Bonus 4: Trading Bear Channels

Question 1

Define Pullback: (In a bear trend)

Answer 1

A bar with a high above the high of a prior bar
Once a Breakout has a Pullback and a bar with a bull body, the Breakout has ended and a channel has begun.
If series of lower highs and lows, then bear channel.

Question 2

Easiest way to enter a bear channel is….

Answer 2

You get a pullback, then a bear bar closing near it’s low, sell with a stop one tick below bear bars.

Question 3

What are the 4 types of Bear Channels?

Answer 3

Bear Micro Channel (very Tight Bear Channel)
Tight Bear Channel
Bear Channel
Broad Bear Channel

Question 4

If it’s easy for stop entry bulls to make money (in a bear trend), you’re probably going to get some type of reversal by the end of the day.

Answer 4