Trading Tight Bull Channels Flashcards
Bull Channels can be Tight or Broad
Bull Channels can be Tight or Broad
Tight Channel Vs. Broad Channels
Tight Channel Vs. Broad Channels
How do you know if a Channel is Tight?
When I think a channel may be tight I must look for characteristics that tell me it is actually tight. Some of those characteristics are…
PBs last mostly 1-3 bars
Size of PB is less than 2-3 times as big as big as smallest scalp (1 Point)
Size of PB is less than 2x the size of avg bar
Sell setups using stop entries are mostly losers, even if it is a strong signal bar
(more reasons on chart below)
Whenever it is difficult for the Bears to make money the market is telling me it is only better to make money by Buying with the Bulls
Whenever it is difficult for the Bears to make money the market is telling me it is only better to make money by Buying with the Bulls
You will LOSE Money if you sell in a Tight Bull Channel - Do not Fight the Trend
You will LOSE Money if you sell in a Tight Bull Channel - Do not Fight the Trend
If there is a Sell Signal Bar in a Tight Bull Channel where are the Buyers waiting?
The Buyers are below the sell signal bars waiting to go Long as the probably is SO BIG for the Bulls in a Tight Bull Channel
Beginners are heavily ATTRACTED to Strong Signal bars (opposed to the current Trend) and Wedge Tops
It is important to trade in synchronicity of the current market conditions and cycle
If in a Tight Bull Channel - DO NOT SELL
Beginners are heavily ATTRACTED to Strong Signal bars (opposed to the current Trend) and Wedge Tops
It is important to trade in synchronicity of the current market conditions and cycle
If in a Tight Bull Channel - DO NOT SELL
Tight Channel = BO on Higher Timeframe
Tight Channel = BO on Higher Timeframe
If Difficult - Consider Trading on a Higher TF
If Difficult - Consider Trading on a Higher TF
Whenever the market is in a Bull Trend the odds are the Reversal will Fail and Traders will look to buy trend resumption reversals up
Tight Bear Channel usually Bull Flag or Endless PB and Reversal
Once a PB grows to 10+ bars, traders begin to wonder if it is an Endless PB and start of a bear trend
Whenever the market is in a Bull Trend the odds are the Reversal will Fail and Traders will look to buy trend resumption reversals up
Tight Bear Channel usually Bull Flag or Endless PB and Reversal
Once a PB grows to 10+ bars, traders begin to wonder if it is an Endless PB and start of a bear trend
Every Bull Trend Bar = a BO and a Buy Climax
Every Bull Trend Bar = a BO and a Buy Climax
What is a Tight Bull Channel in a Bear Trend?
It is a Bear Flag
When a bull channel forms in a strong bear trend, market is AIS
the Channel is a Bear Flag and a minor Reversal (best the Bulls will get is a TR until either a bull BO or MTR)
Tight Bull Channel in Bull Trend (after Bull BO) = Buy
Tight Bull Channel in Bull Trend (after Bull BO) = Buy
If a Channel is not Cleary a Broad Channel, what should I then assume?
Assume the Channel is TIGHT
Only Trade in direction of the Trend (Trade like a BO on HTF)
Try to Swing all of Part of your trade
I can use my feelings as a type of Radar
When I feel anxious to Buy than it is most likely time to Buy
I can use my feelings as a type of Radar
When I feel anxious to Buy than it is most likely time to Buy
If you Feel like you are waiting too long = this means the trend is STRONG; SO ENTER !
Buy at least a small position at the market
If you Feel like you are waiting too long = this means the trend is STRONG; SO ENTER !
Buy at least a small position at the market
Even if I bought at the worst place there is a 70% chance that the 1st reversal down will test back up and allow me to exit break even
Even if I bought at the worst place there is a 70% chance that the 1st reversal down will test back up and allow me to exit break even
Profit Taking sometimes is at the END of the Days Session especially when Swing Trading
Profit Taking sometimes is at the END of the Days Session especially when Swing Trading
IF bought at top of BO, probability of profit is HIGH = so the risk is to
IF bought at top of the channel, probability of profit is not as high = Risk is less; lower probability of making money
IF bought at top of BO, probability of profit is HIGH = so the risk is to
IF bought at top of the channel, probability of profit is not as high = Risk is less; lower probability of making money
The first reversal down from a bull trend/channel is usually what?
It is usually Minor
With no clear MTR or Broad Wedge Top the Reversal down has a 70% chance of being minor and being followed by a test of top of the bull trend
The tight reversal channel usually becomes a TR before bear trend
If I purchase the High Bull and more at the High 2 Bull Flag exit at the test of the High as the Break of the Bull Trend signals that the Bull trend May be over
I am also getting out Breakeven on the 1st entry and with a scalp profit on the 2nd entry
Some bears will sell sine possible small LH MTR
If I purchase the High Bull and more at the High 2 Bull Flag exit at the test of the High as the Break of the Bull Trend signals that the Bull trend May be over
I am also getting out Breakeven on the 1st entry and with a scalp profit on the 2nd entry
Some bears will sell sine possible small LH MTR
Bull BO = BUY
Bull BO = BUY
After a BO that then Pullback what phase is the market entering?
The market is now entering the Channel Phase
The PB is the Strat of a Channel
If the Bear Scalpers can make a profit is the market in a BO or a Channel?
If the Bear Scalpers can make money we are than in a Channel
This is a sign that the Bull Channel is weak and we will soon transition into a TR
If you know it is a Trend
You therefore believe there is a 60% chance of more Trend
Yet, it never feels 60% certain
60% is as good as trading gets, so TRADE!!
If you know it is a Trend
You therefore believe there is a 60% chance of more Trend
Yet, it never feels 60% certain
60% is as good as trading gets, so TRADE!!
Once the market is in a Channel Phase it is less likely to extend up higher(lower) in price than it would if it is in a BO Phase
Once the market is in a Channel Phase it is less likely to extend up higher(lower) in price than it would if it is in a BO Phase
Risk of Deep PB - But a TR is more likely than a Bear Trend after a break of the Bull Trend Line
Risk of Deep PB - But a TR is more likely than a Bear Trend after a break of the Bull Trend Line