Posted by DigiNomad on 29th of Feb 2024 at 04:23 pm
Basically a variation of that. I'm looking for "crown
reversals." Price crosses a supply or demand level (up or down),
then reverses and crosses the 21 EMA in the other direction, then
crosses the 21 again on a retest of the broken level...at that
point the trap is set. The 1st candle completely over the 21
in the direction of the reversal is the trigger. It looks
like a crown on the chart. I think there were 7 almost
textbook ones on SPX yesterday and 2 the day before. Today wasn't
as straightforward. AAPL was a good example today.
I have been using a 1 min and 10 sec chart. The earlier you
spot it, the better your odds . The problem with today was
that the retrace wasn't going back through the 21 EMA so I didn't
take many trades.
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Digi, by reversal/trap do you
Posted by tradeit007 on 29th of Feb 2024 at 04:14 pm
Digi, by reversal/trap do you mean a false breakout up or down followed by price exceeding a nearby milestone price?
Digi, thanks for your response!
Posted by tradeit007 on 29th of Feb 2024 at 09:03 pm
Digi, thanks for your response! I appreciate your explanation, and I enjoy descriptions of your thoughts throughout the trading day.
Basically a variation of that.
Posted by DigiNomad on 29th of Feb 2024 at 04:23 pm
Basically a variation of that. I'm looking for "crown reversals." Price crosses a supply or demand level (up or down), then reverses and crosses the 21 EMA in the other direction, then crosses the 21 again on a retest of the broken level...at that point the trap is set. The 1st candle completely over the 21 in the direction of the reversal is the trigger. It looks like a crown on the chart. I think there were 7 almost textbook ones on SPX yesterday and 2 the day before. Today wasn't as straightforward. AAPL was a good example today.
I have been using a 1 min and 10 sec chart. The earlier you spot it, the better your odds . The problem with today was that the retrace wasn't going back through the 21 EMA so I didn't take many trades.