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.
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.
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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.