I'm just learning about bar charts and would appreciate any help you can give. I thought it might help if I use an issue I am currently trading.
From what I’ve read, when the market closes in the top part of its trading range, it has a strong possibility of opening higher. b and c conform to this. d is undone by e. x and z conform, 2 is undone by 3.
On a trending day, where the market opened at one extreme and closed at another, there is high probability of reversal. I believe h and i represent the reversal set up. h opens at one extreme and closes at another (down). i opens down more and continues to move in the same direction as h (down), then reverses its movement during the day to close higher than yesterday’s close. This would provide an entry signal and the upward reversal would continue through j k and l. This entry signal can also be seen at 24, 25 and 26. The converse would also be true, and a downward reversal appears at 31 and 32.
I’m interested by r. It starts with a gap-up and continues to move up vigorously before closing way down just a little above its opening point. This seems to indicate, given the massive upward move over subsequent days, that the market is expecting a big move up. After the bar with no letter closes higher than its open, s and t open higher each day and close much higher than their opening. Finally the upward movement exhausts itself with a gap-up opening at u, which fills itself and falls quickly.
I’m interested in retracement set-ups. Is there something specific I should be looking at? And I’d really like to know what 35 – 38 indicate?
Thanks for your thoughts.
Rob
From what I’ve read, when the market closes in the top part of its trading range, it has a strong possibility of opening higher. b and c conform to this. d is undone by e. x and z conform, 2 is undone by 3.
On a trending day, where the market opened at one extreme and closed at another, there is high probability of reversal. I believe h and i represent the reversal set up. h opens at one extreme and closes at another (down). i opens down more and continues to move in the same direction as h (down), then reverses its movement during the day to close higher than yesterday’s close. This would provide an entry signal and the upward reversal would continue through j k and l. This entry signal can also be seen at 24, 25 and 26. The converse would also be true, and a downward reversal appears at 31 and 32.
I’m interested by r. It starts with a gap-up and continues to move up vigorously before closing way down just a little above its opening point. This seems to indicate, given the massive upward move over subsequent days, that the market is expecting a big move up. After the bar with no letter closes higher than its open, s and t open higher each day and close much higher than their opening. Finally the upward movement exhausts itself with a gap-up opening at u, which fills itself and falls quickly.
I’m interested in retracement set-ups. Is there something specific I should be looking at? And I’d really like to know what 35 – 38 indicate?
Thanks for your thoughts.
Rob
