RESEARCH MODULE 08 // TECHNICAL EXECUTION ARCHETYPES
Setup Archetypes & Pattern Mechanics
⚠️ Regulatory Notice & Research Disclaimer: The models, parameters, directives, and pattern archetypes presented here are strictly for quantitative research, algorithmic backtesting, and academic observation. Corp Acuity Ltd is not an investment advisor or broker-dealer. Nothing contained herein constitutes trading or investment advice.
Quantitative Premise: Momentum screening often fails when relying on generic indicators. The screener focuses on four technical structures, each isolating a specific phase of institutional accumulation while enforcing a minimum 2.0R asymmetry floor relative to structural pivot points.
1. Base-Reset Inflections
Primary Base Emergence // Mean-Reversion Reset above 200 EMA
Market Rationale: After an extended structural uptrend or corrective drawdown, an equity forms a multi-week consolidation base entirely above its rising 200-day Exponential Moving Average (EMA). Volatility contracts as loose retail hands are shaken out. The inflection occurs when price resets against base support and pushes through the local swing pivot on expanding turnover.
Trend Filter
Close > 200 EMA with 200 EMA sloping positive over 20 sessions.
Consolidation Duration
15 to 45 trading sessions of volatility contraction.
Trigger Mechanics
Daily cross above the highest resistance wick of the reset shelf.
Tactical Invalidation
Structural swing low beneath the inflection candle (typically 3.5%–6.0% risk).
2. Momentum Flags (HTF)
High Tight Continuation // 8/21 EMA Dynamic Compression
Market Rationale: The High Tight Flag (HTF) is an aggressive momentum continuation setup. An initial explosive thrust (+30% to +100% in under 8 weeks) confirms institutional sponsorship. The flag portion represents orderly profit taking that refuses to retrace more than 20% to 25% of the prior pole, holding tightly along the rising 8-day or 21-day EMA.
Prior Thrust (Pole)
≥ 30% rally within the trailing 40 trading days.
Flag Retracement
Shallow correction ≤ 25% of pole depth; drying volume.
Trigger Pivot
Breakout through the upper downward-sloping flag rail.
Invalidation
Close below the rising 21 EMA or the flag's lowest structural low.
3. Pocket Pivots
Early Base Accumulation // Volume Dominance Signature
Market Rationale: Originally pioneered by Gil Morales and Chris Kacher, a Pocket Pivot identifies institutional accumulation inside a consolidation pattern before an obvious breakout occurs. The signature is an upside reversal day whose volume is larger than the maximum down-volume bar of the prior 10 sessions, confirming buyers are supporting the stock along moving average support.
Support Reference
Price must launch off or close above the 10 EMA, 21 EMA, or 50 SMA.
Volume Mandate
Volume > Highest down-day volume within preceding 10 trading sessions.
Base Location
Must occur under or at pivot resistance; avoids over-extended runs.
Tactical Stop
Low of the pocket pivot day or the referenced moving average.
Market Rationale: Liquidity Sweeps exploit retail stop-loss placement below well-advertised support shelves. Institutional algorithmic desks lack the liquidity to buy large blocks without driving prices up. By allowing or pushing price beneath known support, retail stops are triggered into market sell orders, supplying the exact liquidity institutions need to absorb the float before aggressively reclaiming the level.
Structural Level
Multi-touch horizontal support level visible on daily/weekly charts.
The Sweep Action
Intraday breach beneath support, trapping breakout shorts and triggering stops.
Confirmation Trigger
Daily close or subsequent open that fully reclaims the broken level.
Tactical Stop
Absolute low of the sweep wick (tight risk relative to reversal upside).