DislikedThis is part 2 or the second post dealing with this chart (I'm actually doing this one first though). I wanted to begin by discussing stops, as I believe this is an area where most traders go wrong.
Whilst the chart is of the ES, for this post we will be using a fictional market as I hope that will make the subject more relatable. In this market, the minimum tick size is 1 and that's $1/tick.
Okay, again I am saving the price action/vsa analysis for the next post, but we need to look at our entry signal bar-the squat.
We see a narrow range...Ignored
I was curious if the downbar after the ND you have marked is of any importance to you. For me this is the first sign of things to come... now it doesn't give any entry point but it does definetely would open my eyes to the possibility of a short trade coming at some point in the near future.
While the close is not right on it's low it is close and on increased volume (higher than even the trigger bar) and gives us a close lower than the previous 5 bars. Now it's low isn't taken out so it's not the final 2 bar reversal signaling the top but it is a 2 bar reversal none the less so it is telling us something is a brew...
That is how I would see that bar and I am curious if it would even be on your radar.
Edit... note also that the entry bar you marked not only takes out the squat bar you marked but also the low of this bar I am questioning... not a conincendence me thinks.
Today's zone = Tomorrow's opportunity!
... In lieu of sleeping I tend to find myself creeping down to check my charts... I may be suffering from some sort of addiction 
