- first box defines initial range
- break below box immediately attracts buying
- first arrow shows buying signal
- another buying happens on break below small line
Note in above setups, the downside break is usually a sell signal. However the next bar closes very nicely above the high of the previous down bar. This is a strong indication of buying happening.
On a ten minute chart, the candlestick would have looked like a "pin bar" or hammer. Infact, I have another post on pin bar trading strategy.
Hourly chart:
- break below box immediately attracts buying
- first arrow shows buying signal
- another buying happens on break below small line
Note in above setups, the downside break is usually a sell signal. However the next bar closes very nicely above the high of the previous down bar. This is a strong indication of buying happening.
On a ten minute chart, the candlestick would have looked like a "pin bar" or hammer. Infact, I have another post on pin bar trading strategy.
Hourly chart:
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