Category:GD BX

After a gap down, especially a big gap down, if market has strong buying last many bars, forming a buy climax, there are 3 possibilities for today.

• 60% of the time, becomes TR, when it does, 20% chance of late trend reversal down or trend resumption up.
• 20% of the time, bull trend from the open lasts all day, usually a SPBLT.
• 20% of the time, bull trend from the open reverses into bear trend.
  • The strong buying on the open usually leads to TR or some kind of minor reversal before it can become bear trend, but 20% of the time it can reverse abruptly into bear trend without first transitioning into TR^[1].