Technicals work differently for mid-caps. Institutional accumulation is detectable, chart patterns are more reliable, and volume tells the truth. This is your complete toolkit: moving averages, VWAP, relative strength, patterns, squeezes, and the mid-cap breakout template.
Technical analysis is the study of price and volume patterns to forecast future price movement. While the same indicators work across all market caps, their reliability and interpretation differ significantly in the mid-cap universe. Understanding these differences is essential because applying large-cap technical analysis to mid-caps (or vice versa) will produce inferior results.
There are three fundamental reasons why technicals work differently for mid-caps:
When large institutions accumulate mid-cap positions, they leave visible footprints: rising price on increasing volume, higher lows, and accumulation patterns. In large-caps, these footprints are invisible. In small-caps, single orders dominate.
High-frequency trading algorithms dominate large-cap price action, creating noise that obscures genuine supply/demand signals. Mid-caps have less HFT activity, making chart patterns cleaner and more reliable.
Support and resistance levels in mid-caps are created by real institutional order flow (pension funds, mutual funds building positions). These levels hold more reliably than in small-caps (too thin) or mega-caps (too many competing flows).
| Technical Aspect | Small-Caps | Mid-Caps | Large-Caps |
|---|---|---|---|
| Chart Pattern Reliability | Low — thin volume, wide spreads, single-player dominated | High — institutional flow + adequate volume | Moderate — HFT noise, too many competing flows |
| Volume Signal Quality | Noisy — one order can dominate | Clean — multiple institutions + retail | Diluted — billions in daily volume mask signals |
| Moving Average Respect | Weak — frequent false breaks | Strong — 21 EMA, 50 SMA, 200 SMA widely respected | Strong — but HFT creates false touches |
| Breakout Success Rate | ~35% (many false breakouts) | ~55-60% (with volume confirmation) | ~45% (crowded trades, faster reversals) |
| Accumulation Detection | Difficult — low base volume | Detectable — 5-15 day accumulation patterns visible | Nearly impossible — flows absorbed instantly |
Not all charts are worth reading. A "readable chart" has three characteristics: (1) Adequate volume — at least 500K shares/day so that patterns are statistically meaningful. (2) Clean price action — the stock responds to support/resistance and moving averages rather than gapping randomly on headlines. (3) Definable trend — you can point to clear higher highs and higher lows (uptrend) or lower highs and lower lows (downtrend). If a chart does not have all three, skip it — no matter how good the fundamentals look.
Mid-caps have the highest percentage of "readable charts" (~70% of the universe) compared to small-caps (~30%) and large-caps (~55%). This is the technical analysis sweet spot.
Question: Why do chart pattern breakouts have a higher success rate in mid-caps (~55-60%) than in small-caps (~35%) or large-caps (~45%)?
Answer: In small-caps, breakouts often fail because the volume is too thin — a breakout on 100K shares can be caused by a single buyer, and when they stop buying, the stock reverses. In large-caps, breakouts attract immediate HFT algorithms that fade the move (sell into buying), and the massive float means breakouts need enormous volume to sustain. Mid-caps hit the sweet spot: breakouts are backed by institutional accumulation (real demand), volume is sufficient to be statistically meaningful, but the float is small enough that sustained buying creates lasting price impact. The key: always confirm mid-cap breakouts with volume at least 1.5x the 20-day average.
There are dozens of moving average variations (SMA, EMA, WMA, DEMA, VWMA, etc.), but for mid-cap trading, you need exactly three. Each serves a different purpose, and together they create a complete trend framework. Using more than three adds complexity without improving results.
The 21 EMA is the short-term trend indicator. It captures approximately one month of trading activity and responds quickly to price changes. For mid-cap swing traders (2-8 week holding periods), the 21 EMA is the primary trend guide.
The 50 SMA is the intermediate trend indicator. It captures approximately two and a half months of trading and is the most widely watched moving average by institutional traders. When a mid-cap pulls back to its 50 SMA in an uptrend, it often finds support because institutional buyers use the 50 SMA as a reference level for adding to positions.
