Kardec Trader walks through a bearish day trade setup: hold your bias while price breaks the previous day's high, then short the fair value gap that forms. He calls this a turtle soup scenario and expects the gap to close the same day, with exits often timed rather than price-based.
Say if I have a bearish bias I'm looking for a scenario where Asian range hasn't been taken out yet and we're taking out that previous day's high. Now let's say if you missed the short initially there was an opportunity where we had this bearish fair value gap and this is all occurring without taking that Asian range low yet even if you didn't short it right at the previous day's high, this all of a sudden becomes a turtle soup scenario. Let's say if you miss that now this becomes an area where you can short that fair value gap and then you're just expecting it to close on the day. Now you guys can see down here it's 12:15. That's really where the intraday low gets printed and if you're not exiting at that specific low you have sustain all of this run higher. There's nothing down here that would initially tell me exit the trade. It's really just based off of time.
