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.
• Sometime BDBU can takes the form of a PBX followed by a PSX. Vice versa. Example: 20231128.
• Sometime BDBU can also take the form of very strong 2 legged bull and bear move in TR. Example: 20231205.