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22C Slide 7
I don't see the MTR here. Where is the selling pressure? I don't see the series of bear bars (5-10) that Al mentioned after the trendline break. Isn't this likely a minor trend reversal? Thanks
I would see it as an MTR after some time in trading range/minor reversal as shown below. A Double Top is always a Low 2 (and MTR), so that is why Al would have seen and labelled it such on video.
@richardhk thank you for the response! Would it be fair to say a MTR needs either selling pressure (series of bear bars) OR a minor trend reversal/trading range? In other words, a MTR doesn't need selling pressure if it has a 20+ bar trading range for example following a trendline BO?
Hi T J,
Here is the way I see it. The selling pressure doesn't have to be printed bear trend bars. It can be shown on weak follow-throughs after a strong bull trend bar, failed MMs, or the legs' slopes. From the very left, there was a strong tight bull channel. We would expect another leg up based on this leg's height (more correctly, slope), but the second leg was immature and was in a much broader channel than the previous, suggesting that the bull momentum is waning. There was a huge bear trend bar closing on its low that is also below the low of 2 bars, followed by another bear trend bar closing well below more than 5 bars earlier; this is the second red flag. The third red flag is that the market took way too long to make a double top test, even longer than the time it took to develop the second leg up. Last but not least, the bull leg up that formed a DT was weak with weak follow-throughs after each huge bull trend bar. To me when trading BOs or momentum, when it works it should work flawlessly and immediately, unlike any of those I have mentioned.