分類:SRV

Strong RV. Strong and sharp reversal where market reversed in a V bottom or almost a V bottom (for e.g. a very strong reversal from a MDB or MDT). For example, on 20230510, market reversed sharply from bar 51 and 52 after the MDB 48-50. SRV usually happens at some MSR, on 20230510, market reversed sharply from the H of 20230504 after it closed the gap created by 20230505 big bull bar.

Strong reversals have essentially the same characteristics of any strong move, like a strong breakout or a strong trend. Here are a number of characteristics that are common in strong bull reversals^[1]:

Signal bar and Entry bar[編輯 | 編輯原始碼]

• There is a strong bull reversal bar with a large bull trend body and small tails or no tails. (Sometime the SB is relative small than the EB, but both closes on their highs with a strong body(no or small tails, for e.g. bar 51-52 on 20230510)
• The next two or three bars also have bull bodies that are at least the average size of the recent bull and bear bodies.
• The first or second bar of the breakout has a close that is above the highs of many prior bars.
• As the first bar of the reversal is forming, it spends most of its time near its high and the pullbacks are less than a quarter of the height of the growing bar.
• The signal is the second attempt to reverse within the past few bars (a second signal). (For e.g. a DB or MDB)
• The reversal began as a reversal from an overshoot of a trend channel line from the old trend. (For e.g. from a PW)

Context[編輯 | 編輯原始碼]

• The overall context makes a reversal likely, like a higher low or lower low test of the bear low after a strong break above the bear trend line. (a MTR)

Pullbacks[編輯 | 編輯原始碼]

First pullback[編輯 | 編輯原始碼]

• The first pullback occurs only after three or more bars.
• The first pullback lasts only one or two bars, and it follows a bar that is not a strong bear reversal bar.
• The first pullback does not hit a breakeven stop (the entry price).

Following pullbacks[編輯 | 編輯原始碼]

• The high 1 and high 2 pullbacks have strong bull reversal bars for signal bars.
• The pullbacks are small and sideways.
• The pullback to test the bear low lacks momentum, as evidenced by its having many overlapping bars with many being bull trend bars.
• The pullback that tests the bear low fails at the moving average or the old bear trend line.

Relentless buying[編輯 | 編輯原始碼]

• The spike grows to five to 10 bars without pulling back for more than a bar or so, and it reverses many bars, swing highs, and bear flags of the prior bear trend.
• The spike goes very far and breaks several resistance levels like the moving average, prior swing highs, and trend lines, and each by many ticks.
• There is a sense of urgency. You feel like you have to buy but you want a pullback, yet it never comes.

Others[編輯 | 編輯原始碼]

• It is reversing a significant swing high or low (e.g., it breaks below a strong prior swing low and reverses up).
• It has trending 「anything」: closes, highs, lows, or bodies.
• There were prior breaks of earlier bear trend lines (this isn’t the first sign of bullish strength).
• One or more bars in the spike have a low that is at or just one tick below the close of the prior bar.
• One or more bars in the spike have an open that is above the close of the prior bar.
• One or more bars in the spike have a close on the high of the bar or just one tick below its high.
• The breakout reverses many recent closes and highs. For example, when there is a bear channel and a large bull bar forms, this breakout bar has a high and close that are above the highs and closes of five or even 20 or more bars. A large number of bars reversed by the close of the bull bar is a stronger sign than a similar number of bars reversed by only its high.