🎯 $MDB A-Grade Setup: How We Planned, Sized, and Executed
This is the breakdown of the $MDB trade we executed live. The setup, the triggers, and the management that put us on the right side of the move.
TL;DR
Strong changing fundamentals attracted large buyers from the E/R catalyst
Technical confluence and premarket structure set up a clean entry near 280
Large breakout of weekly consolidation following previous sector leadership
Day-2 continuation through prior day highs with alignment at 300
Options moved more than +600% from the first entry
Introduction
This week, $MDB offered a phenomenal opportunity. The real edge was in the strength of the catalyst, which made all the difference for this playbook trade. In this post, we break down the plan, the live execution from stream, and the mindset that helped us stay objective and maximize returns. Our goal is to show you how to spot an A-Grade setup that is defined and repeatable so you can begin sizing up in the best opportunities. You will see how the big picture context and low timeframe alignment gave us the confidence to take several trades with size.
Section 1: The Plan
Members received technical analysis, context on the catalyst, and the playbook setups heading into the open. We even identified early on near the open that the stock would likely close on the highs… This is a byproduct of trading several of similar opportunities since this became a staple in our playbook from ‘22.
Big Picture Context
$MDB has been coiling in a large weekly consolidation after a history of strong performance and leadership within the sector
A significant catalyst shifted the fundamentals and attracted large buyers
The move extended beyond the implied earnings range, validating importance
Key Levels and Triggers
280 higher timeframe key level provided confluence for the “opening drive” setup
Prior day high had alignment with 300 for the day 2 continuation trade
Bullish RSI divergence increased conviction timing defined entries
Sizing
A-Grade size reflected the variables the trade was presenting from the big picture context down to the lower timeframe price action. Price action validated our trade strategy and allowed us to participate with size on several different setups.
Section 2: The Execution
Executed live on video and audio stream. The edge was in the variables while the execution was dictated by price action.
Trade 1: Opening Drive
Confluence at 280 with a strong premarket uptrend and shallow dips
Bullish RSI divergence despite the significant gap up
Pre-Market structure trap created a clean first entry and strong risk reward
Trade 2: Intraday Setup and Hold Above 280
Edge is found in stock selection, not a specific pattern.
Relative Volume (RVOL) remained elevated near 10x
Consolidation continued to support dips above 280
Great defined entry and execution by TWI Analyst Sarang
Trade 3: Day-2 Prior Day High (PDH) Continuation
Strong day 1 moves that close on highs statistically see the strongest day 2 continuation.
Day-1 closed on highs
Very bullish premarket RSI divergence into Day-2
300 level alignment created a clean pivot
Sector strength from additional reports
Aggressive buying on the PDH backtest validated continuation thesis
Member Experience
Premarket prep set everyone up for success
Live stream covered entries, adds, trims, and risk management
Real-time commentary focused on staying disciplined with size
Section 3: Trading Psychology
Patience and Execution: Reps from experience make following the plan easier. Having an expectation like “this will close on the highs” is from past trade experience. Make decesions based on the plan and price action, not your emotions. Once the hand is dealt, let it play out.
Sizing Without Emotion: Larger size can intensify feelings. Remeber you are increasing size based on the variabes present. The result is out of your control so as long as you accept the risk before the trade, it is just another rep.
Confidence Through Prep: Having clear expectations, planned sizing, and experience taking similar trades is what builds confidence and conviction to both enter and hold a winner.
Growth Mindset: Journal what worked and what didn’t. The goal is to continue to push your sizing in the strongest of opportunties. The more you take time to study opportunities like these, the better you will become at identifying them in real time and repeating them.
Section 4: Key Factors For Success
Weekly Context: Long consolidation in a proven winner set the stage
Catalyst Quality: The 9.5/10 driver shifted fundamentals and flow
Beyond Implied Move: Strength confirmed by exceeding ER expectations
Elevated RVOL: Persistent liquidity signaled real demand and supported conviction
Sector Tailwinds: Follow-through on related reports reinforced the move
Section 5: Lessons and Takeaways
A-Grade trades come from strong narratives/catalysts where more market participants are present
The best trades often create several setups to participate. Never feel fomo for missing 1
Strong day 1 setups that close on highs are much more likely to see continuation
Take time to study not just a trade setup, but the catalysts that fuel them. Stock selection is the root of your edge. Strong trades have strong narratives.
Look for high risk:reward entries in strong stocks to increase your probabilities and create exponential gains.
Conclusion:
$MDB reinforced a core trading process: conceptualize the big picture, size up based on variables present, wait for the trigger, and execute with discipline. This process is what builds confidence and will lead to repeating success and boosting your account performance.
Repetition is what builds conviction. Conviction is what it takes to size up and nail trades like MDB 0.00%↑ this week. Whether you participated in the trade last week or not, do not skip reviewing it!
More breakdowns and videos coming. If you have any questions, don’t hesitate to drop us a line below.
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