I've set up this blog to post some of my analysis and trades. I trade the E Mini S&P futures contract based on price action, mainly PIN bars, along with support and resistance, fib retracements and divergence. I will be posting important support and resistance levels each day including some levels based on market profile.

I will also post trades that I made trading off the 5 minute chart on the ES (e mini S&P) and occasionally trades off the 1 hour timeframe although they occur less frequently.

Tuesday 6 April 2010

Bullish Outside Bars and Bearish Outside Bars (or candles)



Although I dont really use them it is also worthwhile knowing about Bullish Outside Bars or BUOB and Bearish Outside Bars or BEOB. The reason I dont particularly like to trade them is that they tend to require quite a big stop.

The screenshots show one example of each, they are engulfing bars in that they and both higher and lower than the previous bar, BEOBs have a close lower than the previous low and BUOBs have a close higher than the previous bar high. These are often easier to spot using a bar chart whereas PINS are easier spotted on candle charts, at least to my eyes. Stops would have to be one tick above/below the signal bar which is why I prefer not to trade them.
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