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07/02/2018 Market Recap

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Cobra
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07/02/2018 Market Recap

Post by Cobra »

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Cobra
Site Admin
Posts: 58339
Joined: Sat Feb 12, 2011 10:29 pm

Re: 07/02/2018 Market Recap

Post by Cobra »

SUMMARY:

Called the low was in right, the rest of the day was then easy.


NOTE:

Gap down, as usual, waited for the test of ema20 (viewtopic.php?f=2&t=2953&p=256483#p256483).

Good strong bear signal bar here (viewtopic.php?f=2&t=2953&p=256479#p256479) so possible L1 short. The next bar didn't break below the signal bar so the signal bar became the next bar which was a weak bear bar so might not a good L1 anymore.

The 2nd L1 short was good for 2x target although the bear signal bar was weak (viewtopic.php?f=2&t=2953&p=256483#p256483). It was L1 short after a final bull flag (2 bull bars before the signal bar which before the entry bar which is pointed by red arrow), so made sense to short, I guess. Another way of looking is it's L4 short. The rebound from open was 4 legged, yet it just was enough to test ema20 so should be a short.

I think to trade H1/H2/L1/L2 setup, the context leading to the setup is more important. In today's case, recognized the final flag was the key. If no good context, trading H1/H2/L1/L2 might be just a random bet, doesn't matter whether the signal bar is strong or not.

2nd leg down which was short lived, so possible final bear flag, then strong bull signal bar followed by a strong entry bar, by here (viewtopic.php?f=2&t=2953&p=256487#p256487) I thought the low was confirmed in, it's a trading reversal long here.

The up was strong so generally the pullback should be bought (viewtopic.php?f=2&t=2953&p=256490#p256490).

Possible mm up (viewtopic.php?f=2&t=2953&p=256493#p256493). Yeah, I agree, it's hard to call H1 long here (5 bars before) because the pullback was relatively sharp so generally should wait for H2 which in today's case never came.

In the end, not a bad close.
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The trading log below is meant for myself only which main purpose is to help improving my market sense.
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