Strong bear BO, but climax, Buy the close

Still in the noob fase here, but why not join the discussion 🙂

Well, the arguments to go long are on the slide as well. So maybe those arguments make the chance of a reversal more likely, maybe 30%, instead of only 20%. With potentially big reward and small risk, the math might be OK. 

I recall Al often talk about more agressive traders versus more conservative traders. Guess this would be a trade for the first category of traders.

Greetings,

Marvin

I also think it's important to remember that these types of entries are advanced and should really only be taken by experienced traders that are able to scale into a position. If you want to BTC of a SX you should be prepared to B the first Long setup next and maybe even buy below a bull bar a few bars later. 

J

If you want to be an aggressive trader and buy after a SX @ some kind of support line, that's fine i guess if you have a large account and can place an appropriate stop below. 
But for some of us the 3 reasons to buy (possible exhaustion bar, support area and a buy signal bar) might not be enough for the risk, so it's better to wait for a 2nd Entry (buy signal bar above support) or to be even more safe, buy for a scalp after 2 good bull bars closing above support and on or near their highs. BUT if the market rushes up on one of those bars (too fast for you to take the entry) and hits a resistance area, then wait again to see what the next couple bars do.