Trading When the Market is in a Bull Channel Flashcards
Bull Trend - Begins with Bull BO
Bull Trends always begin with a BO, which can be big, like here or small
It Represents the Bears giving up and Bulls Buying Aggressively
Strong Agreement between the Bulls and Bears that the price is to LOW
Bull Channel = Means a series of mostly HHs and HLs, PBs can be big or small
Bull Trend - Begins with Bull BO
Bull Trends always begin with a BO, which can be big, like here or small
It Represents the Bears giving up and Bulls Buying Aggressively
Strong Agreement between the Bulls and Bears that the price is to LOW
Bull Channel = Means a series of mostly HHs and HLs, PBs can be big or small
Reserve the term “BO” for Bars that have a reasonable chance of beginning a trend
Reserve the term “BO” for Bars that have a reasonable chance of beginning a trend
1st PB - Start of Bull Channel
PB in Bull Trend is bar with Low below Low of Prior Bar
Once a BO has a PB and a Bar with a Bear Body, BO has ended and a channel has begun
*ALL TRENDS are Spike and Channel Trends, even though either SPIKE(BO) or Channel is often not clear
Remember in a Bull Channel there is a 75% chance we will get a Bear BO and it is usually a Bear leg in what will evolve into a TR (Sometimes a Bear Trend Reversal continues)
1st PB - Start of Bull Channel
PB in Bull Trend is bar with Low below Low of Prior Bar
Once a BO has a PB and a Bar with a Bear Body, BO has ended and a channel has begun
*ALL TRENDS are Spike and Channel Trends, even though either SPIKE(BO) or Channel is often not clear
Remember in a Bull Channel there is a 75% chance we will get a Bear BO and it is usually a Bear leg in what will evolve into a TR (Sometimes a Bear Trend Reversal continues)
1st PB - Start of Bull Channel
Bull Channel = Bull Trend
Easier to make money buying, ESPECIALLY if most Bars are mostly above the EMA
Stop Placement is not related to Entry PRICE it is related to what Price Action is doing, you want to place your stop below the bottom of the most recent BO
*There is sometimes good scalp setups, but minor reversals(scalps)
1st PB - Start of Bull Channel
Bull Channel = Bull Trend
Easier to make money buying, ESPECIALLY if most Bars are mostly above the EMA
Stop Placement is not related to Entry PRICE it is related to what Price Action is doing, you want to place your stop below the bottom of the most recent BO
*There is sometimes good scalp setups, but minor reversals(scalps)
Mostly above EMA - Better to Only Buy
Mostly above EMA - Better to Only Buy
Stairs Pattern - Bear Scalpers Will Scale in above Prior High
If PBs are BIG, BEARS can also SELL
Need Bear Bars Closing NEAR their LOWS
Bears want to see PB going below BO Point - this means Gaps are closing and Limit Order Bears are making money
They Sell @ prior High and Sell more higher (Scale In)
Stairs Pattern - Bear Scalpers Will Scale in above Prior High
If PBs are BIG, BEARS can also SELL
Need Bear Bars Closing NEAR their LOWS
Bears want to see PB going below BO Point - this means Gaps are closing and Limit Order Bears are making money
They Sell @ prior High and Sell more higher (Scale In)
Bull Stairs - Bear Scalpers will Sell in Bull Trend
Bull Stairs - Bear Scalpers will Sell in Bull Trend
Spike and Channel Bull Trend - Bull BO(SPIKE), Channel, TR
Bull BO so SPIKE UP
Bear Bar went below Low of Prior Bar so Bull BO has probably ended
2 Bull Bars after Wedge Bull Flag, Bull Channel probably beginning
Bull Channel acts like a Bear Flag; 75% Chance of a Bear eventual Break below bull channel and evolution into a TR
*In hindsight, the bull channel is just a bull leg in what will become a TR
Spike and Channel Bull Trend - Bull BO(SPIKE), Channel, TR
Bull BO so SPIKE UP
Bear Bar went below Low of Prior Bar so Bull BO has probably ended
2 Bull Bars after Wedge Bull Flag, Bull Channel probably beginning
Bull Channel acts like a Bear Flag; 75% Chance of a Bear eventual Break below bull channel and evolution into a TR
*In hindsight, the bull channel is just a bull leg in what will become a TR
BO above Bull Channel = Buy Climax (Possible Parabolic Wedge), Expect @ Least a Minor Reversal
BO above Bull Channel = Buy Climax (Possible Parabolic Wedge), Expect @ Least a Minor Reversal
BO above Wedge Bull Channel - 75% Chance it will Fail (Look for reversal down)
