Day Trading Setups
Three-Day Pullback in an Uptrend
Discipline isn't a personality trait. It's a system you build so willpower is optional.Jason Parker, Founder of Trading Habits
A shallow multi-day pullback that holds above the prior genuine swing low is a classic continuation buy. A pullback that breaks that low is something worse. Watch the consecutive-lower-close count and the genuine structure check build day by day, on genuine daily candles.
Count the down days, check the structure, call the next bar
Every trial generates a genuine daily uptrend. As soon as closes start printing lower, a live counter tracks the pullback in progress, and a separate live check compares the pullback's low against the prior genuine swing low: still holding above it, a higher low, or already broken below it, a lower low. Bet buy the dip or stand aside before the next genuine daily bar resolves.
Building the daily uptrend…
| Pullback length | Trials | Continuations | Rate |
|---|---|---|---|
| 2-day | 0 | 0 | — |
| 3-day | 0 | 0 | — |
| 4-day+ | 0 | 0 | — |
| Structure | Trials | Continuations | Rate |
|---|---|---|---|
| Higher low held | 0 | 0 | — |
| Lower low violated | 0 | 0 | — |
How it works
- The pullback counter increments off genuine daily closes. Every day the close is lower than the prior close, the count goes up. A single higher close resets it.
- The prior swing low is a genuine, already-established low. It is the lowest genuine low printed during the uptrend leg before this pullback started, not a number chosen after the fact.
- Structure is checked with genuine comparison math. If every day of the current pullback has kept its low above the prior swing low, that is a higher low. The moment a daily low actually trades below the prior swing low, that is a lower low, a genuine structure break, not a guess.
- The call is made before the next day's bar is known. Once the pullback length and structure are visible on screen, you bet buy the dip or stand aside, then the genuine next bar resolves it.
Where this breaks
A held higher low is still just one data point away from becoming a lower low
The structure check only describes what has printed so far. A pullback can hold cleanly above the prior swing low for three straight days and then take out that low on the very next bar, the one day the count and the structure looked their best. The scoreboard here typically shows higher-low pullbacks continuing more often than lower-low violations, and shorter pullbacks holding up better than longer ones, but every single one of those buckets still has genuine losing trades in it. Holding structure raises the odds, it does not remove the next day's actual downside.
