Sometimes, an otherwise obvious entry may have a poor signal bar such as b24 A2 or b33 W. In such cases, its best to look for a second entry. In the case of b24, a second 2 bar signal at b27 confirmed the entry. Often instead of a second entry, you get two failures in the counter-direction. For b33, there were 2 short entries that turned into 1tf (short below b34 and below b38). This is a very strong confirmation of b33 long. The price taking out b39 high also makes it a fL2, which is a reasonable signal in itself.
Similarly, the DP above the doji signal bar b62 was confirmed by the 1tf of the short below b64. A signal bar with a strong close should not need any confirmation.
Cadaver--
ReplyDeleteI'm having trouble telling a 1pb from an OR from a 1rev in real time. For example, on 8/22 chart, what is suggesting that b4 is not a reversal as opposed to b9. b9 is at the ema whereas b4 is well above. thanks for any guidance when you have time.
btw-- We're missing you in the chat room.
I have a question about the last line in your post. A signal bar with a strong ____________ should not need confirmation.
ReplyDeleteShould there be an extra word in there? Thanks Cad!
(Ps Jim, he answered your question in yesterdays post)
Eumaeus, fixed, thank you
ReplyDelete