{"id":53362,"date":"2016-05-15T02:05:36","date_gmt":"2016-05-15T09:05:36","guid":{"rendered":"https:\/\/brookstradingcourse.com\/?p=53362"},"modified":"2018-03-25T03:21:21","modified_gmt":"2018-03-25T10:21:21","slug":"outside-bars-significance","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/pt-br\/ask-al\/outside-bars-significance\/","title":{"rendered":"Ask Al: Outside Bars"},"content":{"rendered":"<h2>Significance of outside bars<br \/>\n BPA trading room Q&amp;A: August 17, 2015<\/h2>\n<p class=\"content-box-green\">Question: What\u2019s the significance of outside bars like 5, 7, and 29?<br \/>\n <em>Video duration: 2min 54sec<\/em><\/p>\n<div style='position:relative;height:0;padding-bottom:56.25%'><iframe class='sproutvideo-player' src='\/\/videos.sproutvideo.com\/embed\/189adfbb1318e7c090\/f567d4758b3e597f?playerTheme=dark&amp;playerColor=' style='position:absolute;width:100%;height:100%;left:0;top:0' frameborder='0' allowfullscreen><\/iframe><\/div>\n<p><\/p>\n<p class=\"caption\">You can also view this video on <a href=\"https:\/\/youtu.be\/SR8U3rboxLM\" target=\"_blank\" rel=\"noopener\">Al&#8217;s YouTube Channel<\/a> if needed.<\/p>\n<h3>Context important<\/h3>\n<p><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/05\/Ask-Al-59-outside-bars-significance.jpg\" target=\"blank\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/05\/Ask-Al-59-outside-bars-significance-300x223.jpg\" alt=\"Ask Al Outside Bars Significance\" width=\"300\" height=\"223\" class=\"alignleft size-medium wp-image-53365\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/05\/Ask-Al-59-outside-bars-significance-300x223.jpg 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/05\/Ask-Al-59-outside-bars-significance-768x570.jpg 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/05\/Ask-Al-59-outside-bars-significance-600x445.jpg 600w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2016\/05\/Ask-Al-59-outside-bars-significance.jpg 796w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a>Outside bars &#8212; I talk about them in the books and the video.\u00a0 They only have meaning if the context is good.\u00a0 If the bar before is a logical buy signal bar, then the outside bar is an entry bar.\u00a0 If an outside bar occurs in a tight trading range&#8211;bar 29&#8211;they are meaningless.\u00a0 What\u2019s important with bar 29?\u00a0 You have a big bear bar closing on its low in a very strong bull trend. Traders will buy that close &#8212; whether or not it\u2019s outside down. Bar 14 and 29, it\u2019s identical, even though 29 is an outside bar; it did not go above 28, but it\u2019s basically an outside bar.\u00a0 It\u2019s a type of outside bar, okay?\u00a0 To me, 29 and 14 are identical even though 14 was not an outside bar.\u00a0 What they are is a big bear bar closing near its low in a very strong bull trend.\u00a0 It\u2019s an attempt at a bear <a href=\"https:\/\/www.brookstradingcourse.com\/how-to-trade-manual\/trend-reversals\/\" target=\"_blank\">reversal<\/a>.\u00a0 Traders will buy that close.\u00a0<\/p>\n<h3>Overall price action important<\/h3>\n<p>So to me, 29 is not important as an outside bar.\u00a0 It\u2019s important as a bear bar, an attempt at a reversal, and a chance it will probably fail.\u00a0 Then bar 5 I felt was not particularly important because 4 was not a good buy signal bar.\u00a0 If 4 closed on its high, then 5 outside up would be important.\u00a0 And if 5 closed on its high, it would be important, like bar 7, outside up &#8212; to me, you got a failed low 2, you have an expanding triangle, you have a second entry.\u00a0 The single most important thing that took place here, the second entry buy below yesterday\u2019s low, or breakout below yesterday\u2019s low &#8212; tried to reverse up 2, failed, tried to reverse up 4 &#8212; better than a 50\/50 chance we\u2019re going higher. Plus the overall picture; we\u2019re at the bottom of a three-day trading range after a very strong bull trend, so all of that increased the chances that 7 was going to be the start of a move up.<\/p>\n<p><h3>Nothing 100%<\/h3>\n<p>But not always, sometimes you get these outside bars, we had one last week [that] didn\u2019t get very far: bar 26 here.\u00a0 There was another day last week.\u00a0 I don\u2019t know if I can find it &#8212; because usually when they fail, they just kind of disappear. Bar 8, Ok second failed breakup from below the day before, outside up, immediately reversed down.\u00a0 So, <a href=\"https:\/\/en.wikipedia.org\/wiki\/Probability\" target=\"_blank\" rel=\"noopener\">nothing is a hundred percent<\/a>, and that\u2019s a good example of how it can look good and the context can be good, and then it fails; it just reverses.\u00a0<\/p>\n<p>So it wasn\u2019t a failed breakup below yesterday\u2019s low, it was a failed breakup below the 60-minute moving average. Very strong bull trend. We go outside up, a double bottom, possibly a wedge &#8212; one, two, three &#8212; a wedge opening reversal, 60-minute moving average, but you need follow-through, and that\u2019s your follow-through.\u00a0 That\u2019s bad. <\/p>\n<p><em>Al Brooks<\/em><\/p>\n<p><a title=\"Al Brooks&#039; trading room\" href=\"https:\/\/www.brookstradingcourse.com\/online-day-trading-room\/\">Information on Al&#8217;s Online day trading room<\/a><\/p>\n<hr \/>\n","protected":false},"excerpt":{"rendered":"<p>Significance of outside bars BPA trading room Q&amp;A: August 17, 2015 Question: What\u2019s the significance of outside bars like 5, 7, and 29? Video duration: 2min 54sec You can also view this video on Al&#8217;s YouTube Channel if needed. Context important Outside bars &#8212; I talk about them in the books and the video.\u00a0 They [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[159],"tags":[],"class_list":{"0":"post-53362","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-ask-al","7":"entry","8":"has-post-thumbnail","9":"override"},"featured_image_src":null,"author_info":{"display_name":"BTC Admin","author_link":"https:\/\/www.brookstradingcourse.com\/pt-br\/author\/richardhk\/"},"_links":{"self":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts\/53362","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/comments?post=53362"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/posts\/53362\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/media?parent=53362"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/categories?post=53362"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/pt-br\/wp-json\/wp\/v2\/tags?post=53362"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}