you have to observe a few things after that swing down which had many red bars and no big green bars..there were no two consecutive green bars, till your entry and even after. this means that the bears are very much interested and the strong bears are scaling in at every high. This is what is called a ranging uptrend or a up channel, In a range or pseudo range like a up channel NEVER BUY STRENGTH AND SELL WEAKNESS. You buy low sell high. you bought high. i am not ure where in that bull bar you actually did buy The last consecutive 4 bars-3 were big green- ended with a channel overshoot - fourth was a reversal bar and after that a test of the high and a double top [the top normally is punctuated with a failed break out, and a double top is just that] and not surprisingly there was a sell of this is my observations and in hind sight with no emotions it is easy.that is why i am good chart reader but bad trader
it is easy to discuss in hind sight and so i want to ask you you say you entered a 'strong bull' but there were two stronger bull bar before that. the second green bar was a second attempt at a breakout above the pr high that may have been an entry
are you using Brooks' and Volman's again? If Brooks' and Volman's detected signal yesterday, it doesn't seem right. I hate to say but it seems like time to give signal it didn't, time not to give signal it gave. there was absolutely no strong bull and absolutely no signal yesterday. yesterday ES day range < 18 points which was very pathetic. As mentioned in my journal, ES has 3 long blue candles. so sooner or later ES has to rest. yesterday during US session, the best thing to do was not to trade. In fact, I off the computer 30 minutes after US market opened because it was very obvious market was not moving. obviously I missed the Russell 2000 signal yesterday.
well the poster was trading it is not a real account he was just learning and i just gave him one way to look at market. strong is relative to the previous bar and so i do not know what you will see as strong or what anybody else will see as strong it is only relative to the near past. i trade forex do not get emini unfortunately so i cannot comment on e mini at all only on the chart
NO I HAVE GONE MAD USING THEM but i was just explaining to the poster at his express request so i am not spamming i am using something far simpler i do not need to be in front of terminal i made 60 pips [ticks] in the last 12 hours and i was not even in front of terminal-i .was asleep for 8. after searching for a simple way to trade i found what i was looking for.
brooks always has signals everywhere Volman only trades pullbacks if i remember correctly i bought his book and also many [more than 200] so many that my wife insisted that i throw them away.
Thanks for the tip about consecutive bars. A question, after a strong bull, when do we know that the price entered a range and not just a pullback?
very good question i will put it simply A pull back will have two legs so it is a corrective move. A trend will wave up but it will not be two legs. Now in your chart the move after the pullback was another two leg move.It was a two leg move to a new high or a test of a new high[a double top/bottom]. there also a failed breakout which you marked, you made a trade there. Now if you see the trend up, the strong upmove seeing that some traders may have expected a continuation of that bullish momentum. But the two leg move to the test of the high was a corrective move. why? because it was two legs. to be continued urgent work will be back in 15 min
Brooks talks about market attempting something twice before going the other direction. Never heard of blue candles. Where does one find them? Where have you learned your trading method? After I finish Volman, I'll be looking for next book to read.