I see, i have added a 55 periods EMA just to confirm what you said. I don't like adding too many lines so i am not sure if i'll keep it.
On another front, here is an entry bar which clearly shows what i was talking about earlier about getting an inverted hammer in a long trend. As you'll see, the bar closes higher than a series of hammers etc and the TriggerLines are weak so i think it can be considered a valid entry as we want to keep the risk low. Let's suppose we get this bar formation above the TriggerLines would you take this trade considering the bar suggest a battle between buyers/sellers and a possible failure, who knows ? My question is will you be influenced by the look of such a bar even if it forms at the right spot ?
You are looking too far on the left. Price did an equal L followed by a HH and a developing HL where the trade took place. So the fact price formed a double or similar bottom it was OK and i would add judging by the huge bar to the upside was a clear sign that demand was the dominant force and we could expect another push after the pullback. That's my analysis.
This post of mine was just the type of post I hate reading so I apologize for it. I was observing that the 1508 had made another "w" formation just back inside the cloud. The 377, had a perfect stochastic divergence and a perfect entry bar formation.
Haha, well the rule #1 states "1508 must be making HH/HL" for a long trade. I was always under the impression that we would see 1 clear swing back on the 1508, but the smaller 377 chart might show a Double Bottom.
So basically, does the Double Bottom that appears on the 1508, invalidate the trade, as you are no longer making HH's, once that down leg appears (shown on chart)? I keep thinking that we should be making HHs in the uptrend.
One picture is the trade we are talking about. The other is showing a single swing on the 1508, that produced a DT on the 377 (it is not a trade, just illustrative purposes).
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