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Thank you. A reversal bar has both a higher high and higher low, or lower low and lower high, and closes opposite the prior movement. Sometimes it has a higher high and lower low, or lower low and higher high before closing opposite; that would be an outside reversal bar.
Your setup seems very simple but it is also very nuanced.
"closes opposite" - so, like a short signal if it closes it the bottom 80-90% of the bar's range?
"the prior movement" - does that refer to the prior bar? or does it refer prevailing trend over the last X bars (counter trend)?
Once the setup is there, in the case of a short, do you enter when the low of the signal bar is tested or enter immediately when the bar closes the way you want?
Also, your targets are nice round numbers (10 or 20 ticks). Are these based on anything contextual like ATR, or do you just like nice round numbers?
Thank you. I enjoyed lunch as well. I will try to make it a habit to go the meetings each month.
On the close opposite, that is correct. The prior movement refers to the short term trend leading to the bar. Could be multiple bars but should not be too strong of a trend.
The targets are based on ATR and use market structure to exit. It's just coincidence that the numbers have been round.
Not an active method, but usually gets about 15 - 18 trades per month.