I think this chart demonstrates what I was on about Strat. I think we are singing from the same song sheet, just another method of confirmation that a trend change could be in the offing?
Recall Al's saying:
"Major reversals reverse a trend that has been in effect for days or weeks. The best trend reversal entries have a break of a significant TL before the set-up, because you do not want to to enter counter-trend until you know the counter-trend traders have already shown some ability to control the market. Enter on a pullback that tests the trend's extreme.
At point A we have a trend line break. Remember at this time we can't see the rest of the PA to the right. So, because we have a TL break and we are patient traders we wait for that BO to be tested with a pullback. We also get a double top bear flag at the SR level .6066 indicating lower prices to come. This happens at point B but now because we have had a major TL break we are looking for PASR to tell us that the bulls are in charge. Point B is also at the Big Boss DSRI drawn from the low in Nov 1999 to low in Jan 2001.
This comes with the small double bottom and the BUEB on Mar 10. The script then picks up from where you started.
This is all I was trying to explain to help me better understand when to expect a reversal and not to go chasing the market on sucker moves. It seems that there is ALWAYS a chance to get in on any move as 90% of the time the market comes back to test the break out.
Recall Al's saying:
"Major reversals reverse a trend that has been in effect for days or weeks. The best trend reversal entries have a break of a significant TL before the set-up, because you do not want to to enter counter-trend until you know the counter-trend traders have already shown some ability to control the market. Enter on a pullback that tests the trend's extreme.
At point A we have a trend line break. Remember at this time we can't see the rest of the PA to the right. So, because we have a TL break and we are patient traders we wait for that BO to be tested with a pullback. We also get a double top bear flag at the SR level .6066 indicating lower prices to come. This happens at point B but now because we have had a major TL break we are looking for PASR to tell us that the bulls are in charge. Point B is also at the Big Boss DSRI drawn from the low in Nov 1999 to low in Jan 2001.
This comes with the small double bottom and the BUEB on Mar 10. The script then picks up from where you started.
This is all I was trying to explain to help me better understand when to expect a reversal and not to go chasing the market on sucker moves. It seems that there is ALWAYS a chance to get in on any move as 90% of the time the market comes back to test the break out.
Trade less and become more profitable!