Hi Prof, 1-3 is clear . . . the question is regarding 4 . . . the PF sequence triggering the trade . . . My understanding of a confirmed PF bar (for a short in this case) is this . . . A potential pf bar is when theres a bar that makes a HH compared to a previous bar but does not take out the PPF high . . . so there is a "white space" to the left of the potential pf bar. If the next bar's high is lower than the pf bar's high (i'e white space to the right of the pf bar), then the pf sequence is confirmed and the trade is at the open of the next bar. My question to Wi!son was that his comment on the chart he posted seemed to imply that for the pf to becomed a confirmed failure bar, 762.75 had to be broken to the downside . . . that is what I was trying to clarify . . .
I think that most people are screwing up on the exits more than on the entries. I don't see an entry at 1:59 Insearch. JW
The confirmation bar is the 1st bar that breaks BELOW (in this case) last support "pivot". The entry is the open of the next bar (or close of confirmation bar, same thing) You must look c-a-r-e-f-u-l-l-y at Bill's example. I squish my 343 chart up so look first at chart 1a. Then look at chart 1b. You must be trading from weakness not strength. Bottom line , price was making higher highs and higher lows.
Great but the trade is executed on the 343. After the Histogram oscillates on the 2401 then you move to the 343 where you get the ERG oscillation and PF.