Video 8A - Slide 10 Signal Bars

every bar on the chart is a (potential) signal bar, once you enter above or below it, it is now officially a (your) signal bar, and the current bar you entered during is your entry bar.  but not all bars are good looking signal bars and/or have good context behind it, therefore not all signal bars are good entries and you have to be able to read the price action to understand the context of the chart to make the determination if its a good entry to take. Just keep watching the course. hope this helps

Thanks Hunter. At this point I can't read what is telling me that the bar highlighted as a signal bar is a good looking signal bar (at that point). Other than looking at the what happened afterwards on the chart with hindsight and then marking it up on the slide.

I will keep watching! I just hope the rest of the course isn't just marked up charts that benefit from hindsight.

Hello,

I think that David is making a simple question: If that signal bar is better than the other, what are the objective reasons that make it better?

None of the answers are answering his question.

It's okay for the answer to be illusive until you have the experience. But someone who does have the experience should be able to give an answer.

I'm interested in the same answer too, because I have the same question.

Thanks.

just watch slides 13-18 on 8A AL goes over the signs of a strong signal bar. and watch 8B, that gives the minimum requirements for what constitutes a buy/sell signal bar.

Also looking back at your slide notes. what makes the signal bar better that Al highlighted was the context of the signal and its entry. the bar you arrowed, although a great looking bull trend bar, was at the top of resistance, a TR/ top of bull channel. the signal bar Al highlighted was a breakout pullback entry after a weak failed BO down by the bears, its lower in the channel near the trendline (support) unlike the other bar near the top of the channel/ range (resistance)  (there's a lot of other factors involved that is in the course but for simplicity this is half of the why its the better signal and entry to take)     

Context is what made it the better entry and therefore the better signal to take. its not necessarily a better looking signal bar of itself compared to the one you arrowed, but under the context it was a better entry to take.

 basing trades on the looks of signal bars alone is not a basis for taking trades. understanding the context its in and its proximity to and support and resistance is the basis of everything we do. 

this should clear it up

This answer really gives value.

Thank you from me as well.

Thanks for taking the time to reply Hunter. Agree with Daniel, that response was really helpful. 

So I think the bar before what David points out as a possible signal bar is actually a good signal bar and the bar that David labels the signal bar is actually the entry bar.  So if you bought 1 tick above the close of the signal bar and held until the high of the next bear bar you would have had a nice scalp.  So yeah I think David is correct.  However the reason I think AL choose the later bar as the signal bar is because the proceeding bear bars in the pullback look weaker than the ones before David's bar.  Also there is a more convincing higher low on Al's choice.  Hopefully this makes sense.  In any case I think David is right in thinking that the prior bull bar is a good entry bar.

I do think that the bull bear BEFORE the signal bar David labels is good and a buy 1 tick above its close is a reasonable trade to take (and would have been profitable as a scalp or a swing with even a tight stop set below the prior bear bar)