Shock Gaps and Round Levels: Separate Selection, Base, and Execution

Video: This Scalping Strategy is BORING, but it Makes Me $27,350/Month
Creator: Emmanuel Malyarovich
Original Video: Watch the original video
Difficulty: Advanced

The Big Idea

Emmanuel Malyarovich combines a stock-selection process with a daily level map and simple lower-timeframe entry types. The useful sequence is to identify unusual movement, choose meaningful references before the trade, then decide whether a breakout or stabilized pullback offers feasible risk and reward. A round price and a large gap alone do not complete that process.

The Earnings Headline Is Not the Entry Rule

The source reports large personal account profits, displays brokerage information, and describes a repeatable daily process. The supplied transcript alone does not independently verify the account records, return calculation, complete trading history, or how much of the reported result belongs to this particular setup. Those figures remain source claims, not an income expectation.

The trade examples also range from fast scalps to fifteen-minute retracements and support responses. They should not be merged into one perfectly specified method merely because they share round-number locations. Each has different entry timing, invalidation, holding duration, and execution risk.

The most transferable teaching is the order of decisions: selection first, map second, execution third. A lower chart cannot repair an unsuitable instrument, and an attractive daily story cannot make a poor current fill economical.

A Gap Depends on the Session Definition

The source explains a regular-session opening gap as the difference between the previous close and the new open, while recognizing trading may occur during extended hours. That is not proof no transactions happened anywhere between those prices overnight. Keep regular-session and premarket observations separate.

The size of the gap is only one selection input. The source also looks for momentum and meaningful premarket activity, warning against extremely thin names. Its rough volume examples are screening heuristics, not a universal liquidity threshold or evidence that a particular size will execute well.

Premarket share volume is also not the same as relative volume. Relative volume needs a defined comparison, often including time of day and historical observations. A large raw number alone does not show how unusual activity is for that security.

Shock Value Describes a Context Change, Not Certain Forced Selling

The source favors gaps that clear important prior daily price action, such as an opening above earlier bearish candles or below a prior bullish candle. The idea is that some participants may find their previous positions uncomfortable. That can motivate a continuation hypothesis without identifying every holder’s cost basis or response.

A gap against an existing trend does not prove that the trend has permanently ended. It can be absorbed, reverse, or develop into a range. Conversely, the video also accepts a gap in the existing trend direction when it shocks participants in a recent opposing candle. Those are different subcategories worth retaining in a study.

Our baseline selects only a narrow bullish shock: the observed regular-session open is above the prior daily high and the prior daily body was bearish. It does not evaluate the entire daily trend, the preceding twenty sessions, a catalyst, or the size of the short crowd. That definition is deliberately explicit and incomplete.

Map Round Prices With the Existing Structure

The source marks whole and half-dollar prices, then looks for overlap with prior highs, lows, and other technical references. A round price can be easy to observe and discuss, but it is not guaranteed support or resistance. The history of reactions still needs to be recorded rather than assumed.

The examples show both holding and failing levels. A former support area can act as possible resistance after a break, and a resistance can become possible support. That role change is a hypothesis about subsequent response, not a permanent property of the number.

Spacing should be stated in price units. Half a dollar has a different significance for a sub-dollar stock than for a high-priced instrument. The code exposes spacing as an input, defaulting to 0.50 to illustrate the source. It does not claim that this grid is optimal across instruments.

Breakout and Pullback Are Separate Entry Families

For a breakout, the creator prefers movement followed by a base near a key level, then a break with protection beneath the base. For a pullback, price returns to a premarked area and shows enough stabilization to consider an entry. The source explicitly warns against buying a falling knife simply because it reaches support.

A base needs its own definition: bar count, total range, location, and completion time. If the range is recognized only after the breakout, the historical setup has more information than a live trader had. The code uses only prior completed base bars before the current break.

The support examples also include uncertainty and a missed entry. Do not reinterpret discomfort as proof that a trade should be taken. A cautious decision can be correct under a plan even when the later chart produces a beautiful bounce. Review the missing permission rather than conclude hesitation always costs money.

A Stop Buffer Does Not Absorb Every Execution Problem

The video suggests protection some cents below a round support area and describes that as room for movement or slippage. Those are different concepts. A wider stop changes the intended trigger distance; it does not ensure that an order triggered there fills at that price or prevent a larger gap loss.

The source also distinguishes a broader breakout stop from a quicker scalp policy, with protection tightened rapidly if immediate movement fails. That is a management hypothesis, not a universal instruction to trail every position the same number of cents. A rapid adjustment can also remove later winners.

The Next Level Is Not Automatically a Good Target

Partial exits at successive levels should be recorded with quantities and actual prices. A runner’s maximum excursion is not the completed trade’s return. If a scalp uses a different stop or exit than a retracement entry, evaluate the two policies separately before combining their results.

A Chart Indicator Cannot Replace the Premarket Scan

The source shows scanning tools and discusses premarket movers. A single-symbol Pine indicator does not automatically reproduce a market-wide scanner, check a company’s news, verify borrow, or rank relative volume. The reader must choose a research universe independently and avoid selecting only remembered winners.

Our code studies one long-side round-level base break on the current chart. It records the regular-session open and fixes the next grid level at or above that price unless a manual level is supplied. A level chosen after the move would invalidate the intended preplanning experiment.

The default shock filter uses completed prior regular-session daily prices, not the current day’s final candle. The observation window is 09:30–16:00 America/New_York, and it waits for enough completed in-session bars to form the base. This is a U.S.-equity starting context rather than an automatic global session model.

A qualifying base uses three prior bars by default, with total range no greater than 0.75 prior ATR, near the fixed level. A completed close must break both the level and the prior base high. The code’s numerical range and proximity thresholds are original definitions; the source does not prescribe them.

One Marker Per Session Makes the Sampling Rule Visible

The baseline allows one marker per observed session. It saves the base low and next grid level for fifteen chart bars as visual references, without creating orders. It does not continue scanning for repeated entries after that allowance is used. This deliberately omits later opportunities the creator might take.

A marker can also close beyond the next grid reference after a large breakout bar. In that case the plotted reference is already behind the available price; it is not a sensible automatic target. No trade is inferred. Recalculate actual target space before considering an execution policy.

Before the first observed session, a grid fallback keeps the display informative. Once a session is observed, its key level stays fixed until the next reset. These reference plots are not predictions that every half-dollar increment will hold.

Pine Script Indicator

//@version=6
// Article: https://candlechasers.com/shock-gap-round-level-bases/
// Original educational indicator; no orders or broker execution.
indicator("CC Shock Gap Round Level Base Break", overlay=true)
step = input.float(0.5,"Original round-level spacing in price units",minval=0.01)
manualLevel = input.float(0,"Manual key level (0 = next grid level above session open)",minval=0)
requireShock = input.bool(true,"Require open above previous red daily candle high")
baseBars = input.int(3,"Original base bars",minval=2,maxval=20)
regular = ticker.new(syminfo.prefix,syminfo.ticker,session.regular)
[po,pc,ph] = request.security(regular,"1D",[open[1],close[1],high[1]],lookahead=barmerge.lookahead_on)
valid = chart.is_standard and timeframe.in_seconds() < timeframe.in_seconds("1D")
inSession = not na(time(timeframe.period,"0930-1600","America/New_York"))
newDate = timeframe.change("1D")
newSession = inSession and (not inSession[1] or newDate)
a = ta.atr(14)
bh = ta.highest(high,baseBars)[1]
bl = ta.lowest(low,baseBars)[1]
var int sessionBars = 0
var float sessionOpen = na
var float key = na
var bool shock = false
var bool used = false
var float stopRef = na
var float targetRef = na
var int marked = na
bool signal = false
if valid and barstate.isconfirmed
    sessionBars := inSession ? (newSession ? 1 : sessionBars+1) : 0
    if newSession
        sessionOpen := open
        key := manualLevel > 0 ? manualLevel : math.ceil(open/step)*step
        shock := open > ph and pc < po
        used := false
    bool base = bh-bl <= 0.75*a[1] and bh <= key+0.1*a[1] and bh >= key-0.5*a[1]
    signal := inSession and sessionBars > baseBars and not used and not na(key) and (not requireShock or shock) and base and close > key and close[1] <= key and close > bh
    if signal
        used := true
        stopRef := bl
        targetRef := key+step
        marked := bar_index
fallback = math.ceil(close/step)*step
shownKey = not na(key) ? key : fallback
plot(shownKey,"Fixed session key (grid fallback before first observed session)",color=color.blue,linewidth=2,style=plot.style_stepline)
plot(shownKey-step,"Adjacent lower grid reference",color=color.new(color.gray,65))
plot(shownKey+step,"Adjacent upper grid reference",color=color.new(color.gray,65))
plot(ph,"Previous red-candle shock boundary (prior high)",color=color.orange)
show = inSession and not na(marked) and bar_index-marked <= 15
plot(show ? stopRef : na,"Frozen base low: visual risk reference",color=color.red,style=plot.style_linebr)
plot(show ? targetRef : na,"Frozen next grid level: reference, not exit order",color=color.teal,style=plot.style_linebr)
plotshape(signal,"Completed base break above key level",shape.triangleup,location.belowbar,color.aqua)
alertcondition(signal,"Round-level base break","CC: completed chart-only shock-gap/base-break proxy. No scanner, relative-volume or order-flow verification.")
var table panel = table.new(position.top_right,1,2,bgcolor=color.new(color.black,10))
if barstate.islast
    table.cell(panel,0,0,not valid ? "Use STANDARD intraday U.S.-equity context" : not inSession ? "Outside 09:30-16:00 New York observation window" : used ? "One-marker session allowance consumed" : requireShock and not shock ? "Round levels visible; source-style shock filter not met" : "Waiting for original tight-base and completed level break",text_color=color.white)
    table.cell(panel,0,1,"LONG-only proxy | no premarket scanner, relative volume, news or actual liquidity",text_color=color.white,text_size=size.small)

