MYM — Micro Dow ($0.50/pt)

Tracks the same 30 Dow companies (Apple, Microsoft, Boeing, JPM, Visa, McDonald’s, Coca-Cola, Walmart, etc.).

100 pts: 1c $50, 2c $100, 5c $250, 10c $500
150 pts: 1c $75, 2c $150, 5c $375, 10c $750
200 pts: 1c $100, 2c $200, 5c $500, 10c $1,000

MES — Micro S&P 500 ($5/pt)

Tracks the same 500 S&P companies (Apple, Microsoft, Amazon, Alphabet, Meta, NVIDIA, Tesla, Berkshire, JPM, Exxon, etc.).

100 pts: 1c $500, 2c $1,000, 5c $2,500, 10c $5,000
150 pts: 1c $750, 2c $1,500, 5c $3,750, 10c $7,500
200 pts: 1c $1,000, 2c $2,000, 5c $5,000, 10c $10,000

(MES = exactly 1/10 of ES)

MNQ — Micro Nasdaq-100 ($2/pt)

Tracks the same 100 Nasdaq giants (Apple, Microsoft, Amazon, NVIDIA, Meta, Alphabet, Tesla, Netflix, Adobe, AMD, Intel, Qualcomm, PepsiCo, Costco, etc.).

100 pts: 1c $200, 2c $400, 5c $1,000, 10c $2,000
150 pts: 1c $300, 2c $600, 5c $1,500, 10c $3,000
200 pts: 1c $400, 2c $800, 5c $2,000, 10c $4,000

(MNQ = exactly 1/10 of NQ)

Front Matter (0–4)

1 — Disclaimer, 2–3 — Points to Remember (trading rules), 4 — FOUNDATION title

Introduction to Markets & Instruments (5–14)

5 — What You Will Learn, 6–7 — Why Trading?, 8 — What You Can Trade, 9–13 — Stock Basics & Long/Short, 14 — Bulls & Bears

Market Analysis Approaches & Trading Styles (15–23)

15–19 — Fundamental/Technical/Inter-Market Analysis, 20–22 — Trading Styles (scalp/day/swing/position), 23 — Long-Term Trading

Trading Business, Psychology & Brokers (24–32)

24–27 — Trading Business & Psychology, 28 — Key Trading Questions, 29–31 — Brokers & Accounts, 32 — Day Trading Rules

Order Entry & Charting (33–36)

33–35 — Order Types (market/limit/stops/OCO), 36 — Streaming Charts

Candlesticks & Reversal Patterns (38–59)

38 — Candles Title, 39 — What Is a Candlestick?, 40 — Anatomy, 41 — Interpretation, 42–44 — Construction & Variations, 45–46 — Doji Types, 47 — Dragonfly, 48 — Tombstone, 49–50 — Hammer, 51–52 — Shooting Star, 53–54 — Reversal Overview, 55 — Bullish Engulfing, 56 — Bullish Harami, 57 — Bearish Engulfing, 58 — Bearish Harami, 59 — Dark Cloud Cover

Chart Patterns (60–79)

60 — Charting Patterns Title, 61 — Pattern List, 62–64 — Ascending Triangle, 65–67 — Descending Triangle, 68–70 — Double Top, 71–73 — Double Bottom, 74 — Double Top/Bottom Comparison, 75–77 — Head & Shoulders, 78–79 — Inverted Head & Shoulders

Trends & Support/Resistance (80–88)

80 — Three Trends, 81 — Bullish Trend, 82 — Bearish Trend, 83 — Sideways Trend, 84 — Support/Resistance Definitions, 85 — Types of S/R, 86 — Time-Based S/R, 87 — Algo Numbers, 88 — Moving Averages Title

Moving Average System (89–102)

89 — MA Definition, 90 — 8/20/50 SMAs, 91 — 200 SMA & 13 EMA, 92 — 20 SMA Rules, 93–99 — MA Examples, 100 — Trending with MA, 101–102 — Trend Examples

Indicators & Multi-Factor Alignment (105–118)

105 — Indicators Title, 106 — Indicator Types, 107–109 — Stochastic, 110–112 — Chaikin Money Flow, 113–115 — ADX, 116–118 — Alignment (Stoch + Candle + MA + Fibs)

Fibonacci (119–130)

119 — Intro, 120 — Fibs & Pivots, 121 — Golden Ratio, 122–125 — Retracements, 126 — Counting Bars, 127–130 — Fibonacci Sequences

Time Frames & Impulse Bars (131–140)

131–134 — Multiple Time Frames, 136 — 1m/2m/5m Frames, 137–140 — Impulse & Micro Bars

Setup Criteria & Gap Trading (141–158)

141 — Buy/Sell Setup, 142–147 — Gap Fade, 150–156 — Gap & Go, 157 — Gap Facts, 158 — Finding Stocks

Options Basics (159–180)

159 — Long-Term Stock Strategy, 160–172 — Option Definitions (calls/puts, ITM/ATM/OTM), 173–174 — Key Notes, 175 — Stock vs Options ROI, 176 — ITM/ATM/OTM Matrix, 177 — Intrinsic/Extrinsic, 178–180 — Risk Graphs & Chart Integration

The Greeks & Pricing Models (181–183)

181 — Delta/Gamma/Vega, 182 — Theta/Rho, 183 — Black-Scholes

Advanced Options Strategies (185–208)

185 — Strategy Types, 186–190 — Vertical Spreads, 191–196 — Protected Vehicles, 197–199 — Straddle/Strangle, 200–205 — Calendar/Condor/Butterfly, 206–208 — Ratio Backspreads

Futures Trading (209–240)

210–212 — Consolidation/Trend/Micro Bars, 213–219 — Futures Overview, 220 — E-Minis (YM/NQ/ES), 221 — Advantages, 222–224 — Contract Specs, 225 — Single Stock Futures, 226–240 — Commodities (Gold, Silver, Copper, Oil, Nat Gas, Wheat, Cotton)

Forex & Currency Futures (243–272)

243 — Forex Title, 244–246 — Basics, 247–249 — Participants & FX Notation, 250–252 — PIPs & Risk Allocation, 253 — Leverage, 254–257 — Psychology & Fundamentals, 259–260 — Global Sessions, 261–271 — Currency Futures & Announcements, 269–272 — Fibonacci in FX & Pivot Points

Preview: 

Marubozu 88%, Rising Three Methods 81%, Three White Soldiers 79%, Ascending Triangle 77%, Bullish Flag 76%, Bullish Pennant 75%, Cup & Handle 73%, Falling Wedge Breakout 72%, Bullish Engulfing Continuation 71%, Hammer Continuation 70%, Inside Bar Breakout 69%, High Tight Flag 69%, Ascending Channel Continuation 68%, Breakout–Retest Continuation 68%, Micro Pullback Continuation 67%, EMA Pullback Continuation 67%, VWAP Reclaim Continuation 66%, Volume Expansion Breakout 66%, Squeeze Breakout Continuation 65%, Trendline Break & Retest 65%.

TOP 20 STRONGEST BULLISH CONTINUATION PATTERNS

(Enter placed immediately after parentheses, no bolding.)

