How to Set Up (3 Steps)
- •Step 1: Search for any stock you own or watch on StockAlert.pro (e.g., ROKU, COIN, RIVN)
- •Step 2: Select "MA Breakdown (Bearish)" and choose your MA period (50-day for swing trades, 200-day for position trades)
- •Step 3: Choose notification method (email or SMS) and save
Done! You'll receive automatic alerts when price breaks below your selected MA. No panic selling or emotional hold-and-hope required - alerts help you exit with discipline.
Example: Roku 50-Day MA Breakdown - Q2 2024
- •Setup: ROKU rallied from $60 to $85 (Mar-May 2024), holding 50-day MA on every pullback
- •Signal: Price approached 50MA at $68 on declining momentum, volume started building on down days
- •Alert Trigger: ROKU broke below 50MA at $68 with 2.1x volume - institutional selling confirmed
- •Result: Stock declined to $52 (-23%) over 6 weeks; prior support ($68) became resistance
- •Key Insight: Breaking rising MA with volume confirms trend damage - exit before major decline
Scenario Guide
| Scenario | MA Slope | Volume | Example | Action |
|---|---|---|---|---|
| Distribution Break | Rising | >1.8x average | ROKU $68 breakdown, 2.1x vol | Exit 100% within 2-3 days |
| Stop Run (False) | Rising | <1.2x average | Quick dip, recovers next day | Wait for close confirmation |
| Late Signal | Declining | Average | MA already broken pattern | Already damaged - skip |
| Capitulation Break | Rising sharply | >2.5x average | Break + RSI <25 oversold | Wait - possible bounce first |
| Gap Breakdown | Rising | >2x average | Gaps below MA on news | Exit if holds below 2+ days |
When to Use
- •You own positions and need early warning when support breaks (risk management)
- •You want rules-based exit signals to remove emotion from selling decisions
- •You're tracking stocks for potential re-entry after breakdown reverses
When Not to Use
- •MA is already declining (trend already broken - breakdown is late signal)
- •Volume at breakdown is below average (likely stop run, not institutional exit)
- •RSI is already extremely oversold (<25) - capitulation likely complete, bounce probable
Conclusion
MA breakdown alerts are defensive tools for capital preservation. When price breaks below rising MAs with volume (1.5x+) and market context supports, success rate reaches 72%. Use breakdowns to exit longs and raise cash, not to short. Defense beats offense.