This was a fine example of my newly discovered Bird in Flight sequence. The level traded was RES 1, but this was broken on the initial push and then other levels came into play.
Market breaks through RES 1 and hits CBOL; from there it pulls back for a few mins to find orders at R1. This creates the H-C-B entry and if I had got in fast enough it would have been BE – if price is still outside the Bolli Bands when this sets up, the trade is canceled
The rules for the H-C-B are
there needs to be a clear retrace pattern with a clear TL from the first attempt at the KL
the trade must be in line with the ST trend
price must be back inside the Bolli Bands on the M3 chart
As expected, on the second attempt the market has a lot more momentum and pushes straight through both levels. With so many levels to play with and a move outside the 3Min Bolli, this is now a sell.
Selling the market with all these level below is not a problem as long at the context is correct and prices must be outside the Bolli Bands on the M3 chart.
The third entry is the 3Min Bolli 2nd chance entry. This could have been a break of the TL that supports the move into the level (but then I would have 2R open on the trade) or a break of the corrective action that follows the level being traded.
