“Barb Wire” is a special kind of a tight trading range, where the price action is confined to a narrow range made up of small bars, many of which are dojis (large tails and small bodies). Continue reading “What to do with “Barb Wire”?”
Price Action Basics – Please read 1st!
How to Trade Reversal Signals
Entry Order
Once a Reversal Signal shows up on the chart place a stop entry buy order one tick above the bar or pattern (for bull). The closest logical stop goes below the bar or pattern – a bar/pattern stop.
Inside Bars
Inside bars (by definition) are completely overlapped by the prior bar and must be considered to be a small trading range. This usually makes them poor Signal Bars, unless they occur with trend or meet a couple more criteria. Continue reading “Inside Bars”
Reversal Signal Entry Strategies
There are several ways to enter a trade on a reversal signal. All have advantages and disadvantages and finally depend on the market context and the trader. This post only represents a small selection of possible entry methods and doesn’t cover scale-in type of trade entries or trading a penetration of a micro trend line.
To find reversal signals, you can use the Reversal Signal Bars indicator. Continue reading “Reversal Signal Entry Strategies”