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Signal Bars :-

1. Classic Reversal Bar

At the End of the 2 / 3 /4 Legs


After Climatic Bar
After Overshoot of the Channel line
At the End of the EMA Pullback
At LL / HH or LH / HL

2. Inside Bar :-
After BKO of Prior Swing / TL
3. ii, iii Pattern :-
With Trend Setup after Strong Move
At the End of the 2 / 3 /4 Legs
After Climatic Bar
After Overshoot of the Channel line
At the End of the EMA Pullback
At LL / HH or LH / HL

4. Small Bar :-
At the Large Bar’s Extreme as Trap Bar
At the Top / Bottom of the Range

5. Outside Bar :-

As a With Trend Entry Bar at the End of the 2 Legs


As a 2nd Entry at Reversal / Resumption Area
OSB Failed BKO Withtrend Entry
OSB Failed BKO Failure Withtrend Entry.
ioi Withtrend Entry

6. Large / Exhaustion Bar :-

Large Bar at Channel Overshoot

7. Shaved Bar :-

Shaved Bar in a Strong Trend

8. Failed Reversal Bar :-


Failed Reversal bar in a Strong Trend

9. DownUp/ UpDown Twins : -


Opposite Twins at HH/ LL
Opposite Twins at Channel Overshoot
Opposite Twins at Prior Swing / TL BKO

10. Double Bottom / Top Twins :-

DB/DT Twins BKO in a Strong trend

CHART HEAD LINES

1. A series of dojis can mean that a trend is in effect.

2. Trend Bars Do Not Always Indicate a Trend.


3. TL BKO of Yday and forming LL with a Strong Reversal Bar is a

Great Reversal Setup on any Time frame.

4. Reversal Bar should not Overlap with the Prior Bars , otherwise it

indicates Sideways instead of Reversal.

5. Reversal Bar / Outside Bar in Sideways Market can be Consider

as a Trap. Look for Trap Setup.

6. After Climatic Move, Bar with Large Revrsal / Rejection Tail can

indicates Reversal. Look for Failed High/ Low 1 or High 2 / Low

2 Withtrend Setups.

7. A Small Bar Can Be a With Trend or Countertrend Setup.

Especially after TL BKO and 2nd attempt in 2nd or 4th Leg.

8. Failed Reversal Trap bars after BKO are Often become Great

Withtrend Setups .

9. Strong Trend Bars Can Indicate the End of a Trend (Exhaustion,

Capitulation).

10. Countertrend Trades Need a Prior Trendline Break

11. Double Bottom Pullback Buy Setup

12. Failed Final Flag Buy Setup

13. An ii Buy Setup Is Often a Double Bottom Pullback on a


Smaller Time frame

14. Shaved Tops and Bottoms Indicate Conviction and Urgency.

15. A Reversal Bar Can Be a with Trend Setup Instead of a

Countertrend Setup.

16. Failed Breakouts of Large Bars or Flags.

17. Strong Trends Often Go Sideways in the Middle of the Day and

Then Resume.

18. An Outside Bar Is a Good With Trend Entry Bar at the End of a

Two-Legged Pullback.

19. Second Entries Are Usually Great Signals.

20. When the Market Is Strong, Wait for a Second Entry Before

Fading.

21. It’s Never Too Late to Enter a Strong Trend.

22. All Trendlines Are Important.

23. A Trendline can be Drawn from a Trend Channel Line.

24. A Trendline can Create as a Parallel of a Trend Channel Line.

25. A Neck Line Can Sometimes Approximate the Height

of the Right Shoulder.

26. Micro Trendlines Can Create Great Entries.


27. Price Often Tests Trendlines and Trend Channel lines as

Overshoots and Reversals.

28. A HH above HH and LL below LL are Great Reversal Setups,

Especially on Trading Range Day.

29. The Slope of Final Flag Often Dictates the Slope of the New

Trend.

30. Channel line Overshoot at Trendline BKO ( Dueling Lines ) is a

Great Reversal / Withtrend Setup.

31. Great Trend Days often have no Climaxes, Overshoots and

have Failed Wedges, Sideways Corrections, 2HM, Repeated

High2 / M2B, Low 2 / M2S Setups.

