Failed LH back into a range
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ahwilliams30
- Posts: 37
- Joined: Thu Oct 27, 2022 11:36 am
Failed LH back into a range
I've been struggling with LH/HL trades after FBO's. Any ideas on why this one failed? As always, trendlines are same as Mack.
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Re: Failed LH back into a range
Great question!
There are many aspects that come together.
First, you have recognized the potential of being in a ranging transition. This is an in-between situation.
1. Are you in a trend? Note the change in strength of the initial upmove. Very strong.
2. Are you in a trading range? The larger pattern indicates this may be the top of a trading range.
The truth is both of these may exist at the same time and working through the 4 series will expose this aspect a little more clearly.
So, then we must evaluate the situation based on the strength of the situation.
1. 4 good bear bars indicating strength and pushing under the ema (of potential uptrend). Showing good bearish strength.
2. ema has been supporting prices and this is the 1st time under the ema (expect potential retest of high).
3. 3 consecutive bull bars in a row, just before the short (enough strength that will need another attempt before going short). The always-in concept will help develop this aspect.
Hopefully helpful and good trades to you!!
There are many aspects that come together.
First, you have recognized the potential of being in a ranging transition. This is an in-between situation.
1. Are you in a trend? Note the change in strength of the initial upmove. Very strong.
2. Are you in a trading range? The larger pattern indicates this may be the top of a trading range.
The truth is both of these may exist at the same time and working through the 4 series will expose this aspect a little more clearly.
So, then we must evaluate the situation based on the strength of the situation.
1. 4 good bear bars indicating strength and pushing under the ema (of potential uptrend). Showing good bearish strength.
2. ema has been supporting prices and this is the 1st time under the ema (expect potential retest of high).
3. 3 consecutive bull bars in a row, just before the short (enough strength that will need another attempt before going short). The always-in concept will help develop this aspect.
Hopefully helpful and good trades to you!!
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ahwilliams30
- Posts: 37
- Joined: Thu Oct 27, 2022 11:36 am
Re: Failed LH back into a range
It seems I'm having some troubles identifying strength of bars opposite to and preceding a trade as you've mentioned this in the other trades I posted about here too.
I'm currently working through the market cycles exercises so hopefully that'll help me see this more clearly. Looking forward to the always-in concept to see what you teach in there.
Thanks for your help Eric - just weeding out the bad trades one at a time!
I'm currently working through the market cycles exercises so hopefully that'll help me see this more clearly. Looking forward to the always-in concept to see what you teach in there.
Thanks for your help Eric - just weeding out the bad trades one at a time!