Category:BDBU

Big Down, Big Up creates big confusion and usually leads to more trading range. When confused, traders BLSH, take quick profits.

• BDBU applies to important events like FOMC as well, for e.g. on 20230207 there was an important speech by FED chairman at 12:40 PM ET, market had a big BDBU in the afternoon, on the following day 20230208, market is pretty much in TR.
• Sometime BDBU takes the form of many relative small but consecutive bull bars (BLMC) following many relative small but consecutive bear bars (BRMC), for e.g. 20230320, when this happens, it is usually SPA and market slowly move from one extreme to another with small pullbacks, making it hard to structure a trade🩸, unless the trader can use LO. On 15 mins chart, traders might see 3+ CCBLB following 3+ CCBRB.
• Occasionally can leads to a swing up when the timing and context is right, e.g. bar 55 to 65 on 20221216 was a BDBU pattern, but leads to a swing up at end of day, also end of week.