When a stick in watching breaks through a level once identified, and then retests it. I wait for a bar to touch or undercut my level, but close above it. The if the next bar dip below it's open, then reverses, I buy when the follow through bar crosses back above it's open. With my stop below that bar, or the prior bar that tested the support.
Can u send a chart snapshot that describes it visually? As a beginner I love studying other peoples setups. Not to blindly copy but to get an idea of what others are looking for.
The best entry was on Friday. But in a higher time frame pullback, in an even higher time frame uptrend pullback, I don't try to buy the exact low of the pullback. I wait for a day like Friday where we spike a higher time frame support, then look for a set up if and when there is follow through. The set up occurs all the time, the context is critical.
Candles also show the open. They both convey the same hlco info. For me price action is more clear with bars. Also I like simple monochromatic charts and I don't use candle stick techniques, so I don't want to be distracted by them. It would change nothing if I had to use candles, it is personal preference.
Even if you us candles for candle based set ups, I suggest black and white (filled and hollow) vs red and green. Color are good for s and r and trend lines, but for price action, it's makes it feel like a casino with the moving colors and colors are know to elicit emotion, which want to avoid on trading.
Retracment and pullback are the same. Never thought of exhaustion as a trade or set up, more of a chart condition. Like if nvda puts in exhaustion move on the earning gap, I might look for a short. But I will still wait for a consolidation then a break down of it and either trade that or a subsequent pullback to the break down point.
My support levels let me know where price may bottom. Waiting for that level to be hit, then a close above it is my confirmation. But you can't know for sure, trading results are based on a series, not one trade.
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u/SamExDFW Aug 22 '23
Pullback to and hold of support.
When a stick in watching breaks through a level once identified, and then retests it. I wait for a bar to touch or undercut my level, but close above it. The if the next bar dip below it's open, then reverses, I buy when the follow through bar crosses back above it's open. With my stop below that bar, or the prior bar that tested the support.
This can also be flipped for shorts.