Never Miss a Key Price Level Break
The Challenge: Support and resistance levels are critical in trading, but you can't watch 1,000+ stocks simultaneously waiting for breakouts to happen. Missing a breakout on a stock you've been watching is frustrating and costly.
The Solution: TradeDots automatically monitors 20-day support and resistance levels for all ranked stocks and sends instant visual alerts when breakouts occur - complete with AI scores, momentum indicators, and volume data.
How Breakout Detection Works
20-Day Support and Resistance
Resistance (20-Day High):
Highest price in past 20 trading days
Represents key psychological and technical barrier
Breaking above signals potential upward momentum
Support (20-Day Low):
Lowest price in past 20 trading days
Represents key psychological and technical floor
Breaking below signals potential downward pressure
Why 20 Days:
Roughly 1 month of trading - significant timeframe
Captures institutional support/resistance levels
Balances recency with statistical significance
Real-Time Monitoring
Every Minute: System compares current price to 20-day levels across all ranked stocks
Instant Detection: When price crosses key level, breakout is flagged immediately
Volume Confirmation: System checks if breakout has volume support (>150% average = strong)
Two Breakout Types
1. Resistance Break (Bullish):
Price moves above 20-day high
Signals potential upward momentum
Often precedes continued rally
Alert shows lime green border (#9cff87) with glow effect
2. Support Break (Bearish):
Price falls below 20-day low
Signals potential downward pressure
Often precedes further decline
Alert shows danger pink border (#f9396a) with glow effect
Enhanced Toast Notifications
Instant Visual Alerts
When a breakout is detected, a notification "toast" appears in the bottom-right corner of your screen with rich contextual data.
Resistance Break (Bullish) Alert Contains:
Visual Design: Lime green border (#9cff87) with neon glow effect
Stock Symbol:
$AAPL- large and prominentBreakout Description: "Breaking above resistance at $155.32"
AI Score: Current AI ranking (e.g., 87/100) - quality validation
Current Price: Live price (e.g., $155.45)
Change %: Daily percentage change (+2.3%) in green
High Momentum Badge: If momentum score >75%, "High Momentum" badge appears
Support Break (Bearish) Alert Contains:
Visual Design: Danger pink border (#f9396a) with neon glow effect
Stock Symbol:
$TSLA- large and prominentBreakout Description: "Breaking below support at $142.18"
AI Score: Current AI ranking (e.g., 34/100) - weakness confirmation
Current Price: Live price (e.g., $141.95)
Change %: Daily percentage change (-3.1%) in red
High Momentum Indicator:
When momentum score >75%, "High Momentum" badge appears on alert
Indicates particularly strong breakout with follow-through potential
Suggests higher probability of continuation
Smart Dismissal System
Manual Dismiss
How it works:
Click "X" button on individual alert to dismiss
Dismissed alerts won't reappear for the trading day
Reduces noise for stocks you're not interested in
Use case: You get alert for $XYZ but you don't trade that sector - dismiss it to keep screen clean
"Clear All" Button
How it works:
Hover over notification area
"Clear All" button appears
Click to undo all dismissals
Useful if you accidentally dismiss an important alert
Automatic Reset
Daily Reset: All dismissals reset at midnight US Eastern time
Fresh Start: Each trading day starts with clean slate - yesterday's dismissed alerts can reappear if still relevant
Why: Market conditions change daily - what you dismissed yesterday might be important today
Momentum Detection
Momentum Score Calculation
Scale: 0 to 1 (displayed as 0% to 100%)
Factors:
Volume surge (current vs average)
Price velocity (speed of move)
Trend consistency (alignment across timeframes)
High Momentum Threshold: >0.75 (75%) - triggers "High Momentum" badge
Why Momentum Matters
High Momentum (>75%):
Breakout likely to continue
Follow-through expected
Higher probability trade
Strong conviction
Medium Momentum (50-75%):
Breakout uncertain
Wait for confirmation
Monitor price action
Consider smaller position
Low Momentum (<50%):
Breakout may be false
Proceed with caution
Often reverses quickly
Better to wait
Volume Surge Tracking
Calculation: Current volume vs 20-day average volume
Display: "Volume 230% above average" shown in alert
Significance:
High volume (>150%) validates breakout strength
Low volume (<100%) suggests weak breakout (may fail)
Institutional volume (>200%) indicates strong conviction
Trading Strategies with Breakout Alerts
Strategy 1: Breakout Continuation (Bullish)
When to Use: Stock breaks above resistance with high AI score and momentum
Setup:
Alert Triggers: Stock breaks above resistance
Check AI Score: Confirm score >75 (strong ranking)
Check Momentum: Look for "High Momentum" badge (>75%)
Verify Volume: Volume >150% average (strong)
Entry: Enter on breakout confirmation (wait for next candle close above resistance)
Stop Loss: Set below resistance-turned-support (now a floor)
Target: Previous 20-day high + (20-day range) - approximately 2:1 to 3:1 R:R
Example:
Alert: "$NVDA breaking above resistance at $450"
AI Score: 92/100 (excellent)
Momentum: High (0.82 = 82%)
Volume: 180% above average (strong)
Action: Enter $451, stop $448, target $475 (R:R = 8:1)
Expected Win Rate: 65-70% (based on high AI score + strong momentum)