1. Marubozu (1 candle, 88%) Enter: Above close; confirms uninterrupted buying pressure

Exit: Prior high; likely liquidity target for continuation
RR: Upper wicks show absorption weakening momentum
Stop Loss: Below low; invalidates full-body dominance

2. Rising Three Methods (5–6, 84%) Enter: Break impulse high; proves pullback selling was controlled

Exit: Structural highs; trend strength typically reasserts
RR: Deep pullback signals shift toward seller strength
Stop Loss: Below pullback low; breaks continuation structure

3. Bullish Flag (7–20, 81%) Enter: Break flag top; compression resolves upward

Exit: Flagpole target; measured moves follow classic behavior
RR: Re-entry signals bulls failed to maintain control
Stop Loss: Below flag low; invalidates consolidation base

4. Bullish Pennant (6–15, 79%) Enter: Above apex; volatility expansion confirms direction

Exit: Pole extension; trend follow-through often symmetrical
RR: Low-volume breaks indicate imbalance insufficient
Stop Loss: Below apex; negates converging support

5. Bullish Engulf (2, 78%) Enter: Break engulf high; bulls overpower entire prior session

Exit: Swing high; immediate continuation common
RR: Retrace >50% shows weak commitment
Stop Loss: Below engulf low; invalidates takeover candle

6. Three White Soldiers (3, 76%) Enter: After third soldier; confirms sequential buyer strength

Exit: Next structural high; rallies often consolidate there
RR: Upper wick signals exhaustion within thrust
Stop Loss: Below soldier #1; destroys pattern integrity

7. Break-and-Retest (3–6, 75%) Enter: Retest wick; buyers defend new support

Exit: Prior high; breakout typically revisits previous peak
RR: Close below level erases breakout credibility
Stop Loss: Below wick; rejection no longer valid

8. Inside-Bar Breakout (2–3, 73%) Enter: Break inside high; volatility expansion after compression

Exit: 1–2R or swing high; typical measured continuation
RR: Weak close suggests absorption overpowering breakout
Stop Loss: Below inside low; invalidates coil structure

9. High-Volume Bull Bar (1, 72%) Enter: Above HV close; institutional aggression confirmed

Exit: Next liquidity shelf; price gravitates toward dense orders
RR: Volume drop weakens follow-through odds
Stop Loss: Below low; demand zone failed

10. 8/20 SMA Compression Break (8–20, 71%) Enter: Break compression high; coiled energy releases upward

Exit: Next high; structure dictates destination
RR: Re-entry signals trend indecision
Stop Loss: Below structure low; alignment broken

11. VWAP Reclaim (1–2, 69%) Enter: Above reclaim candle; price regains institutional value

Exit: VWAP+1 deviation; typical extension range
RR: Weak retest shows contested reclaim
Stop Loss: Below reclaim low; value regained invalid

12. Bullish Order Block Reaction (2–4, 68%) Enter: First OB reaction; algorithms defend demand origin

Exit: Liquidity zone; price clears inefficiency next
RR: Deep retest weakens demand zone integrity
Stop Loss: Below OB; structure failure

13. Micro Pullback Break (3–6, 67%) Enter: Break micro-HH; confirms continuation strength

Exit: 1–2R; momentum-driven extensions common
RR: Return inside pullback signals pending reversal
Stop Loss: Below HL; trend no longer intact

14. Breakaway Gap Hold (1, 66%) Enter: Above confirmation candle; gap strength validated

Exit: Next shelf; gaps aim for nearest resistance
RR: Gap fill >50% dissolves advantage
Stop Loss: Below gap; imbalance removed

15. SAR Bull Flip (1, 64%) Enter: Above flip candle; SAR shift confirms upward acceleration

Exit: Until SAR flips bearish; trend-following logic
RR: Compression warns momentum fading
Stop Loss: Below flip candle; reversal invalid

16. Bullish Hammer (1, 63%) Enter: Above hammer high; strong lower wick shows absorption

Exit: Prior high; natural recovery point
RR: Retest suggests absorption may fail
Stop Loss: Below wick; rejection invalidated

17. Bullish Tweezer Bottom (2, 61%) Enter: Above candle #2; repeated defense of same low

Exit: Structural high; typical bounce target
RR: Close below lows signals failed defense
Stop Loss: Below shared low; pattern invalid

18. MA20 Reclaim (1–2, 60%) Enter: Above reclaim; trend re-aligned with mean

Exit: Swing high; trend continuation zones
RR: MA20 failure signals weak reclaim
Stop Loss: Below reclaim low; trend lost

19. Bullish Doji Reversal (2, 59%) Enter: Above confirmation; indecision resolved upward

Exit: Prior high; short-term magnets
RR: Weak confirmation reveals imbalance unresolved
Stop Loss: Below doji; reversal invalid

20. Rounded Micro-Base Break (6–12, 58%) Enter: Break base ceiling; accumulation releases upward

Exit: Measured move; base height projection
RR: Re-entry means buyers not ready
Stop Loss: Below floor; base breakdown

1. The Bullish Marubozu represents one of the strongest continuation signals in technical analysis. It forms when buyers control the candle from open to close with no meaningful wicks. This means there were no counterattacks from sellers, no hesitation, and no pullbacks during formation. It represents decisive, aggressive buyer control, often signaling institutional participation. When this candle appears in an uptrend, it indicates strong bid lifting and a high probability of follow-through. Historically, the next candle is green about 88% of the time, provided price is not directly confronting major resistance. You enter above the Marubozu close while buyers continue hitting the ask. Targets include the next swing high and a measured move equal to the prior impulse. If the following candle forms a large upper wick, loses momentum, or volume collapses, reduce risk. The stop sits below the Marubozu low.

2. The Rising Three Methods pattern shows controlled pullback behavior inside an existing uptrend. It begins with a strong bullish impulse candle, followed by three smaller bearish or neutral pullback candles, each contained inside the range of the first candle. This containment shows sellers never gained control; instead, the market was pausing while buyers prepared for continuation. The pattern completes with a strong breakout candle that closes above the initial impulse high. This structure produces an 84% chance of a green next candle. Enter above the impulse high or the final bullish candle. Targets include continuation equal to the initial impulse leg. Reduce risk if any of the small pullback candles close below the midpoint of the impulse. The stop belongs below the lowest of the three pullback candles.

3. The Bullish Flag Breakout is a premier continuation pattern composed of a sharp impulse followed by a tight downward or sideways consolidation. This consolidation forms the “flag,” showing orderly retracement with contracting volume—proof that sellers are not in control. Breakouts come with volume expansion and strong tape, giving this pattern an 81% chance of a green next candle. Enter on a clean break above the flag’s upper boundary. The target is the full flagpole projection. Reduce risk immediately if price re-enters the flag. Place the stop under the flag low, which invalidates the continuation structure.

4. The Bullish Pennant Breakout forms when a strong impulse is followed by a symmetrical, tightening consolidation. Price compresses into the apex while volatility drops, creating stored energy. When the breakout occurs, it often comes with volume expansion and a decisive shift in order flow. This pattern delivers roughly a 79% chance of a bullish next candle. Enter above the apex breakout once volume and volatility confirm. Target the pole extension. Reduce fast if the breakout candle lacks participation or shows absorption. Place the stop below the apex.

5. The Bullish Engulf signals a powerful takeover by buyers. A large bullish candle fully engulfs the body of the previous candle, erasing any bearish momentum. This creates a rapid shift in sentiment and offers a 78% chance of a green follow-up candle, especially when it forms after a brief pullback. Enter above the engulf candle’s high. Targets include the nearest structural high and partials at 1R. Reduce exposure if the next candle retraces more than 50% of the engulf body. The stop belongs beneath the engulf low.

6. The Three White Soldiers pattern consists of three consecutive strong bullish candles, each closing near their highs and each closing higher than the last. This demonstrates sustained, multi-interval buyer aggression—often institutional. The next candle is historically green about 76% of the time. Enter after the third soldier or on a micro-pullback toward the second or third soldier. Target the next structural high or liquidity sweep. Reduce if the third soldier forms an exhaustion wick. The stop is placed below the first soldier’s low.

7. The Break-and-Retest pattern occurs when price breaks above resistance, pulls back, and retests the level as new support. A bullish rejection at the retest is confirmation that sellers were absorbed and buyers have taken control. This pattern produces a 75% chance of a bullish next candle. Enter on a clean rejection wick at the retest. Target the previous swing high or the measured continuation leg. If the candle closes back below the level, the setup fails. The stop sits below the retest wick.

8. The Inside-Bar Bull Breakout forms when a candle is completely inside the range of the prior candle, signaling compression. In an uptrend, breaking the inside-bar high yields a green next candle about 73% of the time. Enter on the break of the inside-bar high, ideally with rising volume. Targets include 1–2R and the next swing high. If the breakout candle closes weak or inside the prior range, reduce or exit. Place the stop below the inside-bar low.

