How SignalSky finds high-probability breakout setups — and how to trade them.
The 220-day Exponential Moving Average (EMA 220) is one of the most widely watched indicators by institutional traders. It represents the average price of a stock over the past 220 trading sessions, with more weight given to recent prices.
When a stock trades above its EMA 220, it is in a long-term uptrend. When it falls below, it signals weakness. The EMA 220 acts as a major support and resistance level that large funds respect.
The Pre-Set ATH is the highest price a stock reached before its most recent pullback below EMA 220. This is NOT the stock's absolute all-time high.
Why does this matter? Because the pre-set ATH is a specific resistance level — the exact price where buyers ran out of momentum before the reset. When the stock reclaims EMA 220 and approaches this level again, it's often a breakout setup.
Reset
Stock hits its Pre-Set ATH, then pulls back and closes below the EMA 220. The reset is confirmed when price crosses from above to below EMA 220.
Reclaim
Stock crosses back above the EMA 220 on a closing basis. The most recent such crossover is used — this is the 'reclaim date' in the signal detail.
Range
Stock is trading within 15% below its Pre-Set ATH (and up to 5% above it — a breakout). The closer to ATH, the hotter the signal.
Stock is at or above its Pre-Set ATH. Breakout confirmed — highest urgency.
0–2% below Pre-Set ATH. Approaching breakout — watch closely.
2–5% below Pre-Set ATH. Setup is building — good time to plan entry.
5–15% below Pre-Set ATH. Early stage — add to watchlist and monitor.
1. Open the Scanner daily after market close. New signals appear after the EOD scan runs (4:30 PM IST for India, 11:30 PM IST for US).
2. Check the heat level and distance from ATH. Boiling and Breakout signals are highest priority.
3. Read the signal detail — the chart shows the reset and reclaim, and the backtest data shows the historical win rate for that specific stock.
4. Add to your watchlist stocks you want to monitor. Set up Telegram or email alerts to get notified when new signals fire.
5. Log your trades in the journal to track P&L across India and US positions.
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