PullBacks (PBs)

Question 1

What is a PB?

Answer 1

In Bull, low of bar below low of the prior bar (green)

In Bear, high of bar above high of the prior bar (red)

Question 2

Implied PB in Bull Trend means what?

Answer 2

In a Bull Trend, a Doji bar or bear bar, even if not below low of the prior bar, is an implied PB

*These are actual PBs on lower TFs

Question 3

Implied PB in Bear Trend means what?

Answer 3

In a Bear Trend, a Doji bar or bull bar, even if not below high of the prior bar, is an implied PB

*These are actual PBs on lower TFs

Question 4

a PB can grow into a TR how many bars does it take to grow it into a TR?

Answer 4

Once a PB grows to 20 or more bars, it is now in a TR

Question 5

Strong Trend why does it PB?

Answer 5

Once bulls confident that bears will fail

to reverse bull trend, bulls buy again and tighten their stop

Question 6

Deep PB, if the premise is still good the trend will continue

What makes this DEEP PB premise still good for the Bull Trend MTR?

Answer 6

Deep PB to DB HL MTR

HELD SLIGHTLY ABOVE PRIOR LOW = Premise still good for Bull MTR with this deep PB

Question 7

A 50% pullback of the previous Leg is the most common pullback.

TRUE or FALSE?

Answer 7

True

Question 8

Who does the 50% PB Favor?

The Reversals or the Trend Resumptions?

Answer 8

Probability favors trend resumption with a 50% PB in a trend

Question 9

The PB sometimes falls below Bull BO in TR what would the Bulls do in this scenario?

Answer 9

80% of BOs in TRs Fail

This PB fell below the previous BO but with weak follow-through and weak BARS

the BULLS will buy Reversal up into the TR

Question 10

Bar Counting is a method to Help traders to find PB Entries

How many legs in the PB do traders often wait?

Answer 10

2 or 3 legs

Rarely, 4 to 6 legs

(2-3 leg PB can fail; 2nd PB of 2-3 legs)

Question 11

Identify the 3 legs in this PB

Answer 11

Question 12

When does the PB end?

Answer 12

The PB ends when the bar goes above high of the prior bar

Question 13

Define this High 1 Bull Flag

Answer 13

Question 14

What is Bar Counting?

Answer 14

Question 15

In a Bull trend with a BO from a PB

What should I now begin to do?

Answer 15

New BO so start looking for new PBs

Question 16

The 1st PB from a BO is High 1 or High 2?

Answer 16

It is High 1

*Might be 1st of 2-3 Legs Down

Question 17

If you continue counting after a H1 (1st leg in pullback) what is the 2nd leg down considered?

Answer 17

High 2 Reversal

*Ending the 2nd leg

*Also a Bull Flag

Question 18

Here is an example of Strong Bull Trend - Many High 1 & High 2 Buy Setups

Answer 18

NOTE: High 3 is usually also a Triangle when sideways

Here, it is just a Tight TR (TTR),

or a Wedge sloped down

Question 19

In a strong Bull Trend when should I raise my STOP?

Answer 19

After each new High

After each new high, trail stop below most recent HL

Question 20

Do not lose sight of goal, The market is AIL

Therefore I am looking for a reason to buy

Identify the High 2 Bull Flag

(It is a two-legged, sideways to down PB)

Answer 20

Question 21

Don’t lose sight of the goal, Trying to get long in a Bull trend

One good way to buy is a PB (same in a Bear trend)

Answer 21

Question 22

After PB, if low of next bar goes below PB bar than what does this mean?

Which is the signal bar and which is the entry bar?

Answer 22

Question 23

What is Low 1?

and

What is Low 2, Low 3, Low 4?

Answer 23

Question 24

All Double Tops (DT) are ______ sell setups

AND

All Wedge Tops and Wedge Bear Flags are ______ sell setups

Fill in the blank

Answer 24

Question 25

Wedge Bottoms and Wedge Bull Flags are always a High 3 buy setups TRUE OR FALSE?

Answer 25

TRUE \*DO NOT ENTER UNLESS CONTEXT is GOOD

Question 26

All Double Bottoms are High 2 Buy Setups TRUE OR FALSE?

Answer 26

TRUE \*DO NOT ENTER UNLESS CONTEXT is GOOD

Question 27

Describe this pattern

Answer 27

DB High 2 Bull Flag BO PB Buy Signal

Question 28

Name this pattern

Answer 28

DT Bear Flag: Look for MM

Question 29

Is this a DB Flag or DB Reversal?

Answer 29

DB Reversal

Question 30

Is this a DB Flag or DB Reversal?

Answer 30

DB Bull Flag

Question 31

Double Top Flag or Reversal?

Answer 31

DT Reversal

Question 32

Is this a DT Flag or Reversal?

Answer 32

DT Flag

Question 33

Flag and Reversal, do you trade them the same way?

Answer 33

Yes, trade them the same it does not matter if call it a DT or DB. a flag or reversal. Trade them the same.

Question 34

DT but not yet clear BEAR Trend what should I then do?

Answer 34

Call it a DT LH Reversal until more evidence in context is presented and the bear trend is clear

Question 35

In a Strong Bear Trend never look for Bottoms TRUE or FALSE?

Answer 35

TRUE 80% of reversals fail in strong trends, Channels too tight for MTR only get minor reversals, which is bear flag on higher TF

Question 36

a L1, L2, L3 is what kind of setup?

Answer 36

Sell Setups

Question 37

a H1,H2,H3 is what kind of setup?

Answer 37

Buy Setups

Question 38

After each BO should I start the count again?

Answer 38

Yes, after every new BO, start the count over again with H1 Look to buy PB after every new leg

Question 39

a Low 4 on a 5 min TF can be a Low 2 on a Higher TF such as a 10 min TRUE or FALSE

Answer 39

TRUE

Question 40

If a PB keeps growing what may occur?

Answer 40

It may become an opposite Trend \*If the PB grows too 20 or more bars, it is an Endless PB

Question 41

This Wedge Bull Flag PB has low probability of a BULL BO and has become an endless PB Why?

Answer 41

Tight Bear Channel 20+ Bars in the Bear Channel Bears Managed to get price below MA The Bull flag still has 40% of Bear BO

Question 42

Bull Channel in a Bear Trend is a PB Bear Flag More likely to get a Bear BO If it grows to 20 or more bars, it is now what?

Answer 42

It is now an Endless PB odds of a Bear BO fall to about the same for a Bull BO (50/50)

Question 43

Here is a 24 Bar PB after a Bull BO It is now an Endless PB What are the odds of a bear BO?

Answer 43

they are a 50% chance of a Bear BO

Question 44

If there is a PB on a 5-minute TF that seems too last forever; 50 or even 100 bars and it is hard too read the count what is the simple best solution?

Answer 44

Simply look at a higher TF such as the 60 minute and things could be much more clear.

Question 45

TR on 5 minute TF

Answer 45

Is a H2 buy setup on a 60 minute

Question 46

Does it matter if you call the PB a H1 or H2?

Answer 46

No, it does not matter Buy a PB in a Bull Trend - AIL

Question 47

Low 2 Strong Sell

Answer 47

Question 48

When should the shorts exit?

Answer 48

If High 2 Triggers in Bull Trend

Question 49

Answer 49