The 29 Setup Library
Every setup used by professional futures traders — explained in full with step-by-step entry checklists, stop placement, targets, and common mistakes. Organized by skill level and category.
Breakout & Momentum
The Opening Range Breakout is one of the most time-tested setups in futures trading. The "opening range" is defined as the high and low formed during the first 15-30 minutes of the Regular Trading Hours session (9:30-10:00 or 9:30-9:45 am ET). When price breaks cleanly above the opening range high, it signals that buyers have won the early battle and momentum is building. A break below signals sellers are in control.
- Mark the opening range high and low at 9:45 or 10:00 am ET.
- Wait for a clean candle close above the ORB high (long) or below the ORB low (short).
- Confirm with above-average volume on the breakout candle.
- Check that the break aligns with the direction of the previous day's close and overnight action.
- Enter on the retest of the ORB level after the initial break, or on the breakout candle close.
A breakout above or below a key price level accompanied by at least 1.5-2x the 20-period average volume, confirming institutional participation.
- Identify a key resistance or support level (prior day high, swing high, round number).
- Wait for price to close above/below on high volume.
- Volume on the breakout bar must be at least 1.5x average.
- No major resistance/support within 1.5x risk distance of entry.
- Enter on close of breakout bar or retest.
After a sharp, impulsive move higher (the "flagpole"), price consolidates in a tight, orderly pullback that slopes slightly downward or moves sideways. This consolidation is the "flag." The breakout of the flag continues the original uptrend.
- Identify a strong initial move (flagpole) — at least 3-5 times the average candle size.
- Watch for 3-7 bars of tight, low-volume consolidation pulling back 20-40% of the flagpole.
- Wait for a breakout above the flag's upper trendline on increasing volume.
- Enter on the breakout bar close.
Exact mirror of Bull Flag. After a sharp move lower, price consolidates in a tight, slightly upward pullback. The breakout to the downside continues the downtrend.
- Identify strong bearish flagpole.
- Wait for 3-7 bars of tight, low-volume pullback that slopes slightly higher.
- Enter on breakdown below the flag's lower trendline.
Entering on the first pullback in a strong directional move. You are joining the trend after the initial push, at a better price than the original breakout.
- Strong initial move establishes direction (minimum 3 average bars in size).
- Price pulls back for 2-5 bars in a controlled, low-volume manner.
- Enter as price resumes in the original direction — use a bullish candle close (long) or bearish candle close (short).
- The pullback should not retrace more than 50% of the initial move.
VWAP & Price Structure
Price dips below VWAP, then reclaims it with a strong candle closing above. This signals buyers have retaken control and institutions are accumulating above their benchmark again.
- Price must first be clearly above VWAP, then pull below.
- A strong candle closes back above VWAP.
- Volume on the reclaim candle is above average.
- Higher timeframe (15m or 1H) is bullish.
- Enter on the close of the reclaim candle.
In a downtrend, price rallies up to VWAP and fails to close above it. Sellers defend VWAP as resistance. Short entry as price turns back down.
- Price has been trading BELOW VWAP most of the session.
- Price rallies to VWAP.
- A bearish candle forms at VWAP — a shooting star, bearish engulfing, or close back below VWAP.
- Volume increases on the rejection candle.
- Enter short on confirmation.
Price has moved far from VWAP — 2+ standard deviations away. The setup fades the extreme move expecting a return to VWAP (mean reversion).
- Price has moved 2+ standard deviations from VWAP.
- A reversal candle forms — shooting star or bearish engulfing (short) or hammer/bullish engulfing (long).
- Volume decreasing as price extends.
- No strong news catalyst driving the extension.
Key reference levels from the prior session act as support (PDL) or resistance (PDH). Price reactions at these levels are highly predictable because every participant is watching them.
- Mark the previous day's high and low on your chart before market open.
- Watch for a reaction as price approaches.
- At PDH: look for rejection (bearish setup) or clean breakout with volume (continuation long).
