Category:MAGB
Moving Average Gap bar. In a trend, If a pullback goes beyond the moving average, it will have the first moving average gap bar setup (for example, in a strong bull trend, there is finally a pullback that has a bar with a high below the exponential moving average). This is usually followed by a test of the extreme and likely a new extreme[1]. Each pullback prior to the reversal is a with-trend entry, because each is a first pullback of one type or another (bar, minor trend line, moving average, moving average gap, or major trend line), and any type of first pullback is usually followed by at least a test of the extreme and usually a new extreme until after the major trend line is broken[2].
MAGB Often leads to the final leg of a trend before the market attempts a MTR[3]. Bar 13 in below chart is an example of bull MAGB, i.e. MAGBB. It is also a possible WB or WBLF.