The 200 SMA is the long-term trend indicator and the single most important technical level in all of stock trading. The 200 SMA separates bull markets from bear markets at the individual stock level. A mid-cap trading above its 200 SMA is in a long-term uptrend; below, it is in a long-term downtrend.
| Moving Average | Period | Type | Primary Use | Mid-Cap Relevance |
|---|---|---|---|---|
| 21 EMA | ~1 month | Exponential | Short-term trend, pullback entries | Swing traders use this as their primary guide |
| 50 SMA | ~2.5 months | Simple | Intermediate trend, institutional support | Institutions add positions at the 50 SMA |
| 200 SMA | ~10 months | Simple | Long-term trend, bull/bear divider | Non-negotiable: never buy below 200 SMA |
Moving average crossovers generate specific trading signals in mid-caps. These are not standalone signals — they must be confirmed by volume and fundamental alignment — but they provide useful timing information.
| Cross Signal | Description | Mid-Cap Reliability | Best Action |
|---|---|---|---|
| Golden Cross | 50 SMA crosses above 200 SMA | High (~65% success in mid-caps) | Initiate or add to long position |
| Death Cross | 50 SMA crosses below 200 SMA | High (~60% success) | Exit long position or initiate short |
| 21 EMA / 50 SMA Bullish Cross | 21 EMA crosses above 50 SMA | Moderate (~55% success) | Short-term trend turning positive |
| Price Reclaim of 200 SMA | Price closes above 200 SMA after being below | Very high (~70% success within 3 months) | Strong entry signal if on volume |
The most bullish configuration for a mid-cap chart is stacked moving averages in the correct order: price above 21 EMA, 21 EMA above 50 SMA, 50 SMA above 200 SMA, with all three rising. This "stacked" pattern indicates that every time frame (short, intermediate, long) agrees that the trend is up. In mid-caps, this configuration has a 73% probability of continued advance over the next 3 months.
The opposite configuration (price below 21 EMA below 50 SMA below 200 SMA, all declining) is called "inverted stacking" and has a 71% probability of continued decline. When you see inverted stacking, do not try to catch the falling knife.
Question: A mid-cap stock is trading at $85. The 21 EMA is at $82, the 50 SMA is at $78, and the 200 SMA is at $72. All three MAs are rising. The stock has pulled back from $92 over 5 days on declining volume. Where would you look to buy?
Answer: The ideal entry is a pullback to the 21 EMA at $82. The stock is in a strong uptrend (stacked MAs, all rising) and has pulled back on declining volume (healthy correction, not distribution). The 21 EMA acts as dynamic support in strong trends. Set your stop just below the 50 SMA ($78) — if the stock loses the 50 SMA, the intermediate trend is broken and you should exit. First target: retest of recent high at $92 ($10 reward on $4 risk = 2.5:1 R/R). Do not wait for the stock to hit the 50 SMA or 200 SMA — in strong trends, pullbacks to the 21 EMA are the best risk/reward entries.
If price is the what, volume is the why. In mid-cap trading, volume analysis is even more important than in other market segments because institutional accumulation and distribution patterns are clearly visible in volume data. A mid-cap stock trading 1.5M shares daily with an average of 800K is screaming that institutions are actively building (or liquidating) positions.
Price advances on above-average volume. Closes in the upper half of the daily range. This is institutional buying — they are paying up to build positions. Most bullish volume pattern.
Price declines on above-average volume. Closes in the lower half of the range. Institutions are selling. Bearish — often precedes a breakdown. Watch for 3+ distribution days in 2 weeks.
Volume contracts to 40-60% of average during a pullback. This is healthy — sellers are exhausted, but no aggressive selling. Often precedes a resumption of the uptrend. Best buying opportunity in an uptrend.
Volume spikes to 3-5x average on extreme price movement (up or down). Often marks a short-term turning point. Climax buying at new highs can mark tops. Climax selling at lows can mark bottoms.
| Volume Pattern | Volume Level | Price Action | Signal | Action |
|---|---|---|---|---|
| Breakout Volume | > 1.5x avg | Close above resistance | Confirmed breakout | Buy with stop below breakout level |
| Low-Volume Pullback | < 0.6x avg | Orderly pullback to MA support | Healthy correction | Buy at support MA |
| High-Volume Reversal | > 2x avg | Price reverses intraday (hammer/shooting star) | Potential trend change | Wait for confirmation next day |
| Volume Expansion Trend | Increasing over 5+ days | Steady advance with rising volume | Strong institutional buying | Hold or add to position |
| Volume Divergence | Decreasing on new highs | New price highs on lower volume | Weakening momentum | Tighten stops, prepare to exit |
One of the most reliable principles in mid-cap technical analysis is that volume changes direction before price. Before a breakout, you often see volume begin to expand even while price is still in a consolidation range. Before a breakdown, you see volume increase on down days while the stock is still holding support.
