The 7-Step Process
Every Trade Echo trade follows the same framework: Scan → Catalyst → Gamma → Flow → Structure → Entry → Manage. This isn't optional - it's how you build conviction before risking real money.
Step 1: Find Relative Strength
Which tickers are up pre-market while the broader market is flat or down? Which sectors are leading? If a name is strong while everything else is weak, someone knows something - that's your starting point.
Step 2: Check NewsEdge for a Catalyst
Search your strongest ticker in NewsEdge. Look for earnings surprises, analyst upgrades, M&A, partnerships, sector-level catalysts, or reports of unusual options activity. No catalyst? Be cautious - relative strength without a reason can fade.
Step 3: Read DealerEdge
Note four things: the Anchor Point (highest gamma strike - often your trade target), the Flip Level (regime boundary), the GEX Rating (4-5 = explosive moves, 1-2 = mean reversion), and the AI Analysis (often gives specific entry triggers and targets). Key rule: price below the flip that reclaims it = dealers forced to buy = explosive move toward anchor. That's the highest-conviction setup.
Step 4: Confirm with AlgoEdge and OptionFlow
In AlgoEdge, check for total premium over $250K and individual blocks over $1M. Note the strike distribution - are they loading calls or puts? In OptionFlow, look for clusters on the same ticker with premium concentrated in one direction. When AlgoEdge, OptionFlow, and DealerEdge all agree, you have a high-conviction setup.
Step 5: Draw Chart Structure
On the 1-hour chart, mark key support/resistance, trendlines from recent highs/lows, DealerEdge flip level and anchor point, and your target zone.
Step 6: Time Your Entry
Drop to the 3-min or 5-min chart. Three high-probability entries: an Opening Range Breakout (price breaks first 5-min high in DealerEdge direction), a GZ Retest (pullback to the 0.5 level of the zone), or a VWAP Retest (price pulls back to VWAP and holds). Select a strike with delta around 0.20 and premium around $1-2 that aligns with DealerEdge levels.
Step 7: Manage the Trade
Stop at 20% below entry. First target: 50-100% gain - take at least half off. Let the rest run with a trailing stop. Exit all 0DTE trades by 2 PM. Record the trade in your Dashboard when closed.
The Checklist
Before every trade: relative strength identified, NewsEdge catalyst found, DealerEdge anchor/flip/bias noted, AlgoEdge or OptionFlow confirms direction, chart levels drawn, entry trigger confirmed, strike aligns with DealerEdge levels, risk sized at 1-2% with a 20% stop. Never trade on one signal alone - stack your edges.