I hope this is the correct place for this.
In Mark Fisherâs book he defines a Sushi Roll as an early indicator or a possible trend reversal. He basically compares 5 bars (inside bars) to the next 5 bars (outside bars), he says the time frame isnât important as long as your are consistent with comparing the latest 5 increments of time with the prior 5 increments of time. Iâve watched a few seminars that he has held, but I couldnât get an exact answer.
Iâm hoping someone more proficient in using this early indictor can shed some light on a few questions I have, and possibly post some charts of where a sushi roll has taken place.
1. MBF says it must be 5 increments of time, but it doesnât matter as long as your are consistent.. Why 5 bars? Could someone use any number of bars, as long as they are consistent with the same number of outside bars, inside bars?
2. Does the Sushi Roll have to close above the inside bars AND below the inside bars to be valid? E.G. If a stock/commodity has been in an established down trend, does the outside bars have to first close below the inside bar, then close above the inside bars? Or would it be valid if after a consolidation at the bottom of a downtrend, the outside bar closes above the inside bar, then its confirmed by another close above the previous high outside bar?
3. What is the logic behind this concept?
E.G. If a stock/commodity has been in an established downtrend, then proceeds to consolidate. The people who were not in the first downtrend are looking for a spot to get in short, or the people who were in are looking for a reason to add. The logical spot might be a break of the consolidation lower, close on below the inside bars. Then they are trapped when a proceeding outside bar closes above the inside bars, but wait it out? Then the confirmation bar above the previous outside bar is the short squeeze forcing everyone to cover?
Iâm just looking for more clarity as to what constitutes a valid sushi roll, any examples would be appreciated.
In Mark Fisherâs book he defines a Sushi Roll as an early indicator or a possible trend reversal. He basically compares 5 bars (inside bars) to the next 5 bars (outside bars), he says the time frame isnât important as long as your are consistent with comparing the latest 5 increments of time with the prior 5 increments of time. Iâve watched a few seminars that he has held, but I couldnât get an exact answer.
Iâm hoping someone more proficient in using this early indictor can shed some light on a few questions I have, and possibly post some charts of where a sushi roll has taken place.
1. MBF says it must be 5 increments of time, but it doesnât matter as long as your are consistent.. Why 5 bars? Could someone use any number of bars, as long as they are consistent with the same number of outside bars, inside bars?
2. Does the Sushi Roll have to close above the inside bars AND below the inside bars to be valid? E.G. If a stock/commodity has been in an established down trend, does the outside bars have to first close below the inside bar, then close above the inside bars? Or would it be valid if after a consolidation at the bottom of a downtrend, the outside bar closes above the inside bar, then its confirmed by another close above the previous high outside bar?
3. What is the logic behind this concept?
E.G. If a stock/commodity has been in an established downtrend, then proceeds to consolidate. The people who were not in the first downtrend are looking for a spot to get in short, or the people who were in are looking for a reason to add. The logical spot might be a break of the consolidation lower, close on below the inside bars. Then they are trapped when a proceeding outside bar closes above the inside bars, but wait it out? Then the confirmation bar above the previous outside bar is the short squeeze forcing everyone to cover?
Iâm just looking for more clarity as to what constitutes a valid sushi roll, any examples would be appreciated.
