Category:GPS

At open of the day, if there is a trend from the open, it is very important to determine if it is a leg in TR (TRBLL or TRBRL) or start of a trend. Traders often look at GPS, i.e. 3 important things: Gaps, Pullbacks, and Size of bars.

• Gaps. More gaps or body gaps, rather than less gaps or no gaps, or bigger gaps rather than smaller gaps
• Pullbacks. Small pullbacks that lasted only 2 - 4 small bars rather than deep pullbacks that lasts 7 bars and have big bodies
• Size of bars. Especially the relative size. Just because there are big CCBLB doesn't mean it is strongly bullish, traders also need to look at the size of bear bars, if there are big CCBRB right after the CCBLB, erasing bull's damage every time bulls are trying for BO, the market is telling us that it is not that bullish. Also if there are many strong bear trend bars, even not consecutive, but bulls only have dojis instead of strong bull bars, it indicates strong selling pressure and is early sign of possible SPBRT.