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Writer's pictureLester Davids

Trading Strategy: Igniting Bar and Alert

IGNITING BAR:

Bearish Continuation or AT/Near Start of Bearish Reversal


What does this strategy entail?


The instrument is in a short-term consolidation range or upward trend, from which a large red candle develops. This suggests that traders should: (2) TAKE NOTE of a potential change of trend and (2) TAKE NOTE of the start of potentially aggressive selling.


The tickers highlighted assume no existing position held by the trader while the setup is confirmed on the preferred candle structure developing during the upcoming session(s) i.e. follow-through.
























STRATEGY ALERT:  Potential Bullish Consolidation Breakout


What does this strategy entail?


THE INSTRUMENT IS IN A CONSOLIDATION RANGE, WITH MOSTLY STRONG PRICE ACTION. A HORIZONTAL RESISTANCE LEVEL HAS BEEN TESTED ON SEVERAL OCCASIONS i.e. THE SHARE HAS MADE ATTEMPTS TO BREAK ABOUT THIS LEVEL. A BULLISH UPSIDE CONTINUATION TRADE MAY BE APPLICABLE IF THE SHARE MANAGES TO CLEAR THE RESISTANCE TRADING RANGE, WITH STRONG INTRADAY PRICE ACTION and/or LARGE BUY ORDERS THAT CAN BE IDENTIFIED VIA THE ORDER BOOK (DEPTH).  


Unum Trade is your Profit Partner, guiding you through each week’s market journey and strategies. To learn more, contact our Trading Desk team at tradingdesk@unum.co.za or call 011 384 2923.

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