9. The High-Volume Bull Bar occurs when a bullish candle forms with significantly elevated volume—usually 1.3–1.5× the recent average. This represents institutional entry and increases the probability of continuation. The next candle is green about 72% of the time. Enter above the high-volume bar’s close. Target the next shelf or liquidity zone. If the next candle lacks follow-through volume, reduce. The stop goes under the candle low.

10. The 8/20 SMA Compression Breakout appears when price compresses between the rising 8 SMA and 20 SMA, forming a volatility squeeze. This compression precedes a trend continuation roughly 71% of the time. Enter when price breaks above the compression high with clear SMA alignment. Target the next structural high or prior trend-leg projection. Reduce risk if price re-enters compression. The stop sits below the compression low.

11. The VWAP Reclaim pattern forms when price dips under VWAP but quickly reclaims it with a strong bullish response. This signals institutional defense of fair value. The next candle turns green about 69% of the time. Enter above the reclaim candle high. Exit at VWAP + 1 deviation or the next resistance zone. Reduce risk if the VWAP retest is weak. Place the stop below the reclaim candle low.

12. The Bullish Order-Block Reaction occurs when price taps into a demand-side order block and immediately bounces with conviction. This shows accumulation and institutional defense. Historically, the next candle is green around 68% of the time. Enter on the bullish reaction candle. Targets include the next liquidity zone or imbalance. Reduce or exit if price retests deep into the OB or breaks it. Stop loss goes below the OB low.

13. The Micro Pullback Break is a tight continuation structure where multiple shallow candles form a small pause within a trend. These candles show minimal bearish motivation. Breaking the micro-pullback high yields a green next candle roughly 67% of the time. Enter on that break. Targets include 1–2R and trailing for continuation. Reduce risk if price falls back into the micro-pullback. The stop goes beneath the micro higher low.

14. The Breakaway Gap Hold forms when price gaps above resistance and the ensuing candle holds that gap without filling. This demonstrates strong buyer aggression and low willingness from sellers to fade the move. The next candle is green roughly 66% of the time. Enter on the first bullish confirmation candle. Exit at the next shelf or imbalance. If the gap fills more than half its size, exit. The stop lives under the gap low.

15. The SAR Bull Flip occurs when the parabolic SAR flips from above price to below price, indicating a shift into bullish control. This momentum-based continuation setup delivers a green next candle about 64% of the time. Enter above the SAR-flip candle. Exit when SAR flips bearish again. Reduce if the trend stalls or SAR compresses. Place the stop below the SAR-flip candle’s low.

16. The Bullish Hammer Close shows strong rejection from lower prices, evidenced by a long lower wick and a close in the upper portion of the range. This pattern produces a green next candle approximately 63% of the time. Enter above the hammer high. Target the previous swing high. Reduce if the hammer low is retested aggressively. The stop goes under the wick low.

17. The Bullish Tweezer Bottom consists of two candles sharing nearly identical lows, demonstrating firm buyer defense. This results in a green continuation roughly 61% of the time. Enter above the second candle’s high. Exit at the nearest structural high. Reduce risk if the next candle closes below the tweezer lows. The stop sits beneath those equal lows.

18. The MA20 Reclaim occurs when price reclaims the rising 20-period moving average after dipping below it. This reveals the MA20 acting as dynamic support once again and results in a green next candle about 60% of the time. Enter above the reclaim candle. Exit at the next swing high. Reduce risk if the MA20 retest fails. Place the stop under the reclaim low.

19. The Bullish Doji Reversal forms when a doji signals indecision followed by a bullish confirmation candle. In an uptrend, this resolution yields a green next candle about 59% of the time. Enter above the confirmation candle high. Exit at nearby resistance. Reduce if the confirmation is weak. Stop loss belongs below the doji low.

20. The Rounded Micro-Base Break forms when price builds a small rounded accumulation base with higher lows. When price breaks through the top of this base, it creates a continuation move about 58% of the time. Enter on the breakout. Target the measured move equal to the base’s height. Reduce or exit if price re-enters the base. Place the stop under the base floor.

TOP 20 STRONGEST BEARISH CONTINUATION PATTERNS

(Mirrors the bullish format precisely.)

1. Bearish Marubozu (1 candle, 88%) Enter: Below close; sellers sustained control

Exit: Prior low; liquidity target
RR: Lower wicks show weakening sellers
Stop Loss: Above high

2. Falling Three Methods (5–6, 84%) Enter: Break impulse low; pullback selling intact

Exit: Next structural low
RR: Deep pullback shows buyer strength
Stop Loss: Above pullback high

3. Bearish Flag (7–20, 81%) Enter: Break flag base; volume confirms momentum

Exit: Flagpole target
RR: Re-entry signals failed breakdown
Stop Loss: Above flag high

4. Bearish Pennant (6–15, 79%) Enter: Below apex; volatility expansion downward

Exit: Pole extension
RR: Weak volume limits continuation
Stop Loss: Above apex

5. Bearish Engulf (2, 78%) Enter: Break engulf low; sellers overpower buyers

Exit: Next swing low
RR: Retrace >50% weakens takeover
Stop Loss: Above engulf high

6. Three Black Crows (3, 76%) Enter: After third crow confirms seller sequence

Exit: Next structural low
RR: Long lower wicks show exhaustion
Stop Loss: Above crow #1

7. Break-and-Retest (3–6, 75%) Enter: Retest wick; resistance holds

Exit: Prior low
RR: Close above level invalidates breakdown
Stop Loss: Above wick

8. Inside-Bar Bear Breakout (2–3, 73%) Enter: Break inside low; volatility expansion

Exit: 1–2R or next swing low
RR: Weak close shows absorption
Stop Loss: Above inside high

9. High-Volume Bear Bar (1, 72%) Enter: Break below HV close; institutional selling

Exit: Next liquidity shelf
RR: Weak volume weakens follow-through
Stop Loss: Above high

10. 8/20 SMA Compression Breakdown (8–20, 71%) Enter: Break compression low; energy release

Exit: Next structural low
RR: Re-entry signals failed expansion
Stop Loss: Above structure high

11. VWAP Reject (1–2, 69%) Enter: Below rejection candle; sellers defend value

Exit: VWAP –1 deviation
RR: Weak retest shows hesitation
Stop Loss: Above rejection high

12. Bearish Order-Block Reaction (2–4, 68%) Enter: First OB reaction; algorithmic supply

Exit: Next liquidity pool
RR: Deep retest weakens supply
Stop Loss: Above OB

13. Micro Pullback Break (3–6, 67%) Enter: Break micro-LL; continuation confirmed

Exit: 1–2R
RR: Return inside weakens structure
Stop Loss: Above LH

14. Breakaway Gap Hold (1, 66%) Enter: Below confirmation candle; gap holds

Exit: Next shelf
RR: Gap fill >50% kills edge
Stop Loss: Above gap

15. SAR Bear Flip (1, 64%) Enter: Below flip candle; SAR shifts bearish

Exit: Until SAR flips bullish
RR: Compression signals slowing momentum
Stop Loss: Above flip candle

16. Bearish Hammer (Inverted Hammer) (1, 63%) Enter: Break hammer low; rejection from above

Exit: Prior low
RR: Deep retest weakens signal
Stop Loss: Above wick

17. Bearish Tweezer Top (2, 61%) Enter: Break below candle #2

Exit: Structural low
RR: Close above tops invalidates
Stop Loss: Above shared high

18. MA20 Reject (1–2, 60%) Enter: Break below reject candle; trend respects mean

Exit: Swing low
RR: Successful reclaim negates trend
Stop Loss: Above rejection high

19. Bearish Doji Reversal (2, 59%) Enter: Break confirmation low

Exit: Prior low
RR: Weak confirmation kills follow-through
Stop Loss: Above doji

20. Rounded Micro-Top Break (6–12, 58%) Enter: Break top floor; distribution complete

Exit: Measured move
RR: Re-entry means distribution incomplete
Stop Loss: Above ceiling

1. The Bearish Marubozu is one of the strongest continuation signals on the short side. It forms when sellers dominate the entire candle from open to close with no meaningful upper or lower wicks. This is the mirror image of the bullish Marubozu, and it shows that buyers never mounted a counterattack and that selling pressure persisted relentlessly through the entire bar. When this candle appears during a downtrend, it often signals institutional selling, aggressive bid hitting, and a clear willingness to push price lower. Historically, the next candle prints red roughly 88% of the time when not directly hitting major support. You trade it by entering below the Marubozu close as sellers continue to hit the bid. Targets include the next swing low or the measured continuation of the previous down-leg. If the next candle forms a long lower wick or if volume collapses, reduce risk. The stop belongs above the Marubozu high.

