Category:SPBLT

Small pullback bull trend.

• If it is SPBLT, can use tighter stop (better to exit 1-2 points below, not just 1 tick below, if exited, buy again above BLBCH), because if it is to become small pullback bull trend, the pullback will be small.
• Tends to have at least a couple of BOs early in the day.
• When there are many big bull bars without much pausing or overlap in the SPBLT, there is increased risk of exhaustion and then TTR (and then trend resumption more likely). (example 20210409 WBLFLG then SPBLT then LBLBO 49-65).
• If the trend is going to last all day, it usually does not pullback to EMA before around bar 54 (around 2pm EST). If it does, that usually means the trend is converting to TR.
• Sometime a weak SPBLT can lead to strong LBLBO. for e.g. 20210409 WBLFLG then SPBLT then LBLBO, or 20210401 WBLTFO then WBLT then LBLBO.
• when strong bear bar in wedge top in SPBLT, probably more buyers than sellers below bear bars, higher probability to wait to sell until consecutive strong bear bars or strong bear BO. Ex 20210409 WBLFLG then SPBLT then LBLBO.
• When a trader confirms the market is in a small pullback bull trend, it is important to find a reason to get long, such as a pullback to the moving average, and look to enter at least a small position, just in case the market rallies far. 20220317
• It is essential to realize that in a small pullback bull trend, the move is never quite as strong as traders want, so it causes traders to look to enter on pullbacks. So, while the market can appear weak, it is a tight channel which is a breakout on a higher time frame. 20220317
• A SPBLT doesn't have to start from the open, even sometime the open can look like a SPBLT starting. Sometime it needs enough test to EMA or other important support before the SPBLT starts. e.g. 20220317, after enough test to EMA, the SPBLT started somewhere around 22, note that one of the most important sign is that bulls buying aggressively at every bear attempt, like 19, 21, 28 etc.
• If expecting a SPBLT, bears should not be able to make 1R easily, if they were able to do so, it decreases the probability of SPBLT, e.g. 20220317 13 bears able to make 1R easily, but after the SPBLT started from around 22 to around 54, bears not able to make 1R.