Table of Contents
Gareth Soloway is the guest in this interview—a 20-year market veteran known for trading high-reward, low-risk setups across stocks, commodities, and crypto. He keeps his toolkit simple: candlestick patterns, clean trendlines, double tops/bottoms, Fibonacci, and a few moving averages—no indicator soup. The hook here is discipline and probability stacking, not prediction; Gareth explains how reading charts is really reading crowd psychology, and why that matters if you want consistent results.
In this piece, you’ll learn Gareth Soloway’s practical framework: how to spot and combine simple signals (trendline + candlestick + level) to push odds in your favor, when to step aside, and how to adapt as markets shift from bull to bear. You’ll also see his rules for journaling early on, pausing any setup that fails three times in a row, sizing positions so your heart rate stays calm, and thinking in long-run win rates instead of single trades—so beginners can build a repeatable trader strategy without the fluff.
Gareth Soloway Playbook & Strategy: How He Actually Trades
Core Philosophy: Probability Over Prediction
Trading is about stacking odds, not calling tops and bottoms. Gareth focuses on repeatable signals that tilt probabilities in his favor and then manages risk so a handful of winners can carry the book. Here’s how he keeps decisions objective and consistent.
- Think in series, not single trades: judge edge over your last 50 outcomes.
- Define “A-setups” in advance; pass on anything that doesn’t fit the template.
- Trade the plan, not the P&L: execution quality > outcome of any one trade.
- If a pattern fails three times in a row this month, pause that setup until next month.
- Use alerts, not opinions: price crossing your level is your permission to act.
Charting Framework: Clean Levels & Confirmation
Simplicity is the edge. Gareth keeps charts uncluttered so price action is obvious and decisions are fast. The backbone is support/resistance, trendlines, and a small set of confirmations.
- Draw only the most obvious levels visible on the daily and 4H charts.
- Allow two touches to validate a trendline; act on the third touch or the break/retest.
- Use one momentum gauge (e.g., RSI) only as a secondary filter near levels.
- Fibonacci: anchor swings and watch 38.2%, 50%, 61.8% as decision zones—not targets.
- Confirmation must be in price (candle or retest), and indicators are optional.
Setup #1: Break-And-Back (Trendline Retest)
This is Gareth’s bread-and-butter continuation entry. Wait for a clean break of a well-defined trendline, then let price come back to “kiss” the line from the other side before you act.
- Identify a trendline with at least two clean touches and a clear slope.
- Entry: on retest rejection (wick into the line) plus lower-timeframe confirmation.
- Stop: just beyond the invalidation level on the other side of the trendline.
- First target: prior swing (or 1R), then trail under/over swing structure.
- No retest = no trade; chasing the initial break is lower probability.
Setup #2: Double Top/Bottom With Negation Candle
Reversals are great when crowd psychology is stretched. Gareth wants a classic double top/bottom plus a candle that negates the prior push, signaling trapped traders.
- Mark the prior high/low that created a sharp rejection.
- Wait for the re-test within 0.25%–0.50% (FX/indices) or within ATR/3 (equities/crypto).
- Entry: on a negation candle (engulfing or outside bar) that closes back inside the range.
- Stop: a few ticks/pips beyond the failed breakout; keep risk narrow.
- Target: midpoint of the range first, then the opposite bound if momentum confirms.
Setup #3: Range Edge Fade Into Mean
When markets chop, Gareth leans into range edges where risk is tight and the mean is obvious. The trick is to demand a clean boundary and wait for capitulation wicks.
- Define the range with at least three touches on each side on the 4H/daily.
- Enter only at the outer 10% of the range after a spike/wick rejection.
- Stop: beyond the range edge; invalidate quickly if price accepts outside.
- Target: VWAP or range midpoint first, then opposite band if momentum wanes.
- Skip if a major catalyst is due within one session.