32. Trend Days Often Have Better Looking (but Less Profitable)

Setups in the Countertrend Direction.

33. Sometimes A Gap Open can be Consider as a Spike or Large 1st

Leg.

34. Shrinking Stair Pattern indicates waning Momentum and

Presses for the Reversal.

35. A Stair type Bull trend BKO results in a Measured move.

Which is Equal to Height of the Stairs.


36. If Price Forms Shrinking Stairs with TL BKO and LH/HL, then

it can be a Great Reversal Setup.

37. EMA Pullbacks in All Time Frames Usually Result in at Least a

Test of the Trend Extreme.

38. Double Top and Double Bottom Flags are Great Withtrend

Setups.

39. A Double Bottom Base Can Setups, Failed BKO and Reversal or

BKO Pullback Setup.

40. EMA Gap Bars are Good Setups when EMA is Flatter.

41. A Trend Bar in Direction of the EMA can be consider as a Gap

1, Then 2nd Bar with a Entry will become a Gap 2.

42. 1st BKO of the Trendline or EMA is always a Great With Trend

Entry, Which will test the Eextreme of the Trend.

43. 2 Hours away from EMA from any Time can be Consider as a

2HM Trend. Look for Setups as EMA Pullback or EMA Gap Bar.

44. Sometimes EMA Pullbacks on a Strong Trend can Scares

Withtrend Traders with Strtong Bars and Runs Late Stops, but

Setups Great withtrend Entries.

45. Moves Often Occur in Two Legs.


46. Extended Moves Are Often Followed by Two-Legged

Corrections.

47. M2B and M2S are Great Withtrend Setups on a Strong Trend.

48. In a Strong Trend Sometimes market forms High2 / Low 2

Variants, which behaves as Real High 2 / Low 2 Setups.

49. Corrections Sometimes Have Four Legs and Not Two.

50. A Large Tail Can Be Cosider as a Correction between Two

Trend Bars.

51. Two Opposite Trend bars, seperated with a Trend bar can be

consider as a Sideways Correction in a Strong Leg.

52. A Wedge Has Three Pushes But Is Often Two Legs.

53. After Gap Open as a 1st Leg, Usually Market forms 2 Legs,

Whereas 2nd Leg devided by 2 Legs.

54. Expanding Triangle Patterns offer Great Withtrend and

Reversal Patterns at their Top and Bottom.

55. A Three Push Pullback after Strong Trend is a great Withtrend

Setup and will test trends Extreme.


56. In a Three Pushes, Sometimes 3rd Push becomes failure. But

indicates Weakness of Counter Trend and presses for

Resumption.

57. A Wedge Pullback with a Channel line Overshoot forms a

Double Top / Bottom is a Good Setup.

58. Sometimes A Wedge have 3 Pushes but 2 Legs, Whereas 2nd

Leg might divided in 2 Legs.

59. Tight Trading Range That Is Sloping Upward can be consider

as a 1st Leg, Where 2nd Leg will form after TL BKO.

60. Failed BKO of the Tight Trading Range sometimes Corrects in 2

Legs and can become Great BKO Pullback Setup, Especially If it’s

a Withtrend BKO.

61. Inside Pass Bar or ii,iii Setups after Strong BKO are Great

Setups in the Direction of the Trend.

62. Sometimes Market Breaks Trendline and Corrects in Two Legs

and 2nd Leg have a Tight Range at HL/ LH, but BKO of the Range

or BKO of the 1st Leg High ( which Broken TL ) can be a Great

Setup.
63. BKO of the Tight Trading Range / Barbwire often Fails, but

Sometimes this failed BKO also Fail and become BKO Pullback.

64. Barbwire with a OSB at EMA sometimes forms Great

Withtrend M2B / M2S Setup at Outside bar’s Extreme.

65. Barb Wire Entries Are Best in the Direction of the EMA after a

Failed Countertrend Breakout through the EMA.

66. Barbwires at the End of 2nd Leg Indicates Balance, Which

Results in a Reversal.

67. Big Up, Big down Often Means Indecision and Is Often

Followed by a Trading Range. Look for Setups at Top and Bottom.

68. A Trading Range BKO after Climax or 2 Legs is Nothing but a

FFF Buy / Sell Setup.

