Every system on this site so far reads price first. This one reads participation first and price second. NVDA trades enough volume in a single minute to make that comparison worth something: a breakout bar printing normal volume is not the same trade as an identical-looking breakout bar printing three times normal volume. Charts below are interactive. Click Play on any setup and watch the signal bar fire, its own volume bar light up against the average line underneath it, then the entry, stop, and target draw themselves, computed live from the actual candle.
“NVDA's volume filter uses 1.4 times average volume as the line between a fade and a confirmed breakout, and 3 times average as the climax threshold. A breakout bar under 1.4x is a fade to trade against, not a breakout to trade with.”Jason Parker · Founder, TradeScalping.com
A handful of terms show up again and again below. Click one to see what it means.
Wait for the signal bar to close, then buy if price on the next bar trades one tick above the signal bar's high. The close confirms the signal. It isn't your entry price.
Wait for the signal bar to close, then sell if price on the next bar trades one tick below the signal bar's low. The close confirms the signal. It isn't your entry price.
Same math as every other system on this site. The stop sits one tick past the far side of the signal bar. The target sits half that bar's range away from entry. The breakout setup below runs a $0.57 signal bar, for an entry near $187.61, a stop near $187.02, and a target near $187.90. What's new here is the filter sitting on top of that math: the signal bar's own volume, checked against what that same bar normally prints. A bar that size on twice its average volume is a different trade than the identical bar on half its average volume, even though the entry, stop, and target come out the same either way.
Play with the numbers below. The default reflects the breakout setup's own risk to reward.
≈70% is the honest break-even line once spread and slippage are priced in, not the raw number the math alone gives you. ≈80% is doing well. ≈90% is among the best scalpers running a system like this.
There's no single shape to look for, same as the QQQ and IWM systems. A breakout-confirmation bar closes near its own high or low on a clear jump in volume, proof the break wasn't running on empty. A fade bar looks like a breakout attempt that never got the participation to back it up, then closes back on the wrong side of the level it just tested. A climax bar prints a long wick against a volume number that looks like a typo next to the bars around it. A dry-up bar is quiet in every sense, small body, small range, thin volume, and matters only because of what already happened a bar or two earlier. Four different jobs. Same math once the bar closes: entry one tick past its own high or low, stop one tick past the far side, target half the range.
One honest note before the setups. Volume confirms a move after that move has already started, never before it. By the time RVOL clears the 1.4x line the checker below uses, part of the trade is already gone, and by the time a print is obviously a climax, the reversal may already be underway too. This system doesn't fix that lag. It trades it, on the bet that a confirmed move with less runway left beats an unconfirmed move with more.
Same signal bar, three different volume prints behind it. Click through and watch the verdict flip.
Illustrative examples built to test volume confirmation, not the setup itself. Not historical NVDA prices or volume. The 1.4x/3.0x marks are a rule of thumb, not a law anyone enforces.
Each chart shows the setup forming, with a volume bar under every candle. Hit Play and the signal bar fires, its volume bar turns amber against the average line, then the entry, stop, and target draw in, computed the same way you'd compute them live, straight from the signal bar's own high, low, and close.
The pattern: price spends several bars building a small range under a pivot, then a trend bar closes past that pivot on volume that's a clear multiple of what the same minute normally prints.
Long: a green trend bar closes above the range's pivot near its own high, on volume at least 1.4 times this ticker's own average for that bar. Buy the close.
Short: mirror this to the downside: a red trend bar closing below a support pivot on the same volume jump, near its own low. Sell the close.
The pattern: price pokes through a level everyone's watching, but the bar doing the poking prints volume under the average instead of over it, then closes back on the wrong side of that level.
Short: price pokes above resistance, the bar's own volume comes in under 1.4 times average, and it closes back below the level near its own low. Sell the close.
Long: mirror this to the downside: a poke below support on light volume, closing back above the level near its own high. Buy the close.
The pattern: an extended move over several bars runs into a volume print several times the average, on a bar with a long wick sticking past the move's own extreme, closing back near the opposite end of its own range.
Short: an uptrend runs into a volume spike well past 3 times average, the bar wicks above the high and closes back down near its own low. Sell the close.
Long: mirror this to the downside: a downtrend running into the same kind of spike, wicking below the low and closing back up near its own high. Buy the close.
The pattern: a strong impulse move, followed by one or two bars where volume drops well under average, a genuine pause rather than a reversal, then a bar resumes the original direction and closes near its own high or low.
Long: an up-move pauses on thin volume for a bar or two, then a green bar resumes and closes near its high, still on volume under average. Buy the close.
Short: mirror this to the downside: a down-move pauses thin, then a red bar resumes and closes near its low, on volume that's still light. Sell the close.
Volume confirms conviction. It doesn't confirm price is right. A breakout can print monster volume and stop out ten seconds later anyway. Loosening the entry rule because the volume bar looks impressive is how this system's edge disappears fastest. Run your own numbers in the position-size calculator, or head back to risk management for the account-level rules that sit underneath every system on this site.
Common questions about trading this specific system, answered straight.
Same mechanical trigger as every system on this site. Wait for the signal bar to close, then enter one tick past its high for a long or its low for a short, with a stop one tick past the far side of that bar and a target half its range away. What NVDA adds on top is the volume filter: the signal bar's own volume checked against what that same bar normally prints, before the entry is taken.
The volume checker tool on this page uses 1.4 times average volume as the line between a fade and a confirmed breakout, and 3 times average as the climax threshold. A breakout bar under that 1.4x line is treated as a fade to trade against, not a breakout to trade with, while a bar well past 3x average with a long wick is treated as a climax reversal instead of a continuation.
It's the easier starting point for relative-volume systems on this site, which is why the TSLA volume system's own FAQ points traders here first. NVDA trades enough volume in a single minute to make the average-volume comparison meaningful without the headline-driven spikes that can push TSLA's numbers far outside its normal range on short notice.
Trade