Any trend that covers a lot of points in very few bars, meaning that there is some combination of large bars and bars that overlap each other only minimally, will eventually have a pullback. These trends have such strong momentum that the odds favor resumption of the trend after the pullback and then a test of the trend’s extreme. Usually the extreme will be exceeded, as long as the pullback does not turn into a new trend in the opposite direction and extend beyond the start of the original trend. In general, the odds that a pullback will get back to the prior trend’s extreme fall substantially if the pullback retraces 75 percent or more.
Bình luận:
Bình luận:
70% pullback
Bình luận:
To a price action trader, a huge down move in a bull market is probably just a bull flag, unless the move is followed by a series of lower lows and lower highs. It could be followed by a bear flag and then more of a rally, but until the bear trend is confirmed, you must be aware that the larger weekly trend is more important.
Bình luận:
Channel breakdown and test
Bình luận:
same logic 70% retracement. over bought zone. Reversal
Bình luận:
read oversold instead of overbought in above comment
Bình luận:
Gap up over median line; may come to test prior to upper parallel
Bình luận:
Bình luận:
Measured move done and retraced more than 75% of last swing; may convert into a new trend.
