From Early Breakout Signals to Bullish Momentum Confirmation, Here’s How It All Unfolded

When Reddit (RDDT) first appeared on our proprietary scanner, it was more than just another breakout—it was a textbook example of how our system tracks setups in real time using price structure, volume clues, and institutional order flow.

September 18: Initial Breakout from a Rounded Bottom

On September 18, Reddit first triggered on our momentum scanner as price action began to push above a significant horizontal resistance level, completing a textbook rounded bottom formation. This structural breakout was paired with a significant clue on the chart: a large volume-by-price bar on the left-hand side. This suggested substantial accumulation throughout the base—an early warning that smart money might be moving in.

At the same time, our PPO momentum indicator turned positive, crossing above the zero line. This confirmed a shift in momentum and aligned with the technical breakout, giving us high conviction that a trend might be emerging.

Real-Time Chart from SetYourStop Report

September 20: Momentum Holds as Price Consolidates

Just two days later, on Friday, September 20, Reddit once again appeared on our momentum scans. This time, price action was consolidating just below the next key level of horizontal resistance. The stock had not given back its gains and was setting up for what we call a secondary breakout.

We highlighted this to our clients, noting that the stock was following system rules and preparing for a potential continuation move.

Real-Time Chart from SetYourStop Report

September 25: Unusual Options Activity Begins to Confirm the Setup

On September 25, Reddit triggered on our unusual options activity scanner, showing early signs of bullish positioning. This was the first time options flow confirmed what we were already seeing on the chart—a critical point where multiple pieces of our system aligned.

This added another layer of conviction and kept Reddit on our daily watchlist.

Options Activity Snapshot from Our Unusual Activity Report

October 2: More Bullish Flow and Flag Formation

By October 2, Reddit was not only still on our radar—it was front and center.

That morning, our option scanner once again flagged bullish activity, which we shared in our Unusual Activity Report. Meanwhile, on the technical side, price action had begun consolidating in the form of a bull flag—a high-probability continuation pattern in trending stocks.

Importantly, price was also attempting to rebound from its upward-sloping moving average, aligning perfectly with the system rules we publish at the top of every report. We told clients to monitor closely for a breakout above horizontal resistance, as the setup remained intact and supported by institutional flow.

Options Activity Snapshot from Our Unusual Activity Report

Real-Time Chart from SetYourStop Report

The Gap-and-Go: System Rules Trigger a Massive Move

What followed was a significant gap higher that led to a gap-and-go trend—the exact kind of move our system is designed to anticipate.

From the initial alert at $63.66, Reddit went on to surge to a high of $230.41, delivering a stunning 261.94% gain before the system rules eventually failed as the price broke below its moving averages.

Follow-up Chart

This Is What We Do at SetYourStop

This is a perfect example of how our multi-layered approach works in real time:

• Momentum Scanner identifies breakout setups

• Technical structure and system rules validate the trade

• Unusual Options Activity confirms institutional interest

• Daily reports guide clients on what to monitor and when

By layering chart structure with momentum and institutional flow, we aim to help clients spot asymmetrical setups with explosive potential, just like this one.

Want to Catch the Next One?

This isn’t hindsight. Every chart, report, and alert on Reddit was shared with our members in real time.

To get early access to high-probability setups like this—before the breakout happens—subscribe now for full access to our momentum scans, unusual options activity alerts, and daily trade setups.

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