Video 35A: Scaling in - 30:55 - Wedge Higher High Major Trend Reversal?

Posted by: @marx-santannagmail-com

Hi.

Is it reasonable to expect a major reversal here? a weak bear breakout, weak sell signal bar,  the pattern has less than 20 bars.

It is close enough to be considered a reliable pattern?

I'm not even sure where your referring to. If your talking about where Dr Brooks is referring to, I'd imagine it's after the big green box where there was a climax and a wedge, and also after the smaller flatter wedge at the end of that goldish box... is the possible MTR.

That looks like it absolutely could have been an MTR if it continued with a higher low. (It didn't)

To me, call it what you want, it's an inflection point. You could structure a good long or short here.

My preference would have been to short after the break above green box wedge and manage. But that's me.

I'd manage my trade because it could have just as easily broken above for a MM.

Hope that helps a bit?

Is it reasonable to expect a major reversal here? a weak bear breakout, weak sell signal bar,  the pattern has less than 20 bars.

It is close enough to be considered a reliable pattern?

Well, it is reasonable (for a swing).

But is it a good decision? I don't think so. You can verify that with your own words: "weak bear BO, weak SB, less than 20 bars...". 3 arguments saying that "this does not look good".

I don't think Al was referring to the possibility of a MTR meaning that "you could go short". I think his point was "you could exit your longs". There is a difference in there.

Does it make sense?

Thanks Bruno. It is clear now.