Trading Climactic Reversals (Failed Breakouts) Flashcards
If the Bulls can make money in a Bear Trend what is that telling me?
That Channel/Trend is not all that strong and it will soon probably transition into a TR or a Trend Reversal
Where do Bulls enter the market?
Bulls enter where Bears take Profits and Vice Versa for the Bears
Weak Bear BO - Deep PB
Weak Bear BO - Deep PB
Bulls and Bears Buy Low and Sell High (BLSHS)
Bulls and Bears Buy Low and Sell High (BLSHS)
Most Traders should NOT Reverse
Most Traders should NOT Reverse
Every BO Trend Bar is at least what?
Every BO Trend Bar is at least a Minor Climax
Climax is an acceleration of a move up or down
Most BOs(climaxes) are minor and are part of TRs or Channels
Climax- Exhaustion Gap (EG) OR Measuring Gap (MG) …
Climax- Exhaustion Gap (EG) OR Measuring Gap (MG) …
Exhaustive Buy Climax - Beginners should exit their Longs
When you get a Buy Climax I should not bet thinking a Reversal into a new Trend rather I should be thinking about this is an exhaustive end to the current trend (a Pause) and see what the Bears can do from this point; rather that is a TR or a Reversal
Exhaustive Buy Climax - Beginners should exit their Longs
When you get a Buy Climax I should not bet thinking a Reversal into a new Trend rather I should be thinking about this is an exhaustive end to the current trend (a Pause) and see what the Bears can do from this point; rather that is a TR or a Reversal
When you see a Big Climatic move near a possible end of a Trend, I should see this as a GIFT and take profits.
Strong Bulls will take profits, do NOT look to Buy
When you see a Big Climatic move near a possible end of a Trend, I should see this as a GIFT and take profits.
Strong Bulls will take profits, do NOT look to Buy
Exhaustive Sell Climax - Beginners Should EXIT SHORTS
Exhaustive Sell Climax - Beginners Should EXIT SHORTS
What do the Weak Bears do at Highs?
Weak Bears Buy at Highs
Weak Bears who have been selling and possibly scaling in can no longer take the pain and buy back their shorts
Strong Bulls bought lower when RISK was Big
Strong Bulls bought lower when RISK was Big
What do Strong Bulls see a BIG BO as near a probable end of a Trend?
Strong Bull see a BIG BO as a Gift and they take PROFITS
Do Strong bulls wait to Buy after a Buy Climax or do they Buy during?
Strong Bulls wait to Buy after a Buy Climax
The strong Bulls want to see if the Bears will be able to create a Reversal down and after 10 Bars down if the Bears fail to do that the Bulls than assume the rest of the day will be in a TR
When Strong Bears see this BIG Buy Climax they know the Bulls are taking Profits and will wait to buy for 5-10 bars
Strong Bears Sell Strong Bull closes at the same time Strong Bulls are Selling to take Profits
When Strong Bears see this BIG Buy Climax they know the Bulls are taking Profits and will wait to buy for 5-10 bars
Strong Bears Sell Strong Bull closes at the same time Strong Bulls are Selling to take Profits
Strong Bears sometimes sell the close of a Climatic Bull Bar
Strong Bears sometimes sell the close of a Climatic Bull Bar
Major Climax is Big BO Late in Trend
It is important to be aware of Big Climatic moves near the end of a Trend, be aware it could be a reversal (MTR) into an opposite Trend or simply a pause in the Trend
Major Climax is Big BO Late in Trend
It is important to be aware of Big Climatic moves near the end of a Trend, be aware it could be a reversal (MTR) into an opposite Trend or simply a pause in the Trend
What are some ways to Enter for a Reversal at this Bull Climax at the top of the TR for a Short?
Sell the close of the huge bull bar,
especially since it has a tail and is in a TR
(possible 2nd Leg Trap)
Sell the Close of the small follow-through bar buy signal bar
Sell reversal below bear bar
Sell above High 1 after 3 bear bars
As Trends progress they weaken
As Trends progress they weaken
Where is the Profit Target?
Bears are looking for a MM Profit taking area at the bottom third of the TR
Profit Target is at or below bottom of Bull BO
Where is the Stop?
The Stop is just above a Measured Move up