Lec3 E.g. VII
Back after moving house. What a nightmare but nice to be here!
Trust I’m not still over-complicating? I would appreciate understanding why the 2nd Red trade is not a “perfect close” yet the 4th Red trade is. I took a “perfect close” to include 1t back from H/L of the bar (understanding that one would start trading accepting only closes on H/L).
BTW the first Red arrow is a perfect bar but not marked as such and the SIG bar didn’t exceed the H of the previous green bar so I don’t understand the trap, unless trades were taken on the close of the green bar.
Cheers, David
Apologies if attachment doesn't happen??
Perfect closes
Re: Perfect closes
Hello.
You are correct, with a 1 tick reference the 2nd should be marked with a "*".
For the first case, it doesn't tick higher however it is worth noting that previous selloff overlapped in this area, as well as a 50% retracement. The bulls are having to buy high in a small trading range too. Ok not to consider as a trap but that is why it is marked red and a scalp is expected.
You seem to have this down. Reinforce w/ the homework and keep moving forward. Good trades to you!
You are correct, with a 1 tick reference the 2nd should be marked with a "*".
For the first case, it doesn't tick higher however it is worth noting that previous selloff overlapped in this area, as well as a 50% retracement. The bulls are having to buy high in a small trading range too. Ok not to consider as a trap but that is why it is marked red and a scalp is expected.
You seem to have this down. Reinforce w/ the homework and keep moving forward. Good trades to you!
Re: Perfect closes
Thanks Eric but I was referring to actually a comparison between (counting on the chart VII) 2nd RED [1T] and 4th RED [*1T] but had trouble attaching my chart. Cheers
- Attachments
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- Lec 3 ChVII query.xlsx
- (343.15 KiB) Downloaded 202 times
Re: Perfect closes
Because technically it is not.
Some important differences. The one on the left. Do you see where the bar is completing? Exactly before the beginning of the bull bar. That extra tick can make a very big difference in output (especially when you consider the variations which may happen on that bar).
So the great majority of the time, perfect close is where one should begin.
Left to right:
1. 1st element -> y perfect close.
2. 2nd element -> n 1 tick (and it can make a difference here as noted above).
3. 3rd marked element -> correct
4. 4th marked element -> not perfect. (expected to act as if and update accepted).
It is important in your observations to note potential differences in perfect (0 tick) closes and 1 tick closes [static chart and live market]
Hopefully helpful and good trades to you!
Some important differences. The one on the left. Do you see where the bar is completing? Exactly before the beginning of the bull bar. That extra tick can make a very big difference in output (especially when you consider the variations which may happen on that bar).
So the great majority of the time, perfect close is where one should begin.
Left to right:
1. 1st element -> y perfect close.
2. 2nd element -> n 1 tick (and it can make a difference here as noted above).
3. 3rd marked element -> correct
4. 4th marked element -> not perfect. (expected to act as if and update accepted).
It is important in your observations to note potential differences in perfect (0 tick) closes and 1 tick closes [static chart and live market]
Hopefully helpful and good trades to you!