Trading Broad Bull Channels Flashcards
Bull Channels can be Tight or Broad
Bull Channels can be Tight or Broad
Broad Channels are Similar to TRs
Broad Channels are Similar to TRs
Broad Channel and TR are the same for 90% of the Bars
Broad Channel and TR are the same for 90% of the Bars
Broad Channel = Tight Channel on Higher TF
Traders should only be trading charts that have about 100 bars on the screen
Broad Channel = Tight Channel on Higher TF
Traders should only be trading charts that have about 100 bars on the screen
Broad Channel is Mostly in a TR
Broad Channel is Mostly in a TR
Line chart of a Broad Bull Channel
Broad Channel is just a Tilted Up TR
The Broader the Channel is the deeper the PBs are
The more Traders trade it like a TR and ignore the minimal bull trend
Line chart of a Broad Bull Channel
Broad Channel is just a Tilted Up TR
The Broader the Channel is the deeper the PBs are
The more Traders trade it like a TR and ignore the minimal bull trend
Broad Bull Channel sometimes is Always In Short
Broad Bull Channel sometimes is Always In Short
How do you know if a Channel is Broad?
Legs up and Down lasting mostly 5 or more bars
Size of avg leg is at least 3 times bigger than the smallest scalp
Size of leg is at least 2-3 times the size of the avg bar
Broad Bull Channels often contain TRs separated by BOs that occasionally can be big
60% of the the time in Trending TRs reverse
Broad Bull Channels often contain TRs separated by BOs that occasionally can be big
60% of the the time in Trending TRs reverse
Broad Channel Wedge Top
When there is a Broad Channel that is within one day on a 5min Chart, it is usually a WEDGE TOP or Trending TR Day
Broad Channel but Wedge Top Traders expect a reversal or TR not more bull trend
Not enough time for bull trend trade
Broad Channel Wedge Top
When there is a Broad Channel that is within one day on a 5min Chart, it is usually a WEDGE TOP or Trending TR Day
Broad Channel but Wedge Top Traders expect a reversal or TR not more bull trend
Not enough time for bull trend trade
Broad Channel Trending TR Day
Broad Channel Trending TR Day
Broad Channels on a 5 minute chart usually last how long?
Though 5 minute charts do not have obvious broad channels simply because not enough bars are displayed at one time on my chart to identify the broad channel
However Broad Channels on 5 minute charts last 2-3 days
Since legs in a Broad Channel often last 10-20 bars, usually not enough time to form channel in one day on a 5 minute chart
Since legs in a Broad Channel often last 10-20 bars, usually not enough time to form channel in one day on a 5 minute chart
Trade each segment as it is at the moment
I do not need to know that the 5 minute chart is in a Broad Bull Channel
Trade each segment as it is at the moment
I do not need to know that the 5 minute chart is in a Broad Bull Channel
Broad Channel on a 5 Minute Chart usually takes 2 or more days to form and show
Broad Channel on a 5 Minute Chart usually takes 2 or more days to form and show
If a Trader Prefers to trade patterns that last 3 or more days, it is often better to trade a higher TF like the 60 Minute
If a Trader Prefers to trade patterns that last 3 or more days, it is often better to trade a higher TF like the 60 Minute
a Broad Bull Channel on a 5 Minute TF is usually a fairly tight channel on a higher TF
a Broad Bull Channel on a 5 Minute TF is usually a fairly tight channel on a higher TF
Major Low Leads to a Strong Rally and New HIGH
Major Low Leads to a Strong Rally and New HIGH
Even when the market is in a Bull Trend it can still sometimes be Always In Short
Even when the market is in a Bull Trend it can still sometimes be Always In Short
Most Trade Each Day by Itself is not Part of the 9 Day Broad Channel
Most Trade Each Day by Itself is not Part of the 9 Day Broad Channel
Day Traders usually only look at 1 - 2 Days of Bars
Day Traders usually only look at 1 - 2 Days of Bars
60 Minute Chart Traders use 5 min Charts for Early Entry
Same Chart but on a 15 Minute Chart is still Broad Channel
Same Channel - 60 Minute Chart is a Tight Channel
Same Channel - 60 Minute Chart is a Tight Channel
Reversals are Common but Most Reversals FAIL
Reversals are Common but Most Reversals FAIL
Selloffs often have Strong Bear BOs to reverse to AIS then have a DB and Bulls Buy the Reversals up ALL DAY LONG everyday as they expect the reversals to FAIL
Selloffs often have Strong Bear BOs to reverse to AIS then have a DB and Bulls Buy the Reversals up ALL DAY LONG everyday as they expect the reversals to FAIL
All Trends are constantly trying to reverse but keep in mind that markets have INERTIA and they resist change - most tops fail
Often have DTs and MTRS but then Bull BO … the markets have inertia
All Trends are constantly trying to reverse but keep in mind that markets have INERTIA and they resist change - most tops fail
Often have DTs and MTRS but then Bull BO … the markets have inertia
TRs create a Broader Bull Channel
TRs create a Broader Bull Channel
Minor New Lows are Common
TR often has a failed BO below prior HL as Bear reversals sometimes have strong pressure to create bear swings (AIS)
Be mindful that most BOs fail so a 2nd Leg Trap could Trap a weak trader into selling at the low in the TR
Minor New Lows are Common
TR often has a failed BO below prior HL as Bear reversals sometimes have strong pressure to create bear swings (AIS)
Be mindful that most BOs fail so a 2nd Leg Trap could Trap a weak trader into selling at the low in the TR
Whenever I look at a chart I must ask myself… where are we in the market cycle
Whenever I look at a chart I must ask myself… where are we in the market cycle
Whenever I look at a chart I must ask myself… where are we in the market cycle
Whenever I look at a chart I must ask myself… where are we in the market cycle
What often are Triangles ?
