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<abbr>''The 1st pullback after the reversal attempt from a wedge bottom.''</abbr> 

== General ==
[[File:Wedges 6.png|thumb|602x602px]]<abbr>''Among many different variations of MTR, especially [[HLMTR]] and [[LHMTR]], there are certain type of setups that have higher chance of success, based on various factors. [https://www.priceactionindicators.com/about/ Thomas Deutschmann] had a post [https://www.priceactionindicators.com/2020/07/29/trade-the-1st-pullback-after-a-wedge-the-w1p/ Trade the 1st Pullback after a Wedge – the W1P!] that explained a concept called W1P that was originally brought up by [https://ninetrans.blogspot.com/2011/02/wedge-reversals-and-w1p.html cadaver]. W1P is actually a special case of HLMTR/LHMTRs that cadaver narrowed it down with some specific criterias so that '''trader can use them to find the best MTR set up, and avoid less-good set ups'''.''</abbr> <abbr>''More example chart can be found here:''</abbr> ''https://www.priceactionindicators.com/2020/07/29/trade-the-1st-pullback-after-a-wedge-the-w1p/. (Credit to Thomas Deutschmann)''
 
[[File:20221108pa.png|thumb|602x602px|Figure 1 - [[20221108]]]]

== Wedge reversal ==
''A Wedge reversal (three or four pushes each with a new extreme) forming at the top or bottom of a trend is probably the most successful setup for a swing trade.'' 

=== Most crucial ===
''A clear trend <abbr>channel</abbr> line overshoot and in particular a second overshoot, which essentially makes it a typical [[PW]]. It is actually better if the wedge is more climactic than being a "weaker" wedge. By a "weaker" wedge, traders can feel a sense of lacking strength or urgency of both buying and selling. For e.g. on [[20230508]], the wedge 5-9-13 is a "weaker" form of wedge.'' 

=== Strengtheners ===
''The more strengtheners the higher probability of success.''
# '''''Strong reversal bar''' (with an average size), that isn’t overlapping with prior swing low, i.e. the 3rd or 4th push created a clear gap below the prior low, see the gap below 57L and 61H in figure 1.''
# '''''Strong entry bar''' (closed around its high), preferably larger than the reversal bar, for e.g. bar 62 in figure 1.'' 
# ''The <abbr>pullback (if any) after the entry bar</abbr> '''should not take out the <abbr>entry bar</abbr> by more than''' '''one tick'''.'' 
# ''One push move off the wedge <abbr>signal bar</abbr>, that takes out a prior swing point, indicating bulls ability to close the gap quickly, hence strong [[BP]].''
# ''Breakout test of the entry price of the reversal bar during the <abbr>[[W1P]](1st pullback after the Wedge).</abbr> In figure 1, the W1P happened at bar 67 but was bought quickly and never get close to bar 62 the entry bar.''

=== Weakeners ===

# ''Overshoot is small (a tick or two) and there is only one overshoot''
# ''There is an overshoot but it does not look like extreme behavior (W are extreme behaviors)''
# ''The reversal signal and entry bars are weak''

''The above signs of weakness may imply trend termination into trading range or simply a pullback<ref>[http://ninetrans.blogspot.com/2011/01/four-trades-off-nine-transitions.html ''http://ninetrans.blogspot.com/2011/01/four-trades-off-nine-transitions.html'']</ref>.''

== ''Stop order entry'' ==

* ''buy above the W1P bar using.''
* ''or buy above the bull reversal bar, higher RR but lower probability.''

== ''Stop Placement'' ==
''Either use a bar stop below the <abbr>W1P</abbr> bar, or for a higher probability trade (but lower reward/risk) use a stop beyond the wedge reversal signal (bar 61 in above example).''
<references />
[[Category:MTR]]
[[分类:GOOD SWING CHOICES]]