by ahwilliams30 » Tue Nov 15, 2022 6:53 pm
- It's common to get a big volatile bar followed by prices balancing out in a lower volatility congestion area before another volatile bar breaks out continuing in the same direction
- Not every big move starts with a good signal bar
- Volatile bars usually lead to 2-3 continuing in the same direction before it dries up
- Big moves, almost by necessity, often begin at 2nd order pivots
? - Why is it that prices often stack within big volatile bars? I often see these stacks beginning ranges of all sizes
- It seems like there are some characteristics for each day that lead to prices either continuing after a volatile bar vs stacking up. Almost like a repeat pattern throughout that day
? - Why is it that big bodied bars show volatility in the first place if every bar has the same number of trades inside?
? - What is the significance of gaps between bars? (where prices open a tick above/below the close leaving a gap). I've seen 3-5 of these on each of the 2019 charts, sometimes more sometimes less, and most often in congestive areas.
- There's lots of instances where big moves begin after highly volatile moves in the opposite direction. I call this the sling shot effect
- I don't know if this is correct but it seems like you're more likely to see big volatile moves with quick continuation in the short direction compared to long
- Highly volatile areas happen often at the breakouts of double and triple tests or when prices pull back to those areas after breaking out
- Even after horizontal support and resistance are broken and traded through multiple times they often become important levels later in the day still. This really boggles my mind.
- Determining volatility isn't just about finding big bodied bars, the retracement is super important. If there's 2 stacked big bodied bars the volatility basically cancels out. Same if there's lots of wicks retracing as well
? - Is it possible that good signal bars starting big moves is a sort of repeat pattern throughout the day? I keep seeing days where almost every big move starts with a good signal bar then others where almost none do.
? - Are 2 medium sized big bodied bars the equivalent of one larger big bodied bar in terms of volatility?
- I keep seeing highly volatile exhaustion type bars at the very end of trends before they reverse
- Within ranges or close to support and resistance I've been seeing lots of juicy signal bars that entice people to enter directly into the support or resistance, just to trap them out and run the opposite direction
- Often, the true swing high/low of a trend isn't the actual start of momentum. There's usually a choppy area as prices reverse and you need to look for the point where momentum obviously and clearly switches
? - How come prices shoot in the opposite direction after double tests sometimes but other times it takes triple tests?
- It's cool to see how double and triple tests build off each other as prices go, like there'll be a triple test that begins a trend then within that trend there are smaller double and triple tests that continue to push it higher/lower
- Look for micro and macro double and triple tests. It's all about scale
- Have to ask yourself: Is this really high volatility or is it just a coincidental close? That's why bar overlap becomes so important
- Notice when there's a shift from dominantly series of bull bars to bear bars and vice versa. As in the bulls are getting follow through while bears have to choppily trade down. Find the areas where this switches to establish momentum
- It's not just breakouts that lead to volatility, traps do too
- It's common to get a big volatile bar followed by prices balancing out in a lower volatility congestion area before another volatile bar breaks out continuing in the same direction
- Not every big move starts with a good signal bar
- Volatile bars usually lead to 2-3 continuing in the same direction before it dries up
- Big moves, almost by necessity, often begin at 2nd order pivots
? - Why is it that prices often stack within big volatile bars? I often see these stacks beginning ranges of all sizes
- It seems like there are some characteristics for each day that lead to prices either continuing after a volatile bar vs stacking up. Almost like a repeat pattern throughout that day
? - Why is it that big bodied bars show volatility in the first place if every bar has the same number of trades inside?
? - What is the significance of gaps between bars? (where prices open a tick above/below the close leaving a gap). I've seen 3-5 of these on each of the 2019 charts, sometimes more sometimes less, and most often in congestive areas.
- There's lots of instances where big moves begin after highly volatile moves in the opposite direction. I call this the sling shot effect
- I don't know if this is correct but it seems like you're more likely to see big volatile moves with quick continuation in the short direction compared to long
- Highly volatile areas happen often at the breakouts of double and triple tests or when prices pull back to those areas after breaking out
- Even after horizontal support and resistance are broken and traded through multiple times they often become important levels later in the day still. This really boggles my mind.
- Determining volatility isn't just about finding big bodied bars, the retracement is super important. If there's 2 stacked big bodied bars the volatility basically cancels out. Same if there's lots of wicks retracing as well
? - Is it possible that good signal bars starting big moves is a sort of repeat pattern throughout the day? I keep seeing days where almost every big move starts with a good signal bar then others where almost none do.
? - Are 2 medium sized big bodied bars the equivalent of one larger big bodied bar in terms of volatility?
- I keep seeing highly volatile exhaustion type bars at the very end of trends before they reverse
- Within ranges or close to support and resistance I've been seeing lots of juicy signal bars that entice people to enter directly into the support or resistance, just to trap them out and run the opposite direction
- Often, the true swing high/low of a trend isn't the actual start of momentum. There's usually a choppy area as prices reverse and you need to look for the point where momentum obviously and clearly switches
? - How come prices shoot in the opposite direction after double tests sometimes but other times it takes triple tests?
- It's cool to see how double and triple tests build off each other as prices go, like there'll be a triple test that begins a trend then within that trend there are smaller double and triple tests that continue to push it higher/lower
- Look for micro and macro double and triple tests. It's all about scale
- Have to ask yourself: Is this really high volatility or is it just a coincidental close? That's why bar overlap becomes so important
- Notice when there's a shift from dominantly series of bull bars to bear bars and vice versa. As in the bulls are getting follow through while bears have to choppily trade down. Find the areas where this switches to establish momentum
- It's not just breakouts that lead to volatility, traps do too
