Long Scalping a Bear Market
Probably one of the most difficult things you can do in a Bear Market is BUY. Especially when we are seeing aggressive selling like this. This is the type of market where every time you try and long, you lose money.
There's little point buying a falling knife UNLESS you are really good at it, because this current market is breaking every single type of support because of sentiment.
HOWEVER, using my strategy with the Price/Trend Indicator and Volume Indicator, you are able to see when momentum/ volume has shifted INSIDE of the Bear Flag . From this you can see that they are probably going to break out upwards to hit Stop Losses before continuing the fall.
If you take a look at the Orange Boxes, you can see a BUY signal, but Volume hasn't upthrusted enough - it hasn't strongly gone above the Blue and Grey trendlines, so it is invalid.
If you take a look at the White Boxes, you can see a BUY signal, with Volume upthrusting above the Blue and Grey trendlines. This is a valid LONG.
(Ignore the purple line, I'm just testing something at the moment)
There is an indicator called "Deviation Bands" - these are Standard Deviations from the baseline of current price. If you choose the option of "EMA", this will allow you to set Take Profit targets - like here, TP 1 and TP2. I will reupload it on my Scripts soon.
Stop Loss is usually quite tight in these scenarios - sometimes actually not as tight as this (sometimes you can get wicks) but other times below the last low.
There's little point buying a falling knife UNLESS you are really good at it, because this current market is breaking every single type of support because of sentiment.
HOWEVER, using my strategy with the Price/Trend Indicator and Volume Indicator, you are able to see when momentum/ volume has shifted INSIDE of the Bear Flag . From this you can see that they are probably going to break out upwards to hit Stop Losses before continuing the fall.
If you take a look at the Orange Boxes, you can see a BUY signal, but Volume hasn't upthrusted enough - it hasn't strongly gone above the Blue and Grey trendlines, so it is invalid.
If you take a look at the White Boxes, you can see a BUY signal, with Volume upthrusting above the Blue and Grey trendlines. This is a valid LONG.
(Ignore the purple line, I'm just testing something at the moment)
There is an indicator called "Deviation Bands" - these are Standard Deviations from the baseline of current price. If you choose the option of "EMA", this will allow you to set Take Profit targets - like here, TP 1 and TP2. I will reupload it on my Scripts soon.
Stop Loss is usually quite tight in these scenarios - sometimes actually not as tight as this (sometimes you can get wicks) but other times below the last low.
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