Hi first,
First of all, thank you for the valuable information on this page! Great work!
I work my way from lesson to lesson and take homework very seriously! (chart review)
Would like to know about these trades.
Is my assumption correct in hindsight?
After the uptrend played out (BNE), there was a small pullback back to the EMA followed by a series of bull bars. (bull momentum)
From this point on, I can assume (bull momentum and EMA holds EMA hard mod.) that I can continue to endure long setups and not have to be afraid that it is a breakout from the range and I will be trapped?
Why I hesitated
Why I hesitated
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Re: Why I hesitated
I like where the analysis is going. Great work!
With the stronger bull push, you evaluated how prices reacted at the EMA and the decision process was good. While nothing is absolute in trading, the higher probability at that point is for a continuation upwards.
You will note the 1st bullish bar trade finished strongly, and was a little high in the pattern. This isn't always the case but that is why the next 2 bars sold off a little. The initial bull bar was larger than average bar size.
Take note of the 2nd bear bar after the first nice bull marked bar. See how it finishes on its low, into the ema? You will find this common pattern in strong trends, and the reversal there often sets off traps when that bar is reversed
. That is what occurred on the next 2 doji bars. They are figuring out if that barrier will hold or not.
Hopefully helpful and good trades to you!
With the stronger bull push, you evaluated how prices reacted at the EMA and the decision process was good. While nothing is absolute in trading, the higher probability at that point is for a continuation upwards.
You will note the 1st bullish bar trade finished strongly, and was a little high in the pattern. This isn't always the case but that is why the next 2 bars sold off a little. The initial bull bar was larger than average bar size.
Take note of the 2nd bear bar after the first nice bull marked bar. See how it finishes on its low, into the ema? You will find this common pattern in strong trends, and the reversal there often sets off traps when that bar is reversed
. That is what occurred on the next 2 doji bars. They are figuring out if that barrier will hold or not. Hopefully helpful and good trades to you!
Re: Why I hesitated
Thx Eric
How important it is to watch every single bar. Each individual bar tells something in relation to the structure.
Expectation - Momentum present, if so in which direction and look out for support resistance... Finally wait for the setup at the KEP with the perfect signal bar.
How important it is to watch every single bar. Each individual bar tells something in relation to the structure.
Expectation - Momentum present, if so in which direction and look out for support resistance... Finally wait for the setup at the KEP with the perfect signal bar.