August 29, 2025

Breakout Trading: Simple, Proven Strategies for Identifying and Profiting from Breakouts by Alton Swanson

INTRODUCTION


Introduction: The Power of the Breakout

Every trader dreams of catching that perfect move—when a stock bursts out of its range and rockets upward with momentum. This move is known as a breakout, and it’s one of the most profitable and straightforward trading strategies when executed correctly.

But how do you separate false breakouts from the real deal? That’s where Alton Swanson steps in. His book, Breakout Trading: Simple, Proven Strategies for Identifying and Profiting from Breakouts, dives deep into strategies that actually work in today’s markets.

👉 Check out the book here on Amazon and see why traders are raving about it.


Who Is Alton Swanson, and Why Should You Listen to Him?

Alton Swanson is not a Wall Street suit. He’s a self-taught trader who figured out how to consistently profit by focusing on simple yet powerful strategies. Unlike many trading books that bombard you with indicators and jargon, Swanson’s style is refreshingly clear, concise, and focused on execution.

He doesn’t promise overnight riches. What he offers instead are battle-tested breakout strategies that work across multiple asset classes—from stocks to crypto.


What Is Breakout Trading, Anyway?

Breakout trading is based on the principle that when price breaks through a key level of support or resistance, it can signal a major shift in supply and demand. This often leads to explosive moves as traders pile in.

Swanson’s book does an excellent job of laying out the core concept:

“A breakout is not just a line on a chart—it’s a sign of emotion, of a crowd that’s finally tipping the balance. Our job is to spot it and ride the wave.”

He covers both bullish breakouts (price moving above resistance) and bearish breakouts (price moving below support), giving you tools to trade up or down with confidence.


Top Strategies Covered in the Book

Swanson outlines several simple yet powerful breakout strategies that traders at any level can use. Here are a few highlights:

1. The Classic Resistance Break

This strategy focuses on identifying a price level that a stock has tested multiple times but failed to break. When it finally breaks through—preferably on high volume—that’s your signal.

📌 Key Tip from Swanson: Wait for a close above the breakout level, not just an intraday spike. Patience avoids false signals.


2. The Volatility Squeeze

Before a breakout, many stocks go through a tight consolidation phase—low volatility, low volume, boring action. Then suddenly, BOOM. This is where big money is made.

Swanson teaches how to spot these patterns early, using simple moving averages and Bollinger Bands.

👉 Want to learn how to master this strategy? Get the book here and study Swanson’s real-world chart examples.


3. Retest Entries

Many breakout strategies fail because traders chase the price. Swanson shows how to wait for a retest of the breakout level—giving you a safer entry and lower risk.

This approach is perfect for traders who prefer confirmation over speculation.


4. Pre-Breakout Positioning

This advanced strategy focuses on entering the trade just before the breakout happens by recognizing subtle shifts in volume, trend, and volatility.

It’s riskier but offers maximum reward. Swanson explains how to set proper stops to manage this kind of entry.


Risk Management: The Heart of the Strategy

Swanson’s philosophy is simple: “No breakout is worth blowing your account over.” That’s why he dedicates an entire section of the book to risk control, including:

  • Proper position sizing
  • Setting logical stop-loss orders
  • Understanding risk-reward ratios
  • Avoiding emotional trading

He even shares how losing trades can be valuable—if you use them to refine your setup.


Real Charts, Real Trades, Real Results

One of the best features of Breakout Trading is the inclusion of real-life trade examples. Swanson doesn’t just describe patterns—he shows them.

He includes:

  • Chart setups before and after the breakout
  • Detailed entry/exit points
  • Explanations of why the trade worked (or didn’t)

These examples bring the strategies to life and give traders a visual memory to anchor their learning.

📘 Want to see these chart examples yourself? Grab the book here and flip to Chapter 6—you’ll thank yourself.


Why This Book Stands Out

There are countless trading books out there—but here’s why Breakout Trading is different:

Simplicity: No fluff. No complex math. Just straight-to-the-point strategies.

Actionable: Every chapter ends with “Try This Today” sections you can implement immediately.

Universal: The strategies work across stocks, crypto, forex, and even options.

Clarity: Written in a language any trader can understand, regardless of experience.


Who Should Read This Book?

This book is for:

  • New traders who want to start with a strategy that works.
  • Intermediate traders looking to add breakout setups to their arsenal.
  • Busy professionals who want a clear plan to follow without endless screen time.
  • Crypto traders seeking structure in a volatile space.

If that sounds like you, don’t wait. Click here to buy the book and start your breakout journey today.


Common Mistakes Breakout Traders Make (And How Swanson Helps You Avoid Them)

Trading breakouts can be highly profitable—but only if you avoid these rookie mistakes:

❌ Chasing the breakout

Swanson teaches how to wait for confirmation or a retest, reducing the chance of getting trapped in fakeouts.

❌ Ignoring volume

Many traders focus only on price. Swanson emphasizes the importance of volume as a key signal.

❌ No plan

Random entries and exits kill your edge. The book provides a step-by-step trading plan to follow every time.


A Word on Psychology

What separates successful breakout traders from the rest? Mindset.

Swanson includes a powerful section on emotions in trading, including how to:

  • Stay calm during fast breakouts
  • Avoid fear of missing out (FOMO)
  • Stick to your stop-loss with discipline
  • Develop confidence through backtesting

He believes that strategy + psychology = consistent profits, and his advice hits home.


Tools and Resources Recommended by Swanson

He doesn’t leave you guessing. The book recommends simple tools like:

  • TradingView for charting
  • Volume indicators like OBV
  • Moving averages (20 EMA, 50 SMA, etc.)
  • Journaling tools for post-trade analysis

These tools are either free or low-cost, making the strategy accessible to everyone.


Final Verdict: Should You Read Breakout Trading by Alton Swanson?

If you’re serious about becoming a breakout trader—or just want a clear, concise trading edge—this book is an absolute must-read.

Here’s what you’ll walk away with:

✅ A full trading plan for breakouts
✅ Proven strategies backed by charts
✅ Clear rules for entries, exits, and stops
✅ Confidence to execute trades
✅ Mental discipline to stay focused

🔥 Get your copy now and give your trading the breakout it deserves!


Conclusion: Catch the Move Before It Happens

Markets will always go through periods of calm before a storm. Breakouts are the storm—and those who are prepared will ride the wave to profit.

Whether you’re sitting on the sidelines or stuck in analysis paralysis, Alton Swanson’s Breakout Trading gives you the tools to act with clarity, confidence, and consistency.

✅ Clear rules
✅ Chart-based setups
✅ Real results

What are you waiting for?

📘 Click here to get the book and start your breakout journey today.


This post may contain affiliate links. If you purchase through one of these links, I may earn a small commission at no extra cost to you. I only recommend products I truly believe in.


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