Let me ask you something…
Have you ever felt like the market just isn’t making sense?
Like you’re staring at a chart, trying to find a reason to trade, and nothing’s clicking?
You’re not alone.
There’s a reason some traders seem to spot opportunities every day while others are constantly second-guessing their entries or bag-holding from the last hype play.
One way to make it easy on yourself is to trade my Monday Setup.
If you haven’t heard about it yet, let me explain…
Every Monday, the market kicks back into gear after a weekend of rest… And that reset creates a unique opportunity!
Right at 9:30 am Eastern, as the opening bell rings, we look for a very specific setup that often shows up like clockwork.
And it has delivered some incredible wins!
Take this past Monday…
BT Brands (NASDAQ: BTBF) gained an incredible 175%* in less than half an hour after announcing it was exploring a new merger opportunity.
These are the kinds of morning spikes we hunt for every Monday!
Want to learn how to spot them for yourself?
Watch the video below for the full trade breakdown and strategy tutorial for my Monday Setup.
Consistency in trading isn’t about luck, more screen time, or having a magic news feed.
It comes down to one thing.
But before we get to that, take this quick quiz…
And let’s see where you stand.
Table of Contents
Quick Trader Quiz: Are You Ready to Spot the Right Setups?
1) You see a stock up 30% premarket on a press release. What’s your first move?
A) Buy the open — this is going to the moon
B) Wait for confirmation — let it prove itself
C) Check Twitter and see what everyone else is saying
2) A chart looks like a rollercoaster with no clear trend or support. You:
A) Buy because it’s “due” for a bounce
B) Avoid it — too messy
C) Set alerts and hope something happens
3) A low float stock has two green days on volume and holds its highs. On Day 3, it starts to break out. What do you do?
A) Dismiss it — the move already happened
B) Recognize the setup and watch for volume confirmation
C) Chase with size and hope for a squeeze
If you answered mostly B’s, congrats! You’re thinking like a trader.
If you answered mostly A’s or C’s, don’t sweat it. That’s exactly why I put this article together.
There’s one core skill that separates consistent traders from the rest…
Once you lock it in, everything else starts to make sense.
Know These Patterns Before the Market Opens
A few days ago, during my Pre-Market Prep, I went on a bit of a rant. If you know me, you know that happens now and then.
Here’s what sparked it…
I was fired up because too many traders are showing up to Pre-Market Prep without knowing the patterns we rely on.
These aren’t new. These aren’t niche. They’re core setups, and they should be locked in before you even fire up your screens.
If you’re still catching up on the patterns, no shame… Just fix it.
Get them all in one place in my 10 Trading Patterns You Need to Know eBook.
Why Chart Patterns Still Matter
You hear the word patterns constantly in trading, and for good reason.
They’re not magic, and they’re definitely not guaranteed. Nothing in trading is guaranteed. Remember that.
But when paired with volume, catalysts, and proper risk management, high-quality patterns repeat. And that repetition is your opportunity.
The goal isn’t to master every setup under the sun. Find your one bread-and-butter setup first. Master it. Then layer in a second, and maybe a third.
Let me show you two of my go-to patterns and two setups I recommend you avoid like the plague.
Patterns to Trade
- The Clean Chart Breakout
Here’s what I mean by a clean chart:
- Stock has been range-bound, bouncing between clear support and resistance
- Suddenly, it breaks above that range on volume
- Then, boom! You’ve got blue-sky breakout territory
Does this guarantee follow-through? Never…
But psychologically, it’s huge.
People who’ve been stuck in that range are finally free.
New traders see momentum and chase.
That increase in volume hits scanners and momentum snowballs.
And now you’ve got a clear stop-loss level. If it fails and drops back into the prior range, you’re out.
Clean and simple.
- The Supernova
You’ve seen this one before…
A low-float stock goes vertical out of nowhere… maybe 100%, 200%, even 300% in a single session!
That’s the Supernova, or parabolic move.
Catalysts can vary— press release, earnings, hot sector rotation — but the price action is always the same: explosion.
Here’s how I like to trade it:
I look for a late-day breakout into strength, then sell into the next morning spike.
Why?
Because traders go home, see the move, do their research, and pile in at the open. If you’re already in from the afternoon move, you’re selling into their FOMO.
Patterns to Avoid
- The Messy Chart:
Just because a stock drops a press release doesn’t mean it’s trade-worthy.
If it’s not moving with volume or breaking key levels, that news means nothing.
Most of these companies are just looking to pump interest in order to sell stock.
If it’s stuck in a sideways range with no momentum, skip it.
Don’t get trapped buying “news” that the market’s ignoring.
- The Ugly Downtrender:
You probably know this one…
A stock was once $100. Then $50. Now it’s $4.
People think they’re buying the bottom and that they’re getting a bargain.
They’re not.
These charts almost always belong to cash-burning, share-diluting companies on life support.
That dip you think you’re buying is actually a death spiral.
Yes, one in a thousand of these might bounce… but you don’t build a trading career on lottery tickets.
Bonus Setup: The Day 3 Surge Pattern
Let’s wrap it up with a powerful momentum setup you need in your toolkit: the Day 3 Surge.
- Day 1: Big news, volume spike, the first move
- Day 2: Consolidation, sideways action, maybe a weak open
- Day 3: Breakout over key resistance. Shorts cover. Momentum buyers rush in.
This is one of the most repeatable high-probability setups out there.
It’s especially strong when paired with a small float (>10M shares), a catalyst, and sector momentum.
My Final Thoughts…
So there you have it…
- Patterns to trade: The Clean Chart, The Supernova, and the Day 3 Surge
- Patterns to avoid: The Messy Chart and The Ugly Downtrender
Want to see these patterns in action every morning?
Join me for Pre-Market Prep…
It’s exclusive to my Daily Income Trader members. We don’t waste time. We prep for the trading day with real setups, clean charts, and repeatable game plans.
Learn more about DIT during one of our free daily webinars.
In this game, discipline + education = long-term success.
Have a great weekend, everyone. See you back here on Monday.
Tim Bohen
Lead Trainer, StocksToTrade
P.S.
Another great trade pattern every trader needs to learn.
And another one…
The best ways to take advantage of this Golden Age of Trading.