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 push the stock significantly higher. >>5 Bargain Stocks to Buy Before 2013 An example of a recent successful breakout trade is residential real estate developer in China Xinyuan Real Estate ( XIN), which I featured in Oct. 19's " 4 Stocks Under $5 Moving Higher." This stock was just starting to move back above its 50-day moving average and it was quickly moving within range of triggering a near-term breakout trade. That trade was set to hit once Xinyuan manages to take out some near-term overhead resistance levels at $2.96 to $3.10 with high volume. Guess what happened? The following day shares of XIN triggered that breakout with monster upside volume. The stock exploded above those breakout levels and has now gone on to hit its recent high of $3.60 a share. I mentioned in that original piece that XIN should test $3.60 to $3.85 a share if the breakout triggered, and that's exactly what the stock is doing now. Traders should now watch XIN to trigger its next major breakout trade, which will hit once it clears $3.81 with high volume. If that breakout hits soon, then we could see XIN trend north of $4 a share. 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. 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.