“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”?”
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 (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”
The first counter trend break of a channel move is called 1CHBO. The BO is usually expected to fail and is a signal to enter in the direction of the channel. Here are a couple of nice examples. Continue reading “1CHBO – 1st Breakout of a Channel”