Exploring a Newly Stressed Trading Strategy on the Prop Desk

BellaGeneral Comments

A tight wedge pattern for Stocks In Play is favorite trading strategy newly stressed on our proprietary trading desk.

Two chart examples of this trading pattern were seen just yesterday with ATI:

and CSX:

I prefer when these wedge patterns appear in a Stock In Play- something with a news catalyst behind it.

Breakouts from these wedge patterns work best with these patterns when increasing volume enters the stock.

I prefer buying these patterns when they are holding above VWAP.

My observation is not enough active traders utilize this strategy.  Many developing and new active traders should emphasize learning this setup more.  It has become my new favorite trading pattern to teach.

I like this setup because:

a) Our risk/reward is remarkable (1×10 and better)

b) You know exactly where you are wrong in the setup so your exit is clearly defined

c) This trade does not require many trade decisions mid-trade

d) This trade has spurred floundering new and developing traders to become 7-figure traders

Trade well!

*no relevant positions