Double Bar Low with Higher Close

[AlexBB]

I have read that they are a potential setup. But I dont know how you would trade them. At what point would you enter after the second bar has closed. Can anyone tell me or direct me to a thread where this has been discussed.
thanks

 

[foredog]

I think Trader Dante may have discuss them on his threads, look up all posts started by him or Google JAMES16

 

[nunrgguy]

I think Trader Dante may have discuss them on his threads, look up all posts started by him or Google JAMES16

Sounds like a bullish engulfing pattern or BUOB. The same as any pin formation it depends on where it occurs - look for the areas first, then supporting factors (round numbers, fibs etc.) then see what price is doing. If the positive momentum looks like it will continue you play this on the break of the outside bar, place your stop below it. Watch your money management and watch how price continues to act, if price retraces more than 68% of the bar with momentum it's likely to fail - move your stop up and close early.