What This Indicator Shows

The overlay shows the fixed session key and adjacent grid references, plus the prior daily high used by the narrow bullish shock filter. A triangle marks a completed break after the original tight-base conditions. The status panel explains session, filter, and one-marker allowance states. A manual key level can replace the automatic grid selection if chosen before the outcome. Frozen base and next-grid references remain briefly after a marker.

What This Indicator Does Not Show

It does not scan all stocks, measure source-quality relative volume, confirm catalysts, reproduce level-two order flow, or implement the full daily-trend selection process. It is long-only and omits discretionary support buys, shorts, fifteen-minute retracement variants, rapid trailing, and partial exits. Thresholds and sampling are ours. Lines are neither broker orders nor valid targets automatically, and no profits or income claims are simulated.

Setup and Validation

Paste the complete code into TradingView’s Pine Editor, save it, and add it to the chart. Use the chart type, timeframe, and context described above, then inspect the status panel and reference plots before expecting a marker. Use Once Per Bar Close for the supplied alert conditions and recreate alerts after changing code or settings. No alert submits an order.

Validation status: Statically reviewed for completed-bar timing, source-versus-proxy distinctions, future-data use, state behavior, reference replacement and expiry, and visible output. This code has not been compiled or chart-tested in TradingView here. No historical performance or live-execution results are claimed. Use replay to check the described behavior and report any compiler or runtime message exactly.

Practice: Save the Watchlist Before the Winners Are Known

Create a timestamped candidate list under one predeclared selection rule. Record the gap definition, previous daily candle, volume meaning, planned levels, and rejected names. On each candidate, classify breakouts and pullbacks separately and save the actual available entry, invalidation, first obstacle, and execution assumptions. Include levels that fail and breakouts whose completed close leaves inadequate room.

Research and Comparison Lab

These are original proposed experiments, not results established by the source. Change one main feature at a time, retain failures and missing opportunities, and reserve later observations for evaluation rather than repeatedly selecting rules from the same outcomes.

Does the shock filter add information?

Compare the same original base-break rule with the prior-red-candle shock filter on and off across a predeclared universe. Keep session, grid, entry timing, costs, and management fixed. Record excluded opportunities and surviving-name bias rather than inspect only dramatic movers.

Does a round-number overlap matter?

Compare premarked structural levels near the grid with similar structural levels away from it. Keep the location width, entry rule, and evaluation horizon constant. Do not move the structural level afterward to create overlap.

Which entry policy fits the economics?

On matched opportunities, compare completed base breaks, a predeclared intrabar trigger, and a separately defined stabilized pullback policy. Preserve nonfills and rapid failures. Recalculate money risk and remaining objective space for each actual proposal.

Check Your Understanding

Does a large gap by itself prove a trend has ended? No. Subsequent price behavior still matters.

Is raw premarket volume identical to relative volume? No. Relative volume needs a defined comparison.

Does a wider stop remove slippage risk? No. It changes intended distance, not execution certainty.

Does this indicator scan the whole market? No. It observes the current chart.

Is the next grid reference always a valid target after the close? No. The completed candle may already have passed it.

Final Takeaway

The method is clearest as selection, map, base or pullback, then feasible execution. Keep each layer auditable, retain the failed levels and missed fills, and test whether round-number context adds information without turning a large-income headline into an expected result.

Risk Disclosure

This material is educational and is not personalized financial, investment, or trading advice. Trading can cause substantial losses. Source-reported results, hypothetical examples, and probability illustrations do not establish future performance. Calculations depend on their assumptions and omit costs unless stated. Commissions, spread, slippage, gaps, leverage, liquidity, borrowing, financing, and changing market conditions can materially affect outcomes. Indicators do not simulate broker execution or establish profitability. Short exposure can involve losses beyond the initial sale value. Evaluate any approach with appropriate data, realistic costs, and explicit risk limits before considering live use.

This is an independent educational companion and is not affiliated with, sponsored by, endorsed by, or authorized by the source creator, channel, or TradingView.