The strategy is simple.
1. Variation: We need to wait for variation to the down side (bearish trend losing strength). As soon as I saw that the momentum with the Bears ( selling action) was coming to an end I waited for the second step in the strategy which is.....
2. Rejection Wick We need to wait for a candle to reject the bearish trend. So a bullish candle with a long wick could mean that the volume is refusing to go down further and pending buying positions start to kick in. However, we need to find another thing for the last step which is.
3. Confirmation candle: We need to find a bullish candle right after the other one with the long wick. Why? Because we need to know that the wick of the previous candle is going to work as our stop loss. So, waiting for momentum to confirm that now the Bulls are control is key to save you from headaches and fake promises. Usually 2 30 min bullish bar do the trick but sometimes the volume and the nice rejection could lead us to act quicker but proceeding with caution is key.
1. Variation: We need to wait for variation to the down side (bearish trend losing strength). As soon as I saw that the momentum with the Bears ( selling action) was coming to an end I waited for the second step in the strategy which is.....
2. Rejection Wick We need to wait for a candle to reject the bearish trend. So a bullish candle with a long wick could mean that the volume is refusing to go down further and pending buying positions start to kick in. However, we need to find another thing for the last step which is.
3. Confirmation candle: We need to find a bullish candle right after the other one with the long wick. Why? Because we need to know that the wick of the previous candle is going to work as our stop loss. So, waiting for momentum to confirm that now the Bulls are control is key to save you from headaches and fake promises. Usually 2 30 min bullish bar do the trick but sometimes the volume and the nice rejection could lead us to act quicker but proceeding with caution is key.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.