summary: how to trade edgeful's ultimate reversal setup — a data-backed fade for days that open outside yesterday's range, built by stacking the gap fill, outside days, and ICT opening retracement reports.
what it is
the ultimate reversal setup is a reversal play for days that open outside yesterday's range. the idea is simple: when price gaps away from several key reference levels at once, and the data says price tends to come back to each of them, you fade the move back through the stack.
it's not one report. it's three reports pointing the same direction, which is what makes it an A+ setup rather than a single data point.
prefer to watch first? André walks through the full setup — the reports, the entries, and the exit targets — here:
the reports involved
you're stacking three reports (a fourth on Mondays):
gap fill — reference level is the previous session's close.
outside days — reference level is the previous session's high (bullish outside day, opened above yesterday's high) or low (bearish outside day, opened below yesterday's low).
ICT opening retracement — reference level is the midnight (00:00 ET) opening price. the anchor time is adjustable, and moving it changes the read, so check the report for the anchor you're using.
weekly open (Mondays only) — reference level is the Sunday 6 p.m. price.
each report is asking a version of the same question: how often does price come back to this level? open each one for your ticker, session, and window to see the current rates before you lean on the setup.
when it's in play
the setup is only valid when all the levels line up on one side:
price opens above all the reference levels → bearish reversal (fade back down through them)
price opens below all of them → bullish reversal (fade back up through them)
if price opens between the levels, or the reports disagree, the setup is not in play. that's a no-trade, not a weaker version of the trade.
entry, stop, and targets
use the by-spike subreports (outside days by spike, gap fill by spike) to see how far price typically runs away from the levels before it reverses. that spike distance is what defines your entry and stop.
two ways to enter:
enter light at the open with a wide stop set beyond the typical spike.
wait for price to spike roughly the expected distance and stall, then enter the reversal for a better entry.
for targets, each stacked level is a take-profit in turn — the first level price returns to, then the next, then the next. hold runners for continuation past the last level if you want.
viewing it on your chart
there's a dedicated ultimate reversal setup TradingView indicator that auto-plots the three (or four) levels every day, so you don't have to draw them manually. the what's in play dashboard also shows when the setup is forming live.
one note for stock traders: equities don't have a midnight open, so on stocks the setup uses just gap fill + outside days.
tips
this is a fade — you're betting price comes back, so respect the by-spike distance and don't set a tight stop that a normal spike will take out.
confirm each report's current read for your ticker and session before the open. the setup depends on all of them agreeing, and the numbers move over time.
for days that open within yesterday's range, the setup isn't valid — that's the inside bars scenario (target a break of the previous range instead).
go deeper on the ultimate reversal setup: