One of my favorite trade setup

This is a one of my favorite trade setup. Its simple and effective most of the time. Stock breaks out of long term consolidation, hits the nearest resistance. A long entry will be at the break out and exit at resistance. Next day, watch the stock for a follow through and look for a long entry on a higher low or on  previous day high.

ELY has formed a 4 months old base and an ascending triangle on its daily chart. The stock broke out on 11/18/10 above resistance 7.38. Entry was at 7.38 with target at 200 MA , 7.65.

Next day the stock gave two long entry.  First entry was on a higher low/Hammer candle from Day 1, second entry was when the stock broke Day 1 high. Click to see the Intraday chart and explanation.