Market Strength

Size of the bar

When determining market strength on the chart at the front of us, bar size is probably the first most important factor to consider. Bar size trumps everything, it is the first thing trader should look at. Note that when we talk about bar size, we are talking about relative size, for e.g. if the size of most recent two consecutive bear bars are significantly bigger than the past average 10 or 20 bars, it is sign of strong SP, unless the following bull bars become large enough that are comparable to the bear bears, traders should only look to short. Example: bar 10-11 on 20230304.

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