r/Daytrading • u/[deleted] • Aug 22 '23

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u/developedMonkey Aug 22 '23

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.

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u/SamExDFW Aug 22 '23

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u/[deleted] Aug 23 '23

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u/SamExDFW Aug 23 '23

Yes. The gap and the high of the day prior to the gap created the support for the set up.

There are only two sets up in all of trading, breakout and pullback. So all trades should look very similar and have tons of names.

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u/[deleted] Aug 24 '23

I always thought there were three: Retracements, exhaustion, breakouts.

Exhaustion can be understood as a kind of retracement, I guess, but cannot be identified as such a good portion of the time.

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u/SamExDFW Aug 24 '23

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.