- At PDL: look for rejection (bullish bounce) or clean break (continuation short).
When equity futures open significantly higher or lower than the previous close, a "gap" forms. The high probability trade is fading the gap — expecting price to return to fill it (trade back to previous close).
- Identify a gap greater than 0.3% from prior close.
- Price opens and moves slightly further in gap direction.
- A reversal forms (bearish candle at gap high for short, bullish candle at gap low for long).
- Enter in direction of gap fill.
Supply, Demand & Order Flow
Price makes a false breakout below a key level (sweeping sell-stop liquidity), then immediately reverses. Smart money engineered the sweep to fill their large buy orders at discounted prices.
- Identify a clear liquidity pool — an obvious swing low with likely stops underneath.
- Price sweeps below it with a wick or brief close.
- Price closes BACK ABOVE the level within 1-3 bars.
- Enter long on the close back above. Volume confirmation helpful.
Price enters a prior supply zone (area of previous heavy selling) and sellers overwhelm buyers again, causing a rejection.
- Identify a prior supply zone — area where price previously fell sharply.
- Price rallies back into the zone.
- A bearish reversal candle forms within the zone.
- Volume on the rejection bar is above average.
- Enter short on candle close.
Price enters a prior demand zone (area of previous heavy buying) and buyers step in again, causing a bounce.
- Identify a prior demand zone — area where price previously launched higher sharply.
- Price pulls back into the zone.
- Bullish reversal candle forms (hammer, bullish engulfing, pin bar) at the zone.
- Enter long on candle close.
Price attempts to break through a key level, fails to sustain the move, and reverses sharply. The trapped traders (who bought the breakout or sold the breakdown) are forced to exit, fueling the reversal.
- Price attempts a breakout of a key level.
- The breakout fails — price cannot close beyond the level on multiple attempts.
- A reversal signal forms (bearish candle for failed breakout long).
- Enter opposite direction when price closes back inside the range.
The last bearish candle before a major bullish move (or last bullish candle before a major bearish move) is the "order block" — the candle where institutions placed their orders. Price often returns to this level to add to their position.
- Identify a strong impulse move on the 15m or 1H chart.
- The order block is the last opposing candle before the impulse.
- Wait for price to return to this zone in a pullback.
- Enter when price shows a rejection of the order block (bullish candle for bullish OB).
Pattern Trading
The first clean break through a significant swing high (in a downtrend) or swing low (in an uptrend) — signaling a potential trend change. This is the earliest possible entry into a new trend.
- Identify the current trend direction.
- Mark the most recent swing high (downtrend) or swing low (uptrend).
- Wait for price to close decisively beyond the level.
- Wait for a retest of the broken level.
- Enter on the retest candle close.
Two approximately equal highs (double top) or two approximately equal lows (double bottom) at a key level, with a "neckline" between them. Completion of the pattern (break of the neckline) signals a reversal.
- Two peaks at approximately the same level for double top (or two troughs for double bottom).
- Second peak should show less momentum than the first (confirmation of exhaustion).
- Price breaks the neckline (lowest point between the two peaks) with volume.
- Enter on neckline break or retest.
Using Fibonacci retracement levels (50% and 61.8% are most reliable) to identify where a trending move will pause and potentially reverse back in the trend direction.
- Identify a strong trending move — a clear swing low to swing high (or vice versa).
- Draw Fibonacci retracement from swing point A to swing point B.
- Wait for price to pull back to the 50% or 61.8% level.
- Look for a reversal candle at the Fibonacci level.
- Enter on confirmation.
An inside bar is a candle whose high and low are completely contained within the prior bar's range. It represents equilibrium and compression — energy is building for a directional move.
- Identify a clear inside bar on 5m, 15m, or 1H.
- The prior bar should be larger than average (establishes the range).
- Wait for price to break above the inside bar's high (long) or below its low (short).
- Enter on the close of the breakout bar.
