分類:FBO BEMA

FBO below EMA, a type of failed breakout, can setup a reasonable long entry when context is right.

On 20230515, market had a SXFO then a good BLBCH bar 10 forming a reasonable ORV setup, there was no clear MSR around bar 9, but since 8 is a strong BRBO below EMA with 9 being a reasonable FT bar, bears were hoping to breakout below for a MM down, however, bar 10 as a good BLBCH formed a WB setup 2-6-10, then 11 closed as a stronger BLBCH and closed well above EMA, also above 6L the bar 8 bear breakout point, market is telling bear's attempt to breakout below EMA has failed, with a reasonable WB, and 1-10 being a sell climax on the open, this is a reasonable ORV setup. If a swing trader did not buy above 10 concerning about the bear channel being too tight, they should buy above 11 with a little bigger risk but a little higher probability.

Keys are:

• Strong bear attempt to BO below EMA
• Then the attempt failed by one strong BLBCH (the more the better)