2. The Falling Three Methods pattern mirrors the Rising Three Methods but on the bearish side. It begins with a strong bearish impulse candle, followed by three smaller bullish or neutral candles. These small candles must remain within the body of the first bearish candle, signaling that buyers are only offering weak, temporary relief and not reversing the trend. The pattern completes with a powerful breakdown candle that clears the initial impulse low, resuming the trend. This structure carries an 84% probability of producing a red next candle. Entry is taken on the breakdown of the impulse low or the final continuation candle. Targets include the full continuation of the first bearish impulse. Risk increases significantly if any of the middle candles close above the midpoint of the impulse. The stop loss belongs above the highest of the three small pullback candles.

3. The Bearish Flag Breakdown forms when a strong bearish impulse leg is followed by an upward-sloping or sideways consolidation channel. This upward drift is orderly profit-taking, not real buying. Volume often decreases during the flag formation, showing lack of support for a reversal. When price breaks below the flag structure with strong volume, it recommences the downtrend roughly 81% of the time. Enter beneath the flag channel low. Targets include the full measured pole extension. Reduce if the breakout candle pulls back into the flag. The stop is placed above the flag’s upper boundary.

4. The Bearish Pennant Breakdown occurs when a sharp bearish impulse is followed by a contracting symmetrical triangle. The range tightens as both buyers and sellers compress into the apex. The key signal is the downward breakout from this contraction. Historically, the next candle prints red about 79% of the time. Enter below the apex breakdown once volatility expands. Targets include the pole extension. Reduce if the breakout bar shows weak volume or heavy absorption by buyers. The stop goes above the pennant apex.

5. The Bearish Engulf is a dominant bearish continuation pattern that forms when a large bearish candle fully engulfs the prior candle’s body. This represents an immediate takeover by sellers and the invalidation of the previous candle’s optimism. When it appears after a small rally, the next candle is red about 78% of the time. Enter below the engulf candle low. Targets include the next structural low and partial take-profit at 1R. Reduce if the next candle retraces more than half the engulf bar. The stop rests above the engulf candle high.

6. The Three Black Crows pattern is the bearish version of Three White Soldiers. It consists of three consecutive large bearish candles with lower closes and minimal lower wicks. This shows persistent selling pressure and exhaustion of buyers over multiple intervals. The next candle turns red approximately 76% of the time. Enter after the third crow or on a small pullback toward the second or third candle. Targets include the next structural low or liquidity sweep. Reduce if the third crow prints an exhaustion wick. The stop sits above the first crow’s high.

7. The Break-and-Retest Failure happens when price breaks below support and then retests that support as resistance. The retest candle should reject the level with a strong bearish wick. This retest failure produces a red continuation candle roughly 75% of the time. Enter below the rejection wick. Targets include the prior low or measured leg extension. Reduce risk if the retest candle closes back above the level. Place the stop above the retest wick high.

8. The Inside-Bar Bear Breakout mirrors the bullish version but in the opposite direction. A candle forms entirely within the range of the previous candle, representing compression. In a downtrend, breaking below the inside-bar low results in a red next candle roughly 73% of the time. Enter on the breakdown with supportive tape and volume. Targets include 1–2R and the next swing low. Reduce if the breakout candle closes weak or inside the parent candle. Stop belongs above the inside-bar high.

9. The High-Volume Bear Bar signals strong institutional selling when a large bearish candle forms with abnormally high volume. This wide-range candle creates downward momentum that produces a red next candle about 72% of the time. Enter beneath the close of the bear bar. Exit at the next liquidity shelf or demand zone. Reduce if follow-through volume collapses. Stop is placed above the bear bar’s high.

10. The 8/20 SMA Compression Breakdown appears when price compresses between a falling 8 SMA and 20 SMA. This squeeze shows weakening bullish defensive efforts and rising bearish pressure. A breakdown below the compression low continues the downtrend about 71% of the time. Enter on that breakdown. Targets include the next structural low. Reduce risk if price climbs back into compression. Stop sits above the compression high.

11. The VWAP Rejection occurs when price attempts to reclaim VWAP but is firmly rejected by sellers. This demonstrates institutional defense of bearish fair value. Historically, the next candle turns red about 69% of the time. Enter below the rejection candle’s low. Targets include VWAP–1 deviation or the next support zone. Reduce if VWAP retest shows buyer strength. Stop belongs above the rejection candle high.

12. The Bearish Order-Block Reaction is defined by price tapping into a supply-side order block and immediately rejecting downward. This signals that institutional sellers are defending that zone. The next candle prints red around 68% of the time. Enter on the first strong bearish reaction candle. Targets include the next liquidity zone or inefficiency. Reduce if the OB retest deepens. The stop sits above the OB high.

13. The Micro Pullback Breakdown is a bearish continuation structure formed by a cluster of very small bullish candles that fail to retrace meaningfully. Breaking the micro-pullback low produces a red next candle about 67% of the time. Enter on that break. Targets include 1–2R and further downside continuation. Reduce if price reclaims the micro-pullback. Stop lives above the micro lower high.

14. The Breakaway Gap Failure forms when price gaps below support and the next candle successfully holds the gap. This shows aggressive bearish sentiment and an unwillingness from buyers to fade the move. The next candle turns red about 66% of the time. Enter on the first bearish confirmation candle after the gap. Exit at the next shelf or imbalance. Reduce if the gap fills more than 50%. Stop belongs above the gap high.

15. The SAR Bear Flip occurs when the parabolic SAR shifts from below price to above price. This transition signals bearish momentum taking over. Historically, the next candle turns red about 64% of the time. Enter beneath the SAR-flip candle low. Exit when SAR flips bullish. Reduce risk if the trend stalls or SAR compression tightens. The stop is above the SAR-flip candle high.

16. The Inverted Hammer Close on the bearish side forms when price rallies intrabar but fails, leaving a long upper wick and a close near the low. This shows strong rejection from higher prices. The next candle tends to be red about 63% of the time. Enter below the inverted hammer low. Exit at the nearest swing low. Reduce if the wick high is retested strongly. Stop goes above the wick high.

17. The Bearish Tweezer Top appears when two candles share nearly identical highs, showing strong seller defense. This results in a red continuation about 61% of the time. Enter below the second candle’s low. Exit at the next structural low. Reduce if the next candle closes above the tweezer highs. Stop lives above the shared highs.

18. The MA20 Rejection forms when price rallies into a falling 20-period moving average and is rejected. This shows dynamic resistance and downtrend continuation. The next candle is red roughly 60% of the time. Enter below the rejection candle low. Exit at the next swing low. Reduce risk if MA20 is regained. Stop sits above the rejection candle high.

19. The Bearish Doji Continuation occurs when a doji represents temporary indecision but is followed by a bearish confirmation candle. In downtrends, this resolves lower about 59% of the time. Enter beneath the confirmation candle. Exit at the nearest demand zone or structural low. Reduce if confirmation is weak. Stop belongs above the doji high.

20. The Rounded Micro-Top Breakdown forms when price rounds off at the top in a small distribution pattern before breaking down. This continuation pattern produces a red next candle about 58% of the time. Enter on the break below the micro-top base. Target the measured move equal to the base’s height. Reduce or exit if price reclaims the base. Stop is placed above the ceiling of the base.

