tag:blogger.com,1999:blog-252763673788048829.post434844114548565285..comments2023-12-16T00:54:52.330-08:00Comments on Nine Transitions: Revenge Trading I - Reversing where you would be stopped outcadaverhttp://www.blogger.com/profile/00205606370921389742noreply@blogger.comBlogger11125tag:blogger.com,1999:blog-252763673788048829.post-65925271535779920882012-04-02T17:19:32.050-07:002012-04-02T17:19:32.050-07:00b2 is an fBO attempt. Since the range is very smal...b2 is an fBO attempt. Since the range is very small and it is the first attempt, it should be expected to fail. <br /><br />Trading ranges grow with every fbo. Eventually, there is a decent BP that could lead to a trend. Some days, there will be no trend at all. Occasionally such as today, they fbos from b1 form a channel. Channels are often Wedges (hence the b7 buy).cadaverhttps://www.blogger.com/profile/00205606370921389742noreply@blogger.comtag:blogger.com,1999:blog-252763673788048829.post-69192598722916635372012-04-02T17:14:08.625-07:002012-04-02T17:14:08.625-07:00Your approach is very conservative, which is not b...Your approach is very conservative, which is not bad. I'd rather miss a great trade I'm not sure of than to get in a poor trade. You can always choose to buy the first HL or fL1 no matter how flimsy the bar is (b18) as long as the reversal and follow through were strongcadaverhttps://www.blogger.com/profile/00205606370921389742noreply@blogger.comtag:blogger.com,1999:blog-252763673788048829.post-28719198017306837032012-04-02T15:46:29.527-07:002012-04-02T15:46:29.527-07:00Hi Cad. I'm often hesitant to trade V bottoms,...Hi Cad. I'm often hesitant to trade V bottoms, expecting the market will give a W, and consequently missing opportunities like this one. Any thoughts on how to overcome that? Thanks. -- JohnJohnhttps://www.blogger.com/profile/04974946896620965908noreply@blogger.comtag:blogger.com,1999:blog-252763673788048829.post-79055172298510731532012-04-02T14:14:18.059-07:002012-04-02T14:14:18.059-07:00Hi Cad, if b1 is considered a TR, is b2 (a fBO) an...Hi Cad, if b1 is considered a TR, is b2 (a fBO) and are following bars widen the TR as long as there is no LH and LL?TDhttps://www.blogger.com/profile/08930456805829245233noreply@blogger.comtag:blogger.com,1999:blog-252763673788048829.post-68063286968481519572012-04-01T19:58:33.152-07:002012-04-01T19:58:33.152-07:00There was a measured move to the tick from b1 high...There was a measured move to the tick from b1 high to b7 low -- a MM of a failed mW. However, I'm pretty sure I would have taken it in any case. AM reversals are often abrupt, i.e., V reversals and the strength of the prior day meant a chance of upward attempt was very high.cadaverhttps://www.blogger.com/profile/00205606370921389742noreply@blogger.comtag:blogger.com,1999:blog-252763673788048829.post-47869408445134116072012-04-01T19:48:05.905-07:002012-04-01T19:48:05.905-07:00Hi Cad:
I acknowledge that the reversal at b15 wa...Hi Cad:<br /><br />I acknowledge that the reversal at b15 was robust, with strong follow thru on b16, but with the strength and persistence of the b1-b14 move down, isn't it reasonable to expect some kind of meaningful pullback toward the b15 low, or even a full on test of the low?<br /><br />This kind of V reversal usually confuses me. It's hard for me to imagine that after all that selling that it's all over without some kind of testing process.<br /><br />Other than the reversal setup, was there anything else that tipped you off to the fact that the selling was over at b15?tradahmikehttps://www.blogger.com/profile/08751987755342149971noreply@blogger.comtag:blogger.com,1999:blog-252763673788048829.post-47146022984236340822012-04-01T08:18:11.712-07:002012-04-01T08:18:11.712-07:00When a bar is large or overlapped, a 6t stop is in...When a bar is large or overlapped, a 6t stop is insufficient. You may want to consider a 2pt stop.cadaverhttps://www.blogger.com/profile/00205606370921389742noreply@blogger.comtag:blogger.com,1999:blog-252763673788048829.post-82811379702783163642012-04-01T08:17:22.431-07:002012-04-01T08:17:22.431-07:00A strong reversal bar after a trend attempt is a v...A strong reversal bar after a trend attempt is a very good signal, especially if it reverses the HLC of prior day. Often 1PB early in the day have poor signal bars but as long as other signs are strong, you should take them.cadaverhttps://www.blogger.com/profile/00205606370921389742noreply@blogger.comtag:blogger.com,1999:blog-252763673788048829.post-26727610397582562932012-04-01T08:15:14.517-07:002012-04-01T08:15:14.517-07:001PB should never force you to take an entry at the...1PB should never force you to take an entry at the LOD. Your entry price should be at least one tick better than HOD/LOD.cadaverhttps://www.blogger.com/profile/00205606370921389742noreply@blogger.comtag:blogger.com,1999:blog-252763673788048829.post-54965181039888971322012-04-01T04:25:06.357-07:002012-04-01T04:25:06.357-07:00Is bar 6 as a 1pb far too big? It looked like a st...Is bar 6 as a 1pb far too big? It looked like a strong bar but got stopped out by 1 tick (1.5pt stop). The markets first wave was down, looked like we should test the ema and attempt to fill gap. <br /><br />ThanksOmarhttps://www.blogger.com/profile/17578263008604726417noreply@blogger.comtag:blogger.com,1999:blog-252763673788048829.post-14722293576489041932012-04-01T01:58:45.830-07:002012-04-01T01:58:45.830-07:00Hi Cad,
the 1PB at bar 18 has no very clear signa...Hi Cad,<br /><br />the 1PB at bar 18 has no very clear signal bar (I suppose the inside bar is the best one), therefore I didn't trust that the move would go very far (so I didn't swing it). <br /><br />Are there any implications of the strength of the signal bar for a 1PB or does it not matter very much? <br /><br />Maybe it is better to look at the strength of the move before the 1PB (in this case it did look like quite a powerful reversal)?<br /><br />Thanks a lot!!Trader33https://www.blogger.com/profile/10456681432358391037noreply@blogger.com