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FOMO Extension Alert

Flags chase setups when price is stretched

A recurring trader complaint is entering after a move is already extended (FOMO), often at worse prices, leading to immediate pullbacks and stop-outs. This recipe warns when price is statistically stretched.

House RecipePersonal6 min setup

INGREDIENTS

🔔Notifications

PROMPT

Create "FOMO Extension Alert". Use percent-move and ATR-distance-to-VWAP/EMA checks. If price is extended (default: >=1% in 5m or >=0.6 ATR from VWAP), warn me and suggest a pullback or retest plan instead of a market chase. Tag the trade idea as "FOMO-risk".

Pain point

Chasing turns "missed opportunity" into low R:R entries.

Triggers

  • Price move >= movePercent in moveMinutes
  • OR distance from VWAP >= vwapDistanceATR * ATR
  • OR distance from EMA >= emaDistanceATR * ATR

Conditions

  • Apply only to intraday timeframes (1m-15m)
  • Optional: only warn if volume impulse is cooling (momentum stall)

Actions

  • Alert: "Extension risk — likely pullback/mean reversion zone."
  • Suggest alternatives: wait for pullback to VWAP/EMA, or set limit-entry at retrace
  • Add journal tag: "FOMO-risk"

Parameters (defaults)

  • movePercent: 1.0
  • moveMinutes: 5
  • vwapDistanceATR: 0.6
  • emaDistanceATR: 0.8
  • atrLength: 14

Examples

  • If NQ moves 1% in 5 minutes and is 0.7 ATR above VWAP, warn and suggest waiting for retest.
  • If a stock gaps and instantly runs, warn against market-buying without a pullback plan.
Tags:#trading#fomo#chasing#risk-management