Gabriel's Triple Impulsive Candle Detector

Triple Impulsive Candle Detector
Overview, critical for catching impulse moves in either direction.

SPX Income System is a rule-based framework designed to identify frequent, high-probability income opportunities on the S&P 500 cash index (SPX/SPY) using 0-DTE credit spreads. The core engine operates on 30-minute Impulse bars during the morning trade window and can be extended with optional modules for afternoon, overnight, and weekly swing opportunities. The methodology centers on a single, mechanical price event called a Impulse Bar (small wick to body ratio) to minimize discretion and keep execution consistent.

🔶What’s Inside
Core Strategy: SPX Daily Income

Timeframe: 3 kinds of 30-min bars.

Window: 09:30–11:30 ET (new setups only)

Instrument: SPX (cash index, XSP/SPY), executed with $5-wide credit spreads on 0-DTE SPX options

Bullish Setup
Entry on the break of setup bar high
Use an at the money put credit spread

Bearish Setup
Entry on the break of setup bar low
Use an at the money call credit spread

Intent: Enter shortly after setup; manage to >80% max profit or EOD expiration if SPX. If it's another stock, then a 1.5~2x D ATR is suggested.

Signal: An Impulse Bar that closes at/near the high (bullish) or low (bearish) of its 30-min range, verified with Volume above average.

Risk—limited to the risk of the option spread.
The spread is 5 dollars wide
The premium collected is $2.50
$5 - 2.50 = $2.50, or the breakeven point.
Which means what's left is the risk involved.
The risk is $2.50 per spread

🔶Why the 30-Minute Chart?

The 30-minute bar is the “chart of choice” because it filters noise and aligns with morning institutional flows.

On alternate timeframes, price often retraces half the candle body before following through.

On the 30m: the follow-through is more consistent, especially with 2x volume confirmation.

Adding support/resistance levels at the impulse bar hl2 strengthens execution.

This strategy has roots in MTF Crypto, and SPX/SPY TPO-Order Block logic.

🔶Bonus Examples:

🔹Afternoon SPX Income
Second chance window (typically 14:00–15:00 ET) if the morning trade has exited, 60-min bars instead.

🔹ORB 30 – Opening Range Break (first 30 min)
Classic ORB with an income twist for early action when time is limited. This can be entered on the 15 minute candle break.

🔹ORB 60 – Opening Range Break (second 30 min)
A follow-up ORB variant for traders who miss the first window, verified on a 60-min chart. Enter on the final 3 minutes of the hourly candle or wait for a pullback.

🔹B&B – Bed & Breakfast (Overnight)
Identifies income setups via the 10-minute chart in the last 30–60 minutes of the session with next-day open as the exit.

🔹JB – Just Breakfast
Uses the prior day’s end-of-day setup to enter at the opening bell, then manages into the daily income flow. I trade 0-date, and selling an ITM spread either partially or fully then gives me a head start on the daily income potential. This may work better if you either roll or the ORB 30 also meets the criteria.

🔹All-Day-Scalper
Converts income logic into 30-minute scalps using deep 75/80 delta ITM options as synthetic stock (requires >PDT). Meaning that the option will behave as if it is stock. This strategy comes with a warning: it's better if you can day trade.

🔹Tag ’n Turn—Weekly SPX Income Swing
Weekly swing overlay using 30-min Pulse Bars + Bollinger Bands (50) for 3–7 day swings and as a filter for daily income alignment. I use the TTM Squeeze and obtain similar results. Target heuristics (directional days) with a fired squeeze.

Part of my Gamma Scalping System.

🔶The Impulse Bar (10~40% Wick to Body Bar)

An Impulse Bar is a candle that:

Bullish: Closes higher than it opens and within the top ~10% of its high-low range.

Bearish: Closes lower than it opens and within the bottom ~10% of its high-low range.

Practical tip: Many traders mark 0-10-80-100% levels on the candle range (custom Fib or ruler) to quickly validate Pulse Bars. If it's accompanied by a volume spike, then it's better quality.

🔶SPX Daily Income—Rules & Execution

🔹Rules

Chart: 30 min, no indicators required. Pure PA, TPO-based strategy.

New Setups: 09:30–11:30 ET

Instrument: SPX signals, executed via SPX 0-DTE credit spreads ($5 wide, $2 for SPY)

🔹Entries

Bullish: Enter on a break of the setup bar high, use ATM put credit spread

Bearish: Enter on a break of the setup bar low, use ATM call credit spread

🔹Exits

Primary: Close at >80% of max profit (credit received)

Alternate: Hold to EOD expiration

Stop: Risk of the spread (defined by width – credit)

Target Heuristics (directional days)

Optional: 1.5–2× ATR as a reference (mirrors directional follow-through that often accelerates the >80% outcome)

Credit Guidance (typical)

OTM short strike ≈ $2.40

ITM short strike ≈ $2.50–$2.80

2× ITM short strike ≈ $2.80–$3.00

Trade Management (PDT-Aware)

If under PDT, many prefer set-and-forget with GTC buy-back (e.g., $0.20) or EOD expiration.

