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I am new to the course. It seems I understand what are highs Hx and Lx. But in some of the videos I am getting confused. Like the screenshot from 9A video, I wonder what makes the C bar an H2? Thanks in advance! 🙂
The bar next to A is a H1. H1 tried to resume the bull trend but failed. Naturally, C becomes H2. This is the second attempt to resume the trend.
Per def the H2 should have gone higher than the previous bar but that's not the case with C. Abir you mentioned it tried to resume the trend, is it because at a lower time frame there is an implied H2 with PB?
Okay, now I understand your confusion. No, it's not an implied PB on a LTF chart(it probably is, but that is not what is being discussed here).
So, to your understanding, the bar after C should be marked H2 right? As per the definition, you are correct. However, think of it like this. H2 is the second attempt to resume the trend. You are supposed to enter longs on H2s. So, although the bar next to C is an H2, bar C is the signal bar for the H2 setup.
You don't enter a trade after an H2 setup, for all we know, that bar could have been huge and you could have missed the entry. It's always better to be prepared, since technically the bar after bar C is a H2, so the moment it becomes H2 is when it crosses the high of bar C. So, crossing bar C high is the trigger for it to become H2. That trigger is the cue for you to enter your trade.
So, you are more concerned about the signal bar rather than the bar on which the signal is triggered. Does that clarify your doubt?
Absolutely it clarifies my doubt and nails the Hx Lx concepts. Thank you Abir!
