DELAFIELD, Wis. (Stockpickr) -- There isn't a day that goes by on Wall Street when certain stocks trading for under $10 a share don't experience massive spikes higher. Traders savvy enough to follow the low-priced names and trade them with discipline and sound risk management are banking ridiculous coin on a regular basis.

Just take a look at some of the big movers in the under-$10 complex from Wednesday, including Seanergy Maritime (SHIP) , which exploded higher by 27%; Arca Biopharma (ABIO) , which ripped higher by 22%; VBI Vaccines (VBIV) , which jumped higher by 14.4%; and Skystar Bio-Pharmaceutical (SKBI) , which soared to the upside by 14.3%. You don't even have to catch the entire move in lower-priced stocks such as these to make outsized returns when trading.

Low-priced stocks are something that I tweet about on a regular basis. I frequently flag high-probability setups, breakout candidates and low-priced stocks that are acting technically bullish. I like to hunt for low-priced stocks that are showing bullish price and volume trends, since that increases the probability of those stocks heading higher. These setups often produce monster moves higher in very short time frames.

When I trade under-$10 names, I do it almost entirely based off of the charts and technical analysis. I also like to find under-$10 names with a catalyst, but that's secondary to the chart and volume patterns.

ION Geophysical


One under-$10 oil and gas equipment and services player that's starting to move within range of triggering a near-term breakout trade is ION Geophysical (IO - Get Report) , which provides geophysical technology, services, and solutions to the oil and gas industry worldwide. This stock has been destroyed by the sellers over the last six months, with shares down sharply by 41%.

If you take a glance at the chart for ION Geophysical, you'll notice that this stock has been trying to carve out a bottom over the last two months, with shares finding some buying interest right around $2.30 a share. This potential bottom is coming after shares of IO have been downtrending badly for the last six months, with the stock sliding sharply lower from over $4 to its new 52-week low of $2.29 a share. Shares of IO are now starting to bounce higher off those near-term support levels and it's quickly moving within range of triggering a near-term breakout trade above a key downtrend line.

Traders should now look for long-biased trades in IO if it manages to break out above some near-term overhead resistance levels at its 50-day moving average of $2.61 a share and then above more near-term resistance levels at $2.68 to $2.83 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 1.33 million shares. If that breakout triggers soon, then IO will set up to re-test or possibly take out its next major overhead resistance levels $3.02 to $3.50 a share, or even its 200-day moving average of $3.60 a share.

Traders can look to buy IO off weakness to anticipate that breakout and simply use a stop that sits right below its new 52-week low at $2.29 a share. One can also buy IO off strength once it starts to take out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Nxt-ID


Another under-$10 security and protection services player that's starting to trend within range of triggering a near-term breakout trade is Nxt-ID (NXTD - Get Report) , which provides various biometric solutions. This stock has been hit very hard by the sellers in 2014, with shares down large by 40%.

If you take a look at the chart for Nxt-ID, you'll see that this stock has been attempting to carve out a bottom here over the last month and change, with shares finding buying interest each time it's pulled back to right around $2 a share. Shares of NXTD are now starting to rip higher right above those recent support levels and it's beginning to flirt with its 50-day moving average of $2.50 a share. That move is quickly pushing shares of NXTD within range of triggering a near-term breakout trade above some key overhead resistance levels.

Market players should now look for long-biased trades in NXTD if it manages to break out above some near-term overhead resistance levels at $2.65 to $2.67 a share and then above $2.75 to $3 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 798,484 shares. If that breakout begins soon, then NXTD will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $3.48 to $3.70 a share, or even $4.20 a share.

Traders can look to buy NXTD off weakness to anticipate that breakout and simply use a stop that sits right below some major near-term support at $2 a share. One can also buy NXTD off strength once it starts to clear those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Heron Therapeutics


One under-$10 specialty pharmaceutical player that's starting to trend within range of triggering a major breakout trade is Heron Therapeutics (HRTX) which develops product candidates using its proprietary Biochronomer polymer-based drug delivery platform. This stock has been hit by the bears over the last six months, with shares off notably by 22%.

