trading tutorial helps trading in the commodity market and stock market

Entries and Exits - continued

Entering a trade on a two-day bullish turnaround pattern just above a low

A two-day bullish turnaround has a down day followed by an up day. The up day must close above the high of the down day and have higher volume. Use this pattern in an appropriate place, not in isolation. This example is at a low indicated by the two lows in October and December, at a similar price. Other examples of appropriate use include just above a bullish trend line or just above a mid point.

Bar 'A':

This is the second day of the two-day bullish turnaround. Both its volume and price are well above the previous down day.

Bar 'B':

If you sold on the second of two straight down days (this pattern suggests you either exit or put your protective stops tight) would have resulted in a 10.5% gain.

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