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Hello,
When Al says this setup is a HL MTR, does he consider the gap opening down as the bear trend and the rally to the MA as the break of the bear "trend line" of the gap down, or is it based upon something else?
Thanks,
Andreas
Hello
Mr. Carpet, can you help clarify why this is not considered a HL MTR? It is a test of the bear low after a large gap down with reasonable buying pressure on the break of the "trendline"
Perhaps it is because of the small signal bar after the tight bear leg down testing the low, which possibly makes it more minor than major?
Thank you,
Andreas
This picture is last Friday of Emini. There was a big gap down confirming failed wedge bottom in the bear channel (Tuesday to Thursday). Big gap down is a sell climax or climatic behavior, so Friday was a wedge pullback after sell climax. The second half of the day was the bulls taking profit after wedge top (Big low 2 short) from the first half of the day or you could say "Midday reversal". You could see there is no "HL MTR" in Al's explanation.
When there is a strong bear after wedge top like this, you should not be too eager to buy soon because when there is a breaking below the bear channel, there should be at least two clear legs down in couple days. Yes, it could have a bounce along the way down, but you should be aware of buying too soon.
MTR is a low probability trade. You have low risk and low probability.
Hope it helps.
