Pullbacks and Bar Counting: Video 09 A, B & C

Question 1

Define Pullback

Answer 1

Smallest reversal: In bull, low of bar below low of prior bar. In Bear, high of bar, above high of prior bar.

Question 2

Define: Implied Pullback

Answer 2

A “Pause” bar that would be a pullback on the smaller time frame chart.
In bear trend, a doji or bull bar, even if not above high of prior bar, is an implied pullback (PB)

Question 3

True or False

PB’s in trend usually provide high probability, low risk entries

Answer 3

True

Question 4

What is the purpose of bar counting?

Answer 4

To look for logical reasons to enter a trade.

Question 5

True or False: When you have a tight bear channel and it is trying to reverse repeatedly, those reversals are going to be bear flags.

Answer 5

True. You don’t want to be looking to buy when the market looks like this

Question 6

True or False

A bear trend in a bigger bull trend is a bull flag

Answer 6

True.