FORECASTING

Example 1:

The market has broken

the previous high &
rejected

Think about it, as a trend trader, we wanna see the market break
the high with momentum. <like below> => The market now is
giving us a warning sign

Now, we’re looking for:

Scenario 1: The market can reverse

Reversal with momentum => Happy to take trade when it forms continuation Bunker
Bomb

Scenario 2: The market gives us a nice push down with reversal

Reversal bullet => Willing to take the trade.

Scenario 3: The market can continue from here with momentum

  We take continuation
Bunker Bomb

Scenario 4: The market can give a nice push up

 We can take
Continuation Bullet

Understand that the market could continue its ascending

nature:
If it happens, the market could easily reverse after that

Then, we’d look for continuation bunker bomb:

Could also reverse:
Example 2:

We’re seeing a descending

coming into an ascending
nature => A sign we’re in a
range-bound phase => We
need to see commitment

We normally get more descending into ascending

What we want to see: commitment from the pair

 Case 1: a large impulse down => Happy to be involved in a

continuation bunker bomb to the down side
 Case 2: a nice push to the upside => Happy to be involved in
a continuation bunker bomb to the up side

The market could descend & then reverse, showing us a nice

continuation bunker bomb => Happy to take the trade
The market could descend and give us a reversal: nice push, pull
back to the level => Happy to take the trade

The market could easily continue ascending => We need to look at

how the low would be broken: We wanna see nice push, nice
continuation bunker bomb => Happy to take it.
We could also see a bullet trade: a nice push – pull back to that
level. Happy to take that also but very cautious with that sort
of set-up because we could start a descending nature & start a
larger range as we know.
Note: We need to be careful. Because we come from a descending
into an ascending. Is this high probability?

Some people will only look at ascending leg and say it’s high
probability but it isn’t becuz we know the market is likely to
range larger.

When we break the low,

don’t just set an order to
sell here
We need to see momentum/ nice break.

Because we read the phase

of the market, we
understand we need to be
patient, not to place order
immediately

Because in here if there’s a

retracement candle, it
means we break the high –
retrace, then break the low
– retrace.
Happened as forecasted!

The market reversed