DislikedHi Dan,
Firstly all the best with the new intraday trading and the journal.
With regards this trade when you look for a buying climax from what I know it's a bullish bar into a new high ground followed by a bearish bar, the bullish bar will likely close in the middle or towards the high of the bar. Do we not also expect high volume relative to the previous bars as well or is the fact that the better volume indicator is a red bar shows us that it is a buying climax?
ThanksIgnored
Thanks!
I think these can be graded slightly, in the way that PA setups are often graded in an A, B, C way. The best type of buying climax (in my opinion) is a bar that makes new highs, on very high volume and looks a lot like a bullish outside bar (with the open near to the low and the close near to the high). This would then be followed by a down bar that moves almost immediately back down as soon as it opens and closes below at least half of the first bar. I guess that would be an A setup. That particular trade was probably more like a B setup because the volume was not extremely high, but enough to consider it. For me, it's about joining up the dots and that pattern today looked to me like a good rejection of the pivot and the 1.5050 level which made it appealing to me.
Buying climax bars can be found at highs but they can also be found at lows (at the beginning of an uptrend) or at highs in a pullback of a downtrend (which is what I would have called today's trade).
Hope that makes sense (and I hope it is accurate... I am still learning myself so I wouldn't take anything I say as gospel!).
Regards,
Dan
won't say anything more than that in case anyone else wants a go!
moment after understanding those boxed areas and why price shot up.
