Rebound Setup: Limit-Buy after Short-Term Exhaustion (MSFT)

2 days ago

Hi Traders

This is a systematic mean-reversion setup I use across liquid ETFs and large-cap equities.
The goal is simple: enter weakness into exhaustion, not falling knives.

I will place a limit order for MSFT at $511.86. If the order remains unfilled, I will cancel it at the close of trading tomorrow.

Key Concepts:

• Oversold short-term conditions
  
• Price deviation vs recent mean
  
• Volume/volatility context
  
• Limit order for the next session only when criteria align
  
• Exit next session open (or rules-based exit, depending on version)
  

I don’t chase dips — I predefine levels and only enter when price comes to me. This trade idea triggered a limit buy level for today on EFA at 93.55.

General notes:

• Works best in mean-reverting environments
  
• Avoid news catalysts & low-liquidity names
  
• This is not a signal service — just a research-based framework
  

If you like data-driven, rule-based setups, follow along —
I will share more systematic edge ideas like this.

2 days ago

Trade active

Limit order filled — currently up from the entry.
I’m letting the position work as long as price continues to close strong.

Typically I hold for 2–3 strong sessions in mean-reversion setups like this, then start taking profits as momentum cools off.
The thesis remains intact for now — will update if anything changes.