*Any time the market breaks above the Wedge there is a 50/50 chance we will get a stronger leg up versus it failing and reversing down
BO above Wedge Bull Channel - 75% Chance it will Fail (Look for reversal down)
*Any time the market breaks above the Wedge there is a 50/50 chance we will get a stronger leg up versus it failing and reversing down
Bull BO above Bull Channel - Only 25% Chance of Success
Bull BO above Bull Channel - Only 25% Chance of Success
Small PB Bull Trend/Channel is always forming Wedge Tops, be very cautious trying to short it as the context is telling me that channel is tight making a reversal trade very unlikely. Better to only Buy
Small PB Bull Trend/Channel is always forming Wedge Tops, be very cautious trying to short it as the context is telling me that channel is tight making a reversal trade very unlikely. Better to only Buy
Bull BO above Wedge Bull Channel - Close Up
Bull BO above Wedge Bull Channel - Close Up
Bull Channels - 4 Types
Bull Channel: Buy @ EMA on reversals up from EMA. Easier to make money Buying. Stop order Bears will Sell reversals down for a scalp. Limit Order Bears will Sell above prior High for Scalp
Tight Bull Channel: It is a Small PB Bull Trend. It is a Micro Channel on the next Higher TF - ONLY BUY
Bull Micro Channel: No PBs, but often many overlapping bars, UNLIKE a BO. It is a BO on higher TF. Trade it like a BO and ONLY BUY
Broad Bull Channel: TR that is tilted up. Buy & Sell, mostly Scalp. (If Bars are mostly above EMA, then Bull Trend)
Bull Channels - 4 Types
Bull Channel: Buy @ EMA on reversals up from EMA. Easier to make money Buying. Stop order Bears will Sell reversals down for a scalp. Limit Order Bears will Sell above prior High for Scalp
Tight Bull Channel: It is a Small PB Bull Trend. It is a Micro Channel on the next Higher TF - ONLY BUY
Bull Micro Channel: No PBs, but often many overlapping bars, UNLIKE a BO. It is a BO on higher TF. Trade it like a BO and ONLY BUY
Broad Bull Channel: TR that is tilted up. Buy & Sell, mostly Scalp. (If Bars are mostly above EMA, then Bull Trend)
Bull Channel - Easier to Make Money Buying
Bull Channel - Easier to Make Money Buying
Channel is Stairs Pattern - Bears will Scalp
Channel is Stairs Pattern - Bears will Scalp
Small PB Bull Trend - BO on Higher TF so ONLY BUY
Small PB Bull Trend; started as a weak rally. Looks like a Bull Leg in what will become a TR
Most PBs last only 1-2 Bars & do not FALL FAR (“Small PBs”)
No consecutive closes below EMA
23 Bar Bull Micro Channel so EXTREME Buying
Sever gaps and Body Gaps so became strong BULL
Small PB Bull Trend - BO on Higher TF so ONLY BUY
Small PB Bull Trend; started as a weak rally. Looks like a Bull Leg in what will become a TR
Most PBs last only 1-2 Bars & do not FALL FAR (“Small PBs”)
No consecutive closes below EMA
23 Bar Bull Micro Channel so EXTREME Buying
Sever gaps and Body Gaps so became strong BULL
Small PB Bull Trend - BO on Higher TF so ONLY BUY
The small PBs can trick you sometimes they can also last a long time, when I decide it is a Small PB Bull Trend you can Buy at anytime ore any reason (Do not think about it to much after you’ve identified the Small PB Bull Trend)
Small PB Bull Trend - BO on Higher TF so ONLY BUY
The small PBs can trick you sometimes they can also last a long time, when I decide it is a Small PB Bull Trend you can Buy at anytime ore any reason (Do not think about it to much after you’ve identified the Small PB Bull Trend)
Broad Bull Channel - Trade it like a TR
Spends so much time going sideways it is easy to over look the HHs and HLs
BLSHS in Broad Bull Channels will help me to profit in these setups
Broad Bull Channel - Trade it like a TR
Spends so much time going sideways it is easy to over look the HHs and HLs
BLSHS in Broad Bull Channels will help me to profit in these setups
Broad Bull Channel - Trade it like a TR
Skilled Traders will use Wide Stops or Scale In
When not confident, most should wait for 2nd Signal or Strong Reversal
When buying near the bottom, NEVER sure it it is the final bottom
Confident bottom of leg is not too far below and that Bear BO will Fail
Broad Bull Channel - Trade it like a TR
Skilled Traders will use Wide Stops or Scale In
When not confident, most should wait for 2nd Signal or Strong Reversal
When buying near the bottom, NEVER sure it it is the final bottom
Confident bottom of leg is not too far below and that Bear BO will Fail
