AD-Splash Strategy (H1)
A breakout system that pairs Accumulation-Distribution with a volume splash. We wait for absorption in a range while A/D builds. When volume splashes on a breakout and price holds above or below the box, we join on the retest.
Tools
- A/D line as a money flow proxy.
- Volume histogram to detect the splash.
- Optional: 20 and 50 EMA for context.
- ATR(14) for stop and position sizing.
Market logic
- In ranges, professional activity can absorb the other side. If A/D rises while price is flat, demand is building. The opposite for shorts.
- A splash is a wide candle with exceptional volume that breaks the box and holds.
Setup checklist
- Mark a clear range box with several touches on both edges.
- Watch A/D drift: rising for long ideas, falling for shorts.
- Wait for a breakout candle with above-average volume that closes outside the box.
- Prefer a retest of the broken edge that does not close back inside.
Entry
- Enter on the rejection at the retest, or at market on close of a strong breakout if no retest occurs.
Stop Loss
- Beyond the opposite edge of the box or ATR(14) x 1.5-2.0 from entry.
- Add a buffer for spread and fast moves.
Take Profit
- First target: the measured move equal to box height or 1.5R-2R.
- Runner: trail behind micro swings or the 20 EMA.
Filters and notes
- Avoid trades 30-60 minutes around top-tier news.
- Skip trades when A/D is noisy or diverges from price direction after breakout.
- Risk no more than 1% per trade, maximum 2 attempts per side per session.
