u/Weary_Stage_7100 ·
Reddit — r/smallstreetbets
· April 09, 2026 at 17:59
· ⬆ 25 pts
· 💬 11 comments
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I mostly swing trade, holding for 1 to 3 weeks. Over time, I completely changed how I find setups. Here is the core logic behind my trades.
If you look at the pictures attached, most people buy the breakout when they see a massive green candle (Pics 1 & 2). Then the price pulls back, and they get trapped (Pic 3).
I don't chase. I look for a strong move that leaves a gap or imbalance behind (Pic 4). The actual trade isn't the breakout—it's waiting patiently for the price to return and fill that gap. That is where you enter (Pic 5). It gives you a clear setup and tight risk control.
How I find them (The Bottom-Up approach):
I used to trade top-down: predict the macro direction, find a sector, then pick a stock. The problem? It lags. By the time I confirmed the broader market was bullish, my targets were already overextended.
Now, I work bottom-up. Strong stocks lead the market. When the indices are still dropping or making new lows, the leading stocks have already swept liquidity, tapped a daily order block, and started pushing up to fill the FVG.
My current process is simple:
Find the stocks: I scan individual charts strictly looking for the gap/imbalance setup in the pictures.
Locate the sector: I use those setups to tell me which sector is actually hot right now.
Confirm the market: If I find multiple stocks meeting my entry criteria, it tells me the overall market environment is tradable.
The actual chart structures tell the real story. It is much more direct than over-predicting macro indicators. I apply this to high-beta stocks and NQ/ES options.
It's just a system. Hope this helps some of you