Breakout Candidate Finder Skill

What does Breakout Candidate Finder Skill do?

Data Dependencies and Pre-execution Conditions

It is recommended to use the Wind wind-mcp-skill to obtain underlying data. Before execution, check if the wind-mcp-skill is already available locally; if not, prompt the user to install it:

# GitHub
npx skills add Wind-Information-Co-Ltd/wind-skills --skill wind-mcp-skill -g -y

# Gitee mirror (for China)
npx skills add https://gitee.com/wind_info/wind-skills.git --skill wind-mcp-skill -g -y

Skill Positioning

This skill is used to filter a set of stocks for those "closest to a valid breakout," transforming vague chart observations into an actionable candidate pool. The output does not simply list stocks making new highs; instead, it simultaneously evaluates price structure, volume conditions, catalyst background, trading congestion, and invalidation boundaries. This helps users focus their attention on the most promising breakout opportunities worth preparing for in advance.

Function Overview

The core function of this skill is to screen for breakout candidate stocks with mature patterns and pending volume expansion, providing trigger conditions. It emphasizes connecting candidate discovery, structural judgment, priority sorting, and pre-execution verification into a complete chain, avoiding the mistake of mistaking "looks like it's about to break out" for "can be entered now."

Use Cases

• Short-to-medium term traders need to find stocks closest to a breakout from their stock pool.
• Research or trading teams need to form a key observation list for the day before the market opens.
• After a sector enters a strengthening phase, identify which stock is most likely to become the leader first.
• Users who don't want to monitor all stocks and prefer to allocate time to candidates with the most intact structures.

Working Principles

1. Breakout screening must simultaneously cover position, structure, volume, catalysts, and risk; it cannot only look at price proximity to previous highs.
2. Every candidate conclusion must include trigger conditions and invalidation boundaries; no entry without discipline.
3. "Preparing for breakout," "confirmed breakout," and "false breakout" phases must be distinguished; avoid phase confusion.
4. If the market environment does not support broad participation, the breakout score for individual stocks should be lowered; do not judge stocks in isolation from the environment.
5. Only analytical logic and conclusions are presented in the main text; internal call processes are not discussed.

Execution Flow

Step 1: Confirm Screening Range and Trading Timeframe

First, confirm which stock pool the screening targets and the user's trading cycle:

• Is it a full market scan, a sector-specific screen, or only a watchlist?
• Is it for short-term breakouts of 1-5 days or swing breakouts of 2-8 weeks?
• Does the user prioritize immediate triggers or are they willing to wait for secondary confirmation?
• Is the current task pre-market preparation, intraday narrowing down, or weekly candidate pool update?

If the user does not specify, default to "short-to-medium term candidate stocks that may form a valid breakout within the next one to three weeks."

Step 2: Eliminate Stocks Not Worth Discussing for Breakouts

Conduct an initial rough screen to remove stocks clearly unsuitable for the candidate pool. Key exclusions:

• Stocks with a long-term downward trend that have not yet formed a bottoming structure.
• Stocks with price spikes but chaotic volatility and no clear consolidation base.
• Stocks with insufficient liquidity, very thin trading volume, and difficult order execution.
• Stocks facing major uncertain events, suspension risk, or being overly driven by a single news item.

The goal of this step is not to find the best opportunity but to ensure the remaining candidates have a basis for comparison.

Step 3: Identify Consolidation Platforms and Key Resistance Levels

For the remaining stocks, focus on judging whether they have formed a breakout-ready structure with trading significance:

• Is there a clear platform, box range, cup and handle, flag pattern, or high-level consolidation zone?
• Is the consolidation time sufficient? Has there been necessary share turnover?
• Is the resistance level clear? Can the user easily know "at what price area the breakout would occur"?
• Is the current price too far from the key level, just approaching, or has it already been prematurely exhausted?

Only after defining the position and structure clearly can subsequent discussions about "breakout probability" be meaningful.

