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@ approx. 05:00. Al is talking about how longer pullbacks, once over 20 bars become 50/50 for bears vs. bulls. In this screenshot, there was a bull breakout out of what started as a bear flag to the left of the the bars he has counted there. On the right, when there is a bear breakout of the pullback, he says that there was a bear breakout and likely at least another bear leg down after the first one. I'm wondering if there is an equal chance of being another leg down in both the bear breakout on the right as well as the bull breakout earlier on the left. And if not, is there a reason this bear breakout is more likely to have the extra leg down?
Thanks
I'm wondering if there is an equal chance of being another leg down in both the bear breakout on the right as well as the bull breakout earlier on the left.
The same forces at work but in opposite direction, so the probability for a second leg after a successful BO is the same, no matter what direction.
And if not, is there a reason this bear breakout is more likely to have the extra leg down?
By all intent and purposes PA is symmetrical. The differences are tiny: The sell offs can be stronger due to option trading firms and the parabolic wedge tops are less common than their bear counterparts, but this does not affect your PA reading.
Awesome, thanks for replying so quick. Also thanks for all of the interaction you've had on other questions on here. I've been reading through and just wanted to say thanks for your input here.
Happy to help!
