VCRE Signals
Volume-Confirmed Range Expansion
VCRE is the primary signal system detecting breakouts from consolidation ranges confirmed by volume expansion. Signal strength (V5–V11) indicates confirmation count—higher values = stronger signals.
Price breaks above consolidation range with volume confirmation. Green triangle and strength label appear below breakout candle.
Price breaks below consolidation range with volume confirmation. Red triangle and strength label appear above breakdown candle.
Signal Strength
Execution Protocol
Confirm Signal Quality
Only execute on V7+ signals. Wait for candle close—signals fire on bar confirmation.
Identify Zone Boundaries
Zone box shows consolidation range. Upper boundary = breakout level for longs.
Execute Entry
Enter at market on confirmation, or wait for pullback to breakout level.
Position Stop Loss
Stop below zone low (longs) or above zone high (shorts). Typically 0.3–0.5%.
Define Profit Target
Scalps: 0.3–0.5%. Extended: 0.5–1.0%. Use next EMA or level as exit.
VCRE signals from volatility squeeze (yellow background) are highest-probability. Compressed volatility releasing into expansion = ideal momentum conditions.
Opening Range Breakout
OR High & Low Reference Levels
Opening Range captures high/low of first 15 minutes (9:30–9:45 AM ET). These levels serve as critical intraday support/resistance, often defining session direction.
Price closes above OR High after 9:45. Bullish bias confirmed for session.
Price closes below OR Low after 9:45. Bearish bias confirmed for session.
Execution Protocol
Allow Range Formation
Don't trade first 15 min. OR lines appear at 9:45 AM ET.
Monitor for Breakout
Need confirmed close outside range. Wicks don't count.
Entry Approach
Aggressive: breakout close. Conservative: pullback retest.
Stop Placement
Inside OR range—midpoint or opposite level.
First OR breakout has highest probability. If it fails and returns inside, wait for second attempt or trade reversal at opposite level.
Pullback Signals
EMA Pullback Continuation Entries
Pullback signals identify trend continuation opportunities. When price retraces to 9 EMA within established trend and resumes direction, "PB" signal triggers for lower-risk entry aligned with dominant trend.
Signal Requirements
- ✓Trend Confirmed: 9 EMA above 21 EMA (uptrend) with clear separation
- ✓ADX ≥ 25: Strong trending conditions—avoids choppy markets
- ✓EMA Touch: Price retraces within 0.5% of 9 EMA
- ✓Confirmation: Signal candle closes in trend direction
Pullbacks work best mid-session (10 AM – 2 PM ET). Avoid first 15 minutes and final 10 minutes of trading day.
Divergence Detection
RSI Divergence Signals
Divergence identifies trend exhaustion and reversal points by detecting disagreement between price and RSI. When price makes new extreme but RSI fails to confirm, momentum is weakening—signaling possible reversal.
Important Warning
Divergence is a leading indicator, not timing signal. Never enter on divergence alone—wait for price confirmation (VCRE signal, trendline break, reversal candle).
Execution Protocol
Spot the Divergence
DIV+ or DIV- diamond appears. This is a warning, not an entry signal.
Wait for Confirmation
Look for VCRE signal, swing break, or reversal candle pattern.
Entry
Enter on confirmation signal. May be several bars after divergence.
Stop Loss
Beyond the extreme that created divergence.
Divergence at key levels (premarket, OR, EMAs) has much higher success rate than random divergence.
Premarket Levels
PM High & Low Reference
Premarket levels show high/low from 4:00–9:29 AM ET. These are price magnets and often act as strong support/resistance during regular trading hours.
Why Premarket Levels Matter
- ✓Institutional Interest: Large players leave footprints at these levels
- ✓Gap Reference: Helps identify gap fill opportunities
- ✓Profit Targets: Excellent scalp exit points
- ✓Reversal Zones: Price often reverses at PM levels
First touch of PM level during regular hours often produces reaction. Be aggressive on first touch; second/third may break through.
Moving Averages
EMA 13 / 48 / 200
EMAs smooth price to show trend direction. Shorter EMAs react faster; longer EMAs show the bigger picture and act as dynamic support/resistance.
| EMA | Color | Purpose | Use |
|---|---|---|---|
| EMA 13 | Yellow | Fast trend | Scalp entries, immediate direction |
| EMA 48 | Purple | Intermediate | Swing reference, trend confirm |
| EMA 200 | Red | Major trend | Bull/bear bias, institutional level |
EMA separation = trend strength. Wide = strong trend. Bunched together = weak/reversal. Don't scalp when EMAs are tangled.
Signal Filters
Understanding Your Filters
Filters reduce false signals by requiring additional conditions. Each filter = more reliable but fewer signals.
| Filter | Function | Recommendation |
|---|---|---|
| VWAP Filter | Buy above VWAP only, sell below only | Always ON — institutional flow |
| HTF Trend | Align with 15-min trend direction | Recommended — avoids counter-trend |
| Chop Filter | Block signals when ADX < 18 | Highly recommended — biggest win rate boost |
| Session Filter | Prime hours only (9:30–11:30, 2–3:50 ET) | Recommended for beginners |
| Require Squeeze | Only signal after volatility compression | Optional — higher quality breakouts |
Beginner Recommendation
Keep ALL filters ON when starting. Fewer signals, but much more reliable. As you gain experience, experiment with disabling some.
Recommended Settings
Optimal Configuration for SPY/QQQ Scalping
| Setting | Value | Notes |
|---|---|---|
| Minimum Strength | 7 | High-conviction signals only |
| Required Confirmations | 5 | 5+ indicators must agree |
| Lookback Period | 10 | Bars to check for range |
| Confirmation Bars | 6 | Bars to confirm breakout |
| OR Duration | 15 min | Standard opening range |
| Pullback ADX | 25 | Strong trend required |
| Timeframe | 3m or 5m | Optimal for scalping |
- Use 3-minute or 5-minute charts only
- Trade SPY or QQQ (most liquid)
- Paper trade first to learn signals
- Only trade prime session hours
- Take V7+ signals until consistent
- Always use stop loss — no exceptions
- Risk max 1–2% per trade