DELAFIELD, Wis. ( 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.>>5 Big Stocks to Trade for Gains One example of a successful breakout trade I flagged recently was biopharmaceutical player Vanda Pharmaceuticals ( VNDA), which I featured in July 11's " 5 Stocks Setting Up to Break Out" at around $8.70 a share. I mentioned in that piece that shares of VNDA had recently pulled back sharply from its 52-week high of $13.30 to its low of $7.44 a share. Following that pullback, shares of VNDA were starting to reverse its downtrend and enter an uptrend with the stock moving back above its 50-day moving average. That move was quickly pushing VNDA within range of triggering a near-term breakout trade above some key overhead resistance levels at $8.74 to $10 a share. Guess what happened? Shares of VNDA started to move into breakout territory the following week with the stock hitting an intraday high of $9.50 a share. Then shares of VNDA pulled back again back below its 50-day moving average to a low of $8.01 a share. That pullback never took VNDA below that prior $7.44 a share low. Then VNDA exploded higher on July 30 with monster upside volume after U.S. regulators said they would give a priority review to the company's treatment for sleep disorders. This stock went on to hit an intraday high of $12.12 a share on July 31 with strong upside volume. That represents a gain of close to 40% for anyone who bought the stock near $8.70 a share. >>5 Stocks Under $10 Set to Soar 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. >>5 Surprise Stocks the Pros Love Right Now With that in mind, here's a look at five stocks that are setting up to break out and trade higher from current levels.