Trader Skills #22: Pullbacks after 5 – 6 bars

Intro

This is a funny one.

I’m not sure if it is one of the RAS (Reticular Activation Systems) things where once you hear about it you find it everywhere.

Seeing what you wanna see is a classic trader error I have to be aware of in myself.

Either way yesterday was hilariously accurate for it.

As usual, the next day, rested, free from any open positions, and with hindsight, clarity opens.

– Dr Al Brooks

– Ali Moin Afshari

– Ignore BOM – 5/6 bars in any direction pause.

– When it doesn’t it seems like it traps traders and it tests back to that area. Weird.

– Works in a trend day

– Works if the bars are not next to each other – 6 HL, 6 LH

– Looks like a good place to take profits