The speaker (Kardec Trader) describes the EP family of trading setups, including the classical EP (driven by earnings or sales) and a new variation called the 'delayed reaction EP.' He explains that modern catalysts often produce very large immediate gaps (20–50%+), followed by pullbacks and a later secondary move, which motivates the delayed-reaction strategy.
I trade EP family of setups. So the ep, which is classical ep, which is based on earnings or sales. And then I have this new variation of ep, which is delayed reaction ep. Because when I started trading this particular setup that time, if a stock had a catalyst, it used to gap up 8%, 9%, 10%. Nowadays, if there is a catalyst, the stock will gap up 20%. So 40% move, 50% move often happens in the first day itself. As a result of that, the stock tends to pull back after that. It doesn't really immediately shoots up and goes up. So what it does is it like. And it comes in big move, happens 40, 50% in a day, and then it pulls back. And then after a delay, you get a second move.
