How do you trade after a news release or other even creates an abnormally long bar

[myownceo727]

When looking at a chart pattern or your waiting for resistance to break

and then for some reason you get an abnormally long bar for any reason as such as the result of a news release do your treat the bar as part of the pattern or use it as a deciding factor to execute your strategy if the long bar triggers your rules?

I notice after long bars the price normally ends up snapping back to the original range!

Id like to hear thoughts from more advanced traders!

I trade the ES by the way

 

[R.Charnock]

When looking at a chart pattern or your waiting for resistance to break

and then for some reason you get an abnormally long bar for any reason as such as the result of a news release do your treat the bar as part of the pattern or use it as a deciding factor to execute your strategy if the long bar triggers your rules?

I notice after long bars the price normally ends up snapping back to the original range!

Id like to hear thoughts from more advanced traders!

I trade the ES by the way

Buying an abnormally long drink?

 

[WinAtTrading]

Its not normally good practise to buy or sell just because of one indicator (like a long bar). You need to take more factors into account.

Support / Resistance
Which way is the market moving

There is a lot more to it. We wish it could be simplified to one variable, but alas that is the world of trading

Winattrading

 

[wackypete2]

When looking at a chart pattern or your waiting for resistance to break

and then for some reason you get an abnormally long bar for any reason as such as the result of a news release do your treat the bar as part of the pattern or use it as a deciding factor to execute your strategy if the long bar triggers your rules?

I notice after long bars the price normally ends up snapping back to the original range!

Id like to hear thoughts from more advanced traders!

I trade the ES by the way

In that case you are back to where you were before the news came out so I would continue my strategy as if the abnormally long bar didn't exist.

A few other rules of thumb:
- if the long bar is against the larger time frame trend then fade it.
- if the long bar is in the same direction as the larger time frame trend go in the same direction.

Nothing is concrete or guaranteed so use sensible money management.

Peter

 

[myownceo727]

A few other rules of thumb:
- if the long bar is against the larger time frame trend then fade it.
- if the long bar is in the same direction as the larger time frame trend go in the same direction.

Nothing is concrete or guaranteed so use sensible money management.

Peter[/QUOTE]

so lets say I was planning to fade a retracement back to the range, are you saying that I should ignore the long bar as being part of the range, and that i should Litteraly just act like it never existed

 

[myownceo727]

Its not normally good practise to buy or sell just because of one indicator (like a long bar). You need to take more factors into account.

Support / Resistance
Which way is the market moving

There is a lot more to it. We wish it could be simplified to one variable, but alas that is the world of trading

Winattrading

what variables do you suggest looking at