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Re: The 2 bar reversal
Hi Tin and brownsfan,
I do enjoy your posts very much using candles and volume. This is one of the things I have been studying and adding to my strategies lately as well.
Regarding the 2 bar reversal, what is the difference between the 2 bar and a bullish englufing pattern? Is it due to the addition of volume analysis?
The chart brownsfan showed brings up a question I have been pondering for some time. "Tests" on low volume or no supply bars are extremely powerful. However, there are times when a no supply bar will fail. In other words, volume will show no supply but price will drift lower causing a rush of stop orders causing further decline. Do you have any filters that you add when playing a long or short at a key S&R level on a "test"?
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James Lee
TradersLaboratory.com
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