There is no doubt that we can make an extra 10 pips or more after a first reliable reversal pattern appears on a chart. The question is this: "Are you still in a high probability trade once you open a position after that first reliable reversal pattern appears? If the probability to make good pips are less after that first reliable reversal pattern appears than you know that you need an extra dose of precaution before you rush in a trade, because the market has started to tell you that it wants to reverse the trend and this is the more important if you consider that once a reliable reversal pattern appears, the market becomes more aggressive at every successive low that is made till it gets to test the 50 sma. All I want to say is that a warning signal should be taken seriously, because trading in a potential sideways market with the bulls or bears showing their muscles can be potentially harmful. There is no difference between #1 and #2, the mood of the market is changing and that should be taken into account when opening a position after that first reliable reversal pattern appears, because more than once I read some posts that say: "I traded according to the rules and the market went against me" The market does not trade against us, nor in our favour, we have to learn everyday afresh to trade with the market and to value every signal/indication it gives us". High probability and low risk should always be our motto. With that in mind we will perhaps take less trades but safer ones as suggest by Phillip himself.
DislikedI am looking at setup #1 & 2 and both setups look the same to me if I look at your indicator. #1 was also a hammer but if you have taken the entry in the war zone, it would have given you 10pips. But not #2.
What are the differences between setup #1 and #2 according to your indicator?Ignored