Strategy 2: False Breakout Fade (Contrarian)
When to Use: Stock breaks level but AI score and momentum are weak - fade the move
Setup:
Alert Triggers: Stock breaks level (resistance or support)
Check AI Score: If score <40 (weak ranking)
Check Momentum: If momentum <50% (weak)
Verify Volume: If volume <100% (below average = suspicious)
Entry: Fade the breakout (trade opposite direction)
Stop Loss: Beyond the breakout level (tight stop)
Target: Return to pre-breakout range
Example:
Alert: "$XYZ breaking above resistance at $25"
AI Score: 28/100 (poor)
Momentum: Low (0.35 = 35%)
Volume: 95% (below average = weak)
Action: Short $25.10, stop $25.50, target $24 (fade the false breakout)
Expected Win Rate: 55-60% (based on weak underlying conditions)
Strategy 3: Watchlist Confirmation
When to Use: You want to reduce alert noise and only see breakouts on pre-selected stocks
Setup:
Pre-Work: Add potential breakout candidates to dedicated watchlist (morning routine)
Monitor: Watch for breakout alerts on watchlist stocks only (customization coming soon)
Quick Action: Already researched - can act immediately when alert triggers
Advantage: No hesitation, pre-planned entries, no FOMO
Workflow:
8:00am-9:15am: Add 10-15 stocks near resistance to "Breakout Candidates" watchlist
9:30am-4:00pm: Only pay attention to breakout alerts from watchlist stocks
Alert Triggers: $AAPL (on watchlist) breaks $180 resistance
Immediate Action: Already planned - enter immediately with pre-defined stop/target
Benefit: Eliminates decision paralysis - you've already done the research
Best Practices
✅ Do
Cross-reference breakout alerts with AI scores:
High score (>80) = better odds of continuation
Low score (<60) = higher risk of false breakout
Check momentum indicator before entering:
High momentum (>75%) = green light
Low momentum (<50%) = wait for confirmation
Verify volume surge:
150% average = strong validation
<100% average = weak breakout, proceed cautiously
Use watchlists to filter relevant alerts only:
Pre-select stocks you're interested in
Reduce alert noise
Improve decision speed
Set stop losses immediately after entry:
Never enter without stop
Breakouts can reverse quickly
Protect capital first
Dismiss irrelevant alerts to reduce noise:
Clean screen = clear mind
Focus on quality alerts only
Avoid information overload
❌ Don't
Chase breakouts after significant move (>3%):
Already moved too much
Poor risk/reward
Wait for pullback
Ignore momentum signals:
Low momentum = danger
False breakouts common
Momentum validates strength
Trade every alert blindly:
Quality > quantity
Selective = profitable
Filter for best setups
Remove stop losses after entry:
Discipline required
Breakouts can fail
Protect capital always
FOMO into low AI score breakouts (<60):
Risky trades
Higher failure rate
Stick to quality setups
Alert Customization (Coming Soon)
Planned Features
Watchlist-Only Alerts:
Receive alerts only for watchlist stocks
Reduce noise significantly
Focus on pre-researched opportunities
AI Score Threshold Filter:
Only alert if AI score >X (e.g., only scores >80)
Filter out low-quality breakouts automatically
Customizable threshold per user
Momentum Filter:
Only alert if momentum >X% (e.g., only >60%)
Avoid weak breakouts
Higher win rate
Volume Filter:
Only alert if volume >X% average (e.g., only >150%)
Volume confirms strength
Reduce false signals
Sound Notifications:
Audio alerts for high-priority breakouts
Customizable sounds
Never miss critical alerts
Expected Release: Q2 2025 for Pro Plan subscribers
Technical Implementation
Real-Time Detection
WebSocket Integration:
Instant updates from data feed
No polling delays
Sub-second latency
Snapshot Comparison:
Current price vs previous snapshot
20-day high/low comparison
New breakouts detected within 5 seconds
Alert Delivery:
Toast notification appears bottom-right
Stays visible for 15 seconds (or until dismissed)
Multiple alerts stack vertically
Persistent Memory
LocalStorage:
Dismissal preferences saved in browser
Survives page refreshes
No server storage (privacy-friendly)
Daily Reset:
Automatic reset at midnight Eastern time
Fresh start each trading day
No manual clearing needed
Access & Availability
Required: TradeDots Pro Plan ($129/month)
Breakout alerts included
Unlimited alerts during market hours
Smart dismissal system
Momentum indicators
Not Available: Free Tier, Basic Plan ($79/month)
Active Hours: Monday-Friday, 9:30am-4:00pm US Eastern Time (regular market hours only)
URL: app.tradedots.ai - Alerts appear automatically, no setup required
Next Steps
For Watchlist Integration: Read Watchlists to learn how to pre-select stocks for targeted alert monitoring.
For Stock Selection: Read AI-Powered Rankings to understand how AI scores help validate breakout quality.
For Pre-Market Preparation: Read Pre-Market Scanner to identify breakout candidates before market opens.
For Complete Workflows: Read Using AI App Effectively for daily routines that integrate breakout alerts with other features.
Key Insight: Breakout alerts transform passive monitoring into active opportunity capture. Instead of watching charts all day (impossible for 1,000+ stocks), the system watches for you and notifies you instantly when key levels break. Combined with AI scores and momentum indicators, you get not just "what broke" but "is this breakout worth trading?" - dramatically improving signal quality and trade selection.