If you take a glance at the chart for Heron Therapeutics you'll notice that this stock has been attempting to carve out a bottom over the last month and change, with shares finding buying interest at $7, $7.12 and $7.32 a share. Shares of HRTX are now starting to spike sharply higher right above those support levels and back above its 50-day at $7.79 a share with strong upside volume flows. Volume on Wednesday registered over 739,000 shares, which is well above its three-month average action of 122,820 a share. That spike is now quickly pushing shares of HRTX within range of triggering a major breakout trade above some key near-term overhead resistance levels.

Traders should now look for long-biased trades in HRTX if it manages to break out above some near-term overhead resistance levels at $8.44 to $8.46 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average volume of 122,820 shares. If that breakout materializes soon, then HRTX will set up to re-test or possibly take out its next major overhead resistance levels at $9.31 to $9.35 a share, or $9.71 to $9.88 a share, or even its 200-day moving average of $10.35 a share.

Traders can look to buy HRTX off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $7.32 to $7.12 a share, or even $7 a share. One can also buy HRTX off strength once it starts to bust above those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Sizmek


Another under-$10 advertising player that's quickly moving within range of triggering a major breakout trade is Sizmek (SZMK) , which provides online advertising delivery and optimization services worldwide. This stock has been hammered lower by the sellers in 2014, with shares off sharply by 40%.

If you look at the chart for Sizmek, you'll see that this stock has been uptrending strong for the last two months, with shares moving higher from its new 52-week low of $4.85 to its intraday high on Wednesday at $6.34 a share. During that uptrend, shares of SZMK have been making mostly higher lows and higher highs, which is bullish technical price action. Shares of SZMK briefly flirted with a breakout trade on Wednesday, after the stock tested some key near-term overhead resistance levels at $6.25 to $6.29 a share.


Market players should now look for long-biased trades in SZMK if it manages to take out Wednesday's intraday high of $6.34 a share high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 211,762 shares. If that breakout materializes soon, then SZMK will set up to re-fill some of its previous gap-down-day zone from October that started near $7.50 a share. If that gap gets filled with volume, then shares of SZMK will have a chance at tagging $8 a share to its 200-day moving average of $8.76 a share.

Traders can look to buy SZMK off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $5.67 to $5.46 a share. One can also buy SZMK off strength once it starts to take out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Covisint


One final under-$10 application software player that's quickly moving within range of triggering a big breakout trade is Covisint (COVS) , which provides a cloud engagement platform in the U.S. and internationally. This stock has been destroyed by the sellers in 2014, with shares off huge by 78%.

If you take a glance at the chart for Covisint, you'll see that this stock has recently formed a major bottoming chart pattern, with shares finding buying interest at $2.05, $2.19 and $2.18 a share. Following that bottom, shares of COVS have now started to uptrend over the last few trading sessions with strong upside volume flows. Volume on Wednesday registered over 687,000 shares, which is well above its three-month average action of 352,250 a shares. That uptrend is now quickly pushing shares of COVS within range of triggering a big breakout trade above some key near-term overhead resistance levels.


Traders should now look for long-biased trades in COVS if it manages to break out above some near-term overhead resistance levels at $2.77 to $2.86 a share and then above its 50-day at $2.91 a share to more resistance just above $3 a share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average action 352,250 shares. If that breakout develops soon, then COVS will set up re-test or possibly take out its next major overhead resistance levels at $3.30 to $4 a share, or even $4.50 to $5 a share.

Traders can look to buy COVS off weakness to anticipate that breakout and simply use a stop that sits right around some key near-term support levels at $2.18 to $2.05 a share. One can also buy COVS off strength once it starts to clear those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

-- Written by Roberto Pedone in Delafield, Wis.

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At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.