Price Bar Reversals (6 of 9) - Hook Reversal

http://www.YourTradingCoach.com - Price Bar Reversals (6 of 9) - The Hook Reversal - Part 6 of a video series discussing short term price bar reversals such as the bearish rejection, the bullish rejection, the open close reversal, the closing price reversal, the hook reversal, the key reversal, the island reversal and the pivot point reversal.

Category:

Howto & Style

Tags:

• trading
• technical analysis
• price action
• reversal patterns
• charting
• hook reversal

[YourTradingCoach]

Sorry - shouldn't use acronyms.

The ID-NR4 is a setup involving an Inside Day (ID) which also has the narrowest range of the last 4 days (NR4). Sometimes you'll see it written as IB-NR4, referring to inside bars rather than days (for intraday timeframes).

I've seen it in a number of sources, but I believe the first (or at least the one that popularized the setup) is the excellent "Street Smarts" by Linda Rascke and Larry Connors.

[1stavros1]

sorry Lance but what do you mean by NR4?

[YourTradingCoach]

Hi szubaark,

It depends on how it's used. No candlestick or price bar reversal will make consistent profits if traded as a standalone mechanical system.

However, when used to indicate shifts in short term sentiment at an area of potential low risk / high reward opportunity (eg. S/R), then reversal signals can be profitable.

As stated early in the candlestick series, we have to consider the context of where the pattern is occurring within market structure.

Cheers,

Lance.

[szubaark]

good basic info..but this wont make u a dime in real world of trading :)

[YourTradingCoach]

Yeah, I love the inside bar. Especially on the longer timeframes when combined with NR4 - great signals.

[1stavros1]

great vid , I love the inside bar break