Trading Climactic Reversals (Failed Breakouts) Flashcards

1
Q

If the Bulls can make money in a Bear Trend what is that telling me?

A

That Channel/Trend is not all that strong and it will soon probably transition into a TR or a Trend Reversal

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2
Q

Where do Bulls enter the market?

A

Bulls enter where Bears take Profits and Vice Versa for the Bears

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3
Q

Weak Bear BO - Deep PB

A

Weak Bear BO - Deep PB

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4
Q

Bulls and Bears Buy Low and Sell High (BLSHS)

A

Bulls and Bears Buy Low and Sell High (BLSHS)

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5
Q

Most Traders should NOT Reverse

A

Most Traders should NOT Reverse

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6
Q

Every BO Trend Bar is at least what?

A

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

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7
Q

Climax- Exhaustion Gap (EG) OR Measuring Gap (MG) …

A

Climax- Exhaustion Gap (EG) OR Measuring Gap (MG) …

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8
Q

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

A

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

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9
Q

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

A

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

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10
Q

Exhaustive Sell Climax - Beginners Should EXIT SHORTS

A

Exhaustive Sell Climax - Beginners Should EXIT SHORTS

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11
Q

What do the Weak Bears do at Highs?

A

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

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12
Q

Strong Bulls bought lower when RISK was Big

A

Strong Bulls bought lower when RISK was Big

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13
Q

What do Strong Bulls see a BIG BO as near a probable end of a Trend?

A

Strong Bull see a BIG BO as a Gift and they take PROFITS

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14
Q

Do Strong bulls wait to Buy after a Buy Climax or do they Buy during?

A

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

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15
Q

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

A

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

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16
Q

Strong Bears sometimes sell the close of a Climatic Bull Bar

A

Strong Bears sometimes sell the close of a Climatic Bull Bar

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17
Q

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

A

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

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18
Q

What are some ways to Enter for a Reversal at this Bull Climax at the top of the TR for a Short?

A

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

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19
Q

As Trends progress they weaken

A

As Trends progress they weaken

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20
Q

Where is the Profit Target?

A

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

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21
Q

Where is the Stop?

A

The Stop is just above a Measured Move up

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22
Q

When should I use a Tight Stop in a TR?

A

Use a Tight stop when there is a Strong Signal

23
Q

Failed BO - Scalp Part or All of Position

A

Failed BO - Scalp Part or All of Position

24
Q

V Tops and bottoms are almost ALWAYS are Something Else

A

V Tops and bottoms are almost ALWAYS are Something Else

25
Q

Exhaustive Sell Climax - Big Bear Bar Late in Bear Trend

A

Exhaustive Sell Climax - Big Bear Bar Late in Bear Trend

26
Q

Wedges do not always have to have perfect wedge shapes, as long as there is 3 pushes up or down it can me classified as a wedge with great context.

However the better looking the wedge the higher probability exists in that wedge

A

Wedges do not always have to have perfect wedge shapes, as long as there is 3 pushes up or down it can me classified as a wedge with great context.

However the better looking the wedge the higher probability exists in that wedge

27
Q

After EXTREME Selling who does the probability favor?

A

After extreme selling the probability favors the BULLS

Do not expect an instant Major Reversal but if we get a TR & the probability is even more in the Bulls Favor they will start to look to BUY

28
Q

Anything that is unsustainable in the markets is Climatic

Climax since unsustainable able there is a 70% chance of a TBTL PB or reversal and only a 30% chance of a bear BO and new swing down

A

Anything that is unsustainable in the markets is Climatic

Climax since unsustainable able there is a 70% chance of a TBTL PB or reversal and only a 30% chance of a bear BO and new swing down

29
Q

Is a Micro Channel Late in a Trend a Climax or is it just a a Micro Channel?

A

a Micro Channel Late in a Trend is a Climax

18 bar bear Micro channel will soon have no one left to sell making it a climatic move

Climax since unsustainable able there is a 70% chance of a TBTL PB or reversal and only a 30% chance of a bear BO and new swing down

30
Q

Does the 1st BO above a Micro Channel usually succeed or fail?

A

The 1st BO above a Micro Channel usually FAILS

but a Trader can scalp since a reversal is likely soon after an extreme climax

31
Q

Anytime I see a Sell Climax what should I be doing and preparing for?

A

Look to or Prepare to Buy

32
Q

If Climax is NOT EXTREME is the Reversal usually Big or Small?

A

If the climax is not extreme the reversal is usually small

33
Q

Unusual Behavior = Is Unsustainable and Climatic

A

Unusual Behavior = Is Unsustainable and Climatic

34
Q

Buy Climax = SO DO NOT BUY

A

Buy Climax = SO DO NOT BUY

35
Q

How often does a strong trend transition to a reversal strong trend?

A

This very rarely occurs in the market

When a strong bull reverses, usually it is a minor reversal into a TR or Bull Flag

Once in TR, then it can form a MTR and an opposite trend

36
Q

When I sell a Buy Climax WHAT IS MY GOAL?

A

When Selling a Buy Climax, the GOAL is a Scalp

If then forms a MTR, goal can then be a Swing Trade

37
Q

Is the first reversal up after a climatic move usually major or minor?

A

The first reversal up is usually a minor reversal into a TR or bear flag

Once in TR, can then form a MTR and an opposite trend

38
Q

After a minor reversal up from a strong bear climatic move the Bulls wills look for a DB in a TR for a MTR swing trade

A

After a minor reversal up from a strong bear climatic move the Bulls wills look for a DB in a TR for a MTR swing trade

39
Q

After a Climax what is likely to occur in the markets? And what can it form?

A

After a Climatic end to a Trend the odds are high there will be sideways movement and a TR will emerge

In this TR it can form a possible MTR

40
Q

Whenever the market makes a strong move on the open there is a 50% chance the move is in the wrong direction

A

Whenever the market makes a strong move on the open there is a 50% chance the move is in the wrong direction

41
Q

a Climax is common on the open

A

a Climax is common on the open

42
Q

Final Bear Flag lead to a Climatic BEAR BO to Reversal up

A

Final Bear Flag lead to a Climatic BEAR BO to Reversal up

43
Q

When buying in a Tight Channel you are buying for a scale as reversals will be minor

A

When buying in a Tight Channel you are buying for a scale as reversals will be minor

44
Q

Bears Sell DT Bear Flag for a Swing Down

A

Bears Sell DT Bear Flag for a Swing Down

45
Q

Exhaustion Gap can become a Measuring Gap

A

Exhaustion Gap can become a Measuring Gap

46
Q

a Failed Reversal attempt often leads to a Measured Move (MM)

A

a Failed Reversal attempt often leads to a Measured Move (MM)

47
Q

What is one way to reduce risk?

A

One way to reduce risk is to reduce your position size

48
Q

What kind of Traps are common in TRs?

A

2nd Leg Traps are very common in TRs

80% of BO attempts Fail

Reasonable to take Partial Profits at the bottom of the Buy Climax

49
Q

Whenever I have a weak Bull rally what is it most likely to be?

A

It is probably the start of a bull leg in a TR

10 Bar Bull Micro Channel so relatively strong bulls but this

rally is weak since small bars, overlap, and tails

50
Q

When Trend is Weal the Climax is usually small

A

When Trend is Weal the Climax is usually small

51
Q

STRONG Reversal from Sell Climax and GOOD CONTEXT

=

Likely not to go much further down and will start to evolve into a TR and possible Reversal

A

STRONG Reversal from Sell Climax and GOOD CONTEXT

=

Likely not to go much further down and will start to evolve into a TR and possible Reversal

52
Q

What does a Small Climax usually lead to?

A

a Small Climax usually leads to a Minor Reversal and than evolves into a TR

53
Q
A