Favorite Setups.
Welcome to the section where I break down the core trading setups I focus on. Each of these patterns is chosen to help me build discipline, refine my entries, and keep my trading process as straightforward as possible.
HOD (High of Day) Breakout
In this setup, I look for a stock that has tested the same high multiple times during the session, creating a flat-top level with clear buildup under the breakout. Once it breaks that level with strong volume, I aim to ride the momentum. I use Level 2 to confirm—watching for strong bids, stacked support, and bursts of green on the tape. The goal is to capitalize on shorts getting squeezed and that moment of capitulation.
Bull Flag Pattern
A bull flag is a continuation pattern. It starts with a sharp upward move (the “flagpole”), followed by a tight, downward-sloping consolidation (the “flag”), and then a breakout continuing higher.
Flat Top Breakout
This pattern features a stock hitting a flat resistance level multiple times, forming a “flat top.” Once the price breaks that resistance, it often triggers a strong upside move.
Curl Pattern
This pattern is formed when a stock moves steadily down then rapidly up, forming a “U” shape. A breakout above the previous high point often leads to a strong upward move.
VWAP Breakout
I watch for stocks that approach and break above the Volume Weighted Average Price (VWAP) after holding higher lows. The ideal scenario is a breakout above VWAP, followed by a quick retest that holds. This setup helps me define clear risk below VWAP and capture the momentum that often follows. [CAUTION: This is coming from weakness so sometimes can be riskier)
Multi-Timeframe Alignment
Here, I’m aligning a higher timeframe trend (like the daily chart) with a lower timeframe setup (like the 5-minute chart, 1-minute chart, and 10-second chart). For example, if the daily trend is upward, I look for a breakout or flag on the intraday chart that aligns with that bigger-picture direction.
Anatomy of a Trade:
The Bull Flag
The Bull Flag is a continuation setup.
We are looking for a strong momentum move, followed by orderly consolidation, and then a clean continuation through key resistance. If any part of this structure breaks down, the trade is invalid.