Ignore the News

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.

Note

Note

70% pullback

Note

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.

Note

Channel breakdown and test

Note

same logic 70% retracement. over bought zone. Reversal

Note

read oversold instead of overbought in above comment

Note

Gap up over median line; may come to test prior to upper parallel

Note

Measured move done and retraced more than 75% of last swing; may convert into a new trend.

AniketKabir

Also on:

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

AniketKabir

Also on: