Signal Bar

[shoikan]

Hey Eric,

I had a question about a signal bar from bar 39 in Quiz 5.

SBStrength.png (268.3 KiB) Viewed 1771 times

For the bar in question you had mentioned that it was 'Green' trade and wanted a stronger signal bar. This got me thinking what would have been a better size of bar?

For reference I've been trying to find signal bars that are relatively the same tick size as the setup bar.

Thanks in advance,

[eric-pal]

Try drawing the short term trendline from the top of the pattern.

Your objective is to be aware of when the selling pressure has abated. You are looking for the retracement to have completed and the trend to have resumed. In a short bar, one must see very specific things. Over a longer bar, one has more of an opportunity to judge.

Also, take your question back to the quiz question again and note the differences and similarities. The underlying question - when is the pullback over?!!

Hopefully helpful and good trades to you!

[shoikan]

Thanks again Eric, I'll keep reviewing and comparing.