Reversal bars can be used to read human sentiment in the markets. A lot of our decision making can be traced to the lizard brain. It is responsible for triggering primitive survival instincts, i.e. “fight or flight” type of thinking. This type of triggering is why history has a tendency to repeat itself. Not perfectly of course, but chart patterns of the past can certainly predict what type of price movement to expect next. This is because the psychological aspect of trading remains the same year after year. Our emotional response just doesn’t change that much. We remain fearful, greedy, confident, or terrified.
The Auction Bars indicator from our premium suite identifies reversal bars and spike patterns for NinjaTrader 8. Furthermore, the Auction Bars indicator identifies higher timeframe ranges, displayed as Auction Ranges. These ranges display the current market value area of the ongoing auction. The accompanying congestion zones work as support / resistance where spike patterns and reversal bars frequently plot.
Category Archives: reversal bars
Reversal Patterns and Price Benchmarks
In in this webinar we discussed combining reversal patterns with objective price benchmarks. The benchmarks are located using our session tools whereas the reversal patterns are found using Auction Bars. A recording of the event can be found here: Price Benchmarks Why use price benchmarks? Because there‘s no room for subjective opinion when using them. The overnight…
Finding Reversal and Spike Bars
The last few weeks went into the NinjaTrader 8 update for the Auction Bars. Below is a quick summary of what this update is all about and how you can use it to identify reversal and spike bars with NinjaTrader 8. We also did a brief intro in a recent NinjaTrader webinar which you may…
Buy Support Sell Resistance With Auction Bars
How do you use LizardTrader indicators to buy support and sell resistance? This is a question we often get following our partner webinars with Shark Indicators. We’ve now created a tutorial video showing how to do this. Specifically, the tutorial will show you how to locate reversal patterns at key support and resistance using the Auction Bars and Daily…
Reversal Patterns With the Trend
In this tutorial video we`ll look at how to identify reversal patterns that go with the trend direction. We`ll show how Bloodhound from Shark Indicators can be used to identify areas of the regression channel to align reversal patterns with the trend. We`ll also look at how to create a timed exit to find whether…
Identifying Reversal Candles – With Auction Bars
In this post we discuss reversal candles that line up with higher timeframe ranges, pivot and VWAP levels, deliver potentially high probability setups. To learn more about the about the possibilities offered by the Auction Bars indicator, have a look at this webinar recording: The webinar features a introduction to the general concept of the…
Trading Spike Patterns with Key Support and Resistance
This post will outline the characteristics of spike patterns, aka shooting star (bearish) and hammer pattern (bullish). We will also look at how to distinguish between high and average probability setups. Specifically, we’ll look at how to trade spike patterns together with key support resistance levels. The pattern is an effective tool for identifying reversals…
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