Three bar strategy

[timepass]

JPYINR Daily. Buy setup ?

 

[VIKAS 21]

Dear time pass if u look in lower part of chart we have our second setup in first green, second red after that huge green bar confirming our trend.....

I will not recommend to go long in trade when we are near our resistance level.....

buy alwaz near support level,, avoid patterns near resistance level...

 

[prabhsingh]

Vikas,

Since you are recommending to take positions near support level and not resistance levels in that case how can we draw the conclusion that support wont fall father and similarly how can we ensure that resistance wont breakout.The example that TP bro has given even though its near resistance level but there still exists possibility to breakout that resistance and make new highs if big green bar exists with good volumes.Isnt that correct?

 

[timepass]

Dear time pass if u look in lower part of chart we have our second setup in first green, second red after that huge green bar confirming our trend.....

I will not recommend to go long in trade when we are near our resistance level.....

buy alwaz near support level,, avoid patterns near resistance level...

I was wondering about how to discern trend continuation patterns....

 

[VIKAS 21]

okk may be as per ur trading style...

u mean u buy near resistance level & sell near support level....

Dear we get trading patterns (like candlestic patterns) at support level in middle of the trade & at almost end of the trade....

u can take trade but u know ur risk will be very high.....( matter Of risk & money management)

as no body can predict the market....

I am a student of ST SIR.... so my first basic rule is minimize ur losses......

ur chances are already reduced when u r taking long position in overbought zone in hope of further breakout with big volume.

 

[timepass]

No. Nothing about my style, but referring to your post about the inside bar setup, the g-r-g and r-g-r setups defined are mainly about the trend reversal. I would also like to get to know about the setups for trend continuation. Of course MM is the main thing.

FIRST SET UP ( call it RIM-1 for simplicity)

Inside bars are of two types

1. Trend continuation.

2. Trend reversal

So first we have to check it out whether its Trend continuation or Trend reversal bar.

If mother bar is of the same colour of the trend , then it's continuation bar

But If the mother bar is of the opposite colour of the trend then its trend Reversal bar.

Now about the set up( Three bar set up)

For long

1. mother bar green, next bar red & next bar green

For short

mother bar red, next bar green & next bar red

If all these conditions met then only trade with this method, otherwise no trade....

USDINR 30 min.. sell setup seen.

 

[VIKAS 21]

1. No pattern

2. Second set up, trend confirmation, third bar is huge , clear confirmation of the pattern

3. trend continuation pattern

4. bars in a range , no pattern will be considered.

5.first set up, trend reversal pattern, as u see this reversal is near resistance level....

so we are always cautious at these level....no chance of fresh positions there,, howmuch strong the pattern is....

 

[VIKAS 21]

1. range breakout

2. we have green red green bar pattern, though its not perfect inside bar pattern as middle bar having is low slightly lower than first bar, but third strong green bar confirming the trend .

3. so behaviour of third bar is very significant, if we have inside bar pattern but third bar is not strong .... the pattern will not work......

 

[VIKAS 21]

USE OF THIRD BAR FOR SL & TARGET...

AS third bar formation is very important, after formation of third bar we can take trade after breaking of its high ( for long) with SL at its low & target the height of the bar.

i have checked it & find it we got the target in all cases.

reverse for short trades....

 

[gurmy.]

USE OF THIRD BAR FOR SL & TARGET...

AS third bar formation is very important, after formation of third bar we can take trade after breaking of its high ( for long) with SL at its low & target the height of the bar.

i have checked it & find it we got the target in all cases.

reverse for short trades....

dear vikas

could not get the highlighted sentence,what is the target?height of which bar?

or the target is = to the "length"of third bar ?

and which is the most suitable T/F for this strategy?

thanks