Got you—let’s turn these from “very good” into “mastery-level” scripts. I’ll keep the same structure (Basic → Intermediate → Advanced for each TERELS pillar) but deepen the explanations, add nuance, and layer in more concrete examples and teaching cues.

You can treat each script as a 5–10 minute mini-lesson.

T — TREND STRUCTURE & MAs (SMA8 + SMA20)

T Script 1 – Basic (Trend = Directional Permission)

In this first lesson, your only job is to answer one question with discipline: “Which direction am I allowed to trade today?” Trend structure is your directional permission slip. If price is making higher highs and higher lows (HH/HL), buyers are in control and your default bias is long. If price is making lower highs and lower lows (LH/LL), sellers are in control and your bias is short. When the swing pattern is mixed—higher highs but also lower lows, random spikes, overlapping candles—that’s a transition environment, and your job is to not force trades into noise.

We layer two simple moving averages on top of this structure: SMA8 and SMA20. Think of SMA8 as the market’s short-term pulse—how it’s breathing right now—and SMA20 as the intraday backbone. When SMA8 is above SMA20 and both are sloping upward, the path of least resistance is up. When SMA8 is below SMA20 and both slope downward, the path of least resistance is down. If they’re flat or constantly crossing over each other, the market is telling you it has no clear directional opinion, and your win rate drops dramatically if you insist on trading anyway.

A critical beginner rule: you don’t “predict” a trend; you recognize it. You simply ask, “Are we currently behaving like an uptrend, a downtrend, or a mess?” Then you align or you stand aside. This alone eliminates a large percentage of bad trades.

Example 1: NQ opens and starts printing a series of HH/HL, with price riding above SMA8, and SMA8>20, both lines pointing up. That combination—clean higher swing structure plus aligned SMAs—grants you permission to look only for long setups. Fighting that with shorts is trying to swim upstream.

Example 2: YM is printing random overlapping candles with no clear HH/HL or LH/LL pattern, and SMA8 is chopping above and below SMA20 every few bars. That’s textbook “no permission” structure. Treat this as a red-light environment: you watch, you learn, but you do not deploy capital.

T Script 2 – Intermediate (Multi-TF + Structure Integrity)

Once you’re comfortable with basic structure and SMAs, you upgrade to a multi-timeframe lens. Here’s the hierarchy: H4 defines the macro drift—the direction of “big money.” H1 defines the session posture—who is in control today. M15/M5 define the intraday micro-phase—are we trending, rotating, or compressing inside that session? And M1 is only for precision entries once the higher timeframes are lined up. If you skip the higher timeframes and stare only at M1, you are trading the noise without understanding the melody.

We also refine structural integrity. A Break of Structure (BOS) means price takes out the last meaningful swing high (for longs) or swing low (for shorts) that had been defending the prior direction. A BOS that holds, followed by a clean retest that respects the broken level, upgrades your conviction that the trend has shifted or is continuing. A Change of Character (ChoCH) is the first sign that the existing trend might be in trouble—price breaks the most recent internal swing that had been preserving the old direction, even if the bigger structure hasn’t fully flipped yet. ChoCH is the “early warning alarm.”

Failed breakouts are equally important. When price pushes through a key level—PDH, PDL, VWAP, major swing—but then closes back inside the prior range and leaves a long wick, it often signals exhaustion or a trap. These failed breaks are especially powerful at higher-timeframe supply or demand zones; they mark the areas where large players step in against late chasers.

Example 1: H4 and H1 clearly show HH/HL—macro and session are both bullish. On M15, price breaks the last swing high (BOS) at 18,400 and then retests that level, holding above it with smaller bullish candles. That BOS+retest confirms that buyers have accepted the new higher level. Now, and only now, M5/M1 entries long are considered high probability.

Example 2: In a prior uptrend, H1 had been making HH/HL, but suddenly M15 prints a ChoCH: price breaks a key higher low, then fails to reclaim it. Shortly after, you see a failed breakout above PDH that reverses hard back below SMA20. This combination—ChoCH plus failed breakout—warns you that the environment is shifting from “buy dips” toward “prepare for shorts or stand aside.”

T Script 3 – Advanced (Trend Confirmation Stack)

At the advanced level, trend is not judged by price alone; it’s defined by a stack of confirming signals that increase your probability of being on the right side. Price swings and SMA8/SMA20 alignment are the foundation, but you add anchored VWAP, SuperTrend, SAR dominance, MACD impulse, cumulative Delta, regression channels, fair-value gaps (FVGs), and ATR behavior to refine which trends are truly tradeable.

Anchored VWAP from session open, overnight extremes, or major news sets the “institutional fair value line.” Price above an upward-sloping anchored VWAP with SMA20 rising and SMA8 riding the move is an environment where buyers have firm control; countertrend shorts tend to get steamrolled. SuperTrend in agreement—green for uptrends with SMA8>20, red for downtrends with SMA8<20—reinforces that directional bias. SAR dots staying below price for multiple candles in an uptrend act like an algorithmic “trailing stop” confirming continuation.

MACD adds a view of momentum quality. When MACD line is above its signal line, above zero, and the histogram is expanding, you have active trend ignition. If price makes new highs but MACD fails to confirm (histogram shrinks or diverges), the trend is aging. Cumulative Delta (CVD) checks whether real buyers are lifting offers or real sellers are hitting bids; higher price plus higher CVD supports trend integrity, while higher price plus lower CVD flags hidden distribution or exhaustion.

Regression channels and ATR contextualize volatility. Price respecting a rising regression channel around SMA20, with ATR expanding modestly, suggests a healthy, sustainable trend. If price drifts far from SMA20, SMA8 flattens, MACD decays over 5–8 bars, and CVD diverges, you’re likely in late-stage trend where continuation probability has dropped dramatically—even if price still looks bullish on the surface.

Example 1: NQ uptrend: H4/H1 bullish, SMA8>20, anchored VWAP from open sloping up and holding under price, SuperTrend green, SAR dots under price, MACD line above zero with expanding histogram, and CVD making higher highs. This is an “algo lock” trend—your priority is to buy pullbacks, not short tops.

Example 2: A few hours later, price makes a new marginal high, but SMA8 begins to flatten, MACD histogram shrinks for 6 bars, CVD makes a lower high, and two failed breakouts appear at an HTF resistance zone. These stacked exhaustion markers tell you that the probability of further clean trend continuation has dropped sharply; your focus shifts from trend joining to profit taking or carefully structured fades.

E — ENTRY (C.A.N.D.L.E.S)

E Script 1 – Basic (Simple Entry Logic With Edges)

Once direction is clear, entry becomes a timing problem: when do you step into that directional flow? For beginners, we keep it extremely simple—trade with the trend and enter near the edge of the move, not in the middle. You are buying dips in an uptrend and selling rallies in a downtrend, not chasing breakouts that are already extended.

To do that, we marry basic candles with basic locations. In an uptrend (SMA8>20, HH/HL), we look for rejection candles near supports like SMA8, SMA20, VWAP, or prior swing lows. Bullish hammers (long lower wick), bullish engulfing candles (green bar fully engulfs the prior red candle), and small “pause” candles after pullbacks are all acceptable signals that buyers have defended the level. In a downtrend, we invert the logic: shooting stars, bearish engulfing candles, and small consolidation candles under resistance show sellers regaining control.

Volume is your simple truth serum. You want to see lower volume on pullbacks and strengthening volume when price moves back in the trend direction. That tells you the pullback was a pause, not a full reversal.

Example 1: Trend up, SMA8>20, price pulls back from 18,450 to tag SMA8 around 18,420. A bullish hammer prints with a long lower wick that rejects below SMA8 and closes back above it. The next candle breaks the hammer’s high on slightly higher volume. That is a straightforward, beginner-friendly long entry at the edge, not in the middle of the move.

Example 2: In a downtrend with SMA8<20, price rallies into SMA20 and stalls. A shooting star forms, leaving a long upper wick into that moving average, followed by a candle that breaks its low with increased red volume. That’s a clean, basic short entry aligned with the prevailing trend.

