BUYING H1 AND H2 IN A TR

Could I please ask you to not use all caps in asking or answering your questions? It is the equivalent of shouting at someone - not a great feeling to be shouted at after a long day of trading. 😉 

Respondido por: Abhinav Varshney

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Q1.WHY ARE WE BUYING PBS IN PINK?

It is a good idea to buy H1s and H2s during strong BOs. So, it makes sense.

Respondido por: Abhinav Varshney

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BUT THIS BULL RALLY CAN BE A LEG IN  A TR

Why? Bulls are getting big bars, not much overlap, reversing what the bears did in the past few hours. There are also a few gaps and body gaps. I don't have any information to assume this is a bull leg in what will become a TR. Even if I did, there is still room to the most recent high for the bulls to buy and make money.

Respondido por: Abhinav Varshney

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BUYING BECAUSE HERE CONTEXT IS VERY GOOD(WEDGE+DOUBLE MICRO BOTTOM) AND PBS ARE AFTER STRONG BULL BARS.

Yes, bears got their objective. Now, the bulls have taken control. Even if it were a TR day, that doesn't mean you can't get good swing setups.

Respondido por: Abhinav Varshney

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Q2.I THINK EVEN AFTER STRONG BULL BARS IT IS NOT RIGHT TO BUY PB AT TOP OF A BIG TR (SEE IN BLACK).AM I CORRECT ?

 

If you don't buy despite strong bull bars, when else will you? What's the point in ignoring what the market is trying to tell you and sticking to your premise of TR, which clearly doesn't hold anymore here. As tight a bull channel as this is, even if you get a PB, the Bulls will get at least another leg up before the bears get their swing down. The market crossed the most recent high, and even got 2 FT bull bars. This to me, is a successful BO unless the bears can show otherwise which they didn't in the chart you shared.

Also, side note - if Al says buy, you buy. If he says sell, you sell. If he says to abandon all hope and run you run. It will take some time to internalize this concept, but heed everything he says and no one can stop you from being a successful trader. Just something to keep in mind. 😋 

I appreciate you, Abir, for responding to my questions so quickly and in such great detail. We must execute every trade we can in that direction as soon as the market becomes always "in" (long or short). And I apologies for writing questions in capital letters; I won't do that again.

Agree that buying in the middle 3rd or top 3rd of TR is usually not a good idea due to low probabilities. When I first started BPA I missed many days at a time not taking any trades if missed the initial reversal at TR lows for a swing. But eventually I realized that the size of range matters too. If the day is big, then even if TRD, it's still possible to catch some trades as long as local strength is good. 

Notice how big the bars are in the reversal up to trade (A). So much bigger than all the previous bars. When a move starts with big bars it's a sign of strength, when it ends with big bars it's usually due to vacuum into top of TR. Here it started strong after bears completed their MM. 

A) Strong CC bulls CAM so BTC, probably 1st leg so and expect at least 1 more leg up.

B) BO+FT of CH so OK to buy

C) I think this buy happened quickly only after tail of next bull bar dipped down and tested BOP, then reversed up to became OU bar. The moment it became OU is probably when the entry was taken.

D) Weak bear bars doing a PB. Again testing previous BOP and leaving bodygap. 

E) Actually an L2 failure and DB with D. It looked like a good setup for bears but they got trapped. 

Also notice that C,D,E are all PB trades, respecting the fact that now trading in middle/top of possible big TR, but also pursuing an idea that after prices bounced off the low of TR probably will reach top of TR somehow. Therefore focusing on fading bear attempts. 

Hope that helped.

Cheers,
CH
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I appreciate you providing these crucial points, Carpet. 👍