5-Minute Red Line — Crossover & Retest
Posted: Wed Aug 26, 2026 10:14 pm
Red Line: 21 SMA from the 5-minute chart, plotted on the 1-minute chart.
Crossover & Retest
Price pulls back and moves through the Red Line opposite the current day's trend, then crosses back over the Red Line in the direction of the current day's trend.
Price creates space, retests the Red Line, and we look for continuation in the direction of the day's trend.
Example
Late morning or mid-afternoon, the market is up for the day and price starts meandering down through the Red Line and underneath it while the Red Line is still pointing up.
Price is "seeking support."
We don't know where it will find support. It may be a Fibonacci level, previous support line, or another level.
We stay out of this move.
We know the market is up for the day and buyers are looking for a reasonable place to continue the market higher.
We are looking for candles to run back up through the Red Line in the direction of the existing day's trend.
No Donchian Channel is needed for this setup.
Rules
1. Crossover — Approximately 10:00–2:00
Price crosses back over the Red Line in the direction of the overall market trend for that day.
2. Create space
Price creates space between the candle bodies and the Red Line.
3. Retest the Red Line
Price rotates back and retests the Red Line.
Enter on the candle break in the direction of the market trend.
4. After approximately 2:00
Later in the day, particularly when the market has not made a large move, price will often run through the Red Line and set up a counter-trend retest.
This can occur as trades are closed out late in the day and price moves back toward the Overnight Open.
These notes are intended as a reference for those of us already following and trading Bob's strategy.
Please add your own observations, trade examples, charts, or questions below. If you think any of these rules don't accurately reflect how Bob teaches the Red Line crossover/retest, post that as well so we can discuss it.
Crossover & Retest
Price pulls back and moves through the Red Line opposite the current day's trend, then crosses back over the Red Line in the direction of the current day's trend.
Price creates space, retests the Red Line, and we look for continuation in the direction of the day's trend.
Example
Late morning or mid-afternoon, the market is up for the day and price starts meandering down through the Red Line and underneath it while the Red Line is still pointing up.
Price is "seeking support."
We don't know where it will find support. It may be a Fibonacci level, previous support line, or another level.
We stay out of this move.
We know the market is up for the day and buyers are looking for a reasonable place to continue the market higher.
We are looking for candles to run back up through the Red Line in the direction of the existing day's trend.
No Donchian Channel is needed for this setup.
Rules
1. Crossover — Approximately 10:00–2:00
Price crosses back over the Red Line in the direction of the overall market trend for that day.
2. Create space
Price creates space between the candle bodies and the Red Line.
3. Retest the Red Line
Price rotates back and retests the Red Line.
Enter on the candle break in the direction of the market trend.
4. After approximately 2:00
Later in the day, particularly when the market has not made a large move, price will often run through the Red Line and set up a counter-trend retest.
This can occur as trades are closed out late in the day and price moves back toward the Overnight Open.
These notes are intended as a reference for those of us already following and trading Bob's strategy.
Please add your own observations, trade examples, charts, or questions below. If you think any of these rules don't accurately reflect how Bob teaches the Red Line crossover/retest, post that as well so we can discuss it.