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Hi all,
at Slide 29, Al starts saying : " Here is a strong rally and a strong sell off, possibly a double bottom, but this is not a good looking bad signal bar.".
Here, Al is pointing at a bear bar, closing below its midpoint, closing below the lows of all the 20+ previous bars.
I do not understand here why this bar can even be considered as a buy signal bar of any sort. it's not a bad buy signal signal, it's not a buy signal at all to me.
Then I think, mmh, well, the context is mor important. ok...but there is only that double bottom possiblity and we have a 6 bar bear micro channel. The context is not even decent to me to consider a buy.
Can someone explain why this bar would be considered as a BUY signal bar in the first place ?
If we go there, any bar touching a possible double bottom can be considered as a signal bar ?
Big up, big down. Likely trading range. That's the context. Then you have a ioi at a likely spot for the bottom of the range. IOIs are second entry setups. Is it a good looking setup after that strong sell off? Not really. And that's common in trading ranges. Setups that don't look very good often work. I've been working on this very issue myself. I have to remind myself when I think there's a trading range to just take the second entries even if they don't look very good. Use a wide stop if I think there could be another push down.
