TheStrategyLab.com Price Action Trading Support Forum
http://www.thestrategylab.com/tsl/forum/

Question about Reaction High
http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=61&t=3463		 Page 1 of 1
Author:  kong28 [ Thu Jul 06, 2017 1:23 am ]
Post subject:  Question about Reaction High
Hello,
I read your Reaction High definition and have some issue. You can see in an attached file.
"Reaction High - Price action had a minimum of two consecutive Up intervals (each interval Close > Open) with higher closes before the reaction high and then price decline after the reaction high to produce a minimum of two consecutive Down intervals (each interval Open > Close) with lower closes."
Does a minimum of two consecutive Down intervals needs to occur next to Reaction High bar or not ?(in the picture, it is not.) If it doesn't have to occur next to a Reaction High bar, how many bars should we check for two consecutive Down intervals ? On the other hand, a minimum two Up intervals has the same issue.

Thank You,
Kong

Attachments:
Reaction High.JPG
Reaction High.JPG [ 31.25 KiB | Viewed 417 times ]
Author:  wrbtrader [ Thu Jul 06, 2017 1:52 am ]
Post subject:  Re: Question about Reaction High
kong28 wrote:
Hello,
I read your Reaction High definition and have some issue. You can see in an attached file.
"Reaction High - Price action had a minimum of two consecutive Up intervals (each interval Close > Open) with higher closes before the reaction high and then price decline after the reaction high to produce a minimum of two consecutive Down intervals (each interval Open > Close) with lower closes."
Does a minimum of two consecutive Down intervals needs to occur next to Reaction High bar or not ?(in the picture, it is not.) If it doesn't have to occur next to a Reaction High bar, how many bars should we check for two consecutive Down intervals ? On the other hand, a minimum two Up intervals has the same issue.

Thank You,
Kong


Hi,

The consecutive two Down intervals (each has their Open > Close) with lower closes does not need to occur next to the high bar as shown in the image example.

You only need to check the intervals between the "suspected" is a reaction high to the breakout interval to see if the "suspected" reaction high has qualified as a reaction high. It doesn't matter how many intervals are between the suspected reaction high interval and the breakout interval.

Mark
Author:  kong28 [ Thu Jul 06, 2017 2:35 am ]
Post subject:  Re: Question about Reaction High
Hello,
Another question is about Reaction High is about the bold phase. "Reaction High - Price action had a minimum of two consecutive Up intervals (each interval Close > Open) with higher closes before the reaction high and then price decline after the reaction high to produce a minimum of two consecutive Down intervals (each interval Open > Close) with lower closes."
If the first down interval has close = 100 , high = 110 . The second down interval has close = 90 , high = 115. The close is lower than the first down interval ( valid condition ) , but the high is higher than the first down interval. Do we have to consider the high of the bar to be less than the first down interval to be a valid condition ?

Thank You,
Kong
Author:  wrbtrader [ Thu Jul 06, 2017 3:09 am ]
Post subject:  Re: Question about Reaction High
Hi,

In your simple example...the interval with the high = 115 would be the "reaction high" if there are other intervals higher than the 115.

Thus, the requirement involves the comparison of the interval closes.

Regards,
M.A. Perry
Page 1 of 1 All times are UTC - 5 hours [ DST ]
Powered by phpBB © 2000, 2002, 2005, 2007 phpBB Group
http://www.phpbb.com/