Multi-Timeframe Alignment: Top-Down To Trigger
He frames the big picture first, then drills down to precise entries. That way, the lower-timeframe noise is filtered by the higher-timeframe context.
- Daily sets bias (up, down, or range). 4H refines levels. 15m/5m triggers.
- Only take longs when the daily bias is up or range-bound at support; shorts vice-versa.
- If lower timeframes contradict the daily, either reduce the size or skip.
- The closer your entry is to the higher-timeframe level, the smaller the stop.
- Re-mark levels after every higher-timeframe close; keep the map fresh.
Risk Management: Invalidation First, Profit Second
Every trade starts with where you’re wrong. Gareth sizes the position around the chart’s invalidation point, then lets the winners breathe while cutting losers fast.
- Pre-define max portfolio risk per day (e.g., 1–1.5% of equity).
- Risk per trade: 0.25–0.5% when learning; 0.75–1% only on A-setups.
- Place stops beyond structure, not at round numbers; avoid the liquidity sweep.
- If price closes beyond your invalidation on the entry timeframe, exit—no debate.
- Two consecutive stop-outs in the same idea? Stand down until a new candle structure forms.
Position Sizing & Scaling: Calm Heart Rate Sizing
Size so you can execute without emotion. Gareth often scales in/out around the structure so P&L volatility stays manageable and decisions remain rational.
- Base size = account_risk ÷ stop_distance (in ticks/pips/points).
- Scale in only on fresh confirmations (e.g., second rejection at the same level).
- Partial at 1R: take 30–50% off, move stop to breakeven, let the rest run.
- Never add to a loser unless it was a planned, pre-defined scale with the same invalidation.
- Cap total exposure to correlated assets (e.g., crypto majors) at a fixed % of equity.
Trade Management: Trails, Targets, and Time
Good trades should start working soon. Gareth uses time-based and structure-based rules to keep capital rotating into higher-quality opportunities.
- If price hasn’t moved ~0.5R in your favor within X bars (e.g., 10–15 on 15m), reconsider.
- Trail under/over swing lows/highs once +1R is locked.
- If a strong impulse launches from your level, hold a runner to the next HTF level.
- Cancel unfilled limit orders after the context changes (e.g., fresh HH/LL).
- News spikes through your level? Wait for the next candle close to reassess.
Tools & Indicators: Less Ink, More Signal
He uses minimal tools to avoid analysis paralysis. Price action and a couple of aids are enough to frame risk and time entries.
- Keep charts to: price, levels, one MA set (e.g., 20/50), and optional RSI.
- Treat divergences as a “heads-up,” not a trigger—price still has to confirm.
- ATR informs stop width and whether the day is suitable for range vs. trend play.
- Use alerts at levels so you’re not glued to the screen.
- Remove indicators that don’t affect your actual decision rules.
Playbook For Equities
Stocks trend cleanly around earnings, macro, and sector flows. Gareth focuses on liquid names and indices where levels are respected.
- Trade names with tight spreads and high average daily volume.
- Avoid entering right before earnings; trade post-report levels instead.
- Respect gap rules: only fade gaps into HTF levels with a clear reversal candle.
- Use sector strength/weakness to filter ideas; don’t fight the group.
- Index futures (ES/NQ) follow the same level/confirmation logic with stricter risk.
Playbook For Commodities (Gold/Oil)
Commodities react to macro impulses but still respect technicals. He treats macro as a backdrop and trades the levels.
- Mark monthly/weekly levels on gold; enter on daily/4H confirmation only.
- For oil, expect overshoots—place stops beyond the wick high/low of the trigger candle.
- Roll events: stand down on contract change days unless you trade the spread.
- Position size smaller into major data (CPI, FOMC, OPEC headlines).
- Target prior composite value areas rather than fixed dollar amounts.
Playbook For Crypto
Crypto is volatile and sentiment-heavy. Gareth leans on HTF levels and demands strong confirmation because false breaks are common.