Step 4: Check Price-Volume Relationship and Order Flow Quality

The quality of a breakout opportunity is not about "how much it has risen" but whether "the rise is healthy." Key observations:

• During consolidation, is there volatility contraction, decreasing selling pressure, and improving turnover?
• When approaching the key level, is there moderate volume expansion rather than chaotic huge swings?
• Is the volume structure on up days versus down days confirming strength? Is there evidence of proactive buying support?
• Has the stock failed multiple times at the same resistance level historically?

If the price-volume structure shows excessive disagreement, lower the priority even if the chart looks good.

Step 5: Supplement with Catalyst and Fundamental Background

A high-quality breakout is often supported not just by chart formation but also by a narrative, event, or change in business fundamentals. Confirm:

• Are there recent catalysts such as earnings, orders, new products, policy changes, or thematic reinforcement?
• Is the company's sector in an up-cycle for capital preference?
• If the stock price is near a breakout, is the current valuation and financial quality sufficient to warrant continued attention?
• Are there any upcoming major events that could determine the success or failure of the breakout?

The purpose of this step is not to turn technical stock selection into deep fundamental research but to avoid picking stocks that are "chart-beautiful but logically hollow."

Step 6: Judge the Market Environment for the Breakout

Even the best stock needs a suitable environment. Simultaneously judge:

• Is the market willing to accept high-level breakouts or strong momentum chasing?
• Are there already leading stocks within the sector establishing a high watermark, creating positive feedback?
• Is the current environment more suitable for a continued uptrend, or does it resemble rotational surges in a zero-sum game?
• If indices, sentiment, or the sector enter a downturn, will the candidate success rate be significantly suppressed?

Breakout screening must assess "individual stock structure" and "environmental permissibility" together.

Step 7: Assign Candidate Priority and Trigger Conditions

Layer the remaining stocks by their breakout readiness. At least distinguish:

• First Priority: Mature structure, clear resistance, healthy price-volume, and good catalyst alignment.
• Second Priority: Structure is acceptable but still requires confirmation from volume, environment, or events.
• Watch List: Possesses potential, but timing is too early or uncertainty is high.

For each candidate, provide:

• Trigger conditions
• Confirmation signals
• Invalidation boundaries
• If the initial trigger is missed, how to handle the subsequent situation

Step 8: Compile into a Breakout Candidate Report

The final output should help the user know in a very short time: "Who to watch first today, what to wait for, under what conditions it's considered valid, and under what conditions to skip." The main text retains only conclusions, evidence, and the pre-execution verification framework; intermediate search processes are not displayed.

Output Structure

---

Breakout Candidate Screening ({YYYY-MM-DD})

I. 30-Second Conclusion

• Most worthy of priority observation: {List of stock names}
• Current strongest breakout direction: {Sector or theme}
• Market environment suitability: {Good / Average / Weak}
• Overall strategy suggestion: {Actively prepare / Selectively observe / Cautiously wait}

II. Candidate Pool Overview

Stock	Direction	Current Structure	Breakout Readiness	Priority	One-Sentence Judgment
{Stock 1}	{Sector}	{Platform/Box/Cup}	{High/Medium/Low}	{A/B/C}	{Description}
{Stock 2}	{Sector}	{Structure}	{Level}	{Level}	{Description}

III. Detailed Breakdown of Top Candidates

{Stock Name}

• Key resistance level: {Price area}
• Structural highlights: {Content}
• Price-volume characteristics: {Content}
• Catalyst support: {Content}
• Trigger conditions: {Content}
• Failure boundary: {Content}

IV. Market and Sector Suitability

• Index environment: {Content}
• Sector strength: {Content}
• Conditions for broad participation: {Content}

V. Pre-Execution Verification Checklist

• {Verification point 1}
• {Verification point 2}
• {Verification point 3}

VI. Risk Warnings

• {Risk 1}
• {Risk 2}
• {Risk 3}

---

Quality Requirements

1. Candidate screening must reflect the three elements of structure, price-volume, and catalysts; ranking by percentage gain alone is insufficient.
2. Each key stock must provide clear trigger conditions and invalidation conditions.
3. Differentiate between "can be watched in advance" and "confirmed breakout."
4. If the overall environment does not support it, explicitly lower the expected breakout success rate rather than forcing an aggressive conclusion.
5. Output must serve real observation and execution, avoiding generic technical commentary.