This principle creates a lead indicator: when you see volume expanding in a consolidation (especially on up days), anticipate a bullish breakout. When volume expands on down days during a consolidation, anticipate a bearish breakdown. This advance warning gives mid-cap traders 2-5 days of lead time to position before the move.
Question: A mid-cap has been consolidating between $55-$60 for 35 days. Volume averaged 800K shares during the consolidation. Today, the stock closes at $60.50 (just above resistance) on 2.1M shares. Is this a valid breakout?
Answer: Yes, this is a textbook valid breakout. The criteria are met: (1) Price closed above the $60 resistance level. (2) Volume was 2.6x the average (2.1M vs 800K) — well above the 1.5x threshold. (3) The consolidation was 35 days — longer than the 30-day minimum for reliable bases. Action: buy at the open the next day with a stop at $57 (mid-range of the consolidation = "last line of defense"). Target: $65-67 (measured move = $60 resistance minus $55 support = $5, added to breakout = $65). Risk/reward: $3.50 risk / $4.50 reward = 1.3:1 — acceptable but would be better with entry closer to $60.
Research across 20 years of mid-cap price data shows that three chart patterns consistently produce the highest success rates and average returns in the $2-10B universe. Other patterns (head and shoulders, wedges, flags) also work, but these three are the bread and butter of mid-cap technical trading.
The cup and handle is the most iconic chart pattern and has the highest success rate in mid-caps (~62%). It consists of a "U"-shaped correction (the cup) followed by a small, shallow pullback (the handle) before a breakout to new highs.
| Cup & Handle Element | Ideal Characteristics | Red Flags |
|---|---|---|
| Cup Depth | 12-35% from the left rim to the bottom | >50% correction — too deep, suggests fundamental problems |
| Cup Length | 7-65 weeks (most commonly 12-30 weeks) | <4 weeks — too short to reset sellers |
| Cup Shape | Smooth "U" shape — gradual bottom | "V" shape — too sharp, suggests short squeeze, not accumulation |
| Handle Depth | 5-15% pullback from right rim | >20% — handle is too deep, suggests weak buyers |
| Handle Volume | Declining — dry-up shows selling exhaustion | Increasing volume on handle pullback = distribution |
| Breakout Volume | >1.5x average on breakout day | <1x average — "low volume breakout" has high failure rate |
The flat base is a period of tight consolidation (5-15% range) over 5+ weeks. It indicates that institutions are holding their positions (not selling) and that buyers and sellers are in equilibrium at the current price level. When the stock breaks out of a flat base on volume, it is a very reliable signal.
Flat bases work particularly well in mid-caps because they often form after a strong earnings report: the stock gaps up 15-20% on earnings, then consolidates for 5-10 weeks as the market digests the new information. When it breaks out of this consolidation, it typically runs another 15-25%.
The ascending triangle consists of a flat resistance level (where sellers have been consistently stopping the advance) and a rising support line (where buyers are willing to pay higher prices each time). The pattern resolves bullishly when demand eventually overwhelms supply at the resistance level.
In mid-caps, ascending triangles have a 58% success rate and an average breakout return of +14% over 4-8 weeks. The key to trading ascending triangles is patience: do not buy within the pattern. Wait for the breakout above resistance on volume, then enter.
The most important rule in mid-cap pattern recognition is: every reliable breakout comes from a base. A base is a consolidation period of at least 4-6 weeks where the stock trades in a relatively tight range. Bases reset the "supply/demand clock" — they allow sellers to exit, reduce the overhead supply, and attract new buyers at higher prices.
Breakouts without adequate bases (less than 3 weeks of consolidation) have a failure rate above 60% in mid-caps. The market needs time to absorb the previous move before the next move can begin. When you see a mid-cap breakout, always check: how long was the base? If less than 4 weeks, treat with skepticism. If more than 8 weeks, treat with high conviction.
Question: A mid-cap reports strong earnings and gaps up 18% to $72. Over the next 8 weeks, it consolidates between $68 and $74 on declining volume. Today, it breaks above $74 on 2.5x average volume. What pattern is this, and what is your trade plan?
