Thread by @DolanVKent

Momentum Trading Setups

How to build pattern recognition…Fast!

Step 1: Binge @Qullamaggies swing school ()

Step 2: Calibrate your eyes to quickly recognize setups (here's a cheat sheet)👇👇👇

Step 3: Familiarise yourself with all the different variations

Growth Stock HTF
- “classic” HTF showing consistent strength riding MAs up (20-30% per leg)
- Build ranges at recent highs
- Persistent volume
- Initial move triggered by catalyst like EP

HTF below MA
- Unlike Classic HTF, flag drifts down below the MA. Longs neglect, shorts anticipate
- On breakout through MA/failure of the breakdown shorts cover, weak hands chase to get back in
- Occur later in the swing cycle after a few legs where more sellers lock in gains

Re-confirmation HTF
- Leg2 flag that overlaps with Leg1 flag
- Occur in 2 places
1. Few legs up where stock looks “extended” (coinciding with a weak general market/correction, but this stock shows RS)

2. shortly after the second leg up, where the breakout retests and some more supply is being digested before continuation

Arch HTF
“choppy” stocks that trend in channels
less linear, still showing constant accumulation, but “choppy” with overlapping candles vs “straight up”
These stocks tend to trend in channels, but also contract or form clean trendlines for breakout

Failed BO HTF
- Breakdown failures (very powerful)
- Form bearish double tops or head and shoulders patterns
- Expectation breaker, BREAKOUT! Shorts rush to cover, weak hands try to buy back the stock.
- Occure on "extended" stocks

Failed BD/MAbounce/MR/HigerLow/RangeBreak Setup
- Another failed BD setup
- Failed HTF setup but combines Mean Reversion
- Extended below shorter timeframe like 10ma
- Must still be making clear higher lows on longer timeframe

6/5 Star HTF
- Just your classic HTF which is very geometrically symmetrical or “clean”
- Provides “obvious” breakout ranges

Short Base HTF
- Very powerful stocks that make BIG moves (50-100%)
- “classic” HTF but on the hourly timeframe
- So powerful that they ride above the 10ma, then consolidate for around 1 week, touch the 10ma and go again

POS High tight Flag
- Shitcos that go late in the swing cycle (generally 30-50%+ moves)
- Take note of the persistent volume that comes in after the initial big move (this is key!)
- You will see alot of big moves out of biotechs where volume seemingly disappears (avoid)

General Note
- I've only scratched the suface here b/c there so much more nuance
- Context is extreemly important
- e.g If you have a failed breakdown flag, vs a "classic" HTF, the classic one is probably higher probability

- Another important nuance is that how setups show up across time ie one variation might be built ontop of another one (eg continuation)
- You always want to pick the strongest stocks available at any time
- Sectors, themes & catalysts boost setup ratings

- A+ setup in the "Chop" phase might not be a C grade setup in the 'straight up' phase with a strong sector or catalyst
- etc etc etc these are the ones that I can think off of the top of my head right now.

- I'm sure there're traders that can name more caveates

- Im sure there are traders who can name more setup variations!

👇👇👇 please do!