And this is the outcome of the bearish bar. It was just another opportunity to buy at its close. Not to sell.
In strong trends, when you see big fat bars against the trend like that one, chances are that it is an opportunity to get back IN the trend.
I placed a buy-stop order above the top of the small 30min candle, and that's how I faded the bar and the channel line break. The market soon reversed and rose above the little flag, filling my buy order and carrying me with it. Buy/Sell stop orders are a good way to enter or re-enter when you have a strong trend. You place them at a key point and wait for the market to prove the trend is still there. And it did.
I provide a zoom-in of what I did on the 30min timeframe, as that bear 4H bar closed. (30min is the shortest timeframe I trade on)
Most of my trend trading takes place with buy/sell stop orders. They work great in trending markets.
In strong trends, when you see big fat bars against the trend like that one, chances are that it is an opportunity to get back IN the trend.
I placed a buy-stop order above the top of the small 30min candle, and that's how I faded the bar and the channel line break. The market soon reversed and rose above the little flag, filling my buy order and carrying me with it. Buy/Sell stop orders are a good way to enter or re-enter when you have a strong trend. You place them at a key point and wait for the market to prove the trend is still there. And it did.
I provide a zoom-in of what I did on the 30min timeframe, as that bear 4H bar closed. (30min is the shortest timeframe I trade on)
Most of my trend trading takes place with buy/sell stop orders. They work great in trending markets.