1:00 PM ET time check

Trending day ±$15–$20 SPX: usually no action, run to expiration

Non-trending day ±$5 SPX: consider taking 40–60% if available (optional) to avoid 50/50 end-of-day decay dynamics

Rationale: Without a favorable trend by ~1 PM, the odds of a late push decline; choosing a controlled partial outcome can improve long-run expectancy and reduce variance.

🔶Examples (Conceptual)

🔹Bullish: A green dot marks a bullish impulse bar; minor follow-through pushes the spread to >80% quickly.

🔹Bearish: A red triangle marks a bearish Impulse Bar; a modest down move is often sufficient for >80–95%.

🔹Tag ’n Turn—Weekly Swing (Filter & Stand-Alone)

Chart: 30-minute

Overlay: Bollinger Bands 50 (mean-reversion lens), or KC or TTM.

Setup: Tag of upper/lower band + Pulse Bar, enter on break of Pulse Bar in that direction

Target: Opposite Bollinger Band

Use Case: 3–7 day swings and a directional filter for Daily Income signals (trade with weekly bias)

🔹Afternoon SPX Income: Same Pulse logic, 14:00–15:00 ET window.

🔹ORB 30 / ORB 60: Uses 30/60-min opening range; can relax Pulse threshold (up to 40% bars) for early positioning when time-constrained.

🔹B&B (Overnight): Lasts 30–60 minutes; closes the next day at open or after the first 30-minute bar.

🔹JB (Just Breakfast): Enter at open using prior day’s signal; optionally roll into Daily Income if eligible.

🔹All-Day-Scalper: Deep ITM options (~0.75–0.80 delta) as synthetic stock.

Entry: Long ITM option

Stop: ~40% of option price

Target: 70–150% or 30-minute timed exit

Note: Time-intensive; for accounts above PDT.

🔹Brokerage: Must efficiently support SPX options; a <10% spread between OI and Volume is ideal. Preferences vary; Tastytrade, Thinkorswim, and Interactive Brokers are common choices. Use what’s reliable, available in your region, and cost-effective.

🔶Alerts (Check-in)

Bullish Impulse Detected (within 09:30–11:30 ET)

Bearish Impulse Detected (within 09:30–11:30 ET)

Afternoon Pulse (14:00–15:00 ET)

ORB 30/60 Trigger

B&B Window Open (last 60 mins)

JB at Open

Tag ’n Turn: Band Tag + Impulse (Bull/Bear)

🔶Inputs (Typical)

Session windows (morning, afternoon, last hour) ~5~15 Average Bar

Impulse threshold (strict 10% vs relaxed up to 40% for ORB variants)

Marker/label styles (bull/bear colors, dots vs arrows)

Filters (optional ATR TP, band touch BB(50-SMA, 2 Stdv.) for Tag ’n Turn)

Alert toggles (on-close for webhooks)

🔶Best Practices

One playbook, many Doors: Start with daily income; add afternoon or B&B/JB only after you’re consistent.

Credit discipline: Don’t chase poor pricing; stick to the credit guidance.

Time awareness: If no trend by ~1 PM ET, consider variance control.

Weekly bias: When using Tag ’n Turn, align daily trades with the weekly swing direction for added confluence.

Risk is defined as width – credit = max risk per spread. Size, accordingly, 1~2%.

🔶Disclosures & Risk

This is not financial advice. Options involve risk and are not suitable for all investors. Past performance (including backtests or theoretical studies) does not guarantee future results. Slippage, fills, assignment risk, and latency can materially impact outcomes. Trade a plan you fully understand and always size for durability. On the Daily, the Impulse bars, are often a signal that you should plan for it to return back to half of the Candle's body, and plan accordingly. Plot a horizontal support/resistance level and see how price reacts to it. Keep house-money, and use 1~2% Risk, reduce exposure when VIX is low and increase it when VIX is high.

TL;DR (Summary)

Signal: 30-min Pulse Bar (strict 10% close in range)

Window: 09:30–11:30 ET (new setups)

Execution: 0-DTE $5-wide SPX credit spreads

Exit: >80% max profit or EOD

Add-ons: Afternoon, ORB 30/60, B&B/JB overnights, All-Day-Scalper, Tag ’n Turn weekly swing/filter

Philosophy: Fully rule-based, minimal discretion, production-line consistency 0-date.