TRADER ASSESSMENT INSIGHTS FOR RIGHT SHOULDERS

  • Right Shoulders that are preceded by a Head that possessed obvious Conclusionary Order Flow are more likely to have follow through of Price than Right Shoulders that are preceded by Heads that do not have obvious Conclusionary Order Flow.
  • Right Shoulders that are preceded by a Head that was proceeded by material price excursion are more likely to have follow through of Price than Right Shoulders that are preceded by Heads that was not proceeded by a material price excursion.
  • A successful Right Shoulder trade tees up a Breach of the Neckline trade. This is important as you can use the breach of a neckline as an additional trade, or as evidence to support pushing out your target.
  • Failed Right Shoulders are frequently trapping traders. Hence, a failed Right Shoulder trade can frequently be reversed.
  • This reversal can frequently more than cover the stop loss on the original Right Shoulder trade.
  • The greater the Left Strength of the Right Shoulder pivot, the better.
  • If the bar prior to the Right Shoulder pivot, which is the Bot signal bar, has demonstrable Conclusionary Order Flow, that's a good sign.

The NinjaBots Deployment Workflow for Right Shoulders

Alert


Note – This evolution of price and order flow is more effective for a Reversal (Head) that tees up a Right Shoulder when coming into Major Support.

You can use your current indicators and approaches to define Major Support, and/or, you can investigate Ludwig Levels for Support, Resistance, Up Trend vs Down Trend Levels, and Swing Targets.

Before Engagement Lower Low of a Series of at Least 3 Lower Lows

IE – A Mature Down Trend

If, Lower-Low With Potential Conclusionary Supply-Based Order Flow:

Q: After the Lower-Low, was:

  • There an Upward Price Excursion > x Ticks and also
  • The Price Excursion Accompanied by Substantive Demand-Based Order Flow

If Yes, Then Consider Deploying:

  • Long Bot with Price Pivot to Catch the Right Shoulder.

Keep on the Lookout For à A Neckline Breach Point

If No, Then Consider Deploying:

  • Short Bot without Price Pivot to Catch the Breach of Support.
  • Short Bot with Price Pivot to Catch A-B-C Retracement.

If, Lower-Low Without Potential Conclusionary Order Flow:

Consider Deploying:

  • Short Bot without Price Pivot to Catch the Breach of Support.
  • Short Bot with Price Pivot to Catch A-B-C Retracement.

Keep on the Lookout For a A Lower-Low "Tick of Death"

If, A ‘Tick of Death’ Lower-Low Without Potential Conclusionary Order Flow That Was Preceded by a Lower-Low With Potential Conclusionary Order Flow:

Q: After the Lower-Low, was:

  • There an Upward Price Excursion > x Ticks and also
  • The Price Excursion Accompanied by Substantive Demand-Based Order Flow

If Yes, Then Consider Deploying:

  • Long Bot with Price Pivot to Catch the Right Shoulder.

A Bot with Price Pivot to Catch Right-Shoulder, A-B-C Retracement

A Bot without Price Pivot to Catch the Breaches