E Script 2 – Intermediate (C.A.N.D.L.E.S Framework)

The intermediate level formalizes what you are already doing intuitively by using the C.A.N.D.L.E.S framework. Each letter is a test. You don’t need every letter every time, but the more that line up, the higher your probability.

C — Candle/Breakout: We care about where a pattern forms. Pins, engulfing bars, micro-pullbacks, and inside bars are only high-quality when they appear at structural edges—prior highs/lows, VWAP, SMA20, PDH/PDL, or Fib zones. Breakouts require a confirmation candle plus a clean retest; you avoid “one-bar” emotional breakouts with no follow-through.

A — Algo: VWAP and fair-value pulls show where algorithms defend trend. A VWAP pullback that holds and then rotates back in trend direction is a classic continuation entry. VWAP + RSI divergence is an elite reversal cue: price makes a new extreme into VWAP while RSI refuses to confirm, signaling exhaustion. Liquidity sweeps followed by MACD flips are also high-signal—stops get cleared, then the real move begins.

N — Number of Candles/Volume: We focus on how volume behaves across the sequence. Green volume expansion on breaks says institutions are engaged. Absorption wicks at lows or highs reveal hidden buying or selling. A rotation from red-dominant to green-dominant volume at support often marks the exact moment trend resumes.

D — Dots (SAR): SAR below price for longs, above for shorts, helps visualize trend continuation. A SAR flip aligned with SMA8/20 reclaim often marks a structural shift. SAR is powerful when used as confirmation, not as a standalone signal.

L — Limit (Time): The clock matters. Certain times—10:00, 10:30, 11:15, 2:15, 3:30—are rotation windows where reversals or strong continuations are more likely. Midday VWAP compression zones (around lunch) decrease win rates; you take fewer trades and demand cleaner setups.

E — Extension: You want to enter near the edges of swings, not in the middle of vertical candles. HTF expansion legs are safest when you enter near their base—on pullbacks into structure—not at the very top after multiple impulse candles.

S — Sequence (Fib): Fib retracements of 38.2–61.8% often act as reload zones in a trend; Fib extensions like 1.272–1.618 are natural profit targets or exhaustion areas. RSI divergence at these zones reinforces the probability of reversal or continuation.

Example: Long setup: Uptrend with SMA8>20. Price sweeps the prior low into a Fib 50% retrace at VWAP around 10:30, prints a bullish engulfing candle with SAR flipping below price, red volume shrinks and green volume expands on the breakout, and MACD turns upward. That’s a robust C.A.N.D.L.E.S-aligned entry.

E Script 3 – Advanced (High-Accuracy Pattern Stack)

At the advanced level, an entry is not a candle—it’s a multilayered pattern stack. You combine a high-probability candle formation, a high-value location, favorable volatility and order flow, plus rhythm and sequence. Your goal: entries with compressed MAE and explosive R:R.

High-accuracy patterns (when aligned with structure) include hammer, shooting star, bullish and bearish engulfing, inside bar breakouts, 3-bar reversals, micro-pullbacks, bull/bear flags, ABCD patterns, cup & handle, inverted head & shoulders, failed breakouts, and double or triple top/bottom failure patterns. By themselves they’re noise; at a key level with the right supporting context, they become elite signals.

You layer on algorithmic context: VWAP/AVWAP pulls, liquidity pocket refills, imbalance fills into SMA8 or SMA20, and Delta flips at VWAP. Volume confirmations—climax candles followed by orderly continuation, CVD trendline breaks, and consistent volume expansion in the direction of the breakout—separate genuine institutional moves from short-covering or random spikes.

Finally, you respect candle sequencing: micro impulses often come in 3-5 candle bursts; 8th candles in a run at key levels often mark exhaustion. When Fib zone + candle 8 + liquidity sweep + MACD/RSI divergence + Delta divergence all align, you’re hunting one of the sharpest reversal or continuation pivot points available.

Example 1 (Short): NQ is in a downtrend, SMA8<20, macro bias bearish. Price pushes just above ONH into a 1.272 Fib extension of the prior leg, forming a bearish engulfing candle with a long upper wick. Volume spikes on that candle, CVD fails to make a new high, and MACD starts to roll over. SAR flips above price, and VWAP rejects. That stack is an advanced, institutional-grade short entry with tight risk above the sweep.

Example 2 (Long): In a strong uptrend day, price pulls back into a confluence of SMA20, VWAP, Fib 50%, and a prior HVN. A micro-pullback of 3 candles forms, with shrinking red volume. The next candle breaks above the micro-pullback high, MACD histogram expands, Delta turns up, and SAR dots appear below price. That’s an advanced continuation long built from multiple aligned components.

R — RISK REDUCTION

R Script 1 – Basic (Simple, Strong Risk Habits)

Risk reduction is the habit of not blowing up. At the basic level, three rules protect you: use structural stops, insist on positive R:R, and never average into losers.

Structural stops mean you place your stop beyond a meaningful swing—below the last higher low for a long, above the last lower high for a short—not in random dollar amounts or arbitrary distances. This gives the trade room to breathe while clearly defining where your idea is invalidated. If that swing is broken, the structure you were betting on no longer exists; your job is to accept that, exit, and move on.

R:R is the math that keeps you in the game. A minimum 3:1 reward-to-risk ensures that even if you’re wrong several times in a row, a few winners can more than compensate. If your stop is 10 points, you must reasonably see 30 points of potential; if not, you pass.

Last, “never add to losers” is non-negotiable. Averaging down might work a few times, but eventually you will meet a trend that never comes back and wipes out weeks or months of progress. Professionals add to trades that are working, not to trades that are screaming they’re wrong.

Example: You go long NQ with a stop 12 points below the last higher low and a target 36–40 points above entry. The trade doesn’t behave, tags your stop, and you exit. You do not widen your stop or buy more as it falls. The next day, a 3:1 winner restores your equity because your losers were capped.

R Script 2 – Intermediate (MAE, Microstructure, Tiered Sizing)

At the intermediate level, you start managing risk dynamically with MAE, microstructure filters, and tiered sizing.

MAE—the maximum adverse excursion—is your tolerance for how much heat a trade can show before it becomes statistically weak. If your full structural stop is 10 points, and your MAE rule is 40%, you agree in advance to exit if the trade goes 4+ points against you quickly, even if the structural low isn’t broken yet. This prevents you from sitting inside trades where the market is clearly not rewarding your timing. It also encourages re-entries at better locations rather than clinging to bad ones.

Microstructure checks happen before every entry, especially in futures. You quickly assess spread size, typical slippage, order book depth near your entry and likely exit, and current volatility. If spreads suddenly widen, the book thins out, or price jumps erratically, you size down or skip the trade. Your mission is to avoid environments where the mechanics of execution themselves create unnecessary risk.

Tiered sizing takes your position from 1→2→4 contracts only when your idea is working. You begin with 1 contract to test your thesis. If price behaves as expected (respecting structure, staying aligned with SMA8/SMA20, holding VWAP), you can add. Each tier is an earned promotion, not a guess. If behavior deteriorates, you never add further; you either hold or cut.

Example: Your stop is 12 points, MAE threshold 5 points. After entry, price pulls back 3 points and stabilizes—fine. If it drops 6–7 points quickly, you exit early. Later, price resets, structure and trend realign, and you re-enter at a better level. That early exit saved one full stop and kept emotional capital intact.

R Script 3 – Advanced (Expectancy Engine + Layered Invalidation)

At the advanced level, risk reduction is no longer just “not losing too much;” it becomes a designed expectancy engine—a system that forces your long-term equity curve higher through structural rules.

You still use structural stops, but with nuance: the best stops sit beyond levels where liquidity has already been swept and failed to reclaim. Once a zone has been “harvested,” the market shouldn’t revisit it in a valid trend. When it does, it’s a strong sign the trade is wrong.

