing two or more above-average volume days inside an uptrend are kept on a watchlist until a golden-cross breakout appears.

The method treats a single technical trigger as insufficient and requires at least two signals before treating a breakout as confirmed. Volume expansion by itself is described as a weak standalone cue. The stronger condition is that expansion followed later by an upside golden-cross breakout.

That later second condition is sequential-confirmation. It is used to validate an earlier volume expansion, rather than treating both cues as simultaneous.

Written entry and stop offsets

The written entry rule waits until price has moved at least $0.50 above the high of the day on which the golden-cross breakout is observed.

The written risk rule places an initial-stop one dollar below the low of the entry day and then uses a two-dollar trailing-stop. The initial-stop is a protective exit placed a fixed dollar amount below the low of the day the position is taken. The trailing-stop is moved with price after entry.

Optional scale-in after later cues

An optional management variant opens a smaller position on the first high-volume-breakout, adds after the golden-cross, and may add again if later signals appear. That scale-in plan opens a smaller position on the first cue and adds after later confirming cues appear.