Pivot Point Case: I have Daily Pivot Points, Fibonacci Style. Watching 30M, 1H, and 5M Charts.
This would be for a scalp. TP would be around Pivot Point ("P" Line) or lower if trend strong enough. I just am observing a bear signal around R1, and as far as i can understand, trading Pivot Points properly requires being able to read how bars react around those levels. No different than hand drawn support and resistance levels. There is more to it than that I'm sure, but to keep things simple, I'm just looking for candlestick behavior and close/continuation around these levels.
Price Action Case: 30 M Signal Bear Bar Formed and Closed. What constitutes a bear signal bar according to Brooks Price Action? 1. Close on or near the low of the bar. Upper tail 1/3 to 1/2 the height of the bar. Could be seen as a double top reversal with earlier high. Also a test to the 20 EMA.
RSI: 70 Level (Overbought) reached, and a Lower High is forming. Typically, the pattern I have observed when a pullback or reversal begins- is after the RSI reaches or goes above 70, and then retests the overbought level lower (a lower high), you will usually get a leg down. It is a form of an exhaustion signal. Obviously overbought and oversold tests definitely do not guarantee a full trend reversal, but they can signal pullbacks enough for a scalp. You have to read the bars to understand the current context of market (trend, range, channel)
This would be for a scalp. TP would be around Pivot Point ("P" Line) or lower if trend strong enough. I just am observing a bear signal around R1, and as far as i can understand, trading Pivot Points properly requires being able to read how bars react around those levels. No different than hand drawn support and resistance levels. There is more to it than that I'm sure, but to keep things simple, I'm just looking for candlestick behavior and close/continuation around these levels.
Price Action Case: 30 M Signal Bear Bar Formed and Closed. What constitutes a bear signal bar according to Brooks Price Action? 1. Close on or near the low of the bar. Upper tail 1/3 to 1/2 the height of the bar. Could be seen as a double top reversal with earlier high. Also a test to the 20 EMA.
RSI: 70 Level (Overbought) reached, and a Lower High is forming. Typically, the pattern I have observed when a pullback or reversal begins- is after the RSI reaches or goes above 70, and then retests the overbought level lower (a lower high), you will usually get a leg down. It is a form of an exhaustion signal. Obviously overbought and oversold tests definitely do not guarantee a full trend reversal, but they can signal pullbacks enough for a scalp. You have to read the bars to understand the current context of market (trend, range, channel)