Day Trading Setups

H2/L2 Pullback Entry

Every pullback since the last new trend high gets a number. The first one, H1, often fails. The second, H2, is the textbook entry. Guess which leg is really H2 before the count is revealed, then watch whether it actually outperforms.

Pick your H2 before the labels print

A fresh uptrend reveals its pullback legs one at a time. Before each leg's real label is computed, click Enter Long if you think that leg is the H2, or Skip to see the next one. Once you commit, the rest of the sequence plays out and the real label for every leg is worked out live from the actual sequence: did that leg hold above the prior pullback's low, or break it and reset the count.

Watching the first pullback leg form.

LabelEntriesWinsWin rateAvg forward-R
H100
H200
H3+00
0
Your H2 calls
Call accuracy

How it works

  1. The count resets every time a leg breaks its predecessor's low. The first pullback since a fresh trend high is always H1. If it holds above where it should and price makes a new high, the next pullback becomes H2, and so on. If any pullback breaks below the prior one's low, the count restarts at H1 on the next pullback.
  2. Labels are computed after the fact, from the real sequence. Nothing about a leg's shape announces its own label while it's forming. The label only exists once you can compare its low to the low that came before it.
  3. Your call is locked in before that comparison happens. Clicking Enter Long commits you to one leg as your guess for H2, before its own label or any later leg's label is computed.
  4. The per-label table runs independently of your calls. Every leg in every sequence gets a hypothetical long entry logged against its own label, H1, H2, or H3 and beyond, tracked separately for real average forward-R and win rate.

Where this breaks

H2 is a count, not a guarantee the trend is still healthy

The label only tracks how many pullbacks have held since the last new high, it says nothing about whether the trend still has the energy left to make another one. A trend that is genuinely running out of steam can still produce a textbook H2, the pullback held, the count is real, and the breakout still fails because the buying pressure behind it was already fading. Over enough sequences the per-label table in this tool usually does show H2 outperforming H1, but never by a margin that turns it into a sure thing, and a real share of clean H2 entries still lose.

Risk & liability disclaimer: This page is an educational tool only, not financial, investment, or tax advice, and not a recommendation to take any specific trade. The candles and price data shown are randomly generated simulations for illustration, not real market data. Every strategy shown carries a real risk of loss, including loss of principal.