Identifying Price Patterns and Structured Trading Approaches

Repeatable price behavior is the core of many structured trading approaches. Brian Ader, founder of A+ Setups, centers his method on isolating recurring price patterns and applying defined rules around them. With over 40 years of trading experience, he emphasizes clarity: What are you trying to accomplish? How will you do it? And what happens when things go awry?

Those three questions form a rules-based framework built to help traders stay consistent across scalping, swing trading, and pairs trading strategies.

 

Building around the three-pillar framework

 

Ader organizes his methodology into three pillars: trading model solutions, money management tactics, and leverage guidelines. Together, they form an offensive and defensive plan.

The first pillar focuses on isolating repeatable price patterns, codifying them into rule-based models, and validating them through backtesting. Whether you’re scalping E-mini Nasdaq (NQ) futures or swing trading equities, finding your statistical “sweet spot” can help you with execution.

The second pillar aligns money management with those statistical profiles. Profit targets, partial exits, and runners are not arbitrary; they are tied to historical data. When traders know where probabilities could shift, they can react instinctively.

The third pillar, leverage guidelines, is designed to address risk. Even a strong trading model can break under improper position sizing. Applying leverage carefully can help traders stay consistent; overleveraging may amplify drawdowns beyond what a strategy can fix.

 

Three repeatable patterns for intraday scalping

 

Within the first pillar, Ader highlights three primary price patterns for intraday trading: shallow pullbacks, visual trend pullbacks, and potential bottoms.

The “Jiggle” model targets shallow pullbacks using Renko-style bars. A center line qualifier and color-coded price bars show when a setup is forming. Once the pullback completes and price resumes in the direction of the trend, traders can evaluate an entry. The plotted signals do not repaint, allowing for post-session review and study.

The center line method focuses on visual trend pullbacks across time-based, tick-based, and range charts. Traders monitor both higher and lower timeframes, like a five-minute chart aligned with a two-minute chart, to refine entries. When bars shift color during a pullback and then revert with momentum, that transition becomes the action area.

For potential reversal zones, the bottom picker identifies overstretched markets. When paired with multi-timeframe confirmation, traders can assess if a cluster of signals supports a countertrend opportunity. The concept remains consistent: Identify the pattern, confirm alignment, and execute within predefined rules.

 

Extending the framework to swing trading

 

The same models translate to swing trading in stocks, options, and futures. Using a daily, four-hour, and one-hour matrix, traders can define trend context on the higher timeframe and refine entries on the lower one.

If a pullback occurs on the daily chart while the broader trend remains, the four-hour chart may be the execution timeframe. If no daily setup exists, the four-hour chart can become the higher timeframe, with the one-hour chart used for entries. This alignment helps traders react to price rather than predict it.

 

Exploring pairs trading and basis relationships

 

Beyond directional strategies, Ader incorporates pairs trading, also known as basis arbitrage. For example, monitoring the relationship between NQ and E-mini S&P futures can reveal when their historical spread diverges.

In bull markets, the NQ often leads with higher beta; when the spread widens beyond historical norms, traders can evaluate potential mean reversion. By balancing notional values (e.g., pairing Micro E-mini Nasdaq [MNQ] with Micro E-mini S&P [MES] contracts), directional exposure may be reduced if focusing on relative performance.

 

Structured tools, defined rules, and trader development

 

A+ Setups delivers these models through a research and trading service that includes live sessions, statistical profiles, and downloadable NinjaTrader templates. The emphasis remains on defined entries, exits, and risk parameters, supported by ongoing coaching and development.

At its core, the message is simple: You only need one well-defined setup, one market, and one timeframe to build consistency. By anchoring decisions to repeatable price patterns and structured risk management, traders can develop a plan and refine it over time.

Disclosure:

Brian Ader is part of a NinjaTrader Affiliate Program and receives compensation for providing content related to NinjaTrader, including testimonials, endorsements, and recommendations. Such content reflects individual opinions and may not be representative of the experiences of other customers. Individual results may vary. The content provided is for informational and educational purposes only, is accurate as of the posting date, and should not be construed as investment advice. Futures trading involves substantial risk and is not suitable for everyone. Simulated trading is hypothetical and does not reflect actual trading or real-world results.

How to Add 3rd Party App to NinjaTrader

To import your 3rd party app or add-on to NinjaTrader, simply follow these 3 steps: