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23b: MTR confusion
Video 23B, 7 min 26 sec.
I have added the red channel line and the red box.
Al indicates the MTR entry by green, but at that point the channel line hasn't been broken yet. Once you draw the channel line, you see that the MTR signal only occurs at around the red box, which is a lot later.
What am I missing?
The trendline doesnt need to be broken for a MTR. The MTR Al points out is a LL MTR and the one you point out is a HL MTR. The HL MTR has more probability compared to the LL MTR.
Side note: the DB on the chart with a wedge as last leg is Al's fav pattern, so i would always take this entry when the context is good.
The trendline doesnt need to be broken for a MTR
I don't think that's correct at all.
From the Glossary:
major trend reversal
A reversal from a bull to a bear trend or from a bear trend to a bull trend. The setup must include a break out of the channel
A possible interpretation could be to look at the 2nd DB and take the last bear and the following bull bar as a reversal in itself. As the BL bar has a prominent tail which could already indicate a reversal on its own. On a lower TF you should be able to see this clearer for sure but not mentioned here.
Additionally it could be the fact, that everyone is painting a bit different channel line. Someone do it including the tails some others paint those without including those.
I was talking about the trendline you drew P B. Each channel widens after an FBO. i can't see the whole chart but probably the second leg of the LL MTR is an FBO and coming back into the channel. After this FBO you draw the trendline again ( your trendline ) And you would wait for a BO of the trendline again. You could even create a new trendline after the HL MTR you point out and wait for the next ''MTR'' because you found a new trendline. I think you're focusing too much on the trendline and maybe you can look at other aspects of an MTR as well.
Al indicates the MTR entry by green
No, I think Al did not. At least from the screenshot, nothing was mentioned about MTR. There are many other reversal setups: final flag, sell climax, double top, double bottom, wedge...
In this case, I think it's a wedge sell off to form a double bottom with a strong leg that broke MA closing a strong bull bar above MA.
What if we look at the big bear bar as a failed BO below the bear channel? This would make sense since the follow through is a bull bar. The major reversal would then be from a BO below the channel, not above.
No, I think Al did not. At least from the screenshot, nothing was mentioned about MTR
He literally says in green "buy major reversal".
Yes, and he didn’t say “major trend reversal”, isn’t that right?
MTR is the name of one of the reversal setups and like other reversal setups it can lead to either a minor reversal or a major reversal. Al stated this somewhere. The “major” in the name “major trend reversal” can be confusing in this respect.
To BTC Admin: does Al's reference to 'Major Reversal' above, imply 'MTR'?
No, he is not referring to certain setup (major trend reversal) but to the context (major reversal).