Kardec Trader shows a simple intraday setup: mark the previous day's high, wait for a break above it, then enter when price pulls back to that level. He calls this pullback area the battle zone and uses Apple as an example.
$200
Monday
The battle zone
The best setup, the best break and retest the A plus one that I'm always looking for. Let's go ahead and just put a little dot here and say that that's previous day high. And we're going to go ahead and just put a little chart that goes up to that level. We sort of topped out there. We went back down in the pre market. Let's go ahead and put a line here that indicates the end of day. Let's say this is on Monday. We have a previous day high of let's say $200. Right. We could use Apple as an example. So after hours, let's just say we sort of open up within that range. So the next day when I see this, the first thing that I'm going to do is I'm going to look and make sure I mark out that previous and going to be something I very closely watch to see if Apple or this stock in this example is able to break above that high. Really all I'm waiting for is Apple to move higher, break above that high. What I want to see happen is Apple to pull back to that level and then this area where we start to come back down to that previous day high. That is called the battle zone. So the battle zone is really when you start to see that price action start to get really tight, you start to get some really clear examples of some manipulation going on in the market. That's where the money is made.
