Setups to Trade
Bull Flag
ContinuationEntry: break of the flag's upper trendline, with relative volume increasing on the breakout candle — not the pullback.
ABCD Pattern
Momentum ContinuationEntry: on the D breakout, once price clears the high set at C — B must hold higher than the base of A.
Flat Top Breakout
Resistance BreakEntry: once price breaks and holds above the flat resistance level — the flatter the top, the more coiled the move.
First Candle to New High
Breakout ConfirmationEntry: the first candle that closes clean above the consolidation range, ideally with a relative volume spike behind it.
Confirmation is not optional
The pattern shape is not the signal — the break with volume behind it is. Wait for price to close through the level before you're in. A candle wick poking above resistance is not confirmation. Chasing the move before it confirms is how a good setup becomes a bad trade.
→ The Confirmation — a full breakdown of this exact moment, in large print
Setups to Trade
VWAP Reclaim
Support BounceEntry: once price closes back above VWAP after testing it as support — a wick that only pokes above doesn't count.
Micro Pullback
Trend ContinuationEntry: each pullback stays shallow — one or two small candles that hold well above the prior base — before the next push higher.
Panic Dip-Buy
Reversal off SupportEntry: only after a reversal candle holds the support level — buying into a falling knife is not this setup.
Range / Box
Spring & UpthrustEntry: the sweep and the reclaim are not the signal — wait for the next candle to hold a higher low before you're in. No hold, no trade.
Moving Average Pullback
MA-Anchored ContinuationEntry: each pullback touches or holds the moving average without closing meaningfully below it — the continuation candle after the touch is your trigger, not the touch candle itself.
B-List means extra caution
These setups work but carry more traps than the A-List — VWAP reclaims fail often, micro pullbacks can turn into full reversals, and panic dips can keep falling. Smaller size, tighter stop, and confirmation matters even more here than on page one.
Reading the Trend
Favorable Context
— watch for these before hunting a setupUptrend
Higher highs, higher lowsRead: each pullback holds above the prior low, and each push clears the prior high — the trend stays intact as long as this structure holds.
Falling Wedge
Narrowing, fading pressureRead: price grinds lower but the range keeps narrowing — selling pressure is fading. Often resolves up, sometimes into an A-List setup.
Ascending Channel
Parallel, trending upRead: price oscillates between two rising, roughly parallel lines. The lower line is the buy zone, the upper line is where you trim or exit.
Unfavorable — Avoid
— recognize these, don't trade into themDowntrend
Lower highs, lower lowsRead: each bounce fails below the prior high, and each leg down breaks the prior low — a persistent downtrend, not a setup to buy into.
Rising Wedge
Narrowing, weakening pushRead: price grinds higher but the range keeps narrowing — momentum is fading even as price makes new highs. Often resolves down.
Descending Channel
Parallel, trending downRead: price oscillates between two falling, roughly parallel lines. Bounces off the lower line tend to fail at the upper one.
This page is context, not a trigger
None of these six are patterns to enter on their own — they're the structure you read before you look for an A-List or B-List setup within them. A rising wedge inside an uptrend is a warning to tighten up, not a reason to short it.