The Lab
May 23, 2026

Daily Breakdowns Tool

A Stock Just Broke Below Yesterday's Low. Now What?

This tool helps traders put current daily breakdown patterns into perspective by showing how price has historically responded to similar breakdowns.

A daily breakdown occurs when a stock trades below the previous day's low. It reflects a clear shift where sellers have taken control of that specific price level, as buyers who previously defended it have stepped back, at least for that session.

While breakdowns are often viewed as bearish signals suggesting further downside, their implications are not automatic or uniform. What tends to happen next can vary depending on several factors, such as how many consecutive breakdowns have occurred, where price stands relative to its short-term trend, and the characteristics of the individual stock. A first breakdown from a consolidation base often carries different characteristics than repeated breakdowns in an already extended move. Understanding the likely follow-through requires context from how price has historically behaved after comparable breakdown setups.

What the Tool Shows You

Projection

45-Day Projected Price Cone

Projects a potential price range over the next 45 days by applying historical forward returns from past similar setups.

Probability

Probability Graph

Shows how often prices rose or fell after similar setups in the past.

Scan

Auto-Detection

The tool automatically scans the market and highlights stocks with the strongest setups for the day ahead.

Log

Past Similar Setups

A full log of every past day when conditions were similar.

How Traders are using the Daily Breakdowns Tool

1

Morning Scan

Start the day by checking whether the tool is highlighting any unusual activity in your favorite stocks. This helps you quickly identify which names may be setting up for a potential move.

2

Review the Price Cone

See how price has historically behaved after similar setups. This gives you a realistic view of what typically happens next instead of relying on guesswork.

3

Size the move with the bar graph

Switch to Bar Graph view and set your target price level. The bars show how often similar setups reached that distance by upcoming expirations. Toggle between "By Touch" and "By Close" depending on your strategy.

4

Review the chart and table log for context

Review the historical matches before taking a position. Pay attention to how many comparable setups exist and whether they occurred during similar market conditions. This helps you determine how much weight to give the current signal.

Check if your favorite stock broke down today

Open Daily Breakdowns Tool

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interested in learning more about our tools.