Concepts trait

The trade plan: entry, stop, targets and size

How Breakaway turns a setup into a plan with an entry, a stop, two ATR targets and a share count for your risk.

What it is

A setup is not a trade until you have four answers. Where do you get in? Where are you wrong? Where do you take profit? How much do you buy? Every ticker page lays those four out with the levels drawn on the chart. You make the decision before the market opens instead of in the middle of the move.

How it is built

The entry is the prior day's high, so you are only in once the stock makes a new high. The stop is the higher of the 21-day EMA and the 10-day swing low. Those are the two places a healthy trend should hold. Targets sit two and three times the average true range above the entry. They are shown as multiples of your risk, written as R. Your share count is the dollars you type in the risk box divided by the distance from entry to stop. So every trade risks the same amount, whatever the stock's price or volatility.

How to use it

These are starting levels you edit. Move the stop to your own level if you see a better one. Skip trades where the first target is under 1R, which the plan shows in plain numbers. No level here is magic. What matters is that you set it in advance. Nothing on the page is investment advice.

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