Volume Imbalance at Support/Resistance

Entry Logic

• Enter long on a test of a support level where there is a significant volume imbalance on the bid side.
• Confirmation: A bullish reversal candle.
• Timeframe: 1-minute chart with order flow data.
• Location: At a key support level.
• Market Condition: Any market condition.

Exit Logic

• Profit Target: 1R.
• Scaling Out: Not recommended.
• Trailing Stop: A close below the support level.
• Signal Failure: A close below the support level.
• Opposite Signal: A large volume imbalance on the ask side.
• Time Expiration: 15 minutes.
• Momentum Loss: A failure to move away from the support level.

Stop Loss Structure

• Hard Stop: Below the low of the reversal candle.
• Soft Stop: A close below the support level.
• Max Dollar Loss: $50 per trade.
• Max Percent Loss: 0.5% of account.
• Structural Stop: Below the support level.

Risk Management Framework

• Risk Per Trade: 0.25% of account.
• Daily Limit: 5 losing trades.
• Weekly Limit: 5% drawdown.
• Max Drawdown: 15%.
• R:R Requirement: Minimum 1:1.

Position Sizing Model

• Sizing Approach: Fixed fractional.
• Volatility Adjustment: No adjustment needed.
• Conviction Sizing: Full size on A+ setups.
• Scaling In: Not recommended.
• Scaling Out: Not recommended.

Trade Filtering

• Market Conditions: Any market condition.
• Setups: Look for volume imbalances at support and resistance.
• Instruments: Futures and other instruments with order flow data.
• Time Restrictions: No restrictions.
• Chop/News Avoidance: Avoid trading around news.

Context Framework

• Trend Direction: Not applicable.
• VWAP Relationship: Not applicable.
• MA Relationship: Not applicable.
• Range Location: At a key support or resistance level.
• Higher TF Alignment: Not applicable.

Trade Management Rules

• Breakeven: Not applicable.
• Scale Out: Not applicable.
• Add Size: Not recommended.
• Fast vs Slow Moves: Take profits quickly.

Time Rules

• Optimal Window: Any time during the day.
• Times to Avoid: None.
• Session Notes: Works well in all sessions.

Setup Classification

• A+ Setup: A large volume imbalance with a clear reversal candle.
• A Setup: A decent volume imbalance with a good reversal candle.
• B Setup: A questionable volume imbalance or reversal candle.
• C Setup: Avoid weak setups.

Market Selection Criteria

• Instruments: Futures and other instruments with order flow data.
• Volume: High volume.
• Volatility: Any volatility.

Statistical Edge Metrics

• Win Rate: 70%.
• Avg Win: 1R.
• Avg Loss: 1R.
• Profit Factor: 0.7.
• Expectancy: -0.3R per trade.

Failure Conditions

• The strategy fails if the volume imbalance is not significant.
• Avoid trading if the reversal candle is weak.

Psychological Rules

• Be quick to take profits and cut losses.
• Do not get attached to any single trade.

Advanced Components

• Regime Detection: Not applicable.
• Filters: Use an order flow filter.
• Correlation: Avoid correlated instruments.
• MTF Alignment: Not applicable.

Location

• Strongest: At key support and resistance levels.
• Weakest: In the middle of a range.