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We start our count at the first reversal bar (a reversal bar is simply a bar that closes in the opposite direction of the previous bar)—in an up-moving market, this would be the next bar that closes down.
The reversal bar becomes “Bar 1.” We then count each additional bar in the pullback until the prices close back in the original trending direction, Bar2 abd Bar3 are explained by itself in the chart attached in post#1
There are systems that trade the 3+ bar pullbacks by not waiting for the pullback to turn around and break the swing high/low, but rather enter on a break of a previous pullback bar high/low. You can get great early entries with that type of entry method, and most of the time will make your first target before the swing high/low is even hit.
