Traders Laboratory - View Single Post - POP & Reversal Setup
View Single Post
  #3 (permalink)  
Old 04-01-2007, 01:09 PM
Soultrader's Avatar
Soultrader Soultrader is offline
Soultrader is looking for a green card.

Trader Specs
 
Join Date: Aug 2006
Location: Tokyo, Japan
Posts: 3,089
Thanks: 114
Thanked 373 Times in 150 Posts
Send a message via Skype™ to Soultrader
Re: POP & Reversal Setup

Quote:
View Post
Great set up, I went short on the previous bar only to be stopped out . Do you typacally try catch the the top or wait until the close of the following bar?
Very interesting that you mention that since the pop was also a stop run as well. With pivot point plays most of my entry is based on tape. Although candlestick patterns (entry after the close) produces strong signals, price may runaway from an ideal entry. I like to see sellers stepping in on tape... multiple 10+ lots on the sell side. I interesting pattern is when the tape tries a certain price level 2-3 times just to see sellers step in... in other words you will see alot of prints on the same level but without any price advancement. That information tells me that sellers are not wanting price to lift beyond it. Once the buy side disappears, reversals are often quick. Also look for who is supporting the buy side on tape. Is it small lots? Big lots? Rallies caused by small lots are often rejected swiftly leading to a swift reversal.

__________________
James Lee
Email: JamesLee@traderslaborator y.com
Skype: james.lee03
TradersLaboratory.com
**********************
Empowering traders with knowledge.
Reply With Quote