We have developed a checklist of attributes to evaluate signals. This list tells you what to look for as each bar develops, when looking to enter a trade. Of course, one should only be looking to enter a trade after determining Context and confirming Momentum on a particular market. Then, as we look to enter a trade, we want to see a Signal bar with as many correct attributes as possible.
The signal bar attributes are: development of a new price extreme, level of overlap, closing price compared to the previous closes, position of the close within the span of the bar, corresponding RSI value, the size of the shadow against the signal’s logic, previous reversal attempts, volume, relative size of the bar. Find our tutorial article about signal attributes here: Ideal reversal and Continuation Signals.