分类: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[编辑 | 编辑源代码]

• 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 (or the EB) 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. (For e.g on 20230511, 53 closed as a strong BLBCH after 51-52 two very strong BRBCL, as 53 was reversing up, it stayed at the top 1/4 for most of the time until closed on its high, this is strong buying pressure, plus market is still possibly in TR, it is better to get out above 53 if shorting)
• 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[编辑 | 编辑源代码]

• 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[编辑 | 编辑源代码]

First pullback[编辑 | 编辑源代码]

• 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[编辑 | 编辑源代码]

• 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[编辑 | 编辑源代码]

• 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[编辑 | 编辑源代码]

• 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.