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Direct MessagesDate/Time: Thu, 16 May 2024 03:48:03 +0000
Post From: Orderflowanalytics-style reversal bars.
| [2015-09-29 05:37:56] |
| Zdislav - Posts: 73 |
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The test was not meant to aim only you :-) Just to get a general thought and start up the brain little bit... Well... my interpretation can be something like this: 1) Depends on whether you consider cluster of one, two or three (or more) consecutive price levels. I usually consider 3 levels, so the largest volume (when you total volume of 3 levels) is - and the cluster - 1000-1002. Your answer (1055-1006) is correct in case you consider only two levels. 2) Correct :-) 3) This was the tricky one. You actually cannot tell unless you know where the bar opens and closes. From the information given we do not know how the bar was built. From the top to bottom or vice versa? Did it open somewhere in the middle, then went up or down and then reversed? All cases will give you opposit conclusion. 4) Correct... more or less. Let's say the bar is bullish and the trend is up. So I would like to enter a long trade. There are actually two distributions. If I want to be sure I get fill (or the higher probability) I would enter at the lower edge of higher distribution - 1005 - if the market trades above. And respectively for short trade (entry at 1003) in a downtrend conditions. But that all depends on actual dynamics of the market... ... as you can see the interpretation can vary and it is very difficult to give one straight answer to everything. What would work for one does not necessarily mean it must work for anyone. I just focus on getting the basic logic under my skin and I am a winner! :-) |