Every setup is evaluated through an expectancy lens: minimum 3:1 R:R, entered near an edge (VWAP, SMA pullback, liquidity sweep, Fib zone, BOS retest) to naturally compress MAE. Combined with your performance stats (e.g., win rate, average R of winners vs losers), this ensures your math is structurally positive even before you take the trade.

Volatility-aware risk means using ATR and regime context. In high-ATR, event-driven regimes, the same dollar stop might be “too tight” in points, so you either widen stops or reduce size to keep risk in dollars constant while respecting normal fluctuation. In low-ATR grind environments, you tighten stops and become more selective about entries, since large moves are less likely and false breakouts are common.

Layered invalidation is your early-exit protocol. You track a stack: SMA8 crossing against your direction, VWAP rejection, opposite SAR flip, strong impulse candle counter-trend, Delta divergence against your position, and MACD histogram decay over several bars. You don’t need all to trigger; two strong invalidation signals are enough. This moves you from “wait until my hard stop gets hit” to “exit when the probabilities materially deteriorate.”

Example: You’re long NQ in a confirmed uptrend. Price stalls near resistance, SMA8 flattens, MACD histogram shrinks for 5 bars, and Delta starts making lower highs as price chops sideways. Then a strong red impulse candle closes below SMA8 with SAR flipping above price. You exit—even though your full downside structural stop is lower—because the layered invalidation stack has shifted the probabilities against you. That decision, repeated over hundreds of trades, dramatically improves your long-term expectancy.

E — ESCALATION & EXIT

EE Script 1 – Basic (Let Winners Breathe, Cut Losers Quickly)

Basic escalation and exit rules are about cultivating habits that favor larger wins and smaller losses. You start every trade with modest size and only consider increasing it if price immediately respects your level and moves in your favor. If a trade struggles from the start, you don’t “double down;” you keep size small or close the position.

For exits, you watch for obvious signs that the move you expected has run its course: a large candle in the opposite direction, a break of the moving average that was guiding your trade (usually SMA8), or a failure to make new highs in an uptrend / new lows in a downtrend. Once you’ve captured 2–3 times your risk, it’s completely acceptable to take partial profits and trail your stop behind a recent swing low/high.

A simple, powerful beginner rule: if the chart starts to look different from the reason you entered (trend change, broken structure), assume you’re wrong and exit. The worst thing that can happen is that you get out early and later re-enter with clarity.

Example 1: Long with a 10-point stop. Price moves 20–25 points in your favor and then prints a sharp red candle that breaks below SMA8. You lock in profit by closing the trade or at least taking partials and tightening stops.

Example 2: Short trade doesn’t behave, price hovers near your entry or grinds upward. No clean continuation, multiple small green candles against you. Instead of “giving it more room,” you accept it isn’t working and close at a small loss, preserving capital for a better rotation.

EE Script 2 – Intermediate (Evidence-Based Scaling + Momentum Exit Rules)

At the intermediate stage, escalation becomes conditional, not emotional. You scale only when the market is proving your idea correct through structure, trend, and momentum.

You start at 1c. After a BOS+retest in your favor, SMA8/SMA20 alignment strengthens, VWAP stays supportive, and MAE remains small relative to your stop, you upgrade to 2c. As the trend progresses, you see HH/HL (or LH/LL for shorts), micro pullbacks into SMA8 that resolve cleanly, volume expanding on breakouts, and a regression channel holding. These conditions justify scaling to 5c.

Momentum and timing guide exits. You monitor MACD slope and histogram, RSI slope and potential divergence, CVD behavior, and volume patterns. When MACD histogram has been shrinking for several bars, RSI flattens or diverges, and price stops breaking new structure, you prepare to exit or heavily reduce size. Time windows like 10:00, 10:30, 11:15, 2:15, and 3:30 often bring rotations; if you’re in a large position heading into one of these, you either tighten stops or take profits.

R:R guides how aggressively you protect. At 2R, you can move your stop to a structural break-even or reduce risk. At 3R–5R, you scale out into strength and let a smaller remainder ride with a wide, structure-based stop.

Example: Long NQ off a VWAP reclaim. Start with 1c. After BOS+retest, SMA8>20, MACD expanding, VWAP holding, you add to 2c. As price prints a series of HH/HL with neat pullbacks into SMA8 and strong green volume, you increase to 5c. Later, MACD histogram shrinks, RSI diverges, and you’re approaching 3:30. You peel off most of the position into that strength and either close the remainder or trail stops tightly, respecting the likely rotation.

EE Script 3 – Advanced (Full Lifecycle Trade Engineering)

At the advanced level, escalation and exit rules engineer the entire lifecycle of a trade—from the first test contract to maximal size and eventual unwind—using structure, momentum, liquidity, and time as your map.

Escalation criteria become a checklist:

• Structure: HH/HL or LH/LL sequences with BOS+retest and clean shelves forming.
  
  

• Trend: SMA8/SMA20 aligned and spreading, price holding above/below SMA8.
  
  

• VWAP: trade rides on the “right” side of VWAP; pullbacks into VWAP behave cleanly.
  
  

• Momentum: MACD histogram expanding in your direction, SAR clustering, RSI supporting the move.
  
  

• Flow: CVD making higher highs/lows with price, imbalances in your favor, DOM showing walls breaking in your direction.
  
  

Under these conditions, you upgrade from 1c to 2c, 2c to 5c, then 5c to 10c. Scaling to 100c is reserved for exceptional regimes: macro alignment (H4+H1+VWAP), strong opening drive, elevated ATR, clean order flow, and absence of major opposing liquidity.

Exits use mirrored complexity. You monitor for:

• Momentum exhaustion: MACD decay across several bars, RSI divergence, CVD plateau or reversal, volume climax followed by low-energy drift.
  
  

• Structural failure: break of SMA8 then SMA20, failure to make new HH/HL, opposite impulse candles at key levels.
  
  

• Liquidity reversal: new walls forming against your move, iceberg absorption stopping further progress, imbalance flipping to the other side.
  
  

• Time & R:R: rotation windows plus having captured 5–10R or more.
  
  

You rarely wait for full stop hits on mature positions. Instead, you start to unwind as soon as the evidence indicates that the “easy part” of the move is over.

Example: An NQ long: you grow from 1c to 10c during a strong uptrend day: AVWAP and VWAP are supportive, SMA8>20, MACD expanding, CVD rising, and DOM walls get eaten. As price approaches HTF resistance near the afternoon, you notice MACD histogram weakening, RSI diverging, and a visible ask wall appearing that begins to hold. You scale out aggressively into that area and fully exit on the first solid opposite impulse candle. That trade lifecycle extracts maximum value from the trend while avoiding the late-day reversal that crushes overconfident traders.

L — LEVELS & LIQUIDITY

L Script 1 – Basic (Drawing the Map)

At the basic level, your job is to draw the map before you drive. Markets are not random; they rotate around a relatively small set of key levels where large traders transact. You mark these levels every day before you trade: prior day’s high (PDH) and low (PDL), overnight high (ONH) and low (ONL), session open, and VWAP.

PDH and PDL tell you where the last session’s extremes were; the market often revisits these to test whether they still matter. ONH/ONL show overnight extremes, which act as intraday magnets and reaction points. VWAP shows the average price at which the session has traded, weighted by volume; it’s where many institutional players benchmark execution.

Once these lines are on your chart, you stop treating every price equally. If price is far from all key levels in the middle of nowhere, you expect less reliable behavior. As price approaches a marked level, you expect a reaction: a stall, reversal, or strong breakout.

Example 1: Pre-market, you mark PDH 18,500, PDL 18,300, ONH 18,470, ONL 18,320, plus VWAP as the session begins. During RTH, price pulls back to VWAP and holds—good long candidate in a bullish environment. Later, price tests PDH; you expect either a breakout or a rejection and trade accordingly.

Example 2: Without levels, every small twitch feels important. With levels, you see that what felt like “a big drop” was simply price returning to ONL, where it had previously found support.

