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In this bear trend, when i can conclude that this bull flag has turned into a bull trend. I don't see any re- test of the extreme either. On a broader aspect it's in trading range.
Thanks
Generally speaking if a pullback reaches 20 o more bars it becomes an endless pullback and at the point chances are 50/50 for a bear or bull breakout.
In that chart though I see that movement from the open as an ABCD pattern that went to test the apex of the triangle ( the bo point), so I'm expecting the price to move away from there without the need to retest the extreme ( It's already a test).
After two legs down, an HL and HHs Hls?
Thanks Fred and Mike for explaining it.
Fred,
Can you please elaborate on where you see the apex of the triangle and ABCD movement?
Mike,
The HL DB, I couldn't have thought of a trend reversal since it's has not crossed the trendline at that point and also the price is below the EMA. As per the AL if the price is below the EMA you should be always looking to short.
Also was it possible to trade that bull flag because when it was forming I couldn't able to trade, i was shorting from the second HL expecting it it go down because the overall bull flag looked weak to me.
Thanks
Nandkishore
This would have brought me not the expect a pullback and a resumption, but the end of the move down at point D. And as Mike said , that higher low would have been a confirmation
Thanks Fred, I understand now what you mean.
Look what happened today, trend resumption 😊
Today I also found this in the book, even though I still have doubts when it comes to bar counting
When a bear trend or a sideways market is correcting sideways or up, the first bar with a low below the low of the prior bar is a low 1, ending the
first leg of the correction, which can be as brief as that single bar. Subsequent occurrences are called the low 2, low 3, and low 4 entries. If the low 4
fails (a bar extends above the high of the low 4 signal bar after the low 4 short triggered), the price action indicates that the bears have lost control
and either the market will become two-sided, with bulls and bears alternating control, or the bulls will gain control
NY, some more insights ... could be wrong (attached)
Thanks Mike