DAYTRADING Fundamentals Message Board

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Strategies & Market Trends : DAYTRADING Fundamentals

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To: TraderAlan who wrote (3998)	9/15/1999 10:49:00 AM
From: Teresa Lo	Read Replies (3) of 18137

Here's my favorite setup - And it's on a failed signal. An example. A "benign" CPI (or some other piece of news) brings a gap up and sellers at the open on a bearish counterattack candle. intelligentspeculator.com Whenever we see the bearish counterattack on something like a 15M chart, it's always safe to just sell. The key is that this candle must be the FIRST one of the day on a gap up. The first target is the MA and/or a test of the gap. On the 5M S&P chart, there was a single Dunnigan UP bar to set resting sell stops for a "surprise" down-move. Note it was followed by a narrow range bar to form a harami (indecision)...and then clunk. intelligentspeculator.com And on the emini chart, we can see clearly contracting volume on the bounce, forming the bear flag OVER the MA, which is the most lurative bear flag of all since most people will never be looking for it here, confusing it with a GRAIL BUY...so in itself, it's a failed signal for the longs, trapping them all and then they have to puke. intelligentspeculator.com So while everyone else it getting all excitied, we already knew that there was a bearish counterattack candle on the 15M chart, so there were nothing but sellers overhead in the first place. This "unorthodox" bear flag is my favorite pattern.

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