L Script 2 – Intermediate (Volume Profile, HVNs, LVNs, Sweeps)

Intermediate level adds volume structure and liquidity events to your map. Volume profile tells you where the market spent time and did business. High-volume nodes (HVNs) are “value areas” where price traded heavily; the market is comfortable there. Low-volume nodes (LVNs) are places price skipped through; they act like ramps where moves accelerate.

When you overlay HVNs/LVNs with PDH/PDL, ONH/ONL, VWAP, SMA zones, Fib retracements, and session ranges, you see clusters of confluence. These confluence zones are where you expect the strongest reactions.

Sweeps are deliberate liquidity events: price pushes above a prior high (e.g., PDH) or below a prior low (e.g., PDL), triggers stops, fills large resting orders, and then quickly reverses back inside the range. On the chart, sweeps show up as long wicks and failed breakouts; in terms of behavior, they often precede strong moves in the opposite direction.

Example 1: Price rallies into an LVN just above PDH and ONH, prints a long wick through that zone, and then closes back below the level. Volume spikes on the sweep, then drops as price returns inside the prior range. Later candles confirm lower highs. This pattern—sweep into confluence followed by rejection—often marks the start of a sizable rotation downward.

Example 2: In a developing uptrend, price pulls back into a major HVN around VWAP, holds, and prints a series of small candles before breaking higher again. That tells you the market is building value and absorbing selling there; it’s a strong platform for continuation entries.

L Script 3 – Advanced (Level 2 & Order-Flow-Integrated Liquidity Map)

At the advanced level, you combine your static map (levels) with a real-time radar (Level 2 and order flow) to see how liquidity actually behaves at those levels.

On the DOM and L2, you watch for:

• Bid/ask stacking: large resting orders at certain prices.
  
  

• Orders being pulled or added as price approaches a line.
  
  

• Iceberg behavior: repeated fills at a level while displayed size doesn’t change.
  
  

• Spoofing: large orders that vanish as price nears them.
  
  

At PDH/PDL, ONH/ONL, VWAP, and major Fib or HTF swing levels, this behavior tells you whether the market wants to accept or reject those prices. Acceptance = orders stick and trade; rejection = orders pull or flip.

Sweeps become clearer with L2: price spikes beyond a level, large market orders hit, an iceberg absorbs them, then the opposite side of the book (e.g., bids after a low sweep) starts stacking while price snaps back inside. That’s real-time evidence of trapped traders and large players stepping in.

You also integrate cumulative Delta and imbalance tools. When price approaches a level and CVD and imbalances support the existing trend (e.g., rising CVD and buy imbalances at support), continuation is favored. When price makes new highs but CVD falls and sell imbalances appear at resistance, distribution or reversal is likely.

Example 1: Price dips below PDL. On L2, you see a large hidden bid soaking up selling, with repeated prints at that level while the displayed size barely shrinks. Soon after, CVD turns up, price pops back above PDL, and VWAP is reclaimed with MACD turning positive. That’s a high-probability long from a liquidity sweep, confirmed by order-flow.

Example 2: Price rallies into ONH and a known LVN. A 1,000-contract ask wall appears and does not disappear; every time buyers try to lift it, new size appears. CVD stalls, then starts to fall; sell imbalances print above the level. Price turns lower and breaks SMA8. This behavior confirms ONH as distribution, not continuation, and supports exiting longs or initiating well-structured shorts.

S — START / SCALE / STOP

S Script 1 – Basic (One-Contract Probation Rule)

The basic S module is all about protection by humility: assume you might be wrong, and make the market prove that you’re right. Every trade begins with 1 contract, regardless of your conviction, the pattern, or the “feeling” you have. That initial position is a probation trade—a test.

If price quickly behaves the way you expected—respects your level, holds structure, and aligns with your trend and moving averages—you hold or consider adding later. If price hesitates, violates structure, or moves close to your stop, you accept that this idea was not rewarded and you exit at small size. The key: you do not deepen risk while the trade is under suspicion.

Stopping is equally simple: if your structural stop is hit or the reason for your entry is invalidated, you close all of that small position. You do not move stops wider, you do not add, and you do not argue with the market. This basic rule alone can cut off the fat tail of disaster trades.

Example: You go long 1 NQ contract on a clean pullback to VWAP in an uptrend. Price hesitates for a candle or two, then prints a strong green candle off VWAP with SMA8>20. That behavior is supportive, so you keep the trade. If, instead, price breaks below the prior higher low and SMA8 rolls over, you exit. You lose small, with only 1 contract, and conserve both capital and psychology.

S Script 2 – Intermediate (Structured Scaling)

Intermediate S turns scaling into a structured progression, not a random size jump. You follow a tiered path: 1c → 2c → 5c, with clear conditions to graduate between levels.

From 1c to 2c, you demand: BOS+retest in your favor, SMA8/SMA20 alignment and positive slope, VWAP supportive (price on the right side and respecting it), MAE small relative to stop, and no obvious warning signs from volume or Delta. This tells you the trade has transitioned from “idea” to “validated trend participant.”

From 2c to 5c, you require more: HH/HL or LH/LL sequence continuing, micro pullbacks into SMA8 resolving smoothly, volume expanding as price moves in your direction, regression channel containing price, and no abrupt shift in intraday volatility regime. Size grows only as the trade behaves in a professional manner.

Stop rules are scaled, too. If structure breaks (previous HL/LH fails), SMA8/20 flip against you, or a strong opposite impulse appears at a key level, you reduce or close. You also respect MAE rules: if the trade suddenly draws down deeper than your predefined MAE, you step out rather than hoping it recovers.

Example: Long 1c on a BOS+retest in an uptrend. Price holds that level, SMA8>20, VWAP below acting as support; you step to 2c. As the trend continues, HH/HL form cleanly, pullbacks into SMA8 are shallow, and volume supports each breakout; you scale to 5c. Later, a sharp red impulse candle breaks below SMA8 and volume spikes; you close or heavily reduce, respecting structural and momentum failure.

S Script 3 – Advanced (Lifecycle Management With Microstructure)

Advanced S orchestrates the entire trade lifecycle—start, build, and exit—using everything you know about structure, trend, liquidity, and time.

Start phase (1c) evaluates:

• Structural integrity: Is HL/HH (or LH/LL) intact?
  
  

• Trend alignment: SMA8/SMA20 and VWAP behavior.
  
  

• Microstructure: MAE footprint, Delta, imbalances, and volatility.
  
  

• Liquidity: L2 stacking and absence of major opposing walls.
  
  

If the trade passes these tests, you move into the Scale phase. From 1c→2c, and then 2c→5c→10c, you require strengthening evidence: BOS+retest, regression channel holding, SAR clustering, MACD and CVD confirming, imbalances favoring your direction, and minimal adverse rotation. Scaling into 100c is reserved for extraordinary conditions—macro alignment, strong opening drive, elevated ATR, and highly directional, orderly flow.

Stop phase is executed mechanically: any combination of structural break (HH/HL or LH/LL failure), SMA flip, VWAP rejection, strong counter-impulse, L2 reversal (new opposing walls, iceberg absorption against you), momentum decay (MACD/RSI/volume), MAE violation, or unfavorable time window triggers flattening or significant de-risking.

The philosophy: you start with the assumption you might be wrong, scale only as the market proves you right, and stop the moment that truth weakens. Done consistently, this keeps drawdowns shallow and lets your largest size exist only in your best trades.

Example: A long trade: you start 1c on VWAP reclaim in an uptrend, pass the early tests, and scale to 2c after BOS+retest. Volume and CVD confirm, SMA8>20, regression channel intact; you scale to 5c, then 10c as SAR clusters and MACD expands. Near HTF resistance around a known rotation time, you notice L2 showing heavy ask walls and CVD flattening; MACD begins to decay. You systematically scale out and fully flatten on the first strong opposite impulse, concluding the trade lifecycle with maximum captured profit and minimal exposure to the reversal.

If you want, next step I can:

• Convert each script into slide outlines (title + 3–5 bullet points), or
  
  

• Add “student drills” and chart markups you can assign after each lesson to lock in mastery.