Every trader dreams of a setup that’s consistent, repeatable, and simple enough to spot even when the market’s going crazy.
The one I’ve most recently discovered takes advantage of massive moves that only show up on Monday mornings.
Haven’t heard about it yet? Here’s how it works…
Every Monday, the market kicks back into gear after its weekend nap… and that reset creates a unique opportunity.
As the first session of the week gets started, there’s a specific pattern we look for that appears again and again with uncanny consistency.
And it has delivered some unbelievable gains!
Look at yesterday…
Solidion Technology (NASDAQ: STI) soared nearly 140%* after announcing the launch of its new AI data center batteries.
We hunt for these kinds of Monday morning spikes every single week.
Now it’s time to learn how to spot them for yourself…
Watch the video below for the full trade breakdown and strategy tutorial on my Monday Setup.
Now what about the other days of the week?
I can tell you this…
I’ve spent close to 20 years in the markets, through wild runs, slow grinds, and everything in between, and there’s one strategy that has proven itself again and again.
Table of Contents
Why You Need a Thesis Before You Trade
Before we get into the setup itself, there’s something I teach every trader in my Daily Income Trader System…
You’ve got to have a why.
Every single day, thousands of stocks are moving, and now more than ever.
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In today’s market, one of the busiest I’ve ever seen, you need a system for narrowing down your trades. You can’t trade them all, and you shouldn’t even try.
Your goal is to find one, maybe two, great plays a day.
If you’re under the PDT rule or trading part-time, focus is everything. You don’t need ten trades a day to grow your account. You just need the right one.
That’s where this pattern shines.
What Makes This Setup Work
Let’s look at a recent real stock example from yesterday…
Electra Battery Materials Corporation (NASDAQ: ELBM) is a stock that’s checked all the right boxes.
When I talk about criteria, here are some things I’m looking for:
Hot Sector: Electra provides raw materials for the EV industry. The EV sector has been trending for a while now.
Mounting Volume: ELBM showed unusually high volume starting yesterday morning.
52-Week Breakout Potential: We also saw this yesterday.
When all these boxes, and others, line up, you’ve got the foundation for the setup I’m about to walk you through.
Understanding the Key Indicator
Now let’s talk about one of the most powerful technical indicators out there, the one that almost every modern trader watches, especially me…
Volume-Weighted Average Price or VWAP. It’s basically a blend of price and volume, which are two of the most important data points in trading.
When a stock is trading above VWAP, especially in the afternoon, it tells you that buyers are in control.
When it’s below VWAP, sellers are usually dominating.
The Setup in Action
Here’s what I look for:
- The stock makes a big morning move, ideally hitting a new high of the day.
- Then it pulls back and consolidates above VWAP.
- During the afternoon window (roughly 12:30–3:45 PM), it begins to test that morning high again.
That’s your moment. When the stock holds VWAP and breaks its previous high of the day, that’s the trigger.
It’s not just any breakout…
It’s a confirmed move backed by volume, price strength, and trader interest.
For ELBM, that breakout came right around 2.45 PM, and the stock ripped higher almost immediately, for a quick gain of about 50%*.
Here’s what happened…
ELBM Intraday, 5-Minute Candles Chart; SteadyTrade
How to Manage Risk
This setup isn’t about guessing but about structure.
You’ve got clear support (VWAP or an intraday level below it) and resistance (the high of the day).
If the stock fails and breaks down through support, you stop out. No hesitation. plan
If it breaks resistance, that’s your green light. You trade the momentum with a plan, not emotion.
It’s simple, but powerful: Buy strength above support, sell weakness below it.
Building Your Own Process
If you want to master this or any trading setup, you need a process…
Take notes, track data, and record everything in a trade journal.
Whatever works for you, do it.
The more data you collect, the more you’ll see what’s working and what isn’t. That’s how you build confidence and consistency as a trader.
My Final Thoughts…
No pattern works 100% of the time, and this one’s no exception. But with the right preparation, a solid thesis, and disciplined execution, it’s one of the most reliable setups I’ve ever traded.
Remember, in the end, trading isn’t about luck…
The trading game is about preparation meeting opportunity, and the VWAP Hold is one of the best examples of that in action.
Have a great day, everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade
P.S.
Think you don’t have enough money to trade? Think again.
Trading against the trend will teach you a hard lesson.
How well do you understand hedging?