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This is specifically in reference to Al's reply to ludopuig (13th Oct Tue 20). I am quoting the QnA.
Q: Had you bought 28H expecting bears to be trapped and saw 29, would you be dissapointed enough to exit?
A: I assume you mean the 28 close and not the high. With the rally as strong as it was, despite a possible parabolic wedge buy climax, I would have held. But if 29 closed on its low, I might have exited below. I could always buy again above the next bull bar closing near its high.
I have a few questions:
@Ludopuig: Is the reason for disappointment that the bar is closing below EMA (even though it is a bull bar)? Because till now I tend to give more importance to bar being bull rather than closing below EMA.
Also would like to understand why did Al say that 28 close and not high? Why is it preferable to buy the close but not on a stop above high? Is it again because it is just below EMA? But there is hardly any difference between the close and above the high, while buying above the high the market is atleast going in our favour. Esp. since Al then writes that he would have bought again above the high (and not the close of the next bull bar).
I think understanding these minute differences might help in avoiding being trapped in bad trades.
When bears are trapped and exit, the next bar is usually big. Here it was small, closed below EMA and had a tail so I thought my premise was wrong and exited with 1 point.
Ragarding Al's answer, as you said, 28H and 28C are pretty similar but his answer makes more sense to me with 27, so maybe he was referring to that bar instead.