A false breakout that traps traders on the wrong side. Price sweeps a prior high (or low), immediately reverses, and closes back inside the prior range. Trapped traders are forced to exit, fueling the move in the opposite direction.
- Identify a clear prior swing high or low.
- Price breaks above/below with a wick or brief close.
- Price closes BACK INSIDE the range — ideally on the same candle as the sweep.
- Enter opposite the sweep direction on that candle's close.
The Strat
Rob Smith's methodology. Bar types: 1 = inside bar, 2 = directional bar, 3 = outside bar.
A three-bar sequence where the first bar is a directional (2) bar down, followed by an inside (1) bar, followed by a directional (2) bar up that takes out the inside bar's high. Classic Strat reversal pattern.
- Bar 1: A "2-down" bar (lower high and lower low than prior bar).
- Bar 2: Inside bar (both high and low inside bar 1's range).
- Bar 3: Price takes out the inside bar's high — enter on the break.
- Ideally aligned with higher timeframe bullish bias.
Mirror of S212B. 2-up bar, inside bar, then 2-down bar taking out the inside bar's low. Sellers take control.
- Bar 1: A "2-up" bar (higher high and higher low than prior bar).
- Bar 2: Inside bar (both high and low inside bar 1's range).
- Bar 3: Price takes out the inside bar's low — enter on the break.
- Aligned with higher timeframe bearish bias.
Two consecutive directional bars up — both bars make higher highs and higher lows. Confirms sustained buying pressure.
- Bar 1 is a "2-up" bar (higher high and higher low).
- Bar 2 is also a "2-up" bar.
- Enter on the break of bar 2's high.
Two consecutive bearish directional bars. Sustained selling pressure confirmed.
- Bar 1 is a "2-down" bar (lower high and lower low).
- Bar 2 is also a "2-down" bar.
- Enter on break of bar 2's low.
An outside bar (3) followed by an inside bar (1). The outside bar represents expansion; the inside bar represents compression. The setup fires when price breaks out of the inside bar.
- Bar 1: Outside bar (higher high AND lower low than prior bar).
- Bar 2: Inside bar within bar 1's range.
- Enter on break of inside bar's high (long) or low (short) with trend direction.
Full timeframe continuity reversal setup. An inside bar (1) at a key level with all higher timeframes aligned for a reversal. When monthly, weekly, and daily are all "inside" or aligned, the setup fires with unusual precision.
- Identify inside bar (1) at a major structural level.
- Check all higher timeframes — they must show continuity aligned with your reversal direction.
- Enter on break of inside bar in the reversal direction.
Scalping & Tape Reading
Large bid orders at a key price level absorb aggressive sellers without price declining. This reveals institutional buyers. When price stops going down despite heavy selling, a rally is imminent.
- Requires DOM (Depth of Market) or footprint chart access.
- Observe large bid refreshing at a level while sellers hit it repeatedly.
- Price fails to decline despite heavy volume.
- Enter long when selling pressure exhausts.
Large offer (ask) being consumed by buyers. Supply is being removed from the market. When all supply at a level is absorbed, price moves higher rapidly.
- Requires DOM or footprint chart access.
- Watch offer being lifted at a resistance level continuously.
- Supply at the level is visibly thinning.
- Enter long as supply is exhausted.
Quick mean reversion trade when price deviates from VWAP and momentum confirms return.
- Price moves 2-3 ticks away from VWAP with momentum.
- A small reversal candle forms.
- Enter in direction of VWAP.
- Target is VWAP itself.
Entering on the first pullback tick of a strong momentum move. Pure speed-of-execution game.
- Strong directional move begins with large volume.
- Price pauses for 1-2 bars.
- Enter on resumption — first tick in the direction of the move.
Watch the setups trigger in real time.
TradeDisciple identifies ORB, VWAP Reclaim, Bull Flag, and more on live futures data —
so you can see exactly what they look like when they form.