Question 2 - I can see your thought process. For myself there are not enough signs of strength as yet. Buying at A and C. Looking at the bar itself (near D) the spread is almost the same size as C and contextually its in in the wrong place. (background conditions) - The closes are rounding over, does this make sense? yes (supply to the left). This action tells me the market is coming down. Huge effort at E, we would expect downside progress yet the following we reverse to close back above support. 2 bar reversal/spring, label this as you will, it's unimportant, the key is to understand the process. Then bar G a beautiful little test, instant buy. Immediate strength behind us
A spring bar for example anywhere else but at support is just another bar, it has to be used in the correct conditions for the bar in question to have meaning
This process takes time and effort. It's of benefit to go through the charts, build a story of strength or weakness. Look for immediate strength then look for test bars. Used on a daily time frame, this trade is very powerful. Test bars are left for the whole day with no professional involvement, it gives horrible flat trading for the intraday, BUT of huge significance to the large operators. Thinking in multiple time frames is a key to fully understanding the cyclical nature of the markets.
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