I’ve found a good setup for pure pattern trading massive size. There are two conditions to this trade:

• VOLD shows a consolidation pattern in market breadth, such as consolidation breakout, or trend break.
• Price finds a significant level (DR floor in example) and breaks in tandem with VOLD pattern breakout.

The way to play this setup is to watch for the simultaneous signal on price and breadth of a structural break. This is a setup meant to be entered heavy. Risk 1% on dollars of move, and layer in 100%. I’m going to size up on these, from 3 entries at 11 contracts towards 3 entries at 50 or 100 contracts (!) on 50k. I’ve found a couple of these setups and, this one I didn’t trade, but my eye caught it in seconds.

For exits, you want to find the signals for the volume halt. For single asset markets, something like RVOL dropping would be good. Indices it’ll have to be a signal from breadth to really nail it. I’m showing 5m but 2m or 3m candles are likely more appropriate. Can see the first green candle on VOLDQ would act as a good exit signal.

I did take a trade on this yesterday capturing essentially the entire daily range in a few minutes. The key here is to take it off. This trade is heavy weight, all in. It’s a scalp, once you find the opposing pressure, you need to take the profit off. You can add back on, but this is a scalp. It is one move. Enter with all of your life force, and take it off like it matters, because it does. This is a very high probability setup and deserves to be played as such.

I failed to exit this yesterday in the choppy conditions but caught a cap of the trade at least.

Time of day: these are better late day because you need a good story and lots of breadth data to find the entry. It will happen fast, your decision making has to be split-second. You should be in the trade within seconds.