Transcript excerpt from a YouTube video where two speakers discuss an intraday price-action trading tactic that uses the previous day's close as a reference. They describe watching momentum after an opening up-trend, waiting for momentum to subside or a gap-down 'final day', then attacking when price turns red and looking for a bounce toward a red-to-green resistance (example cited: SMCI).
This dotted line here is the.
Previous day's close. So previous day close.
So the stock.
Opens up, trending up, trending up, turning up. And all of a sudden you start to see a little bit of momentum subside, maybe balance, momentum, side bounce. Okay, right over here. When you see the stock.
Finally going.
Red, you attack.
Now is important for price to go up first in.
This occasion.
Versus coming lower.
I prefer.
When we get the parabolic move up and then come down. But there are plenty.
Of examples where.
On that final day, it gaps down. Okay? It starts the day red. And then you'll look for a bounce towards the red to green resistance to then get it. So in this example here, this is.
Kind of, let's say this.
Is the SMCI example. The moment that it goes red, you.
Attack here, and then, boom, it's just straight down.
