Jump to content
Girish Kumar

At that point, Is this VWAP Reversal or ABCD (UAL , May 14)

Recommended Posts

That point C you have marked isn't an indicator that the C is finished with it's run for an ABCD pattern.  The first candle past the red candle is a hammer and the next one is a doji or spinning top.  If you look at the volume for those 2 candles the first one was resting and then the second one showed an increase which could mean a run up. The wick on the bottom of the second candle shows that their was indecision and the low was higher than the previous candles low which means to wait until the next candle to see what was going to happen. I'm assuming your blue line is the VWAP and the fist line that was touched was the 9 ema.  The candle right after the spinning top or doji was the entry point for a long mainly based on that there isn't a low wick to show that their could have been some resistance. 

  • Like 1

Share this post


Link to post
Share on other sites

First, don't beat yourself up if you get fooled by one like this. I have taken so many early entries like this... That red candle is just begging you to short, but there are a couple of tells that wold have made me pause. The biggest is that, when that red candle finished it still had a higher low & higher high than the one before. It also had lower volume than the ones before. Those two things would probably make me pause until the next one made a lower low (ideally with volume) which it never did. Avoiding entries like this is one of the biggest changes I've seen in my trading recently.

  • Like 1

---------------------------------------------------------------------------------------------------------------------------------------------------------------------
People that spend their time telling others what can't be done only annoy those of us out there doing it.

 

Share this post


Link to post
Share on other sites

It could have been a ABCD pattern, but it didn't happen instead it kept going up and hit the VWAP. I would have gone long at the VWAP. 

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.