- Prefer BTC/ETH for liquidity; reduce size on alts.
- Demand a closed back inside structure after a sweep before entering.
- Weekend liquidity is thin—widen stops or reduce size, or sit out entirely.
- Track funding/overnight wicks; fade extremes only at HTF levels with a negation candle.
- Take profits faster; volatility compressions can unwind without warning.
Catalyst & News Handling
Catalysts change character. Gareth narrows risk or stands aside when the tape gets binary, then returns to business once levels re-establish.
- If a high-impact event is due within one session, halve the size or skip.
- Post-news, wait for the first HTF close to redraw levels before trading.
- If spread/vol spikes (e.g., pre-market), only use stop-limit or sit out.
- Never widen stops mid-trade because of news; exit and re-enter on structure.
Routine: Pre-Market, Mid-Day, Post-Close
Consistency off the chart builds consistency on the chart. A tight routine keeps your A-setups front and center and removes decision fatigue.
- Pre-market: mark levels, set alerts, write “If-Then” scenarios for each watchlist name.
- Mid-day: only manage, don’t hunt—execute your pre-planned scenarios.
- Post-close: journal stats (setup used, R multiple, time in trade, reason to exit).
- Weekly: review win rate and expectancy by setup; cut bottom 10%, double-down on top 10%.
- Monthly: update the playbook with one improvement; keep the rest unchanged.
Psychology: Rules That Survive Mood Swings
Discipline is easier when rules are simple and visible. Gareth designs rules that work even on bad days, so execution doesn’t depend on willpower.
- Put your top five rules on the screen; read them before placing any order.
- Use a maximum “three strikes per day” rule to stop revenge trading.
- If heart rate spikes or you hesitate twice, reduce the size by half for the next trade.
- After a big winner, take a scheduled 15-minute break to avoid giving it back.
- Celebrate process wins in the journal, not just P&L—grade the trade, not the result.
Metrics That Matter
Track the numbers that actually drive P&L. Expectancy and adherence beat raw win rate.
- Expectancy = (Win% × Avg Win) − (Lose% × Avg Loss); optimize this, not just Win%.
- Target payoff ratio ≥ 1.5 on A-setups; allow 1.0–1.2 only on mean-reversion fades.
- Keep variance in check: standardize risk per trade so outcomes are comparable.
- Monitor time-to-profit and time-in-trade; exit slow movers faster.
- Tag every trade by setup so you can cut the lowest-expectancy pattern quickly.
Stack Probabilities, Not Predictions: Simple Levels With Clear Confirmation
Gareth Soloway keeps it brutally simple: identify the most obvious levels, wait for the price to tip its hand, then act. He’s not trying to call the exact top or bottom; he’s building a small edge by combining a clean level with a confirming candle or retest. If a level isn’t visible on the daily or 4H without squinting, he skips it because clutter kills conviction. The confirmation is always in price—an engulfing candle back inside range, a third touch rejection, or a break-and-back retest that proves acceptance or rejection.
Instead of predicting, Gareth Soloway measures. He defines invalidation first, sizes the trade to that distance, and only pulls the trigger when the market “says yes” with confirmation. If confirmation doesn’t show, he passes, no matter how tempting the narrative. Over a series of trades, that restraint stacks probabilities in his favor and keeps emotions from hijacking the plan.
Risk First, Profit Second: Size Positions Around Invalidation, Not Hopes
Gareth Soloway starts every trade by asking, “Where am I wrong?” That invalidation point determines the stop, and the stop distance determines the position size—never the other way around. If the stop is wide, size down; if the stop is tight and valid, you can size up within your risk cap. This flips the focus from dreaming about targets to protecting capital so you can take the next high-quality setup.
He also treats profit as a byproduct of disciplined risk math. Gareth Soloway caps daily portfolio risk, limits risk per trade, and refuses to widen stops once entered—he’d rather exit and re-enter on a new structure. Partial profits come at predefined R-multiples, then he trails behind swings so winners can breathe while losers are cut fast. By sizing around invalidation instead of hope, he keeps emotions quiet and the equity curve steadier.
