How I Set Up My Charts to Catch Big Moves | OVTLYR UNIVERSITY Lesson 15
Trade the Market, Not Just the Chart
Introduction
Even the strongest chart setups can fail if the broader market isn’t aligned. In this lesson, you’ll learn how professional traders factor in market health and breadth before placing trades so you’re not fighting the flow of capital.
1. The Market Overrides the Setup
● A perfect stock setup doesn’t matter if the market is going the other way.
● When the market weakens, even high-quality trades break down.
● Your first job is to check the market before checking the chart.
📉 “Don’t get married to the chart—trade the environment.”
2. The Breadth Model Is Your Compass
● Green Line: % of stocks meeting bullish criteria (Bull List)
● Red Line: 10-period EMA of the Green Line
Key Signals:
● Bullish: Green crosses above red → market participation is expanding.
● Bearish: Green drops below red → participation is falling.
This tells you whether it’s time to trade—or time to wait.
3. When Breadth Breaks Down, Step Back
● You might be in a strong setup, but if the breadth flips bearish:
○ Exit early or reduce exposure.
○ Pause new entries.
○ Don’t argue with what the market is showing you.
"If you stay too long after the shift, you’ll pay for it."
4. Protect Profits, Not Pride
● It’s not about being right on the chart. It's about managing risk.
● When breadth collapses:
○ Tighten stops
○ Don’t add to positions
○ Start thinking defensively
5. Always Trade With the Market Wind
● Go long when:
○ Market structure is bullish
○ Breadth is rising
○ Your sector is strong
● If those aren’t aligned:
○ Don’t trade, even if a chart looks great
Ride the wave. Don’t fight the current.
6. The Pro’s Discipline: No Setup Without Market Backing
● Every trade starts with this question:
“Is the market healthy enough to support this move?”
● If the answer is no, skip it.
● If the answer is yes, only then do you analyze the chart.
Now you know how to trade in sync with the market, not just what’s on the chart. This shift alone can save you from dozens of failed trades and put you in alignment with professional strategy.
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