Why Is The Obvious Not So Obvious?

Takes out previous close, confirming entry for short trade.

 

I'll take a stab at it.

Longs were getting lured in...seemed like a bounce would happen. An abrupt reversal happened just when things were looking good for the long side. The second down reversal bar is prob the key place where longs started to give in and liquidate into the lows.

 

Y’all have been provided a tool kit (do I need to list it…., or can y’all)

I've requested you to speak in price’s language


Why are you not using the tools to dissect this chart…, price…, what’s going on

And describe it in the proper language


Why.. oh why.. oh why

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One other note…

One bar on that chart sealed the fate of one side – which bar is it.. and describe why it did



That thing atop our shoulders is not simply a hat rack dontcha know

RN

 

Is it more than obvious now?.

 

I'll catch up.
In TN for a job ,all day drive.
Phew.

 

You're asking for the most important bar, to my way of thinking it would be the first major bearish bar right after the white marked one.
Why?
Because price broke out of the range to the upside and any retrace to fresh buying (top of the range preferably) was befinetely out of the question with the selling power that bar has displayed.
Secondary "support" would be the base of the range which also failed, in fact, breaking down beyond that $45ish price gave an excelent opportunity to sell when it retested the level, so it became "resistance".
But right now in my eyes the level where this might occur again is at around the $37-38 level (at a quick glance)
A look at further price history of the chart would be very handy, as would trade entry on faster TF's.

 

As we're moving along with this chart, or other charts - please remember the above...

Because it ain't about being right or wrong... only profitable

Some good (thoughtful) posts above me

RN

 

I agree with Rossky and Baron, and if i may be allowed to ramble.

Referring to the most recent chart, the large down bar after the white H/L suggests a failed break out and that buyers have lost control. As trapped longs exit to take losses the more likely than not direction is down. That's good info as not all bars indicate a likely direction. The break through support confirms likely direction but since there's a possibility this breakout may also fail it may be wise to wait for an entry if not yet short.

The bar w/ green H/L also provides a more likely than not clue and a good entry point as this bar attempted to break back above Supp (now resistance) and shows signs of price rejection and a close lower than open.

Since we can't trade past bars it might be said the most important
bar is the current bar. I would disagree and suggest that current bars need to be looked at in context to past bars which would mean. ...The most important bar is the green H/L as it confirms the most likely direction is down. Having said that i would have liked to enter short midway on the large down bar.

Told you i would ramble.

And if RN has made it this far i would like to thank him for his contributions. Been a fan for awhile and am always grateful and impressed with what you share. Thank you.

 

I must also say that the white marked bar is a KR (by a hairline)
but i don't place as much value on any bars taken out of context, i other words they have to occur at significant levels and have to reflect the overall "mood" of the market.
Some times it all comes comes together at exactly the right time, and we just happen to be there to take the opportunity.