Trading Bear Channels Flashcards
Bear Trend - Begin with Bear BO, which can be big like here or small
This represents the Bulls giving up and bears selling aggressively
Strong agreement that price is TOO HIGH
Every BO is a Trend Bar & Every Trend Bar is a BO
Reserve “BO” for bars that have a reasonable chance of beginning a Trend
Bear Trend - Begin with Bear BO, which can be big like here or small
This represents the Bulls giving up and bears selling aggressively
Strong agreement that price is TOO HIGH
Every BO is a Trend Bar & Every Trend Bar is a BO
Reserve “BO” for bars that have a reasonable chance of beginning a Trend
1st PB - Start of Bear Channel
PB in bear trend is a bar with a High above prior High of Prior Bar
Once BO has a PB and a bar with a bull body, BO has ended and CHANNEL has begun.
1st PB - Start of Bear Channel
PB in bear trend is a bar with a High above prior High of Prior Bar
Once BO has a PB and a bar with a bull body, BO has ended and CHANNEL has begun.
All trends are Spike and Channel Trends, even though either Spike (BO) or Channel is often not clear.
All trends are Spike and Channel Trends, even though either Spike (BO) or Channel is often not clear.
When the Market is in a Bear Channel it is in a Bear Trend and it is easier to make money Selling, ESPECIALLY is most bars are mostly below the EMA.
1st PB - Start of BEAR CHANNEL
When the Market is in a Bear Channel it is in a Bear Trend and it is easier to make money Selling, ESPECIALLY is most bars are mostly below the EMA.
1st PB - Start of BEAR CHANNEL
Mostly below EMA - Better to Only SELL
Some of some the signs that it is an indication that it is better to only sell:
Most of the bars are mostly below the EMA
Most of the PBs do not get far above EMA
Most PBs only go up 1 - 3 Bars
No consecutive Big Bull Trend Bars closing above the EMA
Most Stop Entry Buy Signals lose money ( Stop Order Bulls)
PBs to not Overlap BO Points, so it is difficult for bulls entering with limit orders to make money
Mostly below EMA - Better to Only SELL
Some of some the signs that it is an indication that it is better to only sell:
Most of the bars are mostly below the EMA
Most of the PBs do not get far above EMA
Most PBs only go up 1 - 3 Bars
No consecutive Big Bull Trend Bars closing above the EMA
Most Stop Entry Buy Signals lose money ( Stop Order Bulls)
PBs to not Overlap BO Points, so it is difficult for bulls entering with limit orders to make money
Stairs Pattern - Bull Scalpers Will Scale in Below Prior Low
This is if the PBs are reasonably big buys can buy
Need bars closing near their highs to do so
This is a stairs patten which is Bulls seeing PB go above BO Point; this indicates that gaps are closing and Bulls can make money on Scalps
Stairs Pattern - Bull Scalpers Will Scale in Below Prior Low
This is if the PBs are reasonably big buys can buy
Need bars closing near their highs to do so
This is a stairs patten which is Bulls seeing PB go above BO Point; this indicates that gaps are closing and Bulls can make money on Scalps
Bear Stairs - Bull Scalpers Will Scale in below Prior Low
Bear Stairs - Bull Scalpers Will Scale in below Prior Low
Spike and Channel Bear Trend - Bear BO (Spike), Channel, TR
Spike and Channel Bear Trend - Bear BO (Spike), Channel, TR
Bear BO below Bear Channel - 75% Chance of a Reversal Up
Big Bear BO below Bear Channel that Fails (Exhaustion Sell Climax)
Bear Channel acts like a Bull Flag
75% chance of a Failed BO & Reversal Up
Bear BO below Bear Channel - 75% Chance of a Reversal Up
Big Bear BO below Bear Channel that Fails (Exhaustion Sell Climax)
Bear Channel acts like a Bull Flag
75% chance of a Failed BO & Reversal Up
Bear Channel - Successful Bear BO Happens 25% of the Time
Big Bear BO below Bear Channel
2 - 3 Bigger Bear Bodies closing near their lows = Bulls Giving up and Bears selling aggressively
SELL with a Stop below Bear Bars or simply do a Market Sell
Bear Channel - Successful Bear BO Happens 25% of the Time
Big Bear BO below Bear Channel
2 - 3 Bigger Bear Bodies closing near their lows = Bulls Giving up and Bears selling aggressively
SELL with a Stop below Bear Bars or simply do a Market Sell
Bear Channel - 4 Types
Bear Micro Channel (very tight Bear Channel) = No PBs, but often many overlapping bars, BO on Higher TF (ONLY SELL)
Tight Bear Channel = It is a Small PB Channel (ONLY SELL)
Bear Channel = Sell @ EMA and on Reversal down from EMA / Limit order Bulls will Bull below prior Low for Scalp
Broad Bear Channel = Looks like a TR that is tilted, Both Bulls and Bears will Trade but mostly scalps
Bear Channel - 4 Types
Bear Micro Channel (very tight Bear Channel) = No PBs, but often many overlapping bars, BO on Higher TF (ONLY SELL)
Tight Bear Channel = It is a Small PB Channel (ONLY SELL)
Bear Channel = Sell @ EMA and on Reversal down from EMA / Limit order Bulls will Bull below prior Low for Scalp
Broad Bear Channel = Looks like a TR that is tilted, Both Bulls and Bears will Trade but mostly scalps
Strong Bear BO - Then Weak Bear Channel
Gap up, Bear Trend From Open, Sell The Close Bear Trend
Expect PB and then Channel in Spike and Channel Bear Trend
Sell Rallies, like DT Bear Flag
Strong Bear BO - Then Weak Bear Channel
Gap up, Bear Trend From Open, Sell The Close Bear Trend
Expect PB and then Channel in Spike and Channel Bear Trend
Sell Rallies, like DT Bear Flag
Bear Channel = Easier to Make Money Selling
Bears Sell reversals down from PB to around EMA and to middle of last bear leg. Sell below bear bar closing near its Low
Bear Channel = Easier to Make Money Selling
Bears Sell reversals down from PB to around EMA and to middle of last bear leg. Sell below bear bar closing near its Low
LHs and LLs - Sell Rallies, Expect New Low
LHs and LLs - Sell Rallies, Expect New Low
Bear Stairs - Bulls Will Scalp
Gaps are closing so bear stairs are being created , Bulls are seeing PBs going above BO Points and this triggers the Limit Order Bulls buys at new Lows for Scalps
(This is a more experienced strategy)
Keep in mind it is a Small PB Bear Trend so limited Profit for Bulls, it is better to focus on taking SHORTS Sell Signals
Bear Stairs - Bulls Will Scalp
Gaps are closing so bear stairs are being created , Bulls are seeing PBs going above BO Points and this triggers the Limit Order Bulls buys at new Lows for Scalps
(This is a more experienced strategy)
Keep in mind it is a Small PB Bear Trend so limited Profit for Bulls, it is better to focus on taking SHORTS Sell Signals
Bear Channel - Late Profit Taking Created Short Covering Rally
3 Consecutive Wedge Bottoms
BUY for a Swing Up
Bear Channel - Late Profit Taking Created Short Covering Rally
3 Consecutive Wedge Bottoms
BUY for a Swing Up
CANNOT Make Money Buying - MUST SELL!
CANNOT Make Money Buying - MUST SELL!
Tight Bear Channel - Sell for Any Reason and at ANY TIME
Sell Below Bear Bar Closing Near its Low
Sell @ the Market at any time
Sell Close of a Bear Bar
Sell above High of Prior Bar, expecting small PB to last only 1 - 3 Bars
Sell Close of Bull Bar, Betting against the Reversal
Tight Bear Channel - Sell for Any Reason and at ANY TIME
Sell Below Bear Bar Closing Near its Low
Sell @ the Market at any time
Sell Close of a Bear Bar
Sell above High of Prior Bar, expecting small PB to last only 1 - 3 Bars
Sell Close of Bull Bar, Betting against the Reversal
Flat Broad Bear Channel - Trade it like a TR
Once likely TR or Broad Bear Channel, Trade it like a TR
Often looks Bearish near the Bottom, But only Sell High (BLSHS)
Often looks Bullish near the Top, But only Buy Low (BLSHS)
Flat Broad Bear Channel - Trade it like a TR
Once likely TR or Broad Bear Channel, Trade it like a TR
Often looks Bearish near the Bottom, But only Sell High (BLSHS)
Often looks Bullish near the Top, But only Buy Low (BLSHS)
Flat Broad Bear Channel - Trade it like a TR
A Broad Bear Channel acts much more like a TR opposed to a Bear Trend, Therefore Trade it like a TR, BLSHS
Flat Broad Bear Channel - Trade it like a TR
A Broad Bear Channel acts much more like a TR opposed to a Bear Trend, Therefore Trade it like a TR, BLSHS