Final Bull/Bear Flags
When not clearly in a Broad Bull Channel, TRADE WHAT IS CLEAR
When not clearly in a Broad Bull Channel, TRADE WHAT IS CLEAR
Broad Bull Channel - is a Bull Trend SO BUY
Broad Bull Channel - is a Bull Trend SO BUY
Once in a Deep PB or AIS Bears Sell above Bars
Once in a Deep PB or AIS Bears Sell above Bars
Never Certain but each Bar Gives New Information
Never Certain but each Bar Gives New Information
BO, is there strong Follow-Through Buying…
BO, is there strong Follow-Through Buying…
Some Computers see as AIS
HL above bull trend low, still both TR and Broad Bull Channel
Some Computers see as AIS
HL above bull trend low, still both TR and Broad Bull Channel
Most Broad Channels are also TRs
Most Broad Channels are also TRs
BOM but slightly higher probability for Bulls due to the context
BOM but slightly higher probability for Bulls due to the context
Possible Bull Leg in a Big TR
Possible Bull Leg in a Big TR
ALL TRENDS EVENTUALLY END
ALL TRENDS EVENTUALLY END
Every Bull Trend needs a series of Major HHs and HLs
with the Major HLs being VERY IMPORTANT
Every Bull Trend needs a series of Major HHs and HLs
with the Major HLs being VERY IMPORTANT
Some Swing Traders use Wide Stops because they do not like taking many trades
Also if they get out they may not see a great entry setup to get back in
Some Swing Traders use Wide Stops because they do not like taking many trades
Also if they get out they may not see a great entry setup to get back in
Bull Trend needs HLs
However it is important that I DO NOT let my STOPS get HIT
Bull Trend needs HLs
However it is important that I DO NOT let my STOPS get HIT
Broad Bull Channel - Some just take Buy Signals
Broad Bull Channel - Some just take Buy Signals
Where are 2nd Leg Traps common?
2nd Leg Traps are common in TRs and also in Broad Bull Channels simply because they behave like TRs
Strong Bear BO 2nd Leg Trap
Strong Bear BO 2nd Leg Trap
ulls and Bears pay attention to how far each new BO goes above the BO point
(the prior high) before pulling back below BO Point
ulls and Bears pay attention to how far each new BO goes above the BO point
(the prior high) before pulling back below BO Point
Bears need to start to see GAPS CLOSING before they start to sell in a Broad Bull Channel
The Bears needs overlap of legs and gaps closing also to begin selling
*If the market is pulling back below BO Points it is a Stairs Pattern
Bears need to start to see GAPS CLOSING before they start to sell in a Broad Bull Channel
The Bears needs overlap of legs and gaps closing also to begin selling
*If the market is pulling back below BO Points it is a Stairs Pattern
Traders are consistently drawing lines, especially when there is a TR or a Broad Channel
They do so because they’re trying to find support and resistance. They want to see what they do near the lines to help them properly structure trade setups
Traders are consistently drawing lines, especially when there is a TR or a Broad Channel
They do so because they’re trying to find support and resistance. They want to see what they do near the lines to help them properly structure trade setups
Bears base STOPS on MM or Other Resistance
Advanced traders will sell at prior high and some willing to scale in higher
Bears base STOPS on MM or Other Resistance
Advanced traders will sell at prior high and some willing to scale in higher
Base Stop on 2x size of the Biggest Prior BO
Base Stop on 2x size of the Biggest Prior BO
Bear Scalper needs at least a minimum scalp size
Bear Scalper needs at least a minimum scalp size
NO Strategy is Perfect, I will lose on some trades
Bear Scalpers sometimes do LOSE
NO Strategy is Perfect, I will lose on some trades
Bear Scalpers sometimes do LOSE
Bears Scale In to increase probability but this does INCREASE the Risk
This is why is important to trade small enough so it is still in alignment with your trading plan and Risk limit
Bears Scale In to increase probability but this does INCREASE the Risk
This is why is important to trade small enough so it is still in alignment with your trading plan and Risk limit
Big Bull BO; Bears Scale In
Many bears scale in during big bull BOs by selling below bear bars that close near their lows
Take profit above bull bar closing near its high
Big Bull BO; Bears Scale In
Many bears scale in during big bull BOs by selling below bear bars that close near their lows
Take profit above bull bar closing near its high
Sell new high based on the size of the Prior BOs
Sell new high based on the size of the Prior BOs
Some Bulls take their Profits based on the size of Prior BOs
