Parabolic Reversal: How to Deal with Double Fake Breaks?

[Parabolic Reversal: How to Deal with Double Fake Breaks?]

Thank you so much, @Angela Kuzeva and @Martin D. I've been using Aiman's Parabolic Reversal strategy (and have added many of my own rules to the playbook). Your feedback are very helpful, I'm grateful that you've taken the time to help me with this.

[Parabolic Reversal: How to Deal with Double Fake Breaks?]

Is there a way to deal with double fake breaks when trading parabolic reversal?

My parabolic reversal trade book is:

• Wait for consecutive candles, extended from 9EMA
• Climactic volume
• Reversal candle
• Wait for fake breakout
• Enter at the new 1-min high/low

But sometimes there are double fake breaks, is there a way to anticipate that? Thank you.

 

[Newbie Questions: 5-min ABCD]

I'm new to BBT, and have been simulating 5-min ABCD for the past month. Hope someone could help me with these questions, thank you!

1. If a stock has been trending up on the daily chart, but trending down on the intraday chart but you see consecutive green candles, can you still trade ABCD going up?
2. If there are multiple green candles going up but one red candle in the middle, where do you start counting A?
3. Regarding confirmation, if the candle pushes past D, do you wait for the 5-min candle to finish before entry or do you enter right away?
4. What if D is close to 9EMA but extended from VWAP, do you still enter this trade?

~ Nick

[Newbie Questions: 1-min ORB]

Thanks for writing from Australia, Martin! Beautiful country ... I spent 2 weeks there and can't wait go to back. 

My goal with this formula is to determine if the 1st 1-min candle is too extended from VWAP. For example, in the screenshot below, the setup for orb-up is great (gapped up, above VWAP, etc) but the 1st minute candle is a bit extended from VWAP. ATR is ~$4, and the orb ~ $0.90. 

I suppose it's not a perfect science, rather it's more about experience understanding all the price actions. Thank you. 

[Newbie Questions: 1-min ORB]

Absolutely, gaining the skills in reading the tape is the key. 

For now, I wrote this short ATR formula to estimate whether the 1st min candle is too extended:

[Minimum (PDC, PML, LOD) + Daily ATR (14)] / [Current price - VWAP] >=5.  

... It's saying that it's not too extended if at current price, I have room to reach 5R

Not sure if 5R is too aggressive or too conservative.

[Newbie Questions: 1-min ORB]

Hi Martin, thank you so much for your help, I really appreciate it. I have a follow up question:

 

Re Question 5: Do you use ATR to evaluate whether the first 1-min candle is too extended from VWAP? 

[Newbie Questions: 1-min ORB]

I'm new to BBT and have been simulating Andrew's 1-min ORB strategy for 3 weeks. These are some questions popped up, can someone help?

• How far is price too extended from VWAP pre-market? (Do you eyeball this or use some formula?)
• Do you ONLY use the 1st min candle to set the range? (What if the 2nd min candle is a better setup than the 1st?)
• For ORB up, can the 1st candle be red instead of green as long as it ends above VWAP?
• Are both lower wick and long upper wick on the 1st min candle "bad" setup?
• Does it matter if the 1st min candle is too extended from VWAP? If so, how do you define "too extended?"
• How do you manage multiple trades that require your attention around 9:31?

Thank you so much!

nick