Volatility-Based Allocation: Adjust Size, Targets, And Patience To Volatility
Gareth Soloway treats volatility like a speed limit—when the road is slick, you slow down. He scales position size to the current ATR or average true range of the instrument, so a “normal” wiggle doesn’t knock him out. In quiet tape, Gareth Soloway is comfortable with slightly tighter stops and modest size; in wild tape, he widens stops to real structure and cuts size so the dollar risk stays constant. Targets flex too: expanding when the market is stretching and compressing when ranges shrink.
He also adjusts time expectations to the tape. If volatility is high, he expects faster follow-through and is quicker to take partials at 1R before trailing for a larger move. In low-vol regimes, he gives trades more bars to develop and is careful not to overtrade tiny ranges. The constant is the math: risk per trade stays fixed, but size, targets, and patience scale with volatility, so edge survives across market conditions.
Diversify By Underlying, Strategy, And Timeframe To Smooth Equity Curve
Gareth Soloway doesn’t rely on one market, one setup, or one speed; he spreads risk so no single idea can derail the week. He mixes equities, commodities, and crypto, so drivers are different, and he rotates between continuation patterns and reversals instead of hammering the same nail every day. Timeframes are part of the hedge too—swing positions ride the higher-timeframe map while intraday trades monetize shorter bursts. The result is a steadier equity curve where correlations hurt less and opportunities show up more often.
To keep the mix intentional, Gareth Soloway caps exposure by theme and timeframe so he’s not secretly doubling down. If he’s long risk via tech, he won’t also overload on correlated crypto without trimming size. When a setup family underperforms for a stretch, he benches it and lets another proven tactic carry the load. This way,y he’s always trading his best current edges, not yesterday’s heroes, and the account grows on multiple pillars instead of a single bet.
Mechanical Rules Beat Emotions: Pause Failing Setups, Journal, Review Weekly
Gareth Soloway treats execution like a checklist, not a mood. If a setup fails three times in a month, he benches it automatically and reallocates to a higher-expectancy pattern. He enforces a daily max loss and a “three-strikes and stop trading” rule to prevent revenge entries. These mechanical guardrails keep Gareth Soloway consistent on bad days and let the math, not adrenaline, drive outcomes.
He journals every trade with setup tag, R multiple, time-to-profit, and reason for exit, then runs a quick weekly audit. Anything with sagging expectancy gets cut or reworked; top performers get more focus and size within risk limits. A simple pre-market checklist—levels marked, alerts set, catalysts noted—sets the stage, and a post-close five-minute review locks in lessons while they’re fresh. The system is simple on purpose: rules first, emotions last, and steady improvement every week.
Gareth Soloway’s core message is deceptively simple: trade what the chart proves, not what your mind predicts. Across the interview, he hammers the same sequence—map the obvious higher-timeframe levels, wait for price to confirm with a clean rejection or break-and-back, define invalidation first, and size from that line in the sand. That rhythm keeps him calm, consistent, and scalable. When volatility changes, he adjusts size, targets, and patience so the same playbook works in fast or slow tape without blowing up risk.
He also shows how a steadier equity curve comes from diversification you can actually manage—mixing underlyings (equities, commodities, crypto), mixing setup types (continuation and reversal), and mixing timeframes (swing and intraday) while capping correlated exposure. The other pillar is discipline by design: mechanical guardrails like daily risk caps, pausing a setup after three failures, journaling with R-based metrics, and a quick weekly audit to cut what’s slipping and double down on what’s working. Put together, Gareth Soloway’s edge isn’t a secret indicator—it’s a repeatable process: stack probabilities, protect downside with precise invalidation, adapt to volatility, spread risk intelligently, and let simple, written rules do the heavy lifting when emotions try to take over.
