🔎 Drive Continuation Scalp
Also see Variant #5
Definition
The Drive Continuation Scalp captures institutional program-driven momentum off the open. After an initial drive higher (or lower), price consolidates tightly in the upper (or lower) third of the range. The breakout of this consolidation confirms program strength, creating a continuation move with wave-like structure.
Why It Works
- Institutional Flow. Large programs prioritize getting filled, not “best price,” and sustain trends.
- Upper Third Hold. Price holding high signals strong demand/weak supply.
- Wave Structure. Programs create cyclical waves of execution: breakout → pause → grind → acceleration.
DOM & Tape Tells
- Volume spikes on breakout bar (>30% above prior).
- Break bar = clean, one-direction aggression.
- Tape shows steady lifting (longs) or hitting (shorts) — controlled, not erratic.
Trading Application
- Entry: Buy/sell aggressively on breakout of consolidation range (1-min bar).
- Stop: Hard stop just below consolidation low. One attempt only.
- Exit:
- ½ position into first breakout wave.
- ½ into second grinding wave toward acceleration.
Conditions That Improve Odds
- Breakout volume > prior consolidation volume.
- Market + sector trending in same direction.
- Consolidation forms above key resistance (premarket high, prior day high).
Conditions That Kill the Setup
- Overextended initial move = just one big candle.
- Multiple upside break attempts before consolidation sets.
- Broader market/sector trending opposite direction.
Ideal Timing
- Early opening drive → consolidation → breakout before 9:59 EST.
Stats
- Win rate: ~55–60%.
- Reward-to-Risk: ~1.9:1.
⚖️ Bottom Line:
The Drive Continuation Scalp is about trusting the opening program: if institutions are pressing and holding highs, the breakout continuation is the cleanest way to ride their flow. Avoid chop, avoid weak drives — trade the real programs only.