This is the Top Secret E2 and Reversal Bar page (Advanced E2 and RB patterns for members). Note: you must be logged in as a room member to access the rest of this article. Sign up now to get access.
Opportunities i the room are huge. So be careful to not be overwhelmed. I post this for your learning and discernment. Pick a pattern or two that makes sense and stick with it. Make it simple. If you have questions on refinement- ask. We will help!
The patterns here are observation I have made to share with you that are refinements of various patterns we already use in the room. These are also areas for research and testing. As a room member, if you feel inclined, take one or more of these and go back and observe them on history charts. By doing this, you will likely learn a lot and your sharing your findings will make you a better trader and will help others too. The history charts make it really fast to test because you can see the whole day. http://oiltradingroom.com/charts/
1) E2s off RBCs (Reversal Bar where the background Color is the same as the bar color). This might also manifest as a RRT (Rail Road Track pattern) where a third bar is very low volume.
2) Low volume RBC or E2s (low volume meaning below average).
3) Low volume reversal bars at or near a key low/high without regard to background color. Or, first low volume reversal bar following a key level tag. Also LV reversal bar on the retest / near term double bottom (also a type 1 divergence)
4) This may be especially prevalent on an RBC on the first reversal bar after a run and also on where the RBC is high volume - so High volume RBC followed by opposing reversal of lower volume.
5) E2 on a low volume bar that is < 25-30 ticks off most recent high or low swing, wave reset or after 2 legs
6) Several high volume bars followed by a low volume reversal bar
7) 2HV reversal bars followed by a third of low volume with trend
8) LV reversal bar on a RRT
9) LV Reversal bars with trend in general
10) Any kind of RRT pattern (any background color) where volume is less on the 2nd bar
11) Any kind of E2 where volume is greater on the 2nd bar
12) Any Type 1 or type 2 divergence with LV reversal. Another variation on this is where the earlier portion of the double top/bottom is high volume
13) LV reversal following a scale change (consecutive bars of more than 35-50 ticks). Sometimes this will come as a decreasing volume on a 2 reversal bar pattern (retracement).
14) A type 2 that does not trigger but where SmartMomentum follows and can get better or similar pricing. In other words the entry is still in effect. This could also be a type 1 divergence with trend.
15) E2 of any kind following a 0T or near 0T.
Note: The above patterns may not be as readable at the pit open due to the sudden volume surge but are typically stabilized by B period and beyond.
Note: Another variation on the above theme is to use an even lower volume figure than the average for LV bars such as 500 fixed.
Note: Other known contextual patterns that may overlay on the above. For example, it is often best to enter a trade less than 25 ticks into a wave or following a wave reset etc.
Note: You can combine the above patterns too. For example, you might have a fairly low volume reversal bar at a key area that is slightly above average so does not qualify but then is followed by a low volume continuation bar and an E2 all within 2 bars of a high.
Another example might be, we are 50 ticks off a high (an expected range) and possibly at other key levels, and you get one of the patterns.