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I did not trade DCIX on Friday, 11/17, but the 30 minute chart demonstrates the power of inside bars or in other words, an equilibriums. Inside bars are eqiluilriums between buyer and sellers where one side could not move the price to new highs or lows. It's a two bar or multi bar pattern and teh 30 minute pattern in DCIX had taken 90 minutes to form. Either longs finally gave up supporting the price or weren't strong enough to push it higher, or sellers just were more dominat. Either way the equiliblium formed and that was the "tell". You cannot deny the inside bar or dispute it's formation in the first 90 minutues of trading.
Sorry...for teh weekly delay.
I only use candlesticks in charting and inside bars on all time frames. The best Example i can show you is NTES from Fiday. I used multiple time frames, sometimes on very small time frames or combination of larger, analytical time frames.
I would recommend having separate 1, 2, 3 and 5 minute charts ready when reading this post.
During the open it can be very fast and with NTES price moved very fast. This high volatility is good for this type of trading but there are times when you don't need to be a ninja and can step back but the principles are the same. I take a long poistion on the break of insde bars high and opposite for a short. My stop would be the bottom of the inside bar for a long or top for a short position. But sometimes if something trades through my entry i just exit...hehe
This is one the conditions i use for inside bars.
(100 * L1) \ 1 <= (100 * L) \ 1 AND (100 * H) \ 1 <= (100 * H1) \ 1
Here is another
L1<=L and H<=H1
I use it within the PCF% true indicator so it is visual but i have to know the bars high and lows. So set up your charts with one the formulas so you can track the passage below.
At the open NTES ran about 8 bucks, which I totally missed but at 9:32 and 9:33 on the one minute chart the price action remained within that opening bars range. Also, the 3rd minute stayed in the 2nd minutes range(inside bar). I purchased a couple of 100 shares through 346.98( 9:33 close) and some more through the highs(348.30) of the inside bar on the 2 minute chart after close at 9:34 I offer half for sale at 352..73 and the rest 353.47 for a near measure move from the 2 minute inside bar's low.
I use it within the PCF% true indicator so it is visual but i have to know the bars high and lows.
The price action proceeded to consolidate and after 15 minutes of trading the price sold off the highs. At the 9:45 close and on the 5 time frame there now formed another inside bar. It was clearly within the previous 5 minute candlestick. It would be very prudent to wait for the break of the high of 5 minute inside bars high to make a purchase but your stop would be the lows of the same bar. However, on the 2 and 3 minute frames there were additional opportunites to take additional long postions instead of awaing for the highs of teh 5 minute bar.
On the 2 minute TF there were two inside bars back to back, and on the 3 Minute TF there was one inside bar. These TF's closed before the 5 minute TF highs was taken. So, in theory you can take a smaller postion when price trades through the two samller TF's and when the inside 5 TF high is taken you can add.
In addition, on the 15 minute chart a new time frame opened at 9:45 and as long as price traded and stayed about the opening price you can stay long
This is what i did but i just offered everyting at 357.73 and called in a morning. There similar opportunites with NTES during the day. At 10:30c there was an inside 5minute whcih broke to the downside but i didn't hit it. If it were to revesrse off that inside bar the price would of plumbeted but it didn't. The stock was up big and it was fiercly strong. I took a small postion through that 5 minute hammer and waited. I let it trade in teh direct of teh trend at took my profits.
On the 2 minute time frame and 3 minue time frames there
What if I told you, you don't need overlay, indciators, or classical technical analysis to trade??
that's just a typo in that passage.
Go to TSLA (10/20)on the 5min chart at the 10:20 closes it's negative hit while it should be postive
My definition of an inside bar is when the current bar's high and low completely within or eqaual to the previous bars high and lows.
My formaulas for an inside bar:
Equal to and/or less than highs and lows
1. L1 =< and H1 => H
Less than both high and lows
2. L1 < L and H1 > H
When use condition No. 1 in PCF% true indicator on a chart, sometimes it works and other times it doesn't. Is there another formula for an inside bar where the price is less than and/or eqaul to teh high and lows??
Formula No.2, won't scan if the condition is equal to the high and low.
Try these candles
(((H - L) > 3 * (O - C) AND ((C - L) / (.001 + H - L) > 0.6) AND ((O - L) / (.001 + H - L) > 0.6)))
(L2<L1 and H1<H2) AND (((H - L) > 3 * (O - C) AND ((H-C) / (.001 + H - L) > 0.6) AND ((H-O) / (.001 + H - L) > 0.6))) AND H>H1
I have hammer and up, shooting star and down, and inside and up or down
I only turn my laptop upside downside when i'm a losing postion...lol
It's not touchy...i just prefer it!!
I appreciate your input...thanks.
Now if I could get tc2k to produce a hourly chart that opens and closes on the bottom of the hour!!
Bruce can you inbox me bc i cant post a pic for somereason..
Its not doing what I would like it to do...but thanks