Momentum + Smart Money Concepts

Gap + Catalyst Screen

% Change >5% Gap >10% ideal

Needs a real catalyst — earnings beat, FDA, merger, short squeeze. No catalyst = no play. Gap without news is a trap.

Float Screen

Float <20M best Price $2–$50

Low float = fewer shares = explosive moves. High float plays still work but need massive relative volume to move.

Volume + ATR

Pre-mkt Vol >500K ATR >$0.50

ATR is your range blueprint. Drives stop size and targets before the bell. No ATR = no defined edge, skip it.

First 1–3 Candles

Hands off Observe only

Let algos and retail shake out. The opening range high and low become your bias anchors. Being early is the same as being wrong.

Relative Volume

RelVol >2x Spike = confirmed Low vol = skip

Volume is your conviction filter. Weak RelVol means smart money is absent. Without them, the move dies. Walk away.

Gap Behavior

Holding = bull bias Fading = bear bias

Holding above the pre-mkt low = buyers in control. Undercutting that low with volume = distribution. Tells you which side to trade.

Internal CHoCH — First Signal

Close above/below an internal swing level. Earliest bias shift signal — spotted before the swing structure breaks. Only trade on CHoCH alone if volume and gap direction align. Otherwise wait for BOS.

BOS — Directional Confirmation

Clean close above a swing high (or below swing low) confirms the move. Swing BOS with RelVol spike is the highest probability signal in this playbook. This is your green light.

Order Block — Precision Entry Zone

After BOS, price retraces to the last opposing candle before the break — that is your OB. Bullish OB = base of the last up candle. Entry here gives the tightest stop and best R:R of the setup.

Fair Value Gap — Support, Target, S/R

Bullish FVG below price = hard floor, add to it. Bearish FVG above = magnet target. In the first 60 min, price almost always returns to nearby FVGs. They are not decoration — they are destinations.

LONG SETUP — BUY

Gap up >5–10% with real catalyst holding

Float <50M, pre-mkt vol >500K

Internal bullish CHoCH confirmed

Swing BOS above opening range high

RelVol >2x — buyers showing up

Retrace into bullish demand OB

Bullish FVG below = hard floor

Entry: top of OB zone

Stop: below OB or FVG low

Target 1: 0.75× ATR — scale 50%

Target 2: 1.5× ATR or next FVG above

SHORT SETUP — SELL

Gap fade or gap down with real volume

Extended move, overcooked vs ATR

Internal bearish CHoCH confirmed

Swing BOS below opening range low

RelVol >2x — sellers are active

Rejection from bearish supply OB

Bearish FVG above = hard ceiling

Entry: bottom of OB zone

Stop: above OB or FVG high

Target 1: 0.75× ATR — scale 50%

Target 2: 1.5× ATR or next FVG below

Scale Out Plan

Take 50% at Target 1. Move stop to breakeven immediately. Let the runner go to Target 2 or next FVG. Never let a winner reverse into a full loss — that is a discipline failure.

Invalidation Rules

OB violated on a close = full exit. Volume collapses = cut size fast. Price closes back inside the supporting FVG = the thesis is gone. Exit clean, no hoping.

Time Rule

No meaningful move within 10–15 min = reduce or exit. Valid momentum trades are violent and immediate. A slow grind means wrong read or wrong timing. Move on and reset.