69. It Is Better to Take Price Action Entries on Pullbacks than

Breakout Entries.

70. Anticipate a Breakout and Look for a Price Action Entry Before

the Breakout.

71. Sometimes Market almost BKO’s something and Pullsback, and

behaves like a BKO Occured, This is called BKO Pullback Variant.

72. BKO tests are Realiable type of Breakout Pullbacks.


73. Sometimes Market Overshoots on Breakout Tests.

74. AD = EF Magnet move. If Market forms AB and CD move in 2

Legs and E forms a HL /LH and Breaks D ( 2nd Leg Extreme )

then it Results in a EF move which equal to Height AD.

75. Sometimes market forms Big Trading Range on Open with Bull

and Bear Swings. Draw Two lines, One at Botom and another at

Middle of the Range . Once Price Breaks Range it Results in a

Measured Move.

76. Measured Moves Based on a Thin Areas. A Thin Area is a Area

between BKO and Pullback. Draw Lines at Bottom and Thin area.

77. Measured Move Based on a Breakout Pullback Flag. BKO Flag

is a Range after BKO. Once Price Breaks this Range Results in a

Measured Move.

78. Measured Moves Based on the Middle of Breakouts. A Breakot

Area is a Middle Area of BKO and Pullback.

79. Failed Prior Reversals Are Often Targets after the Reversal

Finally Takes Hold.

80. Stops Beyond Large Trend Bars Often Get Hit.

81. Trend Channel Line Failed Breakouts Can Be Reliable


Countertrend Setups, but it should be followed by a TL BKO.

82. A Pullback in a Strong Trend Is Usually Followed by a Test of

the Extreme of the Trend.

83. The Extreme of a Strong Momentum Reversal Usually Gets

Tested.

84. Strong Moves Usually Get Tested after a Pullback.

85. Countertrend Spikes Usually Do Not Get Tested.

86. Sometimes Test of Strong Spike was Deceptive with Low

Momentum, but Finally Tests the Extreme of the Spike.

87. A Reversal after a Test Usually Leads to at Least Two

Countertrend Legs.

88. A Test of a Prior High Can Be a Very Strong (Climactic) Up

Move That Leads to a Reversal Down.

89. A Test of a Prior Low Can Be a Strong Climactic Move That

Leads to a Reversal.

90. Double Bottom / Double top Pullback Buys are Great

Withtrend Setups.

91. Double Bottom / Double Top Pullbacks Need to Be Viewed in

Context and Are Not Automatic Reversal Setups.


92. Spike and Trading Range Top can be Lead to Reversal.

93. Failed with Spike Channel after Spike and BKO of Channel,

Sometimes Leads to a Channel in the Opposite Direction.

94. In Trading Range Markets, Fading Breakouts Is a Good

Strategy.

95. Shrinking Stairs, with each breakout extending less than

the prior one, Signal waning momentum and increase the

odds that a profitable Countertrend trade is near.

96. A Wedge Pullback to LH / HL after TL BKO is a Good

Reversal Setup.

97. Sometimes 3rd Push Unable to Overshoot or Break the Channel,

but High 2 / Low 2 with a Good Signal Bar is Enough on a

trading range day.

98. Expanding Triangle Bootoms and Tops are a Type of 3 Push

/Wedge and Failed Failure of Wedge Patterns which Lead to

Graet Reversals or With trend Setups.

99. A Failed Low 2 Top in a Bull Is a Great With Trend Long,

Likewise A failed High 2 in a Bear is a Great With Trend Short.


100. A failed Low 2 in a Bear and a failed High 2 in a Bull results in

another 2 more Counter Legs.

101. A failed Head & Shoulder pattern is Usually a With Trend

Setup.

102. A Failed Higher High Reversal Is Often a Buy Signal.

103. If there is two-sided volatile trading, and until a bull / bear

clearly develops, traders should assume that both bulls and

bears are active. Since If it’s not proven itself yet to be a Bull or

Bear trend day, it should be traded as a Trading Tange day.

104. Second Entries on Breakout Fades are usually Good Setups.

105. 2nd Entry with a another reason to Enter into a Trade is a Good

Setup.

106. Sometimes Higher Low after TL BKO fails and Forms Lower

Low below that Higher Low, but Still a Higher Low from bottom

is a Great failed failure Withtrend Buy Setup as a MTL BKO

Pullback with Trapped Bears.

