Thursday, June 9, 2011
Reversal bars in a strong trend
On days with extremely strong trends, reversal bars look great (b17,b33) but usually give no more than a scalp profit. With trend entries on the other hand look poor (b2, b12, b24, b38, b50) but tend to give reasonable profit.
When the with-trend entries suddenly look great (b62) and the reversal signal looks poor(b67) I am usually suspicious of a reversal. This is a great place to exit and depending on the price action, reverse your positions.