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there are some differences. The better volume indicator cannot be applied to a 15 min chart during the first 4 hours of the RTH session, so it is pretty useless.
The CL 08-10 15 min chart shows two inside bars. Both occured outside the Keltner Channels (33,3), so you may assume that the market is overextended to the downside and that the bears are already tired. This would be a potential long setup in any case. I have learned this from the ElectronicLocal blog. Either you trade inside out or outside in (referring to Keltner Channels), I do not take any trades outside out, because this is the greater fool approach.
So the setup consists of an expansion bar, followed by an inside bar. The expansion bar should have high volume to allow for exhaustion of bulls or bears, and ideally the inside bar would be a churn bar. In a strong trend you do not take the reversal directly, but there are two options:
(1) Trend exhaustion/churning often characterizes the end of the 3rd wave, it is the start of accumulation (or distribution). The 5th wave is yet to come and often presents itself as a false breakout above or below the high or the low of the third wave. You could then use a fib extension or a pivot to fade that final flag (as Al Brooks calls it). The final flag should have lower volume than the prior exhaustion move, otherwise it is no final flag.
(2) Wait for a trendline break and a second entry and enter 3 or 4 ticks above the upclose that follows the test of the high or low.
For the two marked inside bars on the chart, second entries would have worked in both cases. I would not have taken any short setups, because of the greater fool problem.
If the inside bar occurs inside the Keltner Channel, I would favour a with-trend setup.
If we use some other tool with volume then winning can be increased. All reversal and Inside bars appears at some support or resistance levels. Just to add trend lines, prefrably Gann fans better, as privide also clues where the market is going at open, from last two swings footprints.
absolutely. many times those trend reversal bars take place at support or resistance levels. and I really like those gann fans very much, but I'm not very good at using them.
I'm with Silvester...........I really don't know much about the Gann Fan.......perhaps you could take a moment and briefly describe how you use these in real time.
For volume, I use the GOMVolumeLadder (tweaked to my style). For support/restance I use simply EMA20. In any case, if I want to use the GANN FAN, what determines the POINTS OF BAR setting ? The default setting is 0.00010.