[TheNegotiator]

Originally Posted by Tradewinds »

Looking at historical price bars and trend lines on a chart tell very little about the real behavior of price. All kinds of things happen intra-bar that are not readily apparent on a static, historical chart. For example, if the price bar had a lower low; did the price bar have a lower low at the open, and then shoot up and close higher? Did the price bar open high and close with a lower low? Did the lower low occur first or last? Was there a lower low with a close down or a close up? The answer to all those questions provide a more complete picture of what the price behavior really is.

I know this is slightly off topic, but it a really important point which people need to acknowledge when they are looking to see whether a strategy works or not. That's that looking simply at historical charts to get a feel for whether an idea is good or not can be very misleading. The eye tends to be drawn to where the strategy seems to have worked or at least clearly failed. So many things happen while trading that strategies can easily give signals which just get steam rolled in real time. Many people use backtesting(and forward testing) to really work out whether the strategy might work. I'd trial the strategy simulated to be sure though.

I think the strong or weak extremities as you put it, in order flow terms are rejections and tests, or responsive activity and the market drying up. They definitely will create different conditions after they have been put in.