The support forum is built with (1) General and FAQ forums for common trading queries received from aspiring and experienced traders, and (2) forums for course video topics. How to Trade Price Action and How to Trade Forex Price Action videos are consolidated into common forums.
Brooks Trading Course social media communities
Brooks Trading Course Learning Resources >>>
AL pointed out here both bulls and bears are buying aggressively, but why these buying force created a doji bar instead of a big bull bar?
Based on my own observation, when one side give up (stopped out or market form the shared opinion about the trend) usually there will be a spike, is this always correct?
Not a trick question however there are some underlying aspects which become critical to deciphering how PA works. Any individual bar may or may not have a significance which provides additional bias "weighting". A doji should be considered a 1 bar trading range and everything else deciphered within context.
Context:
10 bar bull micro channel. You will note several dojis within this tight channel. Allow for 1 tick variance, every single low is higher than the previous. This is buying pressure.
The bull bars are closing at or near their high.
These 1st two points alone establish the bias. There isn't anything to short although one is approaching a potential resistance area. None of the bull bars are exceptionally large so there isn't exhaustion or a magnetic pull into resistance (exhaustion spike).
Because of these factors, dojis can not be used to anticipate anything other than a pause. With the tightness of the channel and microchannel there is only 1 thing to do if one's plan allows for it. Other decisions only add to confusion and potentially over analysis (which is easy to do when attempting to assign "meaning").
What happens next? Expect a move lower than the previous bar to be bought. That is the next logical step in the sequence which doesn't happen anywhere on that bull run. But if you note the logic of the analysis, one would only have potentially gotten into the trade in the appropriate direction. No other decisions warranted.
Hopefully helpful and good trades to you!
