How SignalSky finds high-probability breakout setups — and how to trade them.
Think of a stock's long-term average price(its 220-day average) as a “health line.” Trading above it means a healthy uptrend; belowit means it's struggling.
SignalSky hunts for one specific comeback story: a strong stock that dipped below its health line, then climbed back above it(the “reset & reclaim”), and is now heading back toward the high it made before the dip. History shows that moment is often where the next big move begins.
The Scannerlists every stock sitting at that exact moment right now. Everything below explains the individual pieces — but that's the whole idea.
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.
A signal tells you when the setup appears — but the exit is what protects your capital and lets winners run. Log a trade in the Journal and SignalSky gives you two exit alerts on it automatically:
1. The mandatory stop — a close below EMA 220
The whole thesis is that the stock reclaimed its EMA 220. The moment it closes back belowEMA 220, that reclaim has failed and the setup is invalidated. SignalSky checks this after every market close and sends you an exit alert (Telegram + email) — so you never have to babysit the chart. This is your “cut losers short” rule, and it's on by default for every trade.
2. Your own targets — let winners run
On any open trade you can set a price trigger — a profit target above, or a tighter stop below — and SignalSky alerts you the moment price crosses it. Book partial profits near the pre-set ATH, trail your stop as it runs, or hold for a bigger move. Your targets, your call.
Why this matters:the edge isn't a high win rate — it's that winners run far bigger than losers. The EMA 220 stop keeps losers small; your targets let winners run. That asymmetry is the strategy.
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 — set a stop or target and you'll get an exit alert when it's time to sell (plus the automatic EMA 220 stop). See when to exit above.
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