A trader explains how to read daily price charts by tracking sequences of green days, small red pullbacks, and reset days. The key rule: after a pullback reduces gains, wait for a 100% move from that reset level before entering, aiming for explosive upside rather than a slow grind.
You know, we drew two daily charts where it's pretty straightforward. Where, yeah, it's Green Day. Green day. Green Day. Well, what happens if it goes, you know, green, green, but then we have small red, where you probably would have given this a shot, or I would have. But then all of a sudden, it keeps going, and then finally the big blow, or even worse, it just keeps grinding. It's like, as the day goes on or as the run goes on, every day is like new information. And so what, it once might look really good, maybe turn into a win or two or loss, who knows? And then goes again. And then you might immediately want to try again at some point if it's not a smooth run like we saw here, sometimes with these small, like, will be. Will be like, reset days, you know? Yeah, maybe this has gone from like $1, right, to, I don't know, maybe seven up here. But resetting itself at three bucks here, the fact that we kept going and saved ourselves after this first, you know, quote unquote, red day, that really wasn't that good. It might reset my criteria of, like, okay, I want to see another 100% from 3, but I'm looking for where's that? Where's that explosion back to this. Where's that real expansion to the upside?
