WINDERMERE, Fla. ( Stockpickr) -- Trading stocks that trigger major breakouts can lead to massive profits. Once a stock trends to a new high, or takes out a prior overhead resistance point, then it's free to find new buyers and momentum players that can ultimately push the stock significantly higher.One recent example of a successful breakout trade that I highlighted was biotechnology and drugs player Nektar Therapeutics ( NKTR). In Aug. 31's " 5 Stocks Poised for Big Breakouts," I highlighted how NKTR had entered a sideways trading pattern between $7.86 and $8.73 a share. I advised traders to look for long-biased trades in NKTR once it broke out of that sideways trading pattern with strong upside volume. >>5 Stocks Under $10 Set to Soar Guess what happened? Shares of NKTR went on to trigger that breakout with monster upside volume. The stock then ripped above some more overhead resistance at $9.94 a share with heavy upside volume. That breakout has now taken NKTR to its recent high of $10.90 a share. When I wrote the article, NKTR was trading at around $8.50 a share, so that's a solid gain of close to 30% in a very short timeframe if you had traded that breakout. Shares of NKTR are now getting a bit overbought with its current relative strength index (RSI) reading at over 80. This is a good area to lock in some profits if you caught that monster move over the past month. Breakout candidates are something that I tweet about on a daily basis. I frequently tweet out high-probability setups, breakout plays and stocks that are acting technically bullish. These are the stocks that often go on to make monster moves to the upside. What's great about breakout trading is that you focus on trend, price and volume. You don't have to concern yourself with anything else. The charts do all the talking. >>5 Stocks Hedge Funds Hate -- But Should You? Trading breakouts is not a new game on Wall Street. This strategy has been mastered by legendary traders such as William O'Neal, Stan Weinstein and Nicolas Darvas. These pros know that once a stock starts to break out above past resistance levels, and hold above those breakout prices, then it can easily trend significantly higher. With that in mind, here's a look at five stocks that are setting up to break out and trade higher from current levels.