Some of my best trades are on what I call "anticipatory breakouts." Rather than wait for an actual breakout to occur I will look for a setup that suggests that the stock is in position for a move to a new high sometime soon.
Often these patterns are self-fulfilling and the stock can make sizable moves when they trigger, but when there is too much anticipation they can also see a "sell the news" response when the breakout finally does occur.
A good current example of this is Nio, Inc. (NIO) , which makes electric vehicles in China. The stock is trading strongly Tuesday on positive analyst comments and also has heavy call volume, which reflects an increase in speculative action.
Currently, NIO is trading just below the "new closing high" levels. A similar level was the catalyst for a breakout move back on Aug. 25.
There is good consolidation taking place and the stock is not extended so there is a good chance that a breach of the new closing high level will trigger breakout chasers.