Many times i miss this signal due to being on the wrong side of the market, when this happens I tend to ignore clear signs that we need to change our bias. When this signal appears it is a very clear indication of a Bull move. How long the move will last may depend on the time frame or Tick Chart it appears. The higher the time maybe the longer the move. Also the faster the move has gone the faster the correction.
Spotting a test in a rising market can be a great signal to Enter long, Exit if short or STAY in a profitable position.
What to Look for:
- Background Strength with Saucer shape or correction.
- Usually a Down bar with Narrow Range, close in the middle or high and often very close to the previous bars close.
- On Very LOW VOLUME.
- Next bar breaks the high. (Confirms itself)
2 minute uptrend *Notice the missed test on # 3*
1500 Tick shows Multiple test on the way up, Better Indies missed 2, 3 & 4. ** Notice 3 &4 happend at Resistance and broke out after testing on higher Volume**
15 minute chart test at support on low volume (tip toeing up)
Rambo, This must be ignored unless obvious weakness appears, this may explain Failed Rambos that i spoke of in a previous article. Better Volume does a better job of catching this BUT you may have to eyeball the bars to notice this.
Always keep and eye out for a TEST IN A RISING MARKET!!!