107. Failed Failures of Trendline BKO’s are Trendline BKO Pullback

Setups.

108. Failed Wedges Usually Results in at least a measured Move.


109. Failed Double Bottom / Double Tops Results in a 2 Legs.

110. Most Head and Shoulder Patterns Fail and Become With Trend

Setups.

111. A Failed Reversal Is a With Trend Setup.

112. If There Is No Prior Trendline Break, Expect a Wedge Reversal

to Fail, So Don’t Fade the Trend.

113. A Wedge without an Earlier Trendline Break Is Not a Reversal

Setup.

114. A Failed Failed Wedge (a Failure That Failed) Results Great

Reversal Setup.

115. Failed Scalps Often Become Setups in the Opposite Direction.

116. Follow Price Action Rules Even When There Is a Volatile

Reaction with Huge Bars after a Report.

117. After a Strong Break of a Trendline, Expect Two Legs.

118. Always have atleast 2 reasons to Enter into a Trade.

119. There are only a few situations when you only need one reason

to enter a trade. First, anytime there is a strong trend, you must

enter on every pullbackthat does not follow a climax or failed flag

breakout, even if the pullback is just a High 1 or Low 1.


120. Also, if there was a trend channel line overshoot and a

good reversal bar, you can fade the move.

121. The only other time that only one reason is needed to enter a

trade, whether in a trading range or a trend, is when there is a

second entry. By definition, there was a first entry, so the

second entry is the second reason.

122. Yesterday’s Strong Bull Leg can be a Bear flag, look for It’s

failed BKO and Reversal with a Good Signal.

123. Failed Final Flag Followed by a Test, is Forming Three Pushes

up or a Double Top Results in a Reversal.

124. Small BKO of Yday Swing Low and forms Double Top can be a

BKO Pullback Bear trend Setup and Possible Bear trend from the

Open.

125. Small BKO of Yday Besar Trendline and Corrects in a Sideways

with 2 Bear bars seperated with a single Bull Bar is a Great BKO

Pullback Setup and Possible Bull Trend from the Open.

126. Patterns from the Prior Day Almost Always Influence the First

Hour.

127. A Strong Move Off the Open Is Sometimes Repeated Later in


the Day as a Trend Resumption day.

128. Big Gap Up / Down Open days are Usually becomes Strong

Trend days in either Direction.

129. If there is a Trading Range on the Open, Look for Good Price

Action Setups.

130. In Strong Trends, the First Pullback Often Is Unclear, When

that is the case, the odds are very high that your trade will

be profitable because an unclear pullback means the

Countertrend traders are very weak.

131. When a Day Is Not a Trend Day, It Is a Trading Range Day.

132. On a Day That Is Not a Clear Trend Day, Traders Should Look

to Fade New Extremes, Especially Second Entries and Wedges.

133. After trade Entry, place a protective stop beyond the signal

bar (you rarely will have to risk more than 1 dollar and usually

under 60 cents) until the entry bar closes, and then move the stop

to just beyond the entry bar. Once the stock moves about 60 to 80

cents in your direction, move the stop to breakeven and maybe a

few pennies worse.

134. Never exit the final portion until your stop is hit or unless a
clear and strong opposite signal develops.

135. Everything that you see is in a gray fog. Nothing is perfectly

clear. Close is close enough. If something looks like a reliable

pattern, it will likely trade like a reliable pattern.

136. Work on increasing your position size rather than on the

number of trades or the variety of setups that you use.

137. Develop the discipline to take only the best trades. Most-

important trait of great traders is the ability to do nothing for

hours at a time.

138. Always look for two legs. Also, when the market tries to do

something twice and fails both times, that is a reliable signal that

it will likely succeed in doing the opposite.

139. Never llok at 1 or 3 minut Charts to minimize your Risk. Bad

habits always erase more than your winnings. You are on the path

to a blown account, even though you might be moving slowly in

that direction. But you will eventually get there.

140. When you are about to take any trade, always ask yourself if

the setup is one of the best of the day. Is this the one that the

institutions have been waiting for all day? If the answer is “no”
and you are not a consistently profitable trader, then you should

not take the trade either.

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