Video 08A, B, C & D: Candles, Setups and Signal Bars

Question 1

Every bar is either…

Answer 1

Trend Bar = Big body, small tails. Trading Range bar = Small body, big tails.

Question 2

What do I do if I’m not sure if a bar is a tend bar or trading range bar?

Answer 2

Look to the left. look at the context. For example: A small body in a strong trend is more of a trend bar. A bigger body in a sideways market, is a trading range (TR) bar.

Question 3

Define a Trend bar

Answer 3

Small tails, body at least 50% of bar, Range at least as big as average

Question 4

Define Trading Range (TR) Bars

Answer 4

Small bodies, prominent tails.

Question 5

True or False

Every tail was once a strong trend body?

Answer 5

True. Every tail is therefore a failed (BO) breakout attempt

Question 6

True or false

Every tail on 5 min chart is a failed breakout on a smaller timeframe

Answer 6

True

Question 7

What are the strongest signal bars?

Answer 7

Reversal bars. When supported by the context. But are only 1% of all bars.

Question 8

True or false

a strong signal bar need a strong follow-through

Answer 8

True

Question 9

True or False: Whenever a trading range is small and is occurring in a trend, chances are it is a pullback

Answer 9

True

Question 10

True or False: When you see a tight trading range late in bull trend you have to be thinking about a final bull flag

Answer 10

True