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Hey EJ,
This probably goes by 5 different names but attached are examples of what I call 2-3 reversal bars.
Drawing, 6E - babypowder's library
6E Live Chart, 6E - babypowder's library. Note I only circled reversals going with trend (UP). If the trend is DOWN you will look for the opposite. Let me know if I explained it correctly.
6E- 1440 min chart, 6E - babypowder's library. Noted on the chart would be the 2 bar reversal entry. I missed to catch the trade in NT. Busy trading and messing around with MT4 with the same play EUR/USD 4 hr chart, MT4 - babypowder's library. MT4 order fill is horrible you can't even place Stop/Target without an error you can only place it after the trade. Any way I will record the entry as is and post potential targets and areas of interest. Stay tuned.
Looks good to me . So its a "key reversal " pattern of sorts . Bullish - a bar makes a lower low but closes above the last bars close and bearish - a bar makes a higher high but closes below the last bars close . Smart using it with the trend I bet .
6E- 1440 min chart, 6E - babypowder's library. Levels of interest.
*MT4 recorded play, MT4 - babypowder's library. I only played 1 lot so stop will be at break-even. And since this puppy dropped like a rock we should see a significant retracement in the highlighted areas.
Trading: Emini ES, Emini RTY (TF), Crude CL, Eurex DAX, Euronext CAC40, EuroFX 6E, and Hang Seng HSI
Posts: 47 since Mar 2011
Thanks Given: 125
Thanks Received: 61
Hi babypowder,
What's your plan (trade management) when you're in a profitable trade that has yet to reach its profit target but then gets another valid trade setup for the opposite direction. ???
For example, you're Long...trade is profitable...hasn't reached the profit target and then you get a valid Short signal. What's your trade management for trade situations like this. ??? In addition, what does the price action need to do that would prompt you to move your initial stop/loss protection into a profitable trailing stop when the trade is profitable to ensure the trade is paid for if it retraces. ???
Hey wrbtrader,
Thanks for posting. Before entering a trade there should be an exit plan also. When you trade you have an edge that you see which is why you enter the trade to begin with. If a you think that edge is gone. Get out. But there's a balance (mental) you can't get too frighten (leave position early) or stubborn (holding position and wishing). We'll use our current trade as an example. We are green with nothing telling me that the trade might go sour. Right now PA need to retrace with short candles and a wide slope before continuing further down. But if PA retraces with long thrust candles with a steep slope then I will be prompt my stop at nearest RES.level/area.