Aloha Padu, Would it be possible for you comment on how you use inside bars (within a strong trend) in your trading methodology? Thanks!
the basic technique you will find anywhere ....just trade it as you would a pull back. but it is not a two legged PB it is a contracting triangle and this triangle pattern can be tricky because you have both sides active within the pattern and so 2-3 breakouts may fail. that is why you need a strong trend to go with it aggressively. the strong major trend counteracts the two sided nature of the smaller pattern so it is likely gto behave predictably
what am i working on......my notes....because after a week end i forget everything and i mean everything. second entries. second entries are second legs. and so if the leg is weak then the first signal in the opposite direction may well be reversal signal.if it is strong leg then the first signal in the opposite direction may be only a corrective move. to know how many legs trade signals can be counted. if you can draw a trend line without any breaks then that means that is a channel and you can probably draw channel line on the opposite side. this channel line need not be parallel to the trend line channels are flags or corrections. usually there are 3 pushes in a channel... which are two legs and so should lead to a breakout test, which may be successful or not. lows are support high are resistances. a spike is one leg and channel is the weaker second leg....and a failed breakout of the channel line is usually a reversal signal. remember to find inside bars IF THERE IS A STRONG TREND if there is corrective move or a minor reversal, will that make the market attractive for the other side to fade the corrective move or the reversal move? on ranging days keep an eye on the ma. the second leg after the first leg should be comparable in size ....if it is smaller then one more leg may be necessary or hinted at so it will give a look like a wedge but is actually two legs... after two signals if the second signal fails, then this is the breakout test, which will ,if successful will lead to another breakout for two legs, again making it look like a 3 pushes or wedge but is actually only two legs. if the two legs is very strong and spike like then the third push or wedge will be weak and reverse and become a breakout test of the two legs. so after two legs expect a breakout test and then two legs after the test is successfull comments to this post will not be replied to since these points are my own refresher
MA should only be used for trends. You're looking at these legs from the wrong angle. To appreciate their beauty, why don't you look from the bottom, instead from the top? (Am I just horsing around? You decide.)
on ranging days market will whipsaw around the ma : ma will bisect the market. meaning it will be flat showing that market is range so that you can look to fade strength at extremes
both ways work......there are always traders trading opposite side even in the strongest of trends. these are notes i am making just to remind me of something and not to taken exactly as written.
what am i working on......my notes....because after a week end i forget everything and i mean everything. second entries. second entries are second legs. and so if the leg is weak then the first signal in the opposite direction may well be reversal signal.if it is strong leg then the first signal in the opposite direction may be only a corrective move. if you enter on a second signal and BO is weak then there will be a BO test of the first signal so a first signal stop should be used to know how many legs trade signals can be counted. if you can draw a trend line without any breaks then that means that is a channel and you can probably draw channel line on the opposite side. this channel line need not be parallel to the trend line channels are flags or corrections. usually there are 3 pushes in a channel... which are two legs and so should lead to a breakout test, which may be successful or not. lows are support high are resistances. a spike is one leg and channel is the weaker second leg....and a failed breakout of the channel line is usually a reversal signal. remember to find inside bars IF THERE IS A STRONG TREND if there is corrective move or a minor reversal, will that make the market attractive for the other side to fade the corrective move or the reversal move? on ranging days keep an eye on the ma. the second leg after the first leg should be comparable in size ....if it is smaller then one more leg may be necessary or hinted at so it will give a look like a wedge but is actually two legs... after two signals if the second signal fails, then this is the breakout test, which will ,if successful will lead to another breakout for two legs, again making it look like a 3 pushes or wedge but is actually only two legs. if the two legs is very strong and spike like then the third push or wedge will be weak and reverse and become a breakout test of the two legs. so after two legs expect a breakout test and then two legs after the test is successfull a failed break out from a channel line sometimes becomes a breakout PB so it is very important to wait for the signal that follows the failed breakout of channel line. and go with that signal markets break out ,pb , which is a test of the BO, and if the BO holds, then again break outs. or the break out test may fail and the pb may continue and become a BO in the opposite side. the market is doing this all the time and this is the only relevant PA. start trading with one lot only......scale up after min 1000 usd profit. make trades in one direction only ie either bull or bear. change direction only after evidence of reversal. trade reversal to reversal comments to this post will not be replied to since these points are my own refresher Last edited: Today at 11:36 AM
what am i working on......my notes....because after a week end i forget everything and i mean everything. second entries. second entries are second legs. and so if the leg is weak then the first signal in the opposite direction may well be reversal signal.if it is strong leg then the first signal in the opposite direction may be only a corrective move. if you enter on a second signal and BO is weak then there will be a BO test of the first signal so a first signal stop should be used to know how many legs trade signals can be counted. if you can draw a trend line without any breaks then that means that is a channel and you can probably draw channel line on the opposite side. this channel line need not be parallel to the trend line channels are flags or corrections. usually there are 3 pushes in a channel... which are two legs and so should lead to a breakout test, which may be successful or not. lows are support high are resistances. a spike is one leg and channel is the weaker second leg....and a failed breakout of the channel line is usually a reversal signal. remember to find inside bars IF THERE IS A STRONG TREND if there is corrective move or a minor reversal, will that make the market attractive for the other side to fade the corrective move or the reversal move? on ranging days keep an eye on the ma. the second leg after the first leg should be comparable in size ....if it is smaller then one more leg may be necessary or hinted at so it will give a look like a wedge but is actually two legs... after two signals if the second signal fails, then this is the breakout test, which will ,if successful will lead to another breakout for two legs, again making it look like a 3 pushes or wedge but is actually only two legs. if the two legs is very strong and spike like then the third push or wedge will be weak and reverse and become a breakout test of the two legs. so after two legs expect a breakout test and then two legs after the test is successfull a failed break out from a channel line sometimes becomes a breakout PB so it is very important to wait for the signal that follows the failed breakout of channel line. and go with that signal markets break out ,pb , which is a test of the BO, and if the BO holds, then again break outs. or the break out test may fail and the pb may continue and become a BO in the opposite side. sometimes it BO pb then tests the previous high .....and then BO. this test of previous high or low is definite and you can get scalp. the market is doing this all the time and this is the only relevant PA. start trading with one lot only......scale up after min 1000 usd profit. make trades in one direction only ie either bull or bear. change direction only after evidence of reversal. trade reversal to reversal comments to this post will not be replied to since these points are my own refresher
Not to worry about keeping you honest. We can be your enforcers. You can always trade in Rupee, local account and local market? You will be a shark among minnows in your local market, like taking candies from children.