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Bullish Signal Tips
Most technical traders and investors are bullish. Some do not want to sell even if there is a viable bearish signal. They love to buy or take bullish trading signal. My intention today is to help out those bullish traders. Let's get started.
The Number One Bullish Signal Tips
It is the higher low after a higher high on any time frame.
Once that is in place, it is paramount that one checks the corresponding higher time frame. For example, a 5M chart higher low after a higher high must be validated on the 2H chart. Hourly chart ones ought to be checked on the daily chart.
Elliott wave traders do understand the importance of validating waves count. The same rule applies to every bullish trading setup. I mean every one of them.
Bullish Signal Tips Number 2
The price has retested and validated a prior high.
It just needs to be a prior high. I mean retest and conversion into a valid support ( breaks above, retests, turns around and common sense trend line is broken).
One can draw all the monthly chart's prior highs then switch to the daily for trading setups on the edge of one of those highs. Whether, one is day or swing trading, one ought to keep eyes on the trading signals that occur on the edge of a higher time frame's prior high.
Most reliable bullish signals do occur there.
Bullish Signal Tips Number 3
One of the most powerful sign that a bullish momentum is increasing is when the price is breaking resistances.
Those who fail to understand that on any time frame can become the wood fire of a strong bullish momentum. That is exactly what happens when a momentum oscillator is overbought, but the price continues to break resistances ahead.
It is also the same thing when one spots a bearish divergence and the price did not take too long to turn around; and begins to take out resistances as it often happens at the start of a bullish 3rd wave.
It does not matter whether it is a normal resistance, trend line, Fibonacci key level or pitchfork tool that is taken out. It signals a bullish strength.
One should now use a top-down trading technique to profit from it.
Bullish Tips Number 4
When the price exits a bearish channel, it means that the bearish sentiment is at its lowest point on that time frame.
There is a possibility (not certainty) that the bullish market players will be waiting for the first higher low. The same is also true when the price exits horizontal channel (consolidation) or any triangle.
What Is Fifth Bullish Tips?
That is the first higher low after a double bottom chart pattern. Trade it like a pro using a different times frame technique.
Sixth Bullish Trading Signal Tips
Learn how to trade precisely both the inverted head and shoulder pattern and cup and handle. Always use the top-down trading approach when dealing with those two patterns.
One must also check the economic news and perform the google acid test if one is swing trading. Remember that every bullish pattern must always be validated on its specific corresponding higher time frame. Please do not forget that.
In my opinion, one of the most powerful bullish chart pattern is the inverted head and shoulder. The neckline is not always horizontal in the case of the slanted inverted head and shoulder chart pattern that often occurs on the daily chart.
Seventh Bullish Tips
A higher low after a lower high is bullish.
So first there was a high then a low, then a lower high. After that, out of nowhere appears a higher low instead of a lower low. That is a bullish setup. Trade it like a pro.
Bullish Signal Tips Eight
Most technical traders rely on the momentum or (speed or rate of change), but often forget about the trading volume.
What a shame. It is like a motorist who only cares about speeding and ignores the fuel.
Well, as you already know, an engine with a fuel will not go far. It is time to incorporate the trading volume in your trading arsenal. The eighth bullish signal tips is about that first higher low that takes place after an initial surge in trading volume. I have already discussed that bullish setup in many YouTube videos.
Please grab a seat and have your favourite drink ready. Now be sure to watch the video tutorial in your own time. Do not rush, but learn it steadily. Begin to watch the playlist.
Mastering Trading Volume Like A Pro
Bullish Signal Tips Nine
Be very careful if you are taking any bullish trading signal on a day when the SP 500 and other major stock indices are bearish.
I hope one will not disregard that warning. I mean it 100%. One of the causes that lead to consistent losses is trading against the trading triangle. That is all. I will not dwell on it this time because you already get it.
Bullish Tips Number Ten
A swing trader ought to take few defensive measures. One of those is to use an investing account instead of the normal trading account.
The time has come that all swing traders stop being taken out their trades too soon because of the short term price fluctuations. Many times, a swing may have made the right decision, but will quickly give away money because he or she can not hang on for long.
Though the investing account is not the only solution, it does help one to save time and turn a potential losing position into profit if one has made the right decision to buy.
In this instance a swing trader is buying and holding as a swing trader not as a traditional investor. One can hold those swing trading positions for as long as one wants.
I think that is it really. If you have any relevant questions or comments, please post them at 24stocktrader YouTube channel and I will answer them in due course.
A bullish trader that is using one those ten bullish signal tips can quickly make a big difference in the financial markets.
In fact all bullish traders must be able to spot those bullish trading setups. It will be regrettable if a bullish trader is always missing out on those opportunities and end up trading other irrelevant bullish signals.
I hope this article will put many technical traders on right path as they begin to master those ten bullish signals tips. Finally, one can also improve bullish trading if one also understands how bearish traders trade.
As always, it is a pleasure for me to write this article. If it is helpful then please share and bookmark it. Also say few good words about us in your favourite trading forums.