My favorite swing set-up

I've looked at thousands of charts over the past 3 years.  One simple set-up has become my absolute favorite swing set-up.  This is because it provides a very high probability trade with super low risk.  What if I also told you it provided confirmation?  Not in your typical sense of a flag break out but in a different way.  Confirmation that support held.

NVDA has been a huge momentum name over the past year.  Its been running like crazy and finally topped out at the end of December.  From there, a pullback/consolidation was natural.  on the first leg of the pullback, it held the $100 mark putting in a low at 99.38 on January 3rd.  A relief bounce occurred after but the rally was sold off into resistance.  It then sold off 5 more days.  On the 6th day, January 18th, NVDA pivoted below 99.38 for about 3 seconds before putting in a low at 99.11 and quickly reclaiming its pivot.

Here is a look at the 30 minute chart.  A big reason why I decided to take an entry.

Another big reason was thanks to Kunal for the heads up.

That quick dip below the pivot is enough to suck in some shorts as well as stop out everyone that used 99.38 as a stop.  Then that strong bounce showed major strength and support.  That is plenty of confirmation to get into this stock.  My entry was in the 101s and my stop was below that 99.11.  I ended up selling in the 115s.  That is 7 to 1 risk reward.  Not to mention an extremely high probability.

I was able to scale around my core position.  Selling for a few dollars, buying the dip.  NVDA traded around support and resistance levels perfectly on its flag breakout.

I can say out of all the set-ups and trades that I have taken, this is by far my favorite and most profitable one.  There are many examples of this set-up, I will look to add an additional blog about ones from the past.