Some Bulls take their Profits based on the size of Prior BOs
I always must have a plan to take PROFITS
The Bulls like to take Profits @ or above a Prior High
I always must have a plan to take PROFITS
The Bulls like to take Profits @ or above a Prior High
Buy Zones in a Bull BO or Tight
Buy Zones in a Bull BO or Tight
Broad Channels spend a lot of time sideways and it is unclear at times if the channel has evolved into a TR or it is simply still a Broad Bull Channel
Broad Channels spend a lot of time sideways and it is unclear at times if the channel has evolved into a TR or it is simply still a Broad Bull Channel
Buy Zones in a Broad Bull Channel
When the channel looks more like a TR and PBs fall more than 50% and below prior significant lows, bulls look to buy in bottom 3rd of prior leg (Buy Zone)
Buy Zones in a Broad Bull Channel
When the channel looks more like a TR and PBs fall more than 50% and below prior significant lows, bulls look to buy in bottom 3rd of prior leg (Buy Zone)
Bull Trend so I can Buy at ANY Time
Bull Trend so I can Buy at ANY Time
road Bull Channel it is better to be buying PBs than BOs at the new highs because bears are selling for profit at new highs
road Bull Channel it is better to be buying PBs than BOs at the new highs because bears are selling for profit at new highs
Profit Taking Zones above Highs
Profit Taking Zones above Highs
a Broad Bull Channel is simply a TR that is Sloped Upward
Expect Deep PBs
I need to place my stops below most recent major HL
Some Bulls often wait to buy until just above the last HL or even exactly at the HL which is forming a DB
a Broad Bull Channel is simply a TR that is Sloped Upward
Expect Deep PBs
I need to place my stops below most recent major HL
Some Bulls often wait to buy until just above the last HL or even exactly at the HL which is forming a DB
Strong Bear BO Attempts REVERSE UP QUICKLY in Broad Bull Channels (2nd Leg Traps)
This often creates a sell vacuum and a strong bear BO leaving Bears thinking they won and they quickly become TRAPPED
Strong Bear BO Attempts REVERSE UP QUICKLY in Broad Bull Channels (2nd Leg Traps)
This often creates a sell vacuum and a strong bear BO leaving Bears thinking they won and they quickly become TRAPPED
Sometimes Stop Placement has 2 choices
Sometimes Stop Placement has 2 choices
50% PB, very important location for any trade
why Buy a 50% PB… at 50% PB the risk is equal to the reward and in a bull trend with 50% the Trader’s Equation favors the odds of success for the 50% PB
60% for Reward and 40% for the risk
50% PB, very important location for any trade
why Buy a 50% PB… at 50% PB the risk is equal to the reward and in a bull trend with 50% the Trader’s Equation favors the odds of success for the 50% PB
60% for Reward and 40% for the risk
Buy 50% PBs even after a Minor Rally
Buy 50% PBs even after a Minor Rally
Broad Channel = Has TRs THEN BOs
Broad Channel = Has TRs THEN BOs
Every TR in a Bull Trend contains Topping Patterns
Topping Patterns = Expanding Triangle / HH MTR / DT / Final Flag / HST
Every TR in a Bull Trend contains Topping Patterns
Topping Patterns = Expanding Triangle / HH MTR / DT / Final Flag / HST
Every MTR is a type of DT/DB
Every MTR is a type of DT/DB
Every TR in a Bull Trend Contains what?
Every TR in a bull trend contains a Bull Flag
Whenever a top FAILS the Bears are going to give up and get out of their shorts
The Bulls know the Bears are going to give up and the Bulls will Buy
Every Bull BO is a Failed Top
Whenever a top FAILS the Bears are going to give up and get out of their shorts
The Bulls know the Bears are going to give up and the Bulls will Buy
Every Bull BO is a Failed Top
Every Bull BO is a Failed Top
Every Bull BO is a Failed Top
Every TR in a Bull Trend Contains a Bull Flag
Every TR in a Bull Trend Contains a Bull Flag
Even though the market is in BOM it is still in a Bull Trend so the odds still do slightly favor the Bulls
Even though the market is in BOM it is still in a Bull Trend so the odds still do slightly favor the Bulls
Broad bull Channel, the Bull BO usually FAIL
Broad bull Channel, the Bull BO usually FAIL
Bull Channels evolve in TR or Bear Trends
No Trend nor Channel Lasts Forever
25% chance of a successful bull BO and then another bull channel and MM up
75% chance of evolving into a bear trend or big TR with a bear break of the channel
Bull Channels evolve in TR or Bear Trends
No Trend nor Channel Lasts Forever
25% chance of a successful bul BO and then another bull channel and MM up
75% chance of evolving into a bear trend or big TR with a bear break of the channel