Answer: This is a flat base breakout post-earnings gap — one of the most reliable mid-cap patterns. The stock gapped up on earnings (fundamental catalyst), consolidated for 8 weeks (adequate base length), the range was tight ($68-$74, ~8% range), volume declined during the base (selling exhaustion), and the breakout occurred on high volume (2.5x average = institutional conviction). Trade plan: Buy at $74-$75. Stop at $68 (bottom of the flat base). Target 1: $82 (measured move = $74 - $68 = $6, added to breakout = $80, extended to $82). Target 2: $88 (1.5x measured move). Risk: $6-7. Reward: $7-14. R/R: 1:1 to 1:2. Size: standard position because of high-conviction setup.
VWAP is the institutional execution benchmark. When a fund manager tells their trader "buy 500,000 shares of XYZ at VWAP," the trader's job is to accumulate the position throughout the day at or below the volume-weighted average price. This makes VWAP the single most important intraday support/resistance level for mid-caps.
For mid-cap day and swing traders, VWAP provides two key signals:
While standard VWAP resets each day, anchored VWAP (aVWAP) calculates the volume-weighted average price from a specific anchor point — typically an earnings report, gap day, or significant high/low. This creates a multi-day reference level that shows the average cost basis of all buyers since a specific event.
Key anchor points for mid-cap aVWAP:
| Anchor Point | What It Measures | How to Use It |
|---|---|---|
| Earnings gap day | Average cost of all post-earnings buyers | Support: if price pulls back to this level, post-earnings buyers defend |
| 52-week low | Average cost since the bottom | Major support: if this breaks, nearly all buyers are losing money |
| Significant breakout day | Average cost of breakout buyers | If price holds above this aVWAP, breakout is still valid |
| IPO day | Average cost of all public shareholders | Major psychological level — below IPO aVWAP is bearish |
Relative strength (RS) compares a stock's performance to the S&P 500 over a given period. It is not the RSI oscillator (Relative Strength Index) — it is a comparison of the stock's price change versus the market's price change. For mid-cap trading, RS is one of the most important indicators because it identifies which stocks are outperforming the market, indicating institutional preference.
| RS Level | Interpretation | Action |
|---|---|---|
| RS New High Before Price | Stock is outperforming market by an increasing margin. Strongest bullish signal. | Buy when RS makes new high. Price breakout often follows within 1-2 weeks. |
| RS > 80 | Stock outperforming 80%+ of the market. Top-tier momentum. | Hold or add on pullbacks. These are the strongest mid-caps. |
| RS 50-80 | Average to above-average performance. Stock is keeping pace with market. | Watchlist territory. Need additional catalysts to justify entry. |
| RS < 50 | Stock underperforming more than half the market. Relative weakness. | Do not buy. Even if fundamentals look good, the market disagrees. |
This is the single most powerful technical signal for mid-cap breakout trading. When a stock's RS line makes a new 52-week high before the stock itself makes a new price high, it means the stock is already outperforming the market at a record pace even though it has not yet broken out. The market is essentially "voting" for this stock ahead of the breakout.
In mid-caps, an RS new high before price new high has a 68% success rate of leading to a valid price breakout within 2 weeks. When combined with a flat base or cup-and-handle pattern, the success rate rises to 75%+.
Bollinger Bands are volatility-based envelopes set at 2 standard deviations above and below a 20-period moving average. When the bands narrow (squeeze), volatility is contracting. When they widen, volatility is expanding. The key principle: volatility is cyclical — periods of low volatility are followed by periods of high volatility.
For mid-cap traders, the Bollinger squeeze is valuable because it identifies stocks that are about to make a big move — you just need to determine the direction. In mid-caps, squeezes resolve bullishly more often than bearishly (about 55% vs 45%) when the stock is in a long-term uptrend (above 200 SMA).
The TTM Squeeze (developed by John Carter) combines Bollinger Bands with Keltner Channels to identify the tightest volatility contractions. When Bollinger Bands move inside Keltner Channels, the squeeze is "on" (red dots on the indicator). When they move back outside, the squeeze "fires" (green dots) and the direction of the momentum histogram indicates the likely breakout direction.
For mid-caps, the TTM Squeeze is one of the most reliable timing tools because: (1) it gives a clear on/off signal (no ambiguity), (2) the momentum histogram provides directional bias, and (3) it works on multiple timeframes (daily and weekly). When the daily TTM Squeeze fires bullish AND the weekly TTM Squeeze is also bullish, the signal has a 70%+ success rate in mid-caps.
Question: A mid-cap has been in a Bollinger squeeze for 18 trading days. The stock is above its 200 SMA. Today, the stock closes above the upper Bollinger Band on 2x average volume. The TTM Squeeze momentum histogram is positive and rising. Is this a buy signal?
Answer: Yes — this is a textbook squeeze breakout. All criteria are met: (1) Adequate squeeze duration (18 days). (2) Stock is above 200 SMA (bullish trend context). (3) Price closed above the upper Bollinger Band (breakout from the squeeze). (4) Volume is 2x average (institutional conviction). (5) TTM Squeeze momentum is positive and rising (directional confirmation). Entry: buy at tomorrow's open. Stop: below the lower Bollinger Band or the 21 EMA, whichever is closer. Target: after a prolonged squeeze, the move often equals 2-3x the squeeze range. If the Bollinger Band width during the squeeze was $4, expect a $8-$12 move from the breakout point.
| Timeframe | Purpose | Key Indicators | What You Want to See |
|---|---|---|---|
| Weekly | Determine the trend | 10 WMA, 40 WMA, weekly RS line | Uptrend (higher highs/lows), RS line trending up |
| Daily | Time the entry | 21 EMA, 50 SMA, 200 SMA, volume, Bollinger | Pattern completion, squeeze breakout, pullback to MA |
| 4-Hour (intraday) | Refine the entry price | VWAP, 9 EMA, volume profile | Price above VWAP, tight spread, orderly intraday action |
Only enter a trade when all three timeframes agree on direction. Weekly uptrend + daily breakout + 4H above VWAP = high-probability trade. If the weekly is down but the daily shows a breakout, skip it — you are fighting the larger trend. If the weekly and daily agree but the 4H shows the stock gapping below VWAP at open, wait for a better intraday entry.
Use this scorecard to evaluate every potential mid-cap breakout. Each criterion scores 0-2 points. A score of 14+ (out of 20) is a buy. Below 10, pass.
Let us walk through a hypothetical mid-cap breakout from screening to execution:
Week 1: Your Finviz mid-cap screen identifies DECK (Deckers Outdoor, $5.8B market cap). Revenue growth 22%, ROE 32%, D/E 0.2, FCF positive. Passes all Tier 2 filters. Added to watchlist.
Week 2-6: You monitor DECK daily. The stock forms a 35-day flat base between $185-$195 after a post-earnings gap. Volume declines during the base. 21 EMA and 50 SMA are rising. RS line is trending higher and near a new high.
Week 7 (Day 1): DECK breaks above $195 on 2.2x average volume. Breakout scorecard: 16/20 (base length 2pts, volume 2pts, above 200 SMA 2pts, RS near high 2pts, volume dry-up 2pts, stacked MAs 2pts, fundamentals 2pts, catalyst: conference next week 1pts, sector RS neutral 1pts, R/R 2:1 2pts minus 2 = 0).
Execution: Buy at $196. Stop at $185 (base low). Target 1: $210 (measured move). Target 2: $220 (1.5x). Risk: $11. Reward: $14-$24. R/R: 1.3:1 to 2.2:1.
Question: Score the following breakout: A $4B mid-cap breaks out of a 22-day base on 1.3x average volume. The stock is above its 200 SMA but below the 50 SMA. RS is at 62. Volume was slightly elevated during the base (no dry-up). No upcoming catalysts. The sector is underperforming the market. Revenue growth is 8%.
Answer: Score: 6/20. (1) Base: 22 days = 0pts (below 30). (2) Volume: 1.3x = 1pt (below 1.5x). (3) Above 200 SMA: 2pts. (4) RS 62: 0pts (below 70). (5) No volume dry-up: 0pts. (6) Below 50 SMA: 0pts. (7) Revenue 8%: 0pts (below 15%). (8) No catalyst: 0pts. (9) Sector lagging: 0pts. (10) R/R unknown but likely marginal: 1pt. Total: 4/20. Hard pass. This breakout has almost nothing going for it: short base, low volume, no fundamental quality, weak RS, no catalyst. This is the type of "breakout" that fails within 3 days.
Multi-timeframe analysis is not optional for serious mid-cap traders — it is the framework that turns individual indicators into a cohesive trading methodology. The concept is simple: higher timeframes determine direction, lower timeframes determine timing. But the execution requires discipline and a clear hierarchy of decision-making.
The weekly chart is where you determine whether a mid-cap is worth trading at all. On the weekly timeframe, apply the 10-week moving average (equivalent to the 50-day SMA) and the 40-week moving average (equivalent to the 200-day SMA). If the stock is above both, with both rising, the weekly trend is bullish and the stock is eligible for long trades.
Weekly chart checklist before proceeding to the daily:
Once the weekly confirms a bullish setup, switch to the daily chart for trade timing. This is where you apply the full technical toolkit: 21 EMA, 50 SMA, 200 SMA, Bollinger Bands, volume analysis, and pattern recognition. The daily chart answers the question: "When exactly should I buy?"
Key daily signals for entry:
| Daily Entry Signal | Description | Reliability | Risk Management |
|---|---|---|---|
| 21 EMA Bounce | Price pulls back to 21 EMA on low volume, then closes above it with a bullish candle | High in strong trends | Stop: below the 50 SMA or swing low |
| Flat Base Breakout | Price breaks above a 4+ week consolidation range on 1.5x+ volume | Very high | Stop: below the base midpoint |
| Squeeze Fire | Bollinger/TTM squeeze resolves bullish with momentum confirmation | High | Stop: below lower Bollinger Band |
| Gap & Go Post-Earnings | Stock gaps up on earnings, holds VWAP intraday, and closes in top 25% of range | Moderate-High | Stop: below the gap fill level |
| 200 SMA Reclaim | Stock closes above 200 SMA after extended period below on increasing volume | Very high | Stop: below the 200 SMA |
The 4-hour chart is optional but extremely valuable for refining entry price. Once the weekly says "bullish" and the daily says "buy today," the 4H chart tells you the best price within the day. This can improve your average entry by 0.5-1.5%, which compounds significantly over many trades.
On the 4H chart, use VWAP and the 9 EMA as your primary tools. The ideal entry occurs when the stock pulls back to the 4H VWAP during a bullish daily setup — this gives you the best fill while staying aligned with the larger trend. If the stock is above the 4H 9 EMA and VWAP, the intraday trend supports immediate entry. If below both, wait for a stabilization or use a limit order at VWAP.
Before entering any mid-cap trade, you need three green lights:
Green Light 1 (Weekly): Stock above 10 WMA and 40 WMA, both rising. Weekly RS positive. No weekly distribution.
Green Light 2 (Daily): Stacked MAs (21 EMA > 50 SMA > 200 SMA). Pattern completion or pullback to support. Volume confirming.
Green Light 3 (4H): Price above intraday VWAP. 9 EMA support holding. No intraday distribution.
If any light is red, do not trade. Wait until all three align. This patience is what separates consistent traders from those who constantly fight the market. In practice, all three lights align 2-4 times per month for a given stock — that is plenty of opportunity if you are monitoring 15-20 mid-caps.
| Conflict | Weekly | Daily | 4H | Resolution |
|---|---|---|---|---|
| Trend vs. Pullback | Bullish | Pulling back to 50 SMA | Bearish | Wait for daily to hold 50 SMA, then buy when 4H turns bullish |
| Breakout vs. Weakness | Neutral/Flat | Breakout attempt | Bullish | Pass — weekly needs to confirm. Breakout without weekly trend often fails. |
| Earnings Gap | Was bearish, now neutral | Massive gap up on earnings | Very bullish | Wait 2-3 days for gap to hold. If it does, weekly will confirm and you can enter. |
| All Aligned | Bullish | Bullish | Bullish | Buy immediately at market. This is the highest-probability setup. |
Question: A mid-cap stock shows the following: Weekly — above 10 WMA and 40 WMA, both rising, RS at 6-month high. Daily — stock just completed a cup and handle pattern with the handle pulling back to the 21 EMA. Volume in the handle is declining. The breakout pivot is at $72. 4H — stock is at $71.50, above VWAP ($70.80) and above the 9 EMA ($71.10). What is your plan?
Answer: This is a triple green light setup. All three timeframes are aligned bullish. Plan: (1) Place a buy-stop order at $72.10 (just above the breakout pivot) to enter automatically when the breakout triggers. (2) Set stop at $68 (below the handle low and the daily 50 SMA). (3) Target 1: $78 (measured move from cup depth). Target 2: $82 (1.5x measured move). (4) Position size: risk $4.10 per share ($72.10 - $68), so for a $100 max loss per 1% of portfolio, buy ~25 shares per $100K of portfolio. (5) Require breakout volume of 1.5x+ to confirm. If volume is below average on the breakout candle, tighten